Invest in Commercial Property

Benefit from tax free rental income and capital growth by acquiring commercial property. You are able to invest in commercial property with a SSAS or SIPP pension.

The great thing about investing in property with a pension is the two forms of income – Capital Value and Rental Income are tax-free.

Area of land for property development and build

Invest in commercial property with a SSAS or SIPP pension

There are two types of pension scheme that allow you to buy property. A Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) can purchase commercial property as well as invest in commercial and agricultural land. Once purchased, the property or land can be let to your company or a third party. This gives rise to tax-free rental income and capital growth, with rental income paid into the pension scheme bank account.

Company owner looking up at purchased building

What is commercial property?

Commercial property is buildings or land that are intended for business purposes and profit-making, as opposed to residential property.

Examples of buildings classed as commercial property include offices, office space, retail units, warehouses and factories, other industrial buildings, pubs, hotels, sports centres, hospitals, nursing homes, gyms and more.

Transferring to a SSAS or SIPP pension

Rather than making new contributions to a pension many of our clients transfer old employer pensions (final salary and money purchase) into SIPP or SSAS pensions that allow them to invest in commercial property. This is a simple process however it is important to have an investment plan so that you can decide on the right SIPP or SSAS scheme provider for you. If you are transferring a pension you also need to consider any benefits that you are losing. Click here to view HMRC rules

How you can buy commercial property using your pension

Find a Pension

Establish a pension that allows you to invest in a property

Find Property

Identify a suitable property for your business or investment


Buying a property within a pension is very similar to a personal purchase


Benefit from tax-free rental income within your pension
Planning - handwriting on plans

Commercial property, when purchased using a pension, has a broad meaning and includes land for development, high street premises, factories, car parks, hotels or pubs. We are often asked if it is possible to invest in residential property with a pension. Whilst a SIPP or SSAS should not invest directly in residential property, there are some exceptions. Care homes, hotels and designated student Halls of Residence are not treated as residential property.

Pub with accommodation

There are also some job-related properties that are exempt, such as a pub with a landlord’s flat. The conditions for this type of investment are extremely strict though and require a number of criteria to be met in order to ensure that they are not inadvertently classed as residential property. For example, a shop with some flats above it, with their own entrance would not qualify but land for residential development is possible. Assuming that the proper planning permission is obtained, land can be developed, even into residential property, however, it must be sold from the pension before it becomes substantially operational if it is residential.

Key Benefits

  • Tax-fee property investing
  • Benefit from capital gains
  • Lease property to your own business
  • Benefit from rental income
  • Costs and payments are payable by pension
  • Extensive investment opportunities

This is a technical investment and we have the experience to help ensure that the SIPP and SSAS property investment rules are not broken.

A SIPP or SSAS pension can also borrow 50% of its value to help with the purchase of property. A SIPP loan or SSAS loan can be from a bank or any third party investor. A SIPP or SSAS can also combine its value with other family members to create a larger potential purchase price. We often help a husband and wife combine their pensions, it is also possible to pool the pensions but to keep the benefits separate. We are able to offer the best property SSAS pension advice, tools and knowledge to support your strategy.

HMRC rules

Pensions less than £100,000? We can still help.

If the total pension value is less than £100,000 then there may not be enough to make a direct commercial investment however this should not stop you from using property as the investment to grow your pension. Our investment page has a comparison chart detailing some of the leading Property Bonds and also hands-off property investments. Investments like these can be used in a 2 step process to acquire your own commercial property or land.

For example, a 5-year investment in a Property Bond could return growth for your pensions, creating a much larger pension fund and substantial enough to acquire a property investment. This is a strategy many of our clients use.

We have helped many people to turn their old, poorly performing pensions into a valuable pension by investing it in property.

Want your questions answered by our expert SSAS and investment consultants?

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