business property in pension fund or not?

southwell1964

i recenty added 110k onto my mortgate and bought a property that i now rent out as offices. I get about 12k a year in rent. i am thinking about putting this into my pension so that the rental income is received tax free.

however, i am undecided - do not know if i like the idea of it been locked away until retirement - and only been able to see 25% lump sum when i retire.

i earn about 40k a year.

any views welcomed!

dunstonh

Commercial property can be put into a pension but whilst it can have advantages for say someone going self employed who needs money to buy a premises etc, it isnt really aimed at the landlord market and indeed, may fall foul of property requirements set down by the trustees.

It isnt cheap and comes with as many disadvantages as advantages and isnt something you would enter into without discussion with an IFA and your accountant.

EdInvestor

Now that CGT is down to 18% the advanatge of doing this is not very obvious.

southwell1964

dunstonh wrote: »

Commercial property can be put into a pension but whilst it can have advantages for say someone going self employed who needs money to buy a premises etc, it isnt really aimed at the landlord market and indeed, may fall foul of property requirements set down by the trustees.

It isnt cheap and comes with as many disadvantages as advantages and isnt something you would enter into without discussion with an IFA and your accountant.

if i put the premises in the pension i can repay the additional mortgate i took out. My pension would benefit from at least 15k a year and at my retirement there could be a value of at least 500k (15k x 20 and increase in property value) - a lot more if invested correctly. But is investment in a pension the best option when you bear in mind the lump sum allowance and having to take out an anuity - and possibly loose it all if a die too soon!