Pension Properties and SIPP strategies

Amidst the cagey recovery of the property markets, and the ‘interesting times’ recently experienced by the region’s developers and house builders, one has to look hard to find the silver lining for those involved with commercial property.

However, as market prices are steadying, one attractive option for small and medium-sized businesses is the ability to put property into their Self Invested Personal Pension Schemes (SIPPs). A sale of property by a business to its pension fund can release cash, currently tied up in the fund, to the business.

The pension fund can benefit from the purchase of an asset at a good price, and take advantage of an increase in value when the market recovers. For individuals with a long term pension plan, this is becoming a popular and viable strategy.

Some forward-thinking businesses are putting properties into pension funds by way of contribution, rather than sale, enabling them to reduce cash contributions to the fund, and increase cash flow in the business.

The specialist lawyers at Thrings are fully conversant in working with IFAs and pension fund providers on these types of transaction. We are delighted to help all members of the business community and, if owners of a business are interested in looking at its SIPPoptions, we are happy to assist, in conjunction with an IFA.

To discuss SIPP Property, acquisitions and disposals, including landlord and tenant matters, contact Alex Pinhey.

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