On 6 April 2006, the British government will allow changes in the way SIPP (Self Invested Personal Pension) is administered, as British Pension Plan holders will be allowed to invest in property. It is predicted that £4 billion will pour into the UK and overseas property market.

Trafford Busuttil, managing director of Propertyline Real Estate Agency, who recently attended a training seminar held in London on SIPP, is of the opinion that “if Malta gears up for SIPP’s launch in April, next year would be very fruitful for the local property market and all trades and professions, ancillary or associated to this market.”

Mr Busuttil, who is also the secretary of the Federation of Estate Agents (Malta), made particular reference to the fact that Maltese legislation allows property investors to purchase in special designated areas; he hopes that this will also be extended to all properties on the local market. This is because property purchase through a SIPP can only be made through a trustee.

Mr Busuttil added: “Malta is perfectly in position to benefit from the liberalisation of SIPP conditions and must not miss out on this golden opportunity, especially since other competing countries in the EU, prospective EU members and the Mediterranean have made the necessary allocations for this potential investment.” Statistics show that Malta has always been very attractive to the British market, which averages about 70 per cent of the foreigners who purchase property in Malta. In fact, two million Britons have second homes overseas.

The seminar brought to light the fact that the main attractions in SIPP amendments all relate to tax advantages.

SIPPs is beneficial as a number of pension holders can create a syndicate by pooling into a common fund on an annual basis, with the added benefit that the trustee can then borrow up to 50 per cent of the fund value.