Property Purchase — Using a SSAS to Acquire Business Premises

Mick and Dave wanted to buy a yard and offices for their building company. By transferring their pensions into a SSAS and making a company contribution, they were able to purchase commercial premises in a highly tax-efficient way.

Property Purchase — Using a SSAS to Acquire Business Premises

Brothers Mick and Dave run a successful building company and needed proper premises for their growing operation. With pensions totalling £300,000 and cash reserves of £100,000, their adviser showed them how a SSAS could fund the purchase of a £350,000 commercial yard.

After 12 years in business, Mick and Dave were ready to move their company out of their home garage and into proper premises. A suitable yard came onto the market for £350,000, and their adviser, Joan, explored how a SSAS could support the purchase.

Mick had £120,000 in a Royal London pension and Dave had £180,000. By transferring these balances to a SSAS and paying £100,000 from the company as a tax-deductible contribution, they were able to:

• Build a substantial SSAS fund
• Purchase the commercial yard
• Lease the premises back to their company
• Benefit from tax-deductible rental payments
• Hold the property in a capital-gains-free environment

This strategy allowed their business to secure permanent premises while strengthening their pensions at the same time.