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
One of the most compelling features 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 passes to remaining SSAS members without inheritance tax, subject to pension scheme rules.
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.
Limitations and Restrictions
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 the Referral Process Works
From introduction to fee paid — a simple 5-step process.
You Submit a Referral
Register as a partner and submit your client’s details via the secure portal. Takes under 2 minutes.
TLPI Contacts the Client
Our SSAS specialists reach out within 1 business day to explain the benefits. You don’t need to do anything else.
SSAS is Established
TLPI handles scheme set-up and HMRC registration. The client’s SSAS is fully established and operational.
You Receive Your Referral Fee
Once the SSAS is set up and active, TLPI pays your referral fee. Fee is paid on scheme establishment, not on referral.
Your Client Saves Tax
The director benefits from corporation tax relief, CGT exemption, and the ability to hold their business premises in their pension.
You Submit a Referral
Register as a partner and submit your client’s details via the secure portal. Takes under 2 minutes.
TLPI Contacts the Client
Our SSAS specialists reach out within 1 business day to explain the benefits. You don’t need to do anything else.
SSAS is Established
TLPI handles scheme set-up and HMRC registration. The client’s SSAS is fully established and operational.
You Receive Your Referral Fee
Once the SSAS is set up and active, TLPI pays your referral fee. Fee is paid on scheme establishment, not on referral.
Your Client Saves Tax
The director benefits from corporation tax relief, CGT exemption, and the ability to hold their business premises in their pension.
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