This means there is an opportunity for people to cash in their unit trusts and transfer it into a SIPP, then invest money from the SIPP, tax free, in leaseback property, although obtaining professional financial advice first is always a sensible step.
 
Leaseback property is a long-established French government-backed scheme whereby bought then immediately leased back to the developer/managing agency for a 19.6 per cent VAT rebate and a guaranteed annual rental return. As it is classified as commercial property it is allowed by UK law to be held in a SIPP. 

Pierre & Vacances is one of the largest companies to operate in the French property leaseback sector and has just launched La Residence de la Baie in the coastal town of Audierne in Brittany. The apartments guarantee investors a 3.75 per cent annual net return over a nine-year renewable leaseback period.
 
La Residence de la Baie will consist of 46 one bedroom and 26 one- and two-bedroom apartments. Prices for a one-bedroom apartment start from 113,000 euros (approx. £76,303) and two-bedroom apartments start at 151,000 euros (approx. £101,962).

Dario Nabavian, responsible for international marketing at Pierre & Vacances, says of the development's location in northern France: "Brittany is a short journey from the UK with an agreeable climate. It is a region of unexploited natural beauty and a rich cultural heritage waiting to be discovered by those who are looking for a sound and easy investment."
 
For those of you more interested in luxury than leasehold, developer Dr Amann & Co is currently marketing the Le Roc Golf & Spa Resort (pictured), the first five-star golf resort to be built between Cannes and St Tropez on the Cote d'Azur in France. 

The delivery of the first phase is expected in autumn 2007 and will consist of 15 townhouses, eight detached villas and 24 apartments. Prices for a fully furnished two-bedroom apartment start at 525,000 euros (approx. £360,000), and a fully furnished two-bedroom townhouse with garden start at 610,000 euros (approx. £417,000).
 
Vincent Easton, Director of UK marketing agent Premier Resorts, says: "The Cote D' Azur has always attracted a more discerning owner as well as the sophisticated investor who has viewed the region as a safe haven. The Le Roc project ticks all the right boxes: location, limited development opportunity and luxury services on tap."

Leaseback or luxury? The choice is yours.

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Read other articles about France:
Burgundy and Loire Valley explored
Unlock the rental potential of your French home
French property prices on the increase

Article published on 8 August 2006