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Our Specialist Range

Commercial Property

Innovative options for you and your business

Investing in commercial property presents an opportunity that brings many benefits to certain types of investor.  We offer a choice of innovative ways in which commercial property can be included in your portfolio in order to enhance the potential of your retirement and financial planning.

Whilst holding commercial property in a self-invested personal pension can be perceived as complicated, there are clear advantages and we are happy to support you through the journey to give you and your clients’ peace of mind.   

What types of property can you purchase?

We have purchased a variety of properties as pension fund investments, including restaurants, car showrooms, day-care nurseries, hotels, shops, offices and industrial units, but are able to consider all property that is allowed within the HMRC rules.

Why use Sanlam Commercial Property team?

Our Property Team has over 30 years’ experience and we are here to help you structure property transactions to meet your clients’ needs.  We offer:

  • a free feasibility report - to give an estimate of the expected costs associated with each specific transaction plus;

  • dedicated support through to completion:

    • dealing with a lender, if a SIPP loan is required

    • signing all legal paperwork - which can save valuable time when working to a deadline for property completion.

What are the benefits?

Whether this investment is being made for your OneSIPP or Transfer Pension Portfolio it will normally be held in an insured policy, which may offer several distinct advantages over being held in a trustee fund:

  • Where VAT is payable on the purchase of a property, this can normally be paid and recovered by us, so you don’t need to factor it into the purchase price and doesn’t need to come out of your pension funds – therefore maximising your purchasing power.
  • Funds can be combined from the OneSIPP and Transfer Pension Portfolio to make a commercial property purchase possible. 

In addition, investing with Sanlam enables:

  • Ownership of commercial property to be shared with the member personally which makes it possible to phase purchase of a property over a period of time as funds allow. 
  • Two or more individuals can pool their pension funds to invest in the same property. 

Investing in commercial property within a self- invested personal pension could have several additional tax benefits depending upon your personal circumstances:

  • Rental income accumulates free from tax in your pension fund; the eventual disposal of the property is also free from capital gains tax.
  • Rent paid by the business / tenant is an allowable expense for relief from corporation tax.
  • The rent is used to make any loan repayments. Any surplus cash can be used to provide benefits when pension income is required.
  • The funds used to purchase the property will have attracted tax relief, when first paid into a pension.
  • The commercial property is not part of your estate for inheritance tax purposes.
  • The property may be passed on through the generations on death of a SIPP member.  

How can I invest in commercial property? 

If you’re looking to invest in commercial property in a tax efficient way why not consider our: 

  • Transfer Pension Portfolio or; 
  • The OneSIPP 

Contact the Commercial Property Team 

To find out how to invest please call us on 0117 9752331 or email.

For more information about investing in commercial property please take a look at our Guide to Commercial Property

 

Please Remember...

 

Property purchase is a long term investment. As property is an illiquid asset, thought should be given to an appropriate retirement strategy so that the fund has sufficient liquidity to pay benefits as and when required, otherwise payment of benefits will be delayed.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.