Font size: A- A+
Client login | About | Careers | Newsletter | Links | Contact us
Commercial Property & Land

Commercial Property & Land

Did you know that pension schemes can hold commercial property and land? 

Purchasing a commercial property, or land, through a Self Invested Person Pension (SIPP) or Small Self Administered Scheme (SSAS) can be a very attractive investment, particularly for business owners.

Permitted types of investments include

Offices, Shops, Industrial Units, Hotel and Public Houses, Care homes and student halls of residence, Agricultural land, Land for commercial development, Commercial and residential property in the same property both let to the same unconnected party e.g. shop with a flat above both let to the person who runs the business

Below are some of the benefits of commercial property as a pension investment:

  • Tax relief on contributions to the pension scheme which can be used to purchase property
  • Any gains on the property are free of Capital Gains Tax
  • Open market rent is paid to the pension scheme
  • All rents from tenants is received gross and is free from income tax
  • Rental income payable by the tenants can be treated by them as a business expense for tax purposes and can reduce income and corporation tax
  • Property is outside member's estate for inheritance tax
  • Pension scheme can borrow funds towards the purchase and development of the property
  • Ongoing rent and contributions can continue to build the retirement fund; these can be used for other investments and/or to pay benefits on retirement.
  • On retirement the property may not need to be sold as continuing income could service pension payments
  • Should a business fail then the pension fund is protected from creditors
  • Certain types of schemes are permitted to make loan backs to the business
  • Fund can be pooled with others in collective arrangements to increase flexibility and investment potential

....to find out more and if you are interested in discussing this further please complete the form below and one of our advisers will get back to you


Broom Consultants Limited is authorised and regulated by the Financial Conduct Authority.