Purchasing Commercial Property Through a SSAS
The most compelling SSAS benefit for directors with business premises - own your building inside your pension, with rent flowing back tax-free.
How a SSAS Can Purchase Commercial Property
A distinctive feature of a SSAS is the ability for the pension scheme to purchase commercial property, including the company's own trading premises. The property is owned by the SSAS trustees (the pension scheme), not by the company or the individual directors personally.
0%
CGT Inside Scheme
Capital gains sheltered in pension wrapper
0%
Income Tax on Rent
Rental income exempt within SSAS
25%
Corp Tax Relief
On employer contributions used to fund purchase
50%
Borrowing Limit
Max borrowing to assist property purchase
The Property Purchase Process
A SSAS property purchase follows a defined sequence - TLPI manages each step as part of the scheme administration service.
Accumulate Funds
SSAS accumulates sufficient funds through member and/or employer contributions.
RICS Valuation
Trustees commission an independent RICS valuation of the target property.
Legal Documentation
TLPI prepares all necessary legal documentation for the purchase.
Purchase Property
The SSAS purchases the property at full market value.
Company Pays Rent
The company pays market-rate rent to the SSAS, accruing tax-free within the scheme.
Accumulate Funds
SSAS accumulates sufficient funds through member and/or employer contributions.
RICS Valuation
Trustees commission an independent RICS valuation of the target property.
Legal Documentation
TLPI prepares all necessary legal documentation for the purchase.
Purchase Property
The SSAS purchases the property at full market value.
Company Pays Rent
The company pays market-rate rent to the SSAS, accruing tax-free within the scheme.
Tax Advantages at Every Stage
Purchasing commercial property through a SSAS creates layered tax efficiency:
- Corporation tax relief: Company contributions used to fund the purchase are an allowable business expense.
- Tax-free rental income: Rental income received by the SSAS is exempt from Income Tax within the scheme.
- CGT exemption on growth: Any capital growth in the property value is sheltered within the pension wrapper.
- IHT advantage on death: On death, the property can pass within the SSAS subject to pension scheme rules. Note: from 6 April 2027, unused pension funds become subject to Inheritance Tax under legislated changes.
Why Directors Love This
Instead of the company paying rent to a third-party landlord - money lost forever - the company pays rent into the SSAS pension scheme. That rent grows tax-free inside the pension, benefiting the director's retirement.
The rent your company pays becomes your pension pot - not a landlord's profit.
Connected Party Transactions - What to Know
Where the SSAS purchases property from a connected party (such as the sponsoring company or a director personally), HMRC requires a formal independent valuation at the time of purchase and at each subsequent rent review. All transactions must be at arm's length - market value purchase price and market rent.
HMRC will challenge any transaction it views as providing a financial advantage to a connected party. TLPI manages this compliance requirement as part of scheme administration - including commissioning valuations and documenting the basis for the agreed price and rent.
What You Need to Know Before Referring
SSAS commercial property works best when the following requirements are understood from the outset.
Commercial Use Only
The property must be used for business purposes - residential property is not permitted in a SSAS.
Arm's Length Transactions
Connected party transactions must be at arm's length: market value purchase price and market-rate rent.
Liquidity Requirements
The SSAS must maintain sufficient liquidity to meet benefit payments and ongoing costs.
Borrowing Cap
Borrowing is permitted up to 50% of net scheme assets to assist with property purchase.
How it works
From introduction to fee paid — a simple 5-step process.
You make the introduction
Register, then send them your link or ask them to get in touch. Takes a couple of minutes.
We have the conversation
One of our consultants speaks to them within 1 business day. You do not need to explain how any of it works.
The scheme is set up
If it suits them, TLPI handles the set-up and the HMRC registration.
You get paid
£500 when their scheme is registered with HMRC. You send us an invoice and we pay within 14 business days.
They get the benefit
They end up with a pension their company can pay into, that can hold their business premises.
You make the introduction
Register, then send them your link or ask them to get in touch. Takes a couple of minutes.
We have the conversation
One of our consultants speaks to them within 1 business day. You do not need to explain how any of it works.
The scheme is set up
If it suits them, TLPI handles the set-up and the HMRC registration.
You get paid
£500 when their scheme is registered with HMRC. You send us an invoice and we pay within 14 business days.
They get the benefit
They end up with a pension their company can pay into, that can hold their business premises.
Know a company director who should see this?
Register to refer them. You make the introduction - we have the conversation.
Register to refer