Commercial/residential property in a SIPP

dharm999

I am thinking of setting up a SIPP to buy some commercial property that has a couple of flats above it. The flats are part of the price for the commercial property. Can I buy this property, including the flats, in a SIPP? If not, what would I need to do, sell just the commercial property to the SIPP and then leave the flats outside of the SIPP? The majoity of the income will be from the commercial property. I have looked on the internet but cant find an answer to my question. Thanks for your help

mania112

I'm no expert, but i'll stoke the conversation-fire:

No, you cannot have the flats in the SIPP. That's black and white. Nothing residential can be, even if it's being bought as a business.

Can you split the property downstairs from the flats upstairs? I don't know, but i'd imagine so. If we're talking about a shop on the ground floor, then that individually would be fine.

Suffolk Life are providers of a SIPP we often use for commercial property purchase, perhaps if you find their number and give them a call, they'd have the answers?

atush

You cannot hld residential property in a SIPP as far as I understand it.

You would have to split the property. Which would mean solicitors fees. Which means you may not be able to buy this property w/o buying it yourself first, splitting it, then selling it to your Sipp. /how would you ask the sellers to split it first?

Sounds expensive, difficult, and problematic to me.