Commercial Property Solicitors can advise on SIPPS for Company Directors

Self- Investment Personal Pensions have been a part of the advice offered by commercial property solicitors and can provide a ‘win win’ situation for the small and medium sized business that are still family run.

We all know that many of the large pension funds run by some of the country’s largest companies have huge gaping holes in the level of funding that is a currently available and unless something radically changes does not look set to improve in the future either. Much of the problem has been caused by these companies investing in the property markets and the subprime markets.

So a few years ago SIPPS was birthed where property specialists and investment specialists created a system with government approval where by directors could buy their business premises and use it as a pension fund attracting all of the tax incentives that a pension fund attracted.

From a commercial property perspective and a business perspective this was an incredible opportunity to create a double bonus effect for both the business and the director of the company. The business could expand either creating more office space or warehousing or manufacturing space. Clearly the benefit to the business was that any additional space the business needed could be purchased for the business whilst at the same time the director of the company was creating a pension fund from his or her commercial property for their future.

These financial property and financial structures are part of the advice that specialist property solicitors can provide for individuals and companies alike. They are complex but provide an amazing opportunity for business owners to both expand their companies and at the same time provide for their futures. This use of the commercial property market has now been a part of the pension structure for nearly twenty years and has been very successful.

Originally SIPPS was a pension system set up using private property but soon expanded into the commercial property market. The recent developments in the way commercial property is reflected on the balance sheets of businesses and their ability to raise finances will favour the SIPPS systems as purchasing a commercial property can in some circumstances be more favourable than leasing a property.

The advantages are clear but the advice and guidance from commercial property solicitors will most certainly be required to undertake this type of scheme.

Tags: ,

Comments are closed.