SSAS and SIPP Trustees may invest in commercial property in or outside the UK including: -

• Offices, factories or property of a similar commercial nature
• Development land (not residential)
• Farmland or forestry
• Hotels and Motels
• Guest Houses
• Nursing Homes
• Public Houses
• Leisure Property
• Schools

Investment in residential property is not permitted except where the residential property is an integral part of a commercial property or is for occupation by someone as part of a contact of employment and meets criteria laid down by the Inland Revenue.

The purchase of property for which planning permission has been granted to convert to commercial property, may be possible where the property is not useable for residential purposes.

For guidance on the purchase of property that has a residential element or for which planning permission has been granted for commercial use, please contact Taylor Patterson.

Property can be acquired from or sold to the SSAS or SIPP member or person or a company connected to the member provided it is an arm's length transaction supported by an independent professional valuation.

Property may be leased to a company or business "connected" to the member provided: -

• The lease is on commercial terms,
• The rent payable is at a commercial rate and,
• The rent is supported by a professional valuation.

Properties of a "leisure" nature may be permitted only where there is a clear understanding that the member or any "connected person" cannot use the facilities other than at a commercial rate. This does not include holiday property for let, which is classified as residential by the Revenue.

Trustees may also hold property jointly with the Trustees of other SIPP's or SSAS notwithstanding the fact there may be a connection between the members of those arrangements. A share of the property held in a member's SIPP may be sold on commercial terms to any other SIPP arrangement that holds an interest in that property.

This is a summary of the relevant Inland Revenue Regulations for more detailed guidance please Contact us. For further information use the following links: