David Weir. International Footballer & Championship winner with Glasgow Rangers
In essence, a SIPP is a personal pension that allows a much broader range of investments compared to traditional pension arrangements. These include:
- Commercial Property
- Industrial / Retail Units
- Agricultural Land
- Commercial Land
- Purpose built Hotels and Student Let Properties
- Collective Investments such as Unit Trusts, OEICS and ICVCs
- Gilts and Fixed Interest stocks
- Investment Trusts
- Direct Quoted Equities
- Trustee Investment Plans
- Unquoted Equities
- Derivatives
Therefore you can bypass insurance companies and invest directly into specific assets.
Boolers have an in-house investment team available to guide you through the investment process and construct a portfolio that is best suited to you. Further information how this is done can be found in our Wealth Management section.
Additionally, we have extensive experience in the use of a SIPP to purchase commercial property and can provide invaluable guidance to ensure a smooth transaction.
Should I Buy a Commercial Property through my Pension?
This is particularly useful if you are an owner of a small to medium sized business. You can buy your business premises through your pension funds, meaning your company is paying into your pension instead of to a landlord.
Additionally, pension funds that may have previously been considered as “locked away until retirement” can be transferred to a SIPP and subsequently used toward Property Purchase. Ultimately, please bear in mind the underlying purpose of your SIPP is to provide benefits for your retirement.
There are also attractive tax advantages in using a SIPP to buy commercial property:
- Rental income is received tax-free by the SIPP.
- No capital gains tax on property capital growth.
- Tax relief on Company Contributions into the SIPP (Subject to limits)
- Potential to reduce corporation tax and National Insurance.
