Purchasing commercial real estate through your pension can offer significant tax advantages, providing a way to introduce capital into your business while generating ongoing rental income for your scheme.
Note: Property investment is exclusively available via our Full SIPP.
While navigating pension regulations can appear complex, our dedicated team brings decades of experience to the table, ensuring transactions are fully compliant and executed smoothly. Below are key elements to consider when planning a purchase:
Before acquiring any property, a formal valuation must be conducted by a certified RICS Surveyor. This report must be addressed directly to the pension Trustees.
Pension schemes are permitted to borrow up to 50% of their net asset value to help fund a property purchase. We must approve all loan documentation prior to drawdown.
All new property acquisitions must be insured under our comprehensive block policy to guarantee adequate cover, including extensive liability and loss-of-rent protection.
We require the appointment of an external professional property manager for all new instructions. It is vital that rents are collected commercially and arrears managed strictly.
To remain compliant with HMRC pension regulations and our internal risk mandates, there are certain property types we are unable to hold within our SIPP structures.
We manage the transactional process from initial enquiry through to completion, liaising with all parties so you don't have to.
We utilize an exclusive panel of specialized legal experts who understand pension compliance and HMRC nuances intimately.
Our dedicated internal teams handle all necessary VAT registrations and ongoing returns required for the property.
Commercial property is inherently illiquid compared to traded equities. This must be factored into retirement planning, ensuring sufficient liquid assets remain available to cover ongoing pension benefits, insurance, and rates during potential void periods.
