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SIPP Property Purchase - a Solution to a Common Problem!

SIPP Trustees can only borrow up to 50% of net scheme assets to purchase commercial property.

For example:

• SIPP value £200,000
• Trustees can borrow £100,000
• Maximum purchase £300,000

But the problem is that the Purchase price is £400,000

Maximising your property purchase with a SIPP

There is a Solution.  As a specialist property administrator Liberty SIPP (part of the Zeus Group) will facilitate joint property purchase, for example, property owned jointly by SIPP monies and company/individuals.

Using the above example the property could be purchased by SIPP trustees (75%) and the member’s company (25%)

Furthermore, the company could then make an in-specie contribution (using 25% of the property in lieu of cash) and obtain tax relief!

This is just one solution that Liberty has to overcome this restriction. 

If you have a client who is considering purchasing commercial property via a SIPP, please feel free to contact us on 01706 826 511 or fill in our enquiry form.

Jun 23, 2008