Buy commercial property with your pension pot!

Buy commercial property with your pension pot!

28th August 2019

A SIPP (Self Invested Personal Pension) is the chosen pension taxation wrapper for business owners and those savers who want access to a much wider choice of investment fund.

We offer a specialist SIPP advisory service to individuals and business owners who are looking to benefit from the additional advantages available through this taxation wrapper.

Traditional personal pensions will typically limit your investment choice to a more traditional pool of pension funds, however a SIPP will typically let you invest in a wider range of investments, such as commercial property and more esoteric investments.

A SIPP can also borrow money from lenders to purchase particular assets such as commercial property, or to otherwise benefit the SIPP. The maximum the SIPP can borrow is 50% of the net fund value of all assets at the date of the borrowing.


SIPP Investment Options

All FCA regulated advice provided will include risk warnings and due diligence on all investments under consideration, which can include the following:

  • Stocks and shares from the UK and overseas markets as well as unlisted shares (although you’ll pay stamp duty on these purchases along with your SIPP provider’s own dealing charges);
  • Collective investments such as OEICs, unit and investment trusts;
  • UK government bonds, treasury bills and depositary receipts;
  • Commercial property such as offices or retail units. If you’re a business owner, you can even use your SIPP to buy your work premises with the rent going directly back into your pension. SIPPs can also be used to raise a mortgage to part-fund the purchase of a property, the rental income from which is then used to service the mortgage and any other property costs;
  • Real estate investment trusts (REITs) listed on any stock exchange;
  • Exchange-traded funds (ETFs) listed on any HMRC recognised stock exchange;
  • Commodities that are traded on any HMRC recognised stock exchange;
  • Structured products;
  • Other collective investment schemes and derivatives listed on any stock exchange including fixed-interest securities and loan notes;
  • Unregulated collective investment schemes;
  • Bank deposit accounts;
  • Certain National Savings & Investments products; and
  • Cash.

Residential property is not a permitted investment in a SIPP (except in very limited circumstances described in the HMRC Pension Tax Manual, section PTM125200).

Not all SIPPS allow investment in the full range of allowable investments so choice may also be dependent on a particular SIPP provider.


Pension Transfer Gold Standard

Financial advice firms who adopt and promote this standard adhere to a set of principles. As a result you can be confident that you are dealing with an ethical adviser and professional advice firm that has your best interests at heart when receiving financial advice in relation to whether or not you should transfer your pension.

At Longhurst, we hold this accreditation.


Next steps

If this article raises spikes an interest, or raises a question, please contact Chris Broome on or 01327 223243.

All discussions are confidential and initially held at our expense.


A pension is a long term investment, the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. 

Information is based on current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.

The value of your investment can go down as well as up, and you can get back less than you originally invested.

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