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SIPP Pensions

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It is important to make sure you have a plan for when you retire, and there are a number of products in the pensions and investments market designed with this in mind. Two such types of Pension Scheme are a SIPP (a Self-Invested Personal Pension) and a SSAS (Small Self-Administered Scheme), which can offer tax benefits as well as greater control and flexibility in terms of what can be invested.

Once a SIPP or a SSAS has been set up, it can be used to invest in many types of assets, including stocks and funds. One popular type of investment for both SIPP and SSAS Pension Schemes is commercial property which is where Forbes can assist, providing you with expert legal advice to deal with the legal complexities involved with acquiring commercial property and to ensure that a transaction is properly structured to comply with HMRC's requirements when a SIPP or SSAS acquires property.

The SIPP and SSAS property team at Forbes have many years' experience in this specialist area, and act for numerous Pension Scheme administrators operating throughout the country as a trusted source of advice and support.

Our specialist team can give you clear and straightforward legal advice on property transactions involving a SIPP or a SSAS, including but not exclusively:

  • Property purchases
  • Property sale
  • Leases (whether as Landlord or Tenant)
  • Lease management (such as assignments or surrenders of leases)
  • Taking security over property as part of third party funding for an acquisition
  • Transferring property between Pension Schemes
  • Documenting co-ownership arrangements where a property is to be held by multiple parties, some or all of which are Pension Scheme.

For more information contact Mohassan Mehmood in our SIPP & SSAS Pensions department via email or phone on 0333 207 1158. Alternatively send any question through to Forbes Solicitors via our online Contact Form.

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FAQs

Can I buy any property with a SIPP?
 
 

A SIPP can be used to purchase/invest in a number of assets, including commercial property. However, it is important to note that a SIPP (or SSAS) cannot purchase residential property, otherwise significant tax penalties will be charged by HMRC.

What if the property is mixed use (partly commercial and partly residential)?
 
 

A Pension Scheme cannot acquire an interest in any residential property, so the transaction will need to be structured to ensure that any residential parts of the property are excluded from the property being acquired by the Pension Scheme, which we can assist with.

Can a SIPP take out a commercial mortgage?
 
 

Yes, many lenders allow funding for Pension Schemes towards commercial property purchases. Each lender will have their own requirements which will also need to be complied with in addition to the Pension Scheme administrator's own requirements.

Who owns the property in a Pension Scheme?
 
 

The property will usually be purchased and owned in the name of the trustees of the Pension Scheme, on behalf of the Scheme. Any actions taken by the trustees in relation to the property will be governed by the rules of the Pension Scheme.

What are the rules regarding a Pension Scheme buying a commercial property that is then leased to a connected party?
 
 

A property can be leased to a party connected to the Pension Scheme (such as a trustee's company) although HMRC rules require the arrangement to be carried out on an "arms-length" basis. Therefore, the terms of the lease must be in line with the open market (as if it was being leased to an unconnected party) and the terms would need to be confirmed by an independent, qualified surveyor.

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Our dedicated Commercial Property team

Adam Bromley

Adam Bromley

Partner & Head of Commercial Property

Commercial Property

PinCentral Lancashire

Call0333 207 1158

Helen Marsh

Helen Marsh

Partner

Commercial Property

PinCentral Lancashire

Call0333 207 4236

Matthew Jones

Matthew Jones

Partner

Commercial Property

PinBlackburn

Call01254 222316

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If you have a general enquiry then please fill in your details and someone will contact you.

Call0800 689 0831

CallRequest a call back

EmailSend us an email

Contacting Us

Monday to Friday: 09:00 to 17:00
Saturday and Sunday: Closed