Self-invested personal pensions, or Sipps, were expected to become very popular when the new A-Day pensions regime goes live in April next year. This was to have given investors the opportunity to invest in a wide range of alternative assets from residential property and expensive wine to vintage cars. But this week’s pre-Budget report has effectively put an end to all these new investment opportunities. Despite this, Sipps still have many attractions for investors who want more control over their own pension investments.

A big fear for some administrators was that the risks of allowing investors to shelter quirkier investments would outweigh the benefits. Some administrators are happy about this week’s news simply because it makes life simpler for them. For a Sipps administrator, allowing someone to invest in, say, a classic car would have been a risky proposition. Under the proposed rules as they stood before this week’s changes, the Sipp would own the car. So if an investor were to take it for a spin, the Sipp would have had to take on the cost of the insurance cover. If the driver had an accident, the Sipp would be forced to meet the costs of expenses not covered by the insurance.