Investing in Commercial Property Through a SIPP

Who is this service suitable for?

Using a Self-Invested Personal Pension (SIPP) to buy commercial property can be a valuable part of your long-term plan. This specialist area may help you support your business today while preparing for your financial future and providing for your family in retirement.

Our SIPP Commercial Property Services draw upon the expertise of our dedicated Pension Property Specialists to help administer the asset and meet specific investment goals.

Designed for those who already understand this asset either personally or with the support of a Wealth Planner to make their own investment decisions; we offer a full in-house property administration services from start to finish to realise your ambitions.

A SIPP commercial property should always be considered as a long-term investment and we would encourage you to hold a variety of investments alongside commercial property to diversify your exposure, provide liquidity and spread your risk.

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Capital at risk

Please be aware that the value of your investments may fall as well as rise. Tax treatment depends on personal circumstances, and the rules may be subject to future change. Seek financial advice before investing in commercial property through a SIPP.

What does SIPP commercial property offer?

SIPP commercial property can form part of your retirement plan by offering:

access to income-generating assets with a yield that can be reinvested
capital gains and income tax efficiencies
more control over pension investments
alignment of your retirement plan with your business interests

With the support of a dedicated SIPP Property Specialist providing expertise, our service is underpinned by a bespoke property system designated specifically to effectively administer the asset class in the context of a pension fund.

As with any aspects of planning for your future, all of the risks and benefits should be considered when you purchase a commercial property with your pension including, but not limited to professional costs, the need for sufficient funds to be available to service any liability and a willing buyer being sourced to realise funds.

Our Wealth Planning team can also work with you to ensure that any purchase aligns with your wider financial objectives. We offer an initial complimentary assessment to help establish whether your chosen property is eligible, which may save you unnecessary costs or delays. Our guide also outlines the types of property that can and cannot be held within commercial property in a SIPP.

Complimentary assessment

What types of property can be held in a SIPP?

Most UK-based commercial properties may be eligible, subject to due diligence. Common examples include:

Dining - Restaurants, cafes, wine bars, and takeaways
Non-residential institutions - Dentists, doctors, surgeries, and day care centres
Public and leisure - Cinemas, gyms, airfields. zoos and theme parks
Hospitality - Hotels, bed and breakfast and glamping sites
Offices - General offices, barrister's chambers and estate agents
Industrial - Warehouses, workshops, breweries and distribution centres
Retail - Broad
Land - Agriculture, forestry, equestrian and grazing

Want to discuss these options? Speak to an Adviser

Ownership options

Property can be purchased in a variety of ways including:

Sole ownership via your pension
Syndication with a group of pensions
Joint ownership with other individuals or companies
Phased purchases to spread costs over time

Borrowing rules

Your SIPP can borrow up to 50% of its net value either from a traditional lender via our panel Broker or via personal lending which can offer a flexible alternative.