Commercial Property

Commercial Property

 

Using your SSAS or SIPP to invest in commercial property is a popular choice for business owners and individuals.

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Suitable purchases include (but are not limited to) offices, industrial units, shops, warehouses and land. Residential property is not suitable for a pension scheme.

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There are several advantages to using your pension scheme to invest in property:

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• TAX SAVINGS

  • No income tax on rents.

  • No capital gains tax on sales.

  • No inheritance tax.

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• FLEXIBILITY

  • Purchase property you own privately, thereby raising funds for you or your business whilst retaining control of the property through your pension scheme.

  • Purchase property from a third party or at auction.

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• SECURITY

  • If you purchase your business premises, you pay rent to your pension scheme, thereby funding your own retirement!

  • Property held in your pension scheme is protected from creditors in the event of insolvency.

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• BORROWINGS

  • Your pension scheme can raise borrowings from any party (whether a bank, your business or you personally) to assist with funding investment in commercial property, subject to regulatory limits.

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• VAT

  • Your pension scheme can register for VAT.

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We recommend you seek independent financial advice to decide if using your pension scheme to purchase commercial property is suitable for you.

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If you are interested in using your pension scheme to purchase commercial property, please contact us.