A SIPP is a self-invested personal pension platform that can hold commercial property.
A SIPP can buy UK non-residential property including: offices; industrial; shops; restaurants; gyms; development land; are homes and sports stadiums. A SIPP cannot buy overseas property, residential property or plant and machinery.
Choosing to invest in commercial property using a SIPP enables you to benefit from tax relief on your SIPP contributions, exemption from CGT when the property is sold and exemption from income tax on rental payments. SIPPs are also generally outside the investor’s Estate for IHT purposes.
Many people also transfer commercial property held in the business to a SIPP so as to improve cash-flow in the business by moving the capital asset into the pension in return for cash but continuing occupation for the business by way of a lease. The rent should also be deductible from the trading profits of the tenant business.
On an insolvency type event a SIPP will generally be outside the reach of a trustee in bankruptcy.
A typical SIPP structure will involve a purchase in the SIPP followed by a lease to the business and possibly some mortgage funding.
A SIPP can borrow money from banks but pension legislation means that the SIPPs borrowing is limited to 50% of the SIPP’s fund value.
Some SIPP providers also enable shared ownership of a commercial property with the trading company or investor.
Attwells Solicitors are specialists in acting for all of the country’s leading SIPP providers. Attwells commercial property team buy, sell, mortgage and lease commercial properties for clients involving SIPPs.
If you need advice concerning your pension and property and competitive fixed fees from expert solicitor in SIPPs and commercial property then contact Attwells Solicitors now.
To arrange an initial no-obligation chat to discuss your pension property or SIPP please contact Nick Attwell on 01473 229200 or 0207 722 9898 or e-mail him at firstname.lastname@example.org.