Purchasing a commercial property using your pension scheme can be an effective use of your funds, with certain tax, finance and business benefits, provided that you receive the right financial advice and back this up with the right legal advice.
If you are considering purchasing a property using your pension scheme, or selling or leasing a property from your pension fund, we are here to help and advise you. This is a complex area with specific regulatory and other requirements that make this type of legal work very specialised. Here, our experienced Commercial Property Investments team explains the answers to several of the most frequently asked questions as well as exploring further how we can support you.
What is a Self-Invested Personal Pension (SIPP)?
A Self-Invested Personal Pension (SIPP) is a UK government-approved personal pension scheme which allows individuals to make their own investment decisions from a range of investments approved by HM Revenue and Customs (HMRC).
Having a SIPP gives you a degree of flexibility and control as you are making decisions and managing your pension yourself. If you are concerned about your time or knowledge in this area, you can appoint an investment manager to work as a trustee on your behalf.
What is a Small Self-Administered Scheme (SSAS)?
A Small Self-Administered Scheme (SSAS) is a type of UK Occupational Pension Scheme. Schemes are trust-based and established individually, usually by directors of limited companies for directors and specified employees of the company.
In comparison to a SIPP, the control over the pension lies with the trustees of the scheme, i.e. the directors of the company. The number of members within the scheme can vary, and can even just be one member who is looking for the opportunity to use their pension to invest in their business or in property.
Can I use my pension to buy a property?
Commercial property, for example offices, warehouses, restaurants, retail units, and some types of land can be purchased using a SIPP, depending on the SIPP provider, or a SSAS. The property or land can either be purchased outright or by taking out a mortgage against your pension. It is also a possibility to jointly purchase a property with another person or entity if your scheme does not hold enough funds to purchase individually.
Why use our Commercial Property team for your pension property investment?
With over 35 years of combined experience of working with pension property transactions, our Commercial Property team are best placed to advise you, providing you with the skills, knowledge and expertise you would expect from your chosen legal advisors.
We always provide our clients with first class, transparent advice which is particularly pertinent in this area of law, and we can support you in the following ways:
Examples of our previous work in pension property investments and purchases
During our many years of working within this field, we have worked with a wide variety of investors and their portfolios, ranging from:
To discuss your investment and pensions plans for the future, contact a member of the team today.