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Invest in commercial property with a SSAS pension

Benefit from tax-free rental income and capital growth by acquiring commercial property. You are able to invest in commercial property with a Small Self-Administered Scheme (SSAS) or Self-Invested Personal Pension (SIPP). The great thing about investing in property with a SSAS pension is the two forms of income — Capital Value and Rental Income are tax-free.

Reviewed June 2026 · 6 minute read

Invest in commercial property with a SSAS or SIPP pension

There are two types of pension scheme that allow you to buy property. A Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS) can purchase commercial property as well as invest in commercial and agricultural land. Once purchased, the property or land can be let to your company or a third party. This gives rise to tax-free rental income and capital growth, with rental income paid into the pension scheme bank account.

What is commercial property?

Commercial property is buildings or land that are intended for business purposes and profit-making, as opposed to residential property.

Examples of buildings classed as commercial property include offices, office space, retail units, warehouses and factories, other industrial buildings, pubs, hotels, sports centres, hospitals, nursing homes, gyms and more.

What is considered commercial property?

Commercial property, when purchased using a pension, has a broad meaning and includes land for development, high street premises, factories, car parks, hotels or pubs. We are often asked if it is possible to invest in residential property with a pension. Whilst a SIPP or SSAS should not invest directly in residential property, there are some exceptions. Care homes, hotels and designated student Halls of Residence are not treated as residential property.

There are also some job-related properties that are exempt, such as a pub with a landlord's flat. The conditions for this type of investment are extremely strict though and require a number of criteria to be met in order to ensure that they are not inadvertently classed as residential property. For example, a shop with some flats above it, with their own entrance would not qualify but land for residential development is possible. Assuming that the proper planning permission is obtained, land can be developed, even into residential property, however, it must be sold from the pension before it becomes substantially operational if it is residential.

Transferring to a SSAS or SIPP pension

Rather than making new contributions to a pension many of our clients transfer old employer pensions into SIPP or SSAS pensions that allow them to invest in commercial property. This is a simple process however it is important to have an investment plan so that you can decide on the right SIPP or SSAS scheme provider for you. If you are transferring a pension you also need to consider any benefits that you are losing. Click here to view HMRC rules

Property loans and pooling funds

A SIPP or SSAS pension can also borrow 50% of its value to help with the purchase of property. A SIPP loan or SSAS loan can be from a bank or any third party investor. A SIPP or SSAS can also combine its value with other family members to create a larger potential purchase price. We often help a husband and wife combine their pensions, it is also possible to pool the pensions but to keep the benefits separate. We are able to offer the best property SSAS pension advice, tools and knowledge to support your strategy.

Pensions less than £100,000? We can still help

If the total pension value is less than £100,000 then there may not be enough to make a direct commercial investment however this should not stop you from using property as the investment to grow your pension. There are other options that allow SSAS members to pool pension funds in order to have a larger pot for investments. There are also property loans and hands-off property investment options to explore.

We have helped many people to turn their old, poorly performing pensions into a valuable pension by investing it in property.

Key benefits
  • Tax-free property investing
  • Benefit from capital gains
  • Lease property to your own business
  • Benefit from rental income
  • Costs and payments are payable by pension
  • Extensive investment opportunities
Invest in commercial property with your SSAS

A free, no-obligation call to discuss how a SSAS pension can be used to invest in commercial property.

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FAQs

Commercial property and SSAS pension: frequently asked questions

A Small Self-Administered Scheme (SSAS) is a pension exclusively for business owners/company directors. The company director sets up the SSAS and is then able to invite up to 10 other members to be part of the scheme. Members can be other company employees or family members.

A SSAS is a pension trust that gives its members control of their pension funds and assets. A SSAS allows members to invest funds at their own discretion.

A SSAS has access to every type of investment that is allowed under rules set out by legislation, as with traditional pensions. In addition, a SSAS has additional investment privileges, such as investing in property or investing in your business, amongst other things. You can make permitted investments at any age; you do not need to be 55 to take control of the money in your pension.

  • As a SSAS is registered with HMRC as a UK registered pension scheme, it becomes an extremely tax-efficient wrapper.
  • Sponsoring Employers are able to make contributions and receive upfront tax relief, saving Corporation Tax.
  • Assets held within the SSAS are free of Corporation Tax, Income Tax, Capital Gains Tax, and has decreased Inheritance Tax liabilities.
  • Personal and company assets can be transferred into the SSAS as contributions.
  • Commercial property held by the SSAS, for example, the company business premises, can grow tax-free within the SSAS whilst earning tax-free gains (rent) from the company, as it does so. Rent is not lost to a landlord.
  • When using the loanback facility, loan payments go back into the SSAS, as opposed to paying the bank. This then grows tax-free within the SSAS.
  • Additional family members can be added to the SSAS to create a tax-efficient family trust.
  • Family assets can be held within the SSAS and are ring-fenced from creditors.

Timescales can vary, depending upon relevant checks and paperwork required. Requesting your pension transfer values and setting the transfers in motion quickly will help. It can take a number of weeks to register your SSAS with HMRC and ensure everything is up and running correctly.

  • A SSAS is allowed to invest in everything that traditional pensions can invest in and is afforded the same tax advantages as other pensions.
  • A SSAS can be used to achieve optimum tax efficiency.
  • A SSAS can loan 50% of its funds to your company for whatever business purposes you see fit.
  • A SSAS can loan to an unconnected third party.
  • A SSAS can invest in commercial property.
  • A SSAS can ring-fence family assets with ultimate tax efficiency.
  • A SSAS can invest in hands-free property investments.
  • A SSAS is a corporate pension and can have up to 11 members.
  • A SIPP is a personal pension and only for individuals.
  • A SSAS is exclusively available to company directors.
  • SSAS costs are charged per scheme rather than per member.
  • A SSAS is its own individual trust and can make its own investment choices.
  • A SIPP is regulated by the FCA and HMRC.
  • A SSAS is regulated by HMRC and The Pensions Regulator (TPR).
  • A SSAS can loan 50% of its funds to the business.
  • A SSAS can invest in commercial property.

Invest in commercial property with your SSAS

A free, no-obligation call to discuss how a SSAS pension can be used to invest in commercial property, benefit from tax-free rental income, and support your business.

Speak to a corporate investment consultant What is a SSAS?