Using your pension to invest in commercial property
- 19th November 2020
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What is a SIPP?
A SIPP is a self-invested personal pension. Compared to most pensions, they provide an individual with a greater amount of flexibility in terms of what can be invested in, including in commercial property. Therefore, a SIPP is generally of most benefit to an individual who is comfortable making their own investment decisions.
Can a SIPP invest in property?
Yes, a SIPP can invest in commercial property. However, normally a SIPP cannot invest in residential property. A SIPP is able to access mortgage funding in order to purchase a property.
Why should my SIPP invest in commercial property?
A SIPP is a very tax-efficient way for an individual to invest in commercial property. Often, a business owner will acquire a property with their SIPP and then the SIPP will lease the property back to the individual’s business. The rental income from the lease is then received by the SIPP and used to pay the running costs of the property and the excess is available for further investment in the SIPP.
How can a solicitor help?
Whether you are looking to acquire a property and grant a lease, or transfer a property from another SIPP, our team at Loosemores has the experience to guide you through the process.
If you need specialist advice, guidance or support from our team of legal experts, please email email@example.com or call us on 02920 224433. Please contact James Pearn, Partner and Head of Property at Loosemores or Oliver Morris, Commercial Property Solicitor to find out more.