Join our community of smart investors

What are the rules on holding property in your Sipp?

If you do not comply with the strict rules on holding commercial property in a Sipp you may face a high tax charge
What are the rules on holding property in your Sipp?
  • Sipps can hold various types of commercial property
  • There are strict rules on what can be held and how
  • If these are breached the Sipp may incur a high tax charge

You can hold various types of commercial property in a Sipp such as offices, warehouses, industrial units, retail premises, surgeries, agricultural land, hotels and pubs. However, the Sipp should not trade via the property although could let it to a company which does trade. “So, for example, while a Sipp couldn’t operate a hotel it could own a hotel building and let it to a holiday company,” explains Richard Harwood, divisional director – financial planning at Brewin Dolphin.

There are also types of commercial property that you cannot hold in a Sipp without incurring a tax charge. These include holiday lets, residential properties which have no connection with adjacent or nearby business premises also owned by the Sipp, and time-shares.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in