Though it has been possible to invest in a SIPP for a long time, since the new reforms were introduced in April, SIPPs have an increased appeal with substantial tax planning advantages. The flexibility of the new rules has resulted in a marked increase in enquiries from private and SIPP purchasers for commercial property. Whilst any property is held in a pension, the rental income, capital gains or profit does not attract tax – although income drawn from that pension is taxed during retirement.
We have already seen examples of properties drawing interest from SIPP holders in the local market, including:
- Penarth Road Retail Park in Cardiff, which has been purchased on behalf of private clients and is fully let to a mixture of tenants
- Tesco and Domino’s in Maes y Coed Road, Cardiff - attractive because they are modern buildings with first class tenants.
Investing in commercial property is an attractive proposition and one that we anticipate growing in popularity. However, anyone considering this option should seek the advice of an independent financial planning advisor, as well as professional property advice about the suitability of any commercial property, before embarking on this type of investment.
Cooke & Arkwright will be marketing more properties across South Wales suitable for SIPPs in the near future. If this is of interest to you and you’d like to find out more, please do not hesitate to contact me.