According to Suffolk Life, a UK provider and administrator of SIPPs, changes to the capital gains tax rate created a significant increase in property completions in the run-up to the end of the tax year.

Peter Weir, director of property at Suffolk Life, says, ‘Historically we do see a noticeable uptake in our business in the final few weeks before the end of the tax year, as would any financial services company, but this year in particular the increase has been extraordinary. The change in capital gains tax from 6 April 2008 is directly responsible for this.’

Prior to 6 April 2008, taper relief policy allows for a reduction in the capital gains tax rate if a business asset is held for a certain period of time.

When a property is transferred from individuals to their SIPPs it is done at the current market value set by an independent property valuer.

Weir adds, ‘Suffolk Life had close to seven times more property completions than we normally see in an average week in the final two weeks before the end of the tax year. These requests came from new and existing scheme investors wanting to crystallize the value of their business properties before capital gains tax rates increased from ten per cent to 18 per cent.’