Commercial property.

We have specialised in commercial property acquisition and administration within self invested plans since our inception nearly 40 years ago. You can view a list of some of the properties we have accepted and those that are not acceptable.

There are many advantages to using a self invested pension scheme to purchase commercial property - but there are also some important things to remember.

Key advantages

  • opportunity to borrow funds towards the purchase and development of the property
  • contributions to the pension scheme and any basic rate tax relief can be used to purchase the property
  • any gain on the value of the property when sold should be free from Capital Gains Tax
  • open market rent is paid to the pension scheme and all rent from tenants is received gross and 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 the income and corporation tax liability of the tenant
  • the property is outside the member's estate for Inhertiance Tax purposes
  • the property is owned outisde of the business so its protected from creditors in the event of insolvency.

Key considerations

Before committing to purchasing a commercial property within a scheme, there are some important things to consider.

Next steps...

If you are interested in holding commercial property within a self invested pension, please:

  1. Read our Commercial Property Guide
  2. View which properties can and cannot be held
  3. Read about some key areas to consider when purchasing commercial property
  4. Complete our Commercial Property Questionnaire and submit to us for prior acceptance.

To find out more about how commercial property has been used as a SIPP or SSAS investment please read our property case studies:

To avoid incurring any unnecessary expense, we recommend that before establishing a self invested pension with us, clients submit a completed Commercial Property Questionnaire so that we can assess whether, in principle, the property can be held within a Dentons SIPP or SSAS.

If you need any help, or have any questions regarding commercial property, please do not hesitate to contact us