Commercial Property

Benefit from tax free rental income and capital growth by acquiring commercial property in a property pension

The great thing about investing in commercial property with a pension is the two forms of income – Capital Value and Rental Income are tax-free

There are two types of pension scheme that allow you to buy property. A Self Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) can purchase commercial property as well as commercial and agricultural land. Once purchased, the property or land can be let to your company or a third party. This gives rise to tax-free rental income paid into the pension scheme bank account. 

Rather than making new contributions to a pension many of our clients transfer old employer pensions (final salary and money purchase) into SIPP or SSAS pensions that allow them to invest in property. This is a simple process however it is important to have an investment plan so that you can decide on the right SIPP or SSAS scheme provider for you. If you are transferring a pension you also need to consider any benefits that you are losing.

How you can buy property using your pension

Find a Pension

Establish a pension that allows you to invest in a property

Find Property

Identify a suitable property for your business or investment


Buying a property within a pension is very similar to a personal purchase


Benefit from tax-free rental income within your pension

The different kinds of commercial property

Commercial property, when purchased using a pension, has a broad meaning and includes land for development, high street premises, factories, car parks, hotels or pubs. We are often asked if it is possible to invest in residential property with a pension. Whilst a SIPP or SSAS should not invest in residential property, there are some exceptions. Care homes, hotels and designated student Halls of Residence are not treated as residential property.

There are also some job-related properties that are exempted, such as a pub with a landlord’s flat. The conditions for this type of investment are extremely strict though and require a number of criteria to be met in order to ensure that they are not inadvertently classed as residential property. For example, a shop with some flats above it, with their own entrance would not qualify but land for residential development is possible. Assuming that the proper planning permission is obtained, land can be developed into commercial property or even a residential property, however,it must be sold from the pension before it becomes substantially operational if it is residential.

Key Benefits

  • Tax-fee property investing
  • Benefit from capital gains
  • Lease property to your own business
  • Benefit from rental income
  • Costs and payments are payable by pension

HMRC imposes high penalties even for genuine mistakes and we can help you avoid them.

This is a technical investment and we have the experience to help ensure that the SIPP and SSAS property investment rules are not broken.

A SIPP or SSAS pension can also borrow 50% of its value to help with the purchase of property. A SIPP loan or SSAS loan can be from a bank or any third party investor. A SIPP or SSAS can also combine its value with other family members to create a larger potential purchase price. We often help a husband and wife combine their pensions, it is also possible to pool the pensions but to keep the benefits separate.

Pensions less than £100,000? We can still help.

If the total pension value is less than £100,000 then there may not be enough to make a direct commercial investment however this should not stop you from using property as the investment to grow your pension. Our investment page has a comparison chart detailing some of the leading Property Bonds and also property crowdfunding investments. Investments like these can be used in a 2 step process to acquire your own commercial property or land.

For example, a 5-year investment in a Property Bond could return 60% growth, creating a much larger pension fund substantial enough to acquire a commercial property investment. This is a strategy many of our clients use.

We have helped many people to turn their old, poorly performing pensions into a valuable pension by investing it in property.

What our customers say...

  • We had a number of workplace and final salary pensions, dotted all over the place and decided to pull them all into one SSAS. Laura and the team were excellent in explaining what to expect and keeping us advised every step of the way, in fact as part of... Read more

    Rosemary Wooding Avatar
    Rosemary Wooding
  • Mike Holt and his team have been awesome getting my SSAS set up. All ready to go in record time and looking forward to building the pension pot, tax-free!

    Jeroen Hoppe Avatar
    Jeroen Hoppe
  • Really professional company.

    I’ve pointed a few clients their way that want to release ‘dead’ money from their pensions to invest in higher returns.

    Gareth really knows his stuff and Teresa is super efficient.

    Nick Carlile Avatar
    Nick Carlile
  • Genuine professional people delivering top notch quality customer service accompanied with the all important experience and in-depth knowledge of this business field.

    Many thanks in particular to Gareth and Teresa for their unswerving support advice and guidance over these past few years since I took up the challenge of looking after...
    Read more

    Nick Clement Avatar
    Nick Clement
  • From the very beginning of the journey to re gain control of my pension and earn higher interest, the landlords pension were and still are extremely professional, they made the whole process very easy and explained the whole process. BRILLIANT 5 star service and 2 years on and all is good.

    Ben Garner Avatar
    Ben Garner
  • You get nothing but the best advice to use your pension in the correct manner. Setting up a SASS is not as daunting as one would think, it is the best thing I ever did. Being introduced to the Dolphin scheme to make my pension work hard was a no... Read more

    Selwyn Browne Avatar
    Selwyn Browne
  • i am now coming to the end of my 3rd year with mike and the team at the landlords pension, i have been very satisfied with the performance of my investmentand look forward to much of the same in the future.

    Andrew Dalgarno Avatar
    Andrew Dalgarno
  • Massive thanks to Laura and Teresa in helping set up the SASS. Great communications throughout and always on hand to answer queries.

    We are just about to embark on the investment side of things now the pensions have been transferred into the SASS and the range of investment opportunities give me...
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    Damian Spencer Avatar
    Damian Spencer
  • Mike is a very knowledgable and honest person , who I trusted

    Wendy Frazer Avatar
    Wendy Frazer
  • Gareth and Mike assisted myself and my husband in putting all of our Pensions into a SASS, Without them we would not have had a clue. Gareth made the process easy and understandable. Thoroughly recommend. 🙂

    Nicole Barratt - Rae Avatar
    Nicole Barratt - Rae

Book your FREE investment Consultation

Are you interested in investing your pension in business or property? Do you have questions about how you can do this? If so book your FREE, 15 minute, no obligation investment consultation. One of our experienced advisors will call you at a time that is convenient for you.