Should I put property in my SIPP or SSAS?

Self-Invested Personal Pensions (SIPPs) and Small Self-Administered Schemes (SSAS) are personal pension schemes, often used for retirement planning. Commercial property can be bought by these schemes as a tax-efficient way of investing your pension.
What are SIPPs and SSAS?
SIPPs: A personal pension that gives individuals greater control over their investments, including options like commercial property as well as funds, stocks and shares.
SSAS: An occupational pension scheme typically set up by limited companies frequently used for small business owners and directors to provide flexible investment options, such as the acquisition and development of commercial property, for the benefit of themselves and their employees.
What are the advantages of placing property in my SIPP or SASS?
Income Tax and Corporation Tax Benefits
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Any income received via the property (e.g. rent) is tax-free. If your company rents the property, the payments are tax-deductible.
Capital Gains Tax/Corporation Tax
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No capital gains tax nor corporation tax is payable on commercial property sales made through your pension scheme.
Inheritance Tax
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Assets held via your pension fall outside of your Estate for IHT purposes, which is particularly useful for those with substantial property portfolios. (Note: this exemption ends on 6 April 2027 due to changes announced in the 2024 Autumn Budget).
Lending
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Contrary to popular belief, SIPPs and SSAS can borrow funds via commercial mortgages (subject to certain criteria).
Joint Purchases
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These schemes can facilitate shared investment in commercial property among partners, relatives, business partners, etc.
How Lawson West Solicitors Can Help...
At Lawson West, we provide comprehensive legal support for SIPPs and SSAS, including:
Property acquisition and disposal
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We handle all legal aspects of commercial property purchases, sales, and in-specie transfers – covering due diligence, contract negotiation, and completion.
Lease agreements
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We draft and review commercial leases to ensure they protect your interests and comply with pension regulations.
Regulatory compliance
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We work closely with scheme administrators and tax advisors to maintain full compliance with HMRC pension regulations.
Funding and finance
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We assist with arranging pension-backed borrowing and liaise with lenders and advisors to facilitate transactions.
Please note Lawson West does not provide tax or pension advice: specialist advice should always be obtained before proceeding. We undertake the legal work and work alongside your scheme trustees and financial advisors to ensure a smooth transaction.
Contact Us Today
Based in Leicester and Market Harborough, our Commercial Property and Real Estate Team regularly acts for pension administrators, trustees and accountants both locally and nationally.
If you’re considering a SIPP or SSAS property investment, contact Lawson West. We offer expert legal support and can connect you with trusted professionals.
If you believe you have a situation where you require legal advice, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively complete the free Contact Us form and we will get in touch as soon as possible.
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