Commercial property and SIPPs and SSASs: what does it mean?

  • Commercial Finance
sipp-ssas

After spending the last few months supporting businesses across the country, we have found that many individuals and businesses across various industries are now preparing for the future.

Commercial finance offers the opportunity to do just that. An area of this sector that is rarely discussed is the funding available through SIPPs and SSASs.

 

What is a SIPP?

A SIPP is a self-invested personal pension, which also allows you to take out a mortgage to buy a commercial property by borrowing up to 50% of your SIPPs value. You can find out more about how they work in our post, Commercial Properties and SIPPs: How Does It Work?

 

What is a SSAS?

A small self-administered pension scheme, or a SSAS, is similar to a SIPP in that it allows you to purchase commercial property. Once purchased, the property or land can be let to your business, which offers tax-free rental income and capital growth, with rental income paid into the pension scheme.

A SSAS can be used for a variety of reasons including land for development, high street premises, factories, car parks, hotels and pubs.

There is a range of key benefits to purchasing property in this way. This includes tax-free property investing, benefits from capital gains, benefit from rental income and extensive investment opportunities.

 

KLO x Finance 4 Business

It’s important that you get advice from a specialist financial broker such as Finance 4 Business, who will be able to source the right products for you and your business.

You can find out more about SIPPs, SSASs and commercial properties in the video below. We have recently collaborated with independent financial advisers KLO Financial Services on the KLO Talks podcast, where our Senior Business Development Manager joins Terry Michael and Peter Komolafe to discuss commercial property opportunities.

If you would like to discuss this topic further, please contact us on 0121 309 0444 or email Mike Kelly directly at mike.kelly@f4b.biz.