Pensions into Property

One option for business owners to ensure trading continuity is by purchasing the premises that they trade from.

Commercial finance from a bank is one way to fund a purchase but it can be far more tax efficient and potentially lucrive to purchase the property themselves using their pensions.

Commercial property has historically been a staple of pension 'self-investor' due to the relative lack of volatility and capital growth prospects.

Business owners enjoy bonus of being able to hold their own trading company premises in a tax efficient environment within their pension.

The most efficient means of getting money out of your company tax-free, particularly if you are caught by IR35.
fund.

The retirement nest egg is further enhanced by the accumulating rental payments made by the company into the fund. In effect the company is paying into your pension pot.

Properties such as offices, warehousing and industrial premises can all be used as a viable self-invested asset.

In situations where there is more than one business owner, the pension pots of the investors can jointly purchase the premises.

Pension investors also have the ability to 'gear' their investment using a commercial mortgage. Borrowing up to half the value of the pension fund can help to purchase a bigger asset.

There is also the prospect that the property could provide an ongoing income into old age as the investor can simply skim off an income from the rent.

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