How SIPPs & SSASs can support business growth
Posted on 29/10/2026 by Stephen McPhillips
Self invested personal pensions (SIPPs) and small self administered schemes (SSASs) can offer valuable and strategic financial opportunities for business owners – particularly those running small to medium sized enterprises (SMEs).
Asset purchase from a member or connected business
SIPPs and SSASs can provide a wide range of investment opportunities, including:
Loans to sponsoring employers (SSAS only)
Unquoted shares in UK companies
Where the vendor of the assets is the member (either personally or via their business) the SIPP or SSAS can purchase the asset, providing an immediate cash injection to the vendor. The cash can then be used to improve liquidity, boost working capital, or support continuity planning for the business.
Please note: Dentons requires all such transactions to be commercially justifiable and valued by a professional valuer. The investment should be commercial and in the interests of the pension scheme member(s). Each proposal will be reviewed by Dentons’ Investment Committee prior to acceptance of the investment.
UK commercial property
Some properties which can be acquired include:
Industrial units
Warehouses
Offices
Shops
Using a SIPP or SSAS to purchase a UK commercial property from the member or a connected business can provide both the business and the trustees of the SIPP/SSAS with significant benefits:
Rental payments are paid into the SIPP or SSAS bank account and should be allowable as a business expense
Rental income received by the pension scheme is tax-free
Capital growth in the value of the property is free from capital gains tax.
Once the purchase is complete the business or member will receive the cash from the sale proceeds and will be able to use this cash injection for investing in the business through business expansion, innovation or other operational improvements.
Dentons can facilitate outright or partial property purchases, including joint acquisitions with other parties, enabling full flexibility in more complex arrangements.
SSAS loan back facility
A SSAS is an occupational pension scheme and can be a valuable tool when it comes to supporting a sponsoring employer’s funding requirements.
This unique feature of a SSAS allows it to lend money to a sponsoring employer which must be conducted under HM Revenue & Customs (HMRC) conditions to avoid an unauthorised payment tax charge.
The loan must:
Not exceed 50% of the scheme’s net asset value
Be repaid in equal capital and interest instalments (at least annually) over a maximum term of five years
Reflect a commercial rate of interest
Be secured by a first legal charge over a suitable asset or assets.
This feature can provide a business with access to an alternative source of funding, while allowing the SSAS to earn a commercial rate of interest on the loan and to boost investment returns.
Please note: Dentons will review all SSAS loanbacks to ensure that each of the loan’s criteria is met following HMRC rules.
Unquoted shares
Unquoted (or unlisted) shares can play a meaningful role in business funding by raising capital privately without the need for a public offering.
The money raised through a shares issue could then be used to expand operations, hire new talent, fund product development and/or strategic acquisitions or for expansion to enter new markets, amongst other things.
Unquoted share issues can help fuel business growth but come with higher risk than some other types of investment.
Dentons requires:
A minimum pension fund of £100,000
At least three years’ positive trading accounts for the unconnected unquoted UK limited trading company
Succession planning
A SSAS can help facilitate intergenerational planning. Family-run businesses can benefit from a SSAS’s ability to include adult family members (currently or formerly employed in the business) as trustees and members. This can help with long-term wealth preservation, control, and succession planning.
Taking advantage of opportunities
For business owners looking to grow their companies while maximising tax efficiency and long-term retirement planning, SIPPs and SSASs offer valuable, often underutilised opportunities.
Whether through commercial property acquisition, pension lending, or strategic investments in unquoted businesses, self-invested pensions can provide a practical financial toolkit to help fuel business development.
To find out more about how Dentons can support your pension investment strategy, speak with our Sales Support Team by emailing sales.support@dentonspensions.co.uk , calling 01483 521 521 (Option 2), or contact your Regional Sales professional.
Frequently Asked Questions (FAQs):
What is the difference between a SIPP and a SSAS for business owners?
The key difference between a SIPP and a SSAS for business owners is that a SSAS can make loans (on strict HMRC terms) to connected sponsoring employers which participate in the SSAS. SIPPs cannot lend monies to connected parties directly or indirectly. This source of funding for participating employers could be a very valuable benefit for the company and for the SSAS, as a commercial rate of interest needs to be paid into the SSAS bank account.
Can a SIPP or SSAS buy a commercial property from my business?
SIPPs and SSASs can buy a commercial property from a connected party such as the member’s business or the member as an individual, provided that the transaction takes place on demonstrably commercial terms. In practice, this means that the property must be professionally valued by a Royal Institution of Chartered Surveyors (RICS) Registered Valuer to determine its current open market value prior to purchase.
Is rental income from a property held in a SIPP or SSAS taxed?
The rental income generated by a SIPP or SSAS owned commercial property is received tax-free into the pension scheme bank account. It can then be held on deposit or invested and it can continue to grow in a tax-advantaged environment.
What types of commercial property can a SIPP or SSAS buy?
Depending on the pension provider, there can be a wide range of types of commercial property which can be bought by SIPPs and SSASs, including industrial units, warehouses, retail premises, offices and so on. Mixed use properties (i.e. those with both a commercial and residential element) - for example, a shop with a flat above - require special due diligence considerations to ensure that the residential element does not attract tax charges.
Can a SIPP lend money to my business?
A SIPP cannot directly or indirectly lend money to a connected party, including any businesses connected with the SIPP member, without tax charges applying.
What are the rules for a SSAS loanback?
Where a SSAS lends funds to a sponsoring employer, the loan must meet strict criteria laid down by HMRC in order to avoid tax charges arising.
These conditions are:
Loan amount: maximum 50% of the net asset value of the SSAS
Interest rate: a commercial rate (which HMRC considers to be 1% above Bank of England Base Rate, calculated with reference to an average of 6 leading high street banks’ base rates)
Loan term: a maximum of 5 years
Repayments: must be in equal instalments of capital and interest on a monthly, quarterly, half yearly or annual basis
Security: must be in form of a First Legal Charge over a suitable asset or assets. Dentons’ company policy on this is that the security must take the form of UK land or property
Can a SIPP or SSAS invest in unquoted shares?
A SIPP or SSAS can invest in unquoted shares. However, care should be taken to ensure that these unquoted shares do not give rise to tax charges when held by the SIPP or SSAS. These tax charges could arise due to the ownership and control structure of the unquoted company and/or the underlying assets which the company itself owns (such as residential property, company cars, company vans and so on).
Dentons Pensions does not provide regulated financial advice. We only provide factual information on our own Dentons’ SIPP or SSAS products and the services we offer here at Dentons. We strongly advocate that clients obtain sound, regulated financial and/or investment advice regarding the suitability of a SIPP, SSAS or any investment.