LAW
Using your pension fund to buy a commercial property
Following the change in the lending policy of a number of national banks , together with the rising costs of borrowing money , Sara Garnett , partner at Tilly Bailey & Irvine ( TBI ), says that now is a good time to consider the benefits of acquiring commercial properties via a pension fund .
This is done through a Self-Invested Personal Pension ( SIPP ) or a Small Self- Administered Scheme ( SSAS ) which can be set up by your independent financial adviser . Any existing investments in an existing pension fund can be transferred into the SIPP or SSAS .
Sara explains that it is also possible to sell your or your company ’ s existing commercial property to your SIPP or SSAS in order to raise capital and to benefit from the tax advantages that come with it .
“ Owning a property in a SIPP or a
SSAS has many advantages , whether the property is used for your business or rented to a third party ,” Sara advises .
“ The rental income is received tax-free by the SIPP or SSAS and , on disposal , there is no capital gains tax payable on any increase in the property ’ s value .
“ The rent paid by your business will reduce operating profit and therefore the amount of tax payable and the rent received can be used by the SIPP or SSAS to repay any borrowing or to increase the amount of cash held within or invested by the fund .” 1
TBI has particular expertise in carrying out property transactions for SIPPs and SSASs and as the firm are familiar with the rules governing property transactions , it is uniquely placed to be able to identify at an early stage whether the proposed transaction is permitted and suggest
Advice – TBI partner Sara Garnett . PICTURE : TOM BANKS
alternative ways to proceed .
To speak to Sara , or a member of TBI ’ s commercial property team , call 01740 646000 or fill in an enquiry form available at tbilaw . co . uk .
1
A SIPP or a SSAS is not suitable for everyone and you should take appropriate advice from an independent financial adviser
STOP SPENDING TIME ON PAYROLL ... ... AND FOCUS ON YOUR BUSINESS
Find out how you can break free from payroll cycles and auto-enrolment admin by contacting Tracey Courtley on payroll @ mcbridesllp . com or 07493 141 472
PO Box 387 , Hartlepool , TS24 4GZ www . mcbridesllp . com
142 | Tees Business