24/09/2025
We recently met with a potentially new client, they explained that retirement was beginning to come into focus and they were unsure on how to create more wealth for retirement. We discovered they have four properties and multiple pension pots, they were unsure about the best way to use their four properties to fund their future lifestyle. Timing was one of their main concerns. Whether to sell now, hold on for a few more years, or look at alternative strategies that might give them more flexibility.
One of the properties was a commercial property, and the client had heard in some conversations with friends and online that transferring a commercial property into a Self-Invested Personal Pension (SIPP) could be a smart move, but they weren’t clear on how it worked or why it might benefit them.
We walked them through the key advantages. By holding the property within a SIPP, the rental income received would be paid into the pension entirely tax free, helping to grow their retirement pot more efficiently. In addition, any future growth in the value of the property would also be sheltered from capital gains tax. We also explained that the rent paid by their business would still be a deductible business expense, so the arrangement could work well from both sides.
There are, of course, some important considerations such as liquidity, borrowing limits, and pension contribution allowances, but overall it can be a very tax efficient way of using an existing asset to strengthen retirement planning.
The client left the meeting with a much clearer understanding of how a SIPP works, the potential benefits it could offer them, and what the next steps might look like if they decided to explore it further.
If you are in a similar situation and unsure on what to do next, contact us to speak to one of Advisors
