Your SSAS may purchase, let, or sell property to any party, whether they are Connected or Unconnected, as defined by HMRC.

To check whether a party is connected, please refer to official HMRC guidance here: HMRC Connected Parties Definition

Trustee Responsibilities

All Trustees of your Scheme must take part in the decision to invest in a property.
When purchasing, the property must be acquired in the legal names of all Trustees, acting as Trustees of the Scheme.

Funds, VAT, and Stamp Duty

Before proceeding, you must ensure your Scheme has sufficient available funds to cover:

• The purchase price
• Any VAT payable on the transaction
• Stamp Duty Land Tax (SDLT), if applicable (including on VAT, where charged)

Can the Scheme Borrow Funds?

Yes — a SSAS may borrow funds to facilitate a property purchase, provided that:

• Total borrowing does not exceed 50% of the Scheme’s net asset value
• Any loan from a Connected Party is on a commercial interest rate

Borrowing Formula:

Maximum New Borrowing = 50% of (Total Assets – Liabilities) – Existing Borrowing

Transactions Involving Connected Parties

To buy, sell or lease a property involving a Connected Party, the transaction must be at market value, as if dealing with a third party (“arm’s length” basis).

To prove the market value, you must obtain an independent valuation from a RICS-qualified Chartered Surveyor, in accordance with HMRC rules.

Ongoing Property Valuation Requirements

Your Scheme must hold an up-to-date valuation for each property it owns. A RICS Red Book valuation is recommended at least every 5 years, or sooner if:

• A Member wishes to take or review benefits
• There’s a significant change to the property or surrounding area
• A new lease is proposed or an existing lease is being reviewed
• There is a major shift in the commercial property market

If a full new valuation isn’t required, a letter of addendum from the same surveyor may be acceptable.

Joint Ownership

Your Scheme may purchase a share of a property rather than the whole asset. In such cases:

• The purchase price must reflect the proportion of ownership
• Your solicitor must prepare a Declaration of Trust confirming the ownership percentage and outlining any pre-emption rights

Be aware: joint ownership introduces additional risks, especially where the property is used as loan security by another co-owner. These risks should be reviewed with your solicitor before proceeding.

Investing in Overseas Property

Your SSAS can invest in foreign commercial property, but this area is highly complex and carries additional risk. Please speak to your Scheme Administrator before considering a foreign investment.

What Types of Property Are Allowed?

Your SSAS can invest in most commercial properties, including:

• Shops
• Offices
• Industrial units

However, certain types of property are not permitted under HMRC rules.

Prohibited Property Types:

• Residential property, including:
  • Holiday homes and timeshares
  • Caretaker accommodation occupied by a Connected Party
  • Freehold commercial properties with residential leases underneath
• Moveable property, e.g., caravans, log cabins
• Residential developments that:
  • Were once residential
  • Have received a certificate of habitation
  • Have utilities connected and are habitable

Important: If you’re unsure whether a property is permitted, refer to HMRC’s rules on residential property: HMRC Residential Property Guidance

Step-by-Step: How to Buy a Property with Your SSAS

1. Identify a suitable property that all Trustees agree is a good investment and the Scheme can afford.
2. Complete this Property Questionnaire and submit it to Holtram TLPI for initial review.
3. If needed, arrange a commercial loan (from a bank or third party).
4. If required, appoint a RICS Chartered Surveyor to carry out a formal valuation.
   • If obtaining a commercial mortgage, ensure a “Red Book” valuation addressed to the Scheme can also be obtained.
5. Appoint a solicitor or licensed conveyancer familiar with pension schemes and commercial property.
6. If the tenant is unconnected or no tenant is identified, consider appointing a Property Manager.
7. Arrange Property Owner’s Insurance (for the benefit of the Scheme) to begin on exchange of contracts. Your solicitor must not exchange contracts until this is in place.
8. Provide the Scheme Administrator with copies of required documentation throughout the process.

Required Documents for Holtram TLPI

Please ensure the following documents are submitted to Holtram TLPI for compliance checks and Scheme records:

• Any loan documentation (before signing)
• CPSE (Commercial Property Standard Enquiries) completed by your solicitor
• Environmental Report or proof of Environmental Insurance (as required)
• Asbestos Report, and an Asbestos Management Plan if asbestos is present
• Tenancy agreements, including any superior lease
• Purchase documents, including:
  • TR1 (transfer form)
  • Contract for sale/purchase
  • Completion statement
• Property valuation, if applicable