Aberdein Considine is authorised and regulated by the Financial Conduct Authority. Our Financial Services Register number is 142693. The FCA does not regulate tax planning, Wills or Trusts. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage. The information on this site is intended to be of general interest only and should not be considered as an offer, investment recommendation or solicitation, to deal in the shares of any securities or financial instruments.
A self-invested personal pension, or SIPP, is a personal pension plan but with one very significant difference; the plan holder has freedom to choose and change from a wider range of options.
As well as the usual core investments: funds, equities, bonds and cash you can access a wide range of investments, including:
Exchange traded funds
Insurance company funds or policies
You can also invest directly in the shares of UK and overseas companies
Specialist investments - commercial property
Investing in commercial property with a SIPP gives you:
Cash-flow enhancement - if you own the property you trade from why not sell it to your SIPP
Tax-free growth in the property value - no Capital Gains Tax liability on the property sale
Income Tax free rental income
Protection against market volatility - the commercial property market is generally considered less volatile than investing in company shares, but remember investing in a single property could reduce liquidity as property can take longer to sell
Tax relief for business users - if you use the premises for your own business, any rent paid is an allowable business expense
Potentially, no Inheritance Tax liability - the property doesn't form part of your estate on death
One of the main attractions of a SIPP is that commercial property can be purchased by an individual or even by a group of people. SIPPs allow borrowing of up to 50% of the net value of the existing assets within your plan to assist with a purchase.