When it comes to purchasing commercial property for a business, the most common routes are to:
- Purchase via the trading company
- Purchase via a holding company
- Purchase it personally and lease it to the company
Whilst these options each offer their own advantages and drawbacks, a lesser-known path is to purchase the property via your pension.
Before we go on, you can only own commercial property in a pension, not residential.
Similar to other investments, it’s not without risk. However, in the right circumstances, it can be beneficial for your pension fund and your company. The following guidance is a brief introduction to the concepts, and I would encourage you to speak to a Financial Planner with experience in this area before pursuing a transaction of this type. They’ll be able to help with ensuring it is suitable, assist you in understanding the risks involved, and guiding you away from incurring unnecessary costs and charges.