Hughes Paddison is pleased to announce the qualification of Amy McCormick as a Solicitor into the Corporate and Commercial team, Jess Reynolds as a Legal Executive in the Residential Property team and Emma O’Brien as a Solicitor in the Family team. Hughes Paddison has a strong track record of training Solicitors and Legal Executives and enabling them to establish long and successful careers at the firm.
TURNING YOUR BUSINESS PROPERTY INTO YOUR PENSION
- AuthorNeil Belcher
Professionals or businesses who own the premises from which they operate can benefit hugely from putting their commercial property into a self-invested pension pot (SIPP).
Once in the SIPP the property can be let to the business at a market rent. The rent is an allowable business expense so tax on the business profits is reduced. At the same time the rent paid into the SIPP grows free of income tax and capital gains tax as the commercial property is an approved pension fund investment.
The SIPP can borrow up to 50% of the value of the pension pot and so it can borrow money to buy the property on commercial terms. The rent received from the business can then be used to repay the loan.
If you either own your commercial property or currently rent it and have the ability to buy the freehold of the property it is worth discussing with your Pension advisor or Solicitor about placing the asset in a SIPP as the tax benefits can be considerable.