Help build your pension fund with commercial property

Commercial property is a common and popular way for people to invest their pension funds. It is typically low risk and can offer the potential for a good rate of return on your capital.

By Kerry Houghton, Taylor Patterson.

That being said, not just any property can be purchased into an appropriate pension scheme. Below is a list of the more commonly approved types of property:

  • Offices
  • Industrial units
  • Shops and retail units
  • Agricultural land and forestry
  • Hotels and Inns
  • Hospitals, nursing and care homes
  • Certain types of student halls of residence
  • Some leisure property e.g. golf courses, fishing rights, marinas, moorings and sports grounds
  • Development land

Neither the approved or residential lists above are exhaustive. There can be situations where exceptions are made and we would always strongly suggest that you speak with the pension trustees prior to starting proceedings.

For example, a Group SIPP or SSAS product where investors become members of the same pension fund and pool funds to purchase the proposed property. This may give access to an asset class that would otherwise not be cost effective individually, since the costs of purchasing and running the property within a pension scheme is divided between the members.

Borrowing is not restricted to banks and other lending institutions. With the agreement of Taylor Patterson, sums can be borrowed from connected or third parties but it does have to be on a commercial basis under a formal agreement. Please refer to Taylor Patterson’s guide to borrowing.

There are a range of costs that need to be considered when purchasing commercial property. In addition to the purchase price other costs include:

  • Legal fees
  • Valuation fees
  • Survey fees e.g. environmental, asbestos
  • Land registry fees
  • Tax – Stamp duty land tax and VAT (if applicable)

Please note, where the property purchase price is subject to VAT, the stamp duty land tax payable is based on the price inclusive of VAT.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

Spirits company opens new whisky distillery Lancaster Spirits Company New Distillery

Spirits company opens new whisky distillery

17 Jul 2024

2

Rayner urged to press on with devo deal Lancashire Devolution

Rayner urged to press on with devo deal

17 Jul 2024

3

Hot 100: Resilience counts in uncertain times Hot 100 Logo

Hot 100: Resilience counts in uncertain times

16 Jul 2024

4

New AfterAthena partnership helps care providers deliver great care QCS.png.png

New AfterAthena partnership helps care providers deliver great care

18 Jul 2024

5

New business support community launches in Tarleton YAB Tarlton Press Release Image.png.png

New business support community launches in Tarleton

18 Jul 2024

Bec Web Strip 980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference
BEC 315 X 315 Px
Networking
25 Sep 2024

Lancashire Built Environment Conference

Conference and Exhibition Centre, Winter Gardens Blackpool, FY1 1HL

08:30 - 13:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

The Business Network Central & East Lancashire
LBV Header (10).png.png
LBV Hub Networking
18 Jul 2024 - 18 Jul 2024

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Conversations in Creativity - Creative Networking Event
Untitled design-4.png.png
LBV Hub Networking
18 Jul 2024

Conversations in Creativity - Creative Networking Event

Society1 Coworking Space, Preston, PR1 3LT

17:30 - 19:30

Lancashire Economic Breakfast
LBV Hub Seminars
18 Jul 2024

Lancashire Economic Breakfast

The Mill, St Catherine's Park, Preston, Lancashire

07:15 - 09:00

What are Menopause Action Plans & How to Write One
Menopause Action Plan 2024.png.png
LBV Hub Webinar
19 Jul 2024

What are Menopause Action Plans & How to Write One

~ Online ~, ~ Online ~, ~ Online ~

12:30 - 13:00

Business Networking in Fylde, Blackpool
Blackpool Fylde Image.jpg.jpg
LBV Hub Networking
19 Jul 2024

Business Networking in Fylde, Blackpool

Village Hotel Blackpool, Blackpool, FY3 8LL

07:30 - 09:30

Preston Freelancer MeetUp and Coworking Day
Screenshot 2024-06-13 at 13.55.10.png.png
LBV Hub Networking
30 Jul 2024

Preston Freelancer MeetUp and Coworking Day

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Scaling your revenue: From zero to £1m in 60 months
CBP-logo LBV.png.png
LBV Hub Webinar
31 Jul 2024

Scaling your revenue: From zero to £1m in 60 months

Online, Online, Online

08:00 - 09:30

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
31 Jul 2024

Chamber Breakfast Networking

Pye Motors, Morecambe, LA3 3PF

08:00 - 10:00

Online Women's Health Clinic
clinic.png.png
LBV Hub Webinar
06 Aug 2024

Online Women's Health Clinic

x, Online, x

12:00 - 12:00

International Coworking Day Open Day
1.png.png
LBV Hub Social
09 Aug 2024 - 09 Aug 2024

International Coworking Day Open Day

Society1 Coworking Space, Prestin, PR1 3 LT

10:00 - 13:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV116 Online Graphic
Subscribe now

Weekly news bulletin