Using my Pension to buy a business

Bazbell

Hi all. First time on here. My Wife is thinking of buying an ice cream van business, and I was wondering if she could use her or my pension pot? The value of the business is 20k including the van and good will. If I use my pension then I would have to take it as non tax free, and as an income, but would the 20k then be classed as an expense as far as accounting is concerned? Hope all this makes sense. Baz

BrassicWoman

The 20k would be your investment in the business. Or, a loan to the business if you structured it that way,

The purchase of the van etc would be an expense incurred by the business.

Browntoa

Most pension pots aren't accessible until you are at least 55 years old 

macman

How big is the pot? You are aware that if you take more than 25% of your pension pot as a lump sum then that will be taxed at your marginal rate in the year you access it? So, unless your pot is £80K plus then you will face a tax bill on that before you can even start investing it in the business.