Aug 26

Trading Places: buying your business premises in a SIPP

Written by Heather Roberts
Head of Commercial Property

DDI: 01423 724618
E: heather.roberts@raworths.co.uk

For many owner-managed businesses, the premises from which the company operates can be one of the most valuable assets. Buying commercial property within a Self-Invested Personal Pension (SIPP) can offer significant tax and retirement planning advantages, whilst allowing the company to occupy the property under a business tenancy.

A SIPP is permitted to purchase commercial property, including offices, industrial units, warehouses, retail premises and agricultural land.  In many cases, business owners use their existing pension funds, sometimes combined with borrowing, to acquire the premises occupied by their company.

Some of the benefits comprise:

• There can be valuable capital gains tax benefits. If the property increases in value, any gain realised on a future sale is generally free from capital gains tax within the pension scheme.
• Rental income received by the SIPP is not subject to income tax.
• Asset protection is another important consideration. Commercial property held within a properly structured pension is separate from the trading company’s assets as the SIPP and company are two separate legal entities. This protects the property should the business encounter financial difficulties in the future.
• From a succession planning perspective, holding property in a SIPP can offer flexibility. The property remains within the pension environment and can form part of wider retirement and estate planning strategies, helping business owners separate their property investment from the day-to-day trading business.

Acquiring commercial property through a SIPP involves specialist legal, pension and tax considerations:

• A regulated financial adviser assists in identifying a SIPP provider with a strong commercial property offering to set up the fund.
• A surveyor assists in identifying property to purchase
• A commercial property solicitor will review the legal due diligence that the SIPP administrators will require. This will include investigating title and identifying any restrictions, title obligations or defects. Where borrowing is involved, solicitors also deal with the lender’s requirements.

If your business already occupies the property, the Commercial Property team at Raworths prepares and negotiates the lease between the SIPP trustees and the trading company simultaneous with the purchase. It is essential that the lease is on commercial terms including market rent and complies with pension regulations. We can also advise on rent review provisions, repairing obligations and future flexibility for the business. Early professional advice can help avoid costly delays, regulatory issues and unexpected tax consequences.

For owner-managed businesses seeking to combine retirement planning with the security for their business home, a SIPP-held commercial property can be an attractive solution and the sooner professional advice is taken the smoother any purchase can proceed.

If you would like to speak to Raworths about commercial property, please contact Heather Roberts at email heather.roberts@raworths.co.uk

Raworths sponsors Yorkshire Business Insider’s Top 100 OMB rankings in June 2026’s edition of the publication.

Published 3 August 2026

The information and any commentary contained in this briefing is for general information purposes only and does not constitute legal or any other type of professional advice.