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Can Commercial Property Be Invested In With A SIPP?

You can invest in commercial property with a SIPP and this alone is one of the popular attractions for individuals to open this type of pension. Common types of property which individuals invest in through their SIPP are offices, shops, pubs and farms (although not farmhouses as residential property cannot be invested in) and it is permissible to purchase your own commercial property. When this is done, the business will receive expenses relief on rent, the rent will be tax-free and there will generally be capital appreciation over the long-term. In addition, in the unfortunate event that a business runs into financial difficulties, creditors are unable to touch the premises. It is also possible for a SIPP to borrow up to 50% of the net value of the property and when a property is subject to VAT, this can be reclaimed by the SIPP.

Please note the value of investments, and any income from them can go down as well as up and you may not get back your original investment. We do not offer advice about the suitability of our products or any investments held within them. Should you require financial advice you should consult a suitably qualified financial adviser

 

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