The funds in a SSAS can be used to purchase a commercial property, including business for your company which can then be leased back to the company. We are more than happy to advise further and assist the process.
The main advantages of holding a commercial property in a SSAS are:
- When the property is sold by the pension fund there is no CGT liability
- Tax relief is received on any contributions used to purchase the property
- The rent payable is an allowable business expense if the premises are used for the member’s own business. Therefore the rental income is received tax-free by the SSAS
- No Inheritance Tax is payable on the property
- The property is protected from creditors as it is not an asset of the company
- Growth in the value of the property when sold is free of Capital Gains Tax
- Property is acquired without direct capital expense to the business
Advantages:
- The company obtains Corporation Tax relief on the pension contributions
- The rent paid by the company is an allowable business expense and decreases the company’s’ tax bill
- Rent payments into the SSAS do not attract tax when in the SSAS
Permitted Property | Non-Permitted Property |
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