Commercial Property
within the Killik & Co SIPP
Commercial Property can be held directly as an investment within the Killik & Co SIPP. This means that your pension fund can directly hold a commercial property whether this is a business property from which you run your company; a professional practice bought by self employed professionals or a commercial property with which you have no connection.
Whatever your particular needs the commercial property is bought by Killik & Co Trustees Ltd, who hold it for you. Any income, which normally comes from the rent, is paid to the Trustees who in turn will use it to pay the interest on any mortgage and to repay capital.
Over a period of time, the loan (if there is one) can be repaid and then the commercial property can then either be sold or used to generate an income for you through a drawdown plan (USP or ASP). You can also borrow up to 50% of the net fund value of the SIPP for the purpose of buying a commercial property within a SIPP, read more about Borrowing in a SIPP.
Tax efficiency of owning commercial property
There is no income tax on any income paid to Killik & Co Trustees who hold the asset on your behalf and when the property is sold there is no Capital Gains Tax.
Tax relief is payable on SIPP contributions in the ordinary way. Our Tax Relief on Pension Contributions page illustrates this and it can be a very useful way, for example, for a business owner to use his SIPP funds to buy his own business property thereby releasing funds back into his business, but you should always be aware that tax legislation can change.
Killik & Co Trustees have an obligation to the member to protect the member's pension assets, so if your business can't pay the rent then they may have to sell the property on your behalf.
Commercial Property Purchase and Management within the Killik & Co SIPP
Killik & Co will take the application for commercial property and will pass it to the experts at Gaudi Ltd who will consider every case on an individual basis. They will check that the property is feasible and meets the requirements of HMRC. Once this process is complete then they will instruct solicitors, valuers and surveyors and liaise between them all the way through to completion.
After the property has been acquired then they will undertake all the property management functions including the invoicing and collecting of all invoices, renewing leases, arranging rent reviews and repaying property loans. They'll also arrange rent reviews and revaluations and any final sale of the property.
Efficient Service and Modest Charges
Our Commercial Property Rate Card details the fees and charges specific to this service. There is no set up or initial charge on the Killik & Co SIPP, instead we charge on the investment within the SIPP. Full details of our fees and charges can be found in the Killik & Co Rate Card. This same principle applies to any investment within the SIPP.
Killik & Co clients pay a one off £25 annual account charge, regardless of how many services and products they have. Most "full" SIPP providers charge both set up and annual charges plus charges for commercial property. So, when comparing our charges with others make sure that you compare on a like for like basis.
We aim to be competitive and to offer fair value compared to others. As important as charges are they don't tell the whole story; good quality service in all aspects of property acquisition and property management are essential for peace of mind.
What to do next
Download the Commercial Property Technical Guide.
Review our Commercial Property Rate Card and Terms and Conditions for this service and the full Killik & Co Rate Card.
Complete a Commercial Property Application Form.
Or call 020 7337 0462 or email info@killik.com for more information.
