Business premises

Purchasing commercial property through a pension fund is increasingly popular amongst business owners given its tax efficiency.

This can be done through a Small Self Administered Pension Scheme (SSAS) or a Self Invested Personal Pension (SIPP) – the difference between these and a traditional pension being that you have more control of the money and where you invest it.

Benefits of purchasing business premises through a pension:
• you can pick the property you wish to purchase with your pension
• purchase costs are met by the pension
• generous tax reliefs on pension funds to purchase property
• no income tax on the rental income
• no Capital Gains Tax on the eventual sale of the property within the pension
• you can transfer the property into an Approved Retirement Fund at retirement
• borrowing can be used to assist the purchase if available
• the fund can be VAT-registered if required and potentially reclaim VAT
• you can buy property joint with a company or yourself.

Attivo Financial Planning is experienced in helping business owners purchase commercial property through a pension and can review your current pension arrangements to help you organise the pensions to buy property.