SIPP or SSAS,which is bestfor commercialproperty?Scots Financial AdvisorWilliam George IFAexplains these importantinvestme...
"Great question,both are goodbut they havedifferent uses."Now lets take a look at why bothare helpful for retirement plann...
SIPP or SSAS For Commercial PropertyQ: What is a SIPP?A: Its a Self Invested Personal Pension Planthat is suited to those ...
SIPP or SSAS For Commercial PropertyQ: What is an SSAS?A: A Small Self Administered Scheme, also knownas a SSAS, is most o...
SIPP or SSAS For Commercial PropertyQ: As an individual why use a SIPP?A: Because they are often used as a retirementvehic...
SIPP or SSAS For Commercial PropertyQ: I have a small business will a SIPP suit me?By far the most common use of a SIPP ha...
SIPP or SSAS For Commercial PropertyQ: What advantages will this give me?Buying your pension within a SIPP has several tax...
SIPP or SSAS For Commercial PropertyQ: As a group why use an SSAS?A: Because there are a number of benefits that cometo me...
SIPP or SSAS For Commercial PropertyQ: What are benefits of being in an SSAS?A: Key benefits are substantial; when the com...
SIPP or SSAS For Commercial PropertyThere are more SSAS benefits too...Trustees can make loans, from the scheme, to the co...
SIPP or SSAS For Commercial PropertyQ: What about shares in an SSAS?A: Trustees of the SSAS may not purchase more than 30%...
SIPP or SSAS For Commercial PropertyQ: What are "Acceptable" investments?The PSO state these investments are acceptable......
SIPP or SSAS For Commercial PropertyQ: What are "Non-Acceptable" investments?Certain activities and assets are considered ...
SIPP or SSAS For Commercial PropertyQ: Anything else to note?A: Yes, re LOANS with an SSAS. The loan cannot exceed 25% dur...
"So, using aSIPP or SSASto invest inCommercialProperty canbring solidbenefits."If you need more adviceplease do phone me b...
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SIPPS or SSAS: Which is Best For Buying Commercial Property as Investment?

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Using a pension vehicle such as SIPP (Self Invested Pension Plan) or SSAS (Small Self Administered Scheme) is now a popular way to invest in commercial property. There are solid tax advantages too. Independent Financial Advisor William George explains more...

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SIPPS or SSAS: Which is Best For Buying Commercial Property as Investment?

