↑Part of: SSAS pension

Invest in commercial property with a SSAS pension

Rent received by the scheme is not subject to Income Tax, and growth in the value of the property is not subject to Capital Gains Tax when the scheme sells it. You are able to invest in commercial property with a Small Self-Administered Scheme (SSAS). The great thing about investing in property with a SSAS pension is the two forms of return: rental income, which is not subject to Income Tax within the scheme, and capital growth, which is not subject to Capital Gains Tax when the scheme sells.

Reviewed June 2026 · 6 minute read

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. Rental income is paid into the pension scheme bank account and is not subject to Income Tax within the scheme, and growth in the value of the property is not subject to Capital Gains Tax when the scheme sells it.

Trade counter unit with roller shutter and van on a UK industrial estate, typical commercial property a SSAS can buy
Trade counters, workshops and industrial units like this are all commercial property, which means a SSAS pension is permitted to buy them.

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.

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 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.

Interior of a light industrial workshop of the type a SSAS pension can buy and lease back
The premises your company already trades from is often the first property a SSAS buys, because the rent is already being paid to somebody.

Transferring to a SSAS 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 SSAS scheme administrator 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 SSAS can also borrow up to 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.

Warehouse loading bay, an example of commercial property a SSAS pension is permitted to hold
Larger units are often bought by pooling the funds of several scheme members, which puts property within reach that no member could buy alone.

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
  • Property investing inside a pension
  • 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

Yes. A SSAS is a registered pension scheme and commercial property is a permitted investment, so the scheme can buy premises outright or alongside the company, other members or a third party. The property is held in the name of the trustees, and the rent is paid to the scheme rather than to you personally.

Commercial property means non-residential premises: offices, industrial units, warehouses, retail units, surgeries, nurseries, care homes, hotels and agricultural land. The pensions legislation draws the boundary by exclusion, and what a scheme cannot hold is residential property and most tangible moveable assets. Where a building has a residential element, such as a flat above a shop, the position needs checking before the scheme commits.

No. Residential property is classed as taxable property under the pensions legislation, and a registered scheme that acquires it faces unauthorised payment charges on both the scheme and the member. That includes buy-to-lets and holiday homes. The exceptions are narrow, and a mixed-use building needs its residential element assessed separately before the scheme commits.

The scheme must buy at open market value, hold the property in the names of the trustees and let it on commercial terms under a written lease. That applies equally where the tenant is your own company: rent must be set at a market rate and paid on time. The scheme may borrow towards a purchase, within a limit set by the legislation.

Yes, and it is the most common reason company directors use a SSAS for property. The scheme buys the premises, your company becomes the tenant, and it pays rent to the scheme on commercial terms under a proper lease. The rent leaves the company and builds the pension rather than going to an unconnected landlord.

Yes. A registered pension scheme may borrow up to 50 per cent of its net asset value towards a purchase. The borrowing is secured on the property and repaid by the scheme, commonly from the rent the property generates. This is separate from a loanback, which is the scheme lending to the sponsoring company, and the two do not stack.

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, receive the rent into the scheme without an Income Tax charge, and support your business.

Speak to a corporate investment consultant What is a SSAS?