- 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.