Buying commercial property through a SIPP or SSAS
A pension scheme can own commercial property, including your own business's premises, and can borrow to buy it. The rent goes into the pension tax-free and the building sits outside your estate. Here is how it works and when it is worth it.
The idea
Your SIPP or SSAS buys the premises (from a third party, or from you or your company at market value). Your trading business then pays a market rent to the pension. The rent is a deductible expense for the business and tax-free income inside the pension; growth in the property's value is free of capital gains tax; and the property is outside your estate for inheritance tax and outside the business if it fails.
Borrowing rules
- A scheme can borrow up to 50% of its net asset value. A scheme with £300,000 can borrow £150,000 and buy a £450,000 property (less costs).
- The loan is to the scheme, secured on the property, from a lender that offers pension lending (a shorter list than the general market).
- Rates and terms are similar to owner-occupier commercial mortgages; the rent must comfortably cover the repayments.
- No personal guarantees are needed from members, because the scheme is the borrower; but the rent has to be paid, and the business is the tenant.
What can and cannot be bought
Commercial property, land, mixed-use where the residential element is minor. Not residential property (heavy tax charges). Not property with moveable residential elements (a pub with a manager's flat can be a problem unless the flat is occupied by an employee as a condition of employment). VAT on the purchase usually cannot be reclaimed by the scheme unless it opts to tax and charges VAT on the rent.
Costs and admin
Scheme set-up (a SSAS in particular), a market rent valuation, a lease between the scheme and the business, ongoing scheme administration, and the property costs. A SSAS suits company directors who want control and can pool several members' pots; a SIPP suits an individual. Get an accountant and a pensions adviser in the room before an adviser arranges the loan.
When it is worth it
When the business is established and profitable, the pension is large enough to make the deposit, the members are some years from retirement, and you want the premises secured for the long term outside the business. It is not for a marginal business or a marginal pension.
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Can my pension buy the premises my company already owns?
Yes, at an independent market valuation, which can release cash into the company. Stamp duty applies as on any purchase.
What if the business cannot pay the rent?
The scheme, as landlord, must treat it like any other tenant: chase it, and ultimately evict it. Trustees have a duty to the scheme, not the business. Set the rent at a level the business can sustain.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.