SIPPs & SSASs Advice Nottingham


Unless you are intending to buy a commercial property a standard personal pension is good enough for almost everybody.

If on the other hand you want to buy a commercial property which may or may not be the property you work in, a SIPP or a SASS would be required.

Both SIPP and SASS rules in regard to contributions and withdrawals follow, in the main, with Personal Pension rules.

The Provider acting as trustee provides the following:-

– Guidance on allowable investments

– Pension scheme bank account

– Assists with contributions but not advice

– Documentation and technical support

– Calculates and pays members benefits

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SIPP – (Self Invested Personal Pension) individual personal pension, defined contribution

A SIPP is a personal individual pension. So, if you have money in a standard personal pension and want to buy a commercial property, these monies can be transferred to a SIPP and used to buy the commercial property. The pension owns the property, the property grows capital gains tax free, and rent is paid to your pension fund.

The rent is not part of your annual contribution allowance and is usually a reduction in company profit as rent would normally be paid to your pension fund rather than a third party.

A SIPP is an individual pension and therefore a number of separate individual SIPPs can purchase a different share of the property. The SIPP can usually borrow 50% of the value of the pension fund from a lender which increases the buying power of the fund.

The Provider together with the members will always act as trustees.

SSAS (Small Self-Administered Scheme) – employer sponsored pension scheme, defined contribution

A SASS is a pension set up by an employer for up to 11 members. Designed for senior executives, directors, and entrepreneurs and to which membership can be extended to other employees and family members. It is advisable to use the services of a professional SASS provider as a trustee but not absolutely necessary.

A SASS can borrow up to 50% of its value in order to buy property.

A SASS, unlike a SIPP, can also make a loan to the employer, which must be done in a structured way. These are called ‘loanbacks’ and can be up to 50% of the value of the SASS at the time of the loan.

When buying a commercial property, it is essential that you are aware of whether the property is subject to VAT as this will affect the size of the fund required to purchase the property plus the VAT and whether the pension needs to be registered for VAT to reclaim. Rent may also be subject to VAT.

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Get in touch

There are so many reasons why you might consider taking financial advice, so please get in touch and have a chat with us to see whether we can help.

As Independent Pension and Investment Financial Advisers, we can offer you advice from across the whole of the market. We work with our clients in Nottingham and the East Midlands to understand their unique circumstances and find bespoke solutions to suit you. If you are looking for Independent Financial Advice please click here to get in touch with one of our advisers.