  1. 1. SIPP or SSAS,which is bestfor commercialproperty?Scots Financial AdvisorWilliam George IFAexplains these importantinvestment vehicles...Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  2. 2. "Great question,both are goodbut they havedifferent uses."Now lets take a look at why bothare helpful for retirement planningwhen combined with commercialproperty investment...Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  3. 3. SIPP or SSAS For Commercial PropertyQ: What is a SIPP?A: Its a Self Invested Personal Pension Planthat is suited to those who like more handson control of their pension investments.It is for INDIVIDUALS.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  4. 4. SIPP or SSAS For Commercial PropertyQ: What is an SSAS?A: A Small Self Administered Scheme, also knownas a SSAS, is most often used by a group of people.Companies usually set up this type of scheme forhigh level personnel and directors. Because it is foremployees, it’s considered to be an occupationalpension that can have up to eleven peoplein the group.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  5. 5. SIPP or SSAS For Commercial PropertyQ: As an individual why use a SIPP?A: Because they are often used as a retirementvehicle due to their flexibility and ability toinvest in the lucrative commercial propertymarket.It is a TAX efficient way to use pension funds.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  6. 6. SIPP or SSAS For Commercial PropertyQ: I have a small business will a SIPP suit me?By far the most common use of a SIPP has been through smallbusinesses using their pension funds to buy their own businesspremises, so yes, using a SIPP could suit a small businessowner well.Changes to the pension rules in 2006, means that it is nowpossible to do this, even if the property is already ownedby them or someone connected to them.However it should be noted that these types of arrangementsare subject to strict criteria must be done on a commercial basis.Rent paid to a SIPP must be a market rent.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  7. 7. SIPP or SSAS For Commercial PropertyQ: What advantages will this give me?Buying your pension within a SIPP has several tax advantages.The rent you pay to the pension fund can be paid free of taxbecause it is a deductible business expense. If you sell yourproperty when it is contained within the pension fund thenthere is no capital gains tax payable.Also, if you die before age 75 and have not started takingyour pension yet then your property can be paid into yourestate free of inheritance tax.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  8. 8. SIPP or SSAS For Commercial PropertyQ: As a group why use an SSAS?A: Because there are a number of benefits that cometo members of a SSAS occupational pension scheme.These benefits can be realised on the death of the memberor upon their retirement.However, at no time, during the membership in thescheme, can any part of the SSAS provide benefits,whether directly or indirectly, to a member or that member’sfamily.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  9. 9. SIPP or SSAS For Commercial PropertyQ: What are benefits of being in an SSAS?A: Key benefits are substantial; when the company buys aproperty, it provides the company with corporate tax relief,as funds entered into the SSAS are not fully taxable.Furthermore, should the property be sold or rented, thecompany does not incur tax liabilities from the sale of theproperty, or from the income derived from rental of theproperty, thereby effectively lowering the company’s taxexposure.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  10. 10. SIPP or SSAS For Commercial PropertyThere are more SSAS benefits too...Trustees can make loans, from the scheme, to the company or companiesassociated with the original company, as pertaining to the company’s business.Borrowing is allowed to purchase assets but restricted to...● Commercial properties.● No more than 45% of the market value, plus 3x annual contributions from employer, plus 3x member contributions per annum. The SSAS must exclude the value of assets set aside for the death of member or retirement of member.● The IR SPSS must be notified, if loan is over 6 months, and when funds borrowed less than 10% of current market value of fund, or £50,000.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  11. 11. SIPP or SSAS For Commercial PropertyQ: What about shares in an SSAS?A: Trustees of the SSAS may not purchase more than 30%of shares in an unlisted company. Trustees are not allowedto buy shares from other members or people associatedwith a member.Members are not allowed to buy from a company that issponsoring the Small Self Administered Scheme. A 30%limit is applied to voting rights and dividends of the SSAS.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  12. 12. SIPP or SSAS For Commercial PropertyQ: What are "Acceptable" investments?The PSO state these investments are acceptable...● Shares in the company● Company deposit accounts● Commodity Futures● Financial Futures● Trading Options● CopyrightsCopyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  13. 13. SIPP or SSAS For Commercial PropertyQ: What are "Non-Acceptable" investments?Certain activities and assets are considered to be non-acceptable. Trustees cannot loan to...● Other members or those connected to a member of the SSAS.● A sponsoring company or a company deemed to be associated, unless the rate meets the current non-commercial rate.● A sponsoring company or a company deemed to be associated, unless it is for commercial purposes that have been approved.● Insolvent companies.● If monies are being use to rescue a company facing insolvency.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  14. 14. SIPP or SSAS For Commercial PropertyQ: Anything else to note?A: Yes, re LOANS with an SSAS. The loan cannot exceed 25% duringthe first two years of its existence. Plus, it cannot include funds fromanother scheme until after the two year period hasbeen met. After the two year waiting period, the schemecan then loan up to 50% from the pension fund.All loans must be for the company’s business and interest rateson the loan must be 3% over the base rate that banks use onthe day of the loan. Other conditions may apply and yourfinancial advisor is the best person to explainthe process in full detail.Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk
  15. 15. "So, using aSIPP or SSASto invest inCommercialProperty canbring solidbenefits."If you need more adviceplease do phone me below...Call FREE on 0800 321 3508Copyright: All Rights Reserved 2013 William George IFA www.williamgeorgeifa.co.uk

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