Innovative options for your clients and their 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 a portfolio in order to enhance the potential of 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 be purchased?

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 the Sanlam Property Services Team?

Our Property Services 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 in a OneSIPP or Transfer Pension Portfolio it will 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 clients don’t need to factor it into the purchase price and it doesn’t need to come out of their pension funds – therefore maximising their 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 personal circumstances:

  • Rental income accumulates free from tax in a 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 clients’ 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? 
The commercial property is not part of your clients’ estate for inheritance tax purposes.
  • Transfer Pension Portfolio or; 

  • The OneSIPP 

Guides to commercial property.
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Commercial property application documents.
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Your clients can stay in control and invest in a wide range of asset classes, including direct investments and funds, through our SIPP account.
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The value of investments and any income from them can fall and you may get back less than you invested.