A Self-Invested Personal Pension (SIPP) is a type of Pension Scheme that allows individuals to choose from a wide range of investment options, including commercial properties, rather than relying solely on managed funds. This investment flexibility makes a SIPP particularly appealing to business owners, professionals, and investors who want greater control over their financial future.
Unlike traditional pensions, a SIPP provider such as Alltrust enables you to directly buy and hold property within your pension fund. The property becomes an asset of the SIPP, managed by a trustee company that ensures compliance with HMRC Regulations.
Find out more about Alltrust’s services, including the Alltrust SIPP and how it supports property investment.
Investing in Commercial Property in a SIPP can be one of the most tax-efficient and stable ways to build wealth for retirement.
Some of the main benefits include:
• Tax Relief on contributions into your SIPP
• Rental income and capital gains within the SIPP are tax-free
• Potential to borrow up to 50% of your SIPP’s net asset value to assist with property purchase
• Full control over your property investment decisions
• Diversification beyond equities and bonds
In short, a property SIPP offers both long-term capital growth and a steady rental yield, combining flexibility with tax advantages — particularly when managed by an experienced SIPP provider like Alltrust.
Before Purchasing a Property, you must ensure your SIPP funds are sufficient. You can transfer funds from other pensions or contribute directly, benefiting from tax relief on eligible payments. If the available funds aren’t enough, you can borrow up to 50% of the total SIPP value to fund the purchase.
Alltrust’s experts help structure these arrangements so they comply with HMRC Guidelines and align with your retirement savings strategy.
You can buy a wide range of Commercial Properties within a SIPP, such as:
• Offices and retail units
• Industrial units and warehouses
• Land for future development
Residential Property is generally not permitted within a SIPP under HMRC regulations, but there are specific rules for mixed-use properties. Alltrust’s property team will guide you through these distinctions to ensure the property purchase remains fully compliant.
The purchase price of the property is carefully reviewed, and an independent valuation is obtained to confirm fair market value — essential when the connected party (such as your business) is involved in the transaction.
The SIPP Provider, acting as trustee, purchases the property on behalf of your pension. The legal title is held by the trustee company, with Alltrust ensuring all legal, tax, and administrative requirements are met.
The owner of the property is technically your SIPP — not you personally. This separation ensures that all tax benefits are preserved and that the property is safeguarded as part of your pension.
Alltrust coordinates with your solicitor, Financial Adviser, and property manager to make the process seamless, efficient, and compliant.
Once the property is acquired, the client’s SIPP becomes the landlord, generating rental income paid directly into the pension fund. A well-structured lease is critical — especially if the tenant is a connected party such as your own business.
The property management responsibilities include:
• Managing tenants and lease renewals
• Ensuring insurance and maintenance are up to date
• Overseeing rent collection and repairs
• Conducting periodic property valuations
Alltrust acts as trustee, ensuring compliance and smooth ongoing management. Your appointed property manager may handle day-to-day operations, but Alltrust ensures full oversight and reporting for HMRC and FCA purposes.
One of the biggest attractions of holding property within a SIPP is its favourable tax treatment.
If the property is VAT-registered, Alltrust manages the VAT registration and reclaim process on behalf of the SIPP. This ensures compliance while maximising cash flow. Understanding these tax implications before purchasing a property is essential to avoid unnecessary costs or disallowed claims.
For guidance, refer to HMRC’s SIPP Property Investment Manual.
If your SIPP doesn’t have enough cash to fund a purchase outright, borrowing can help. SIPPs are permitted to borrow up to 50% of the fund’s value, creating additional leverage to secure valuable property assets.
For example, if your SIPP holds £400,000, it can borrow up to £200,000 — giving you £600,000 total for your commercial property purchase.
Alltrust ensures that:
• The terms of the loan are commercially reasonable
• The rental income comfortably services repayments
• The borrowing arrangement complies with HMRC regulations
This careful structuring maintains tax efficiency and long-term sustainability. A qualified and Regulated Financial Adviser can also assess whether borrowing within a SIPP aligns with your risk profile and retirement timeline.
Once a property is held in a SIPP, the focus shifts to management, performance, and compliance.
As the trustee company, Alltrust takes responsibility for ensuring that your SIPP property continues to comply with all legal and tax obligations. Duties include maintaining accurate financial records, collecting rental income, and ensuring appropriate insurance and maintenance are in place.
Alltrust’s pension administration team provides transparent reporting, ensuring that your pension fund remains compliant with Financial Conduct Authority (FCA) requirements and HMRC oversight.
A solid tenant is key to a successful commercial property investment. Alltrust helps ensure the lease meets both HMRC and FCA standards, even when leasing to a connected party.
Stable rental income supports loan servicing and enhances long-term fund performance. Should the property be vacant, Alltrust’s property team assists with leasing strategies and valuation updates to maintain fund value.
The UK market includes several Property SIPP providers, such as Curtis Banks, Barnett Waddingham, and IPM. However, few offer the same combination of personalised service, property expertise, and transparent administration that Alltrust provides.
Alltrust’s Flexible SIPP is ideal for investors who:
• Want to sipp to buy and hold commercial property directly
• Value a dedicated property team that handles due diligence and documentation
• Need confidence in HMRC and FCA compliance
• Appreciate clear communication, responsive support, and competitive fees
By working closely with your independent financial adviser, Alltrust ensures your property SIPP aligns perfectly with your retirement goals and investment choice.
When you eventually sell your SIPP Property, any profit generated is generally exempt from Capital Gains Tax, as long as it remains within the SIPP structure. The proceeds return to your pension fund, available to reinvest in other investment options or used later for retirement income.
The owner of the property remains your SIPP, ensuring continuity and protection from personal tax liabilities. This structure supports long-term financial security, making Owning Property via a SIPP one of the most popular investment approaches among experienced investors.
When it comes to Property SIPP providers, Alltrust combines professional expertise with a flexible approach that adapts to each investor’s needs. Our team of specialists understands the unique challenges of commercial property transactions, from funding and compliance to ongoing management.
We provide:
✔ Expert guidance through every stage of purchasing a property
✔ Full support for borrowing within a SIPP and lender liaison
✔ Transparent administration under Financial Conduct Authority supervision
✔ A dedicated contact for your adviser, solicitor, and property manager
With Alltrust, investors benefit from both control and peace of mind. Whether you’re acquiring a property for your business or diversifying your portfolio, our Flexible SIPP ensures compliance, simplicity, and long-term growth.
A commercial property in a SIPP can transform your retirement strategy, offering tax-efficient growth, tangible assets, and steady returns. But the success of your property investment depends on choosing the right SIPP provider — one with proven experience in property administration and regulatory compliance.
Alltrust stands apart among Property SIPP providers for its hands-on service, dedicated property expertise, and deep understanding of both HMRC and FCA requirements. With decades of experience and a client-focused ethos, Alltrust helps individuals and businesses alike buy, hold, and manage property through a SIPP with confidence.
Start your journey today with a trusted, flexible SIPP provider. Contact Alltrust to discuss your next commercial property purchase within a SIPP.
This information is provided for general guidance only and should not be considered financial advice. You should seek independent, qualified financial advice before making any investment decisions.
For an in-depth look at the rules of property purchase, see our detailed guide.
Discover how commercial property works within a SIPP and the significant benefits it offers.