Commercial Property / SIPP
Discussion
Hi all,
I run a small office based business and have until now been in serviced offices.
A nice office has come up for sale local to me, and I would like to buy it via a SIPP and then rent it to my company. I may also sub-let part of it to a third party.
My SIPP does not have enough funds to make the purchase so I will borrow some funds (less than 50% of the SIPP value) from my company and this will be repaid over 3 / 5 years.
The purchase is subject to VAT though the SIPP will opt to tax so I will get that back.
There seems to be a reasonable amount of cost in getting it all set up given IFA / lawyer / surveyor / SIPP company, but the benefits seem to make it a no brainer.
It is also possible that, another day, the building may be converted to residential which would mean I would need to extract it from the SIPP.
Has anyone taken a similar step, and if so am I missing anything?
Thanks for any help you can offer!
I run a small office based business and have until now been in serviced offices.
A nice office has come up for sale local to me, and I would like to buy it via a SIPP and then rent it to my company. I may also sub-let part of it to a third party.
My SIPP does not have enough funds to make the purchase so I will borrow some funds (less than 50% of the SIPP value) from my company and this will be repaid over 3 / 5 years.
The purchase is subject to VAT though the SIPP will opt to tax so I will get that back.
There seems to be a reasonable amount of cost in getting it all set up given IFA / lawyer / surveyor / SIPP company, but the benefits seem to make it a no brainer.
It is also possible that, another day, the building may be converted to residential which would mean I would need to extract it from the SIPP.
Has anyone taken a similar step, and if so am I missing anything?
Thanks for any help you can offer!
That's a good point re. surrender. I was going to try and build in a few break clauses into the lease from the SIPP to Ltd to try and manage that risk.
I'm based near Reading, but think I am OK with the lending point. IFA has been advising so far and has not flagged up anything about it being an issue. I guess we will see when I make the SIPP application.
I will also look at SSAS, thanks for that.
I'm based near Reading, but think I am OK with the lending point. IFA has been advising so far and has not flagged up anything about it being an issue. I guess we will see when I make the SIPP application.
I will also look at SSAS, thanks for that.
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