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

Pension Pig

Find a Pension

Establish a pension that allows you to invest in a property

Find Commercial Property

Find Property

Identify a suitable property for your business or investment

Purchase Commercial Property

Purchase

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

Commercial Property Growth

Growth

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...

5/5
  • I recently opened my SSAS through The Landlord’s Pension and they have been professional, approachable and efficient throughout. Simon, Teresa and Michelle have all been great in answering my questions and queries and doing their best to ensure the process of transferring over my existing pension has been a... Read more

    Steve Brazil Avatar
    Steve Brazil
    08/12/19
  • Very friendly and helpful service. Will use again.

    Shane Prince Avatar
    Shane Prince
    23/11/19
  • My experience of Landlord's Pension has been absolutely fantastic, in particular Dan, Teresa and Michelle. They made the whole process of moving my SSAS to a better Administrator easy and seamless, keeping me updated the whole time. I now have more flexibility regarding investment choices and now my pension is... Read more

    Martin Potts Avatar
    Martin Potts
    01/10/19
  • My experience of Landlord's Pension has been absolutely fantastic, in particular Dan, Teresa and Michelle. They made the whole process of moving my SSAS to a better Administrator easy and seamless, keeping me updated the whole time. I now have more flexibility regarding investment choices and now my pension is... Read more

    Martin Potts Avatar
    Martin Potts
    01/10/19
  • Simon and Teresa have helped me to gain control of my pension and now I am able to invest it in property through a fund with high fixed returns. I will also be able to use it on my own purchases / projects, which gives me much more cash access... Read more

    Martin Littleboy Avatar
    Martin Littleboy
    19/09/19

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.