Help.. Cant seem to get advice about this..

fasteddyxxx

Hi all..

Long story short.. I want to be able to use my pension (75k) to buy a commercial property.. I have done as much research as I can on the government websites but I think I have encountered a problem..

My pension is a Directors pension, and although I have contacted Aviva, they cannot confirm whether or not I can do this with my pension.. I am assuming that if not, I would have to change my pension to a ssas, or something else?

I really do not know where to turn to now as I have spoken to a few people (including my old pensions advisor) but they all seem to know nothing about using a pension to buy a commercial property.. I know it can be done, but I have no idea how or where to get advice from someone that is properly informed about these procedures..

Any help would be very welcome..

Thanks
Steve..

kidmugsy

fasteddyxxx wrote: »

I want to be able to use my pension (75k) to buy a commercial property.

My pension is a Directors pension, and although I have contacted Aviva, they cannot confirm whether or not I can do this with my pension.

I understand that you can buy commercial property in a SIPP, but presumably not with mass-market providers.

P.S Why not change your headline to something more useful?

fasteddyxxx

Hi..

Like what?

Steve.

dunstonh

My pension is a Directors pension, and although I have contacted Aviva, they cannot confirm whether or not I can do this with my pension.. I am assuming that if not, I would have to change my pension to a ssas, or something else?

When you say a directors pension, do you mean an executive pension plan?

An EPP would not allow commercial property within it no more than a personal pension or stakeholder pension would. However, a further complication is that and EPP has the possibility for larger than 25% tax free cash. That would be lost on transfer.

I really do not know where to turn to now as I have spoken to a few people (including my old pensions advisor) but they all seem to know nothing about using a pension to buy a commercial property

Its a niche/specialist transaction and most advisers wont be interested in doing it. There will be some that will do it but not many. It is also not a cheap transaction and comes with consequences and risks above the norm. So, its not something that an inexperienced investor would normally be recommended to have.

atush

fasteddyxxx wrote: »

Hi..

Like what?

Steve.

Like maybe Help with Commercial property Sipp?

fasteddyxxx

Thanks.. I understand now why I am struggling for help..

Which type of pension plan can I use to purchase commercial property?

At least I can investigate the costs involved in changing my plan and see if it is still a viable option..
And yes, I did mean Executive pension plan..

Steve..

fasteddyxxx

Actually, just got out the pension statement and it says that it is a Directors Pension Plan.. No mention of EPP..

atush

You need a Sipp (self invested personal pension) that allows commercial property within. Do a search here on t he forum, they have been discussed.

And you will most likely not get answers about them here to this thread with the existing title?

dunstonh

A directors pension sounds more like a marketing name for an EPP.

Either way, it wont offer commercial property and you could lose a valuable benefit if the tax free cash entitlement is above 25%.

kidmugsy

fasteddyxxx wrote: »

Hi..

Like what?

Steve.

"Pension to hold commercial property"?

atush

So check your rules. If you can take more than 25% tax free from this pension, it could be better to start another one, and put in enough to buy your commercial property.

in any case, if it was your only pension, it would be unwise to put it all into one commercial property (ie all you eggs on one basket).