Creative Financial

Invest in commercial property with a SSAS or SIPP pension

A Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) can be used to purchase commercial property, as well as investing in commercial and agricultural land. Once purchased, the property or land can then be let to your company or a third party. This provides a tax-free rental income and capital growth, with rental income paid into a pension scheme bank account.

Using a SIPP & SSAS to invest in commercial property could be particularly useful if you are a small company renting out business premises. As you can buy your business premises through your SIPP or SSAS pension funds, then your company pays rent into your pension instead of to a landlord.

There can be tax advantages where commercial property is owned by a SIPP or SSAS.

  • The rental income is received tax-free by the SIPP or SSAS
  • There is no Capital Gains Tax on any capital growth on the property sale
  • Tax relief on Company Contributions into the pension (Subject to limits)
  • Potential to reduce corporation tax and National Insurance.

Levels and bases of, and reliefs from, taxation are subject to change, and their value will depend upon personal circumstances. Taxation and pension legislation may change in the future.



What is commercial property?

Commercial property is buildings or land that is intended for business purposes and profit-making, as opposed to residential property. Commercial property usually refers to buildings that house businesses, but can also refer to land used to generate a profit, as well as large residential rental properties.

The designation of a property as a commercial property has implications for how it is financed and taxed.



A Self-Invested Personal Pension (SIPP)

A self-invested personal pension (SIPP) is a type of tax-efficient personal pension that gives you control of your retirement savings. You have the ability to choose your investments, how much to top up and when you would like to invest.



A Small Self-Administered Scheme (SSAS) pension

A Small Self-Administered Scheme (SSAS) pension can saves you tax, funds your business, and allows you to invest at the discretion of scheme members.