Property Purchase Guidance

Small Self-Administered Schemes (SSASs) are able to purchase commercial property as well as commercial and agricultural land. Once purchased, the property or land can be leased to a sponsoring employer or an unconnected third party. Alternatively, assuming that the proper planning permission is obtained, land can be developed into commercial property.

Buying from a sponsoring employer or member can release SSAS money to the business or member which has been a useful tool in difficult economic times. It should be noted that where property is bought from a business, there may be a Corporation Tax liability on the company.

This briefing note summarises the main issues which the trustees of a SSAS should consider when undertaking an investment in property. The trustees must ensure that all legislative requirements are met in respect of the purchase and that all necessary reports, surveys and environmental/structural checks are performed. The trustees also need to ensure that all legislative requirements are met throughout the scheme’s ownership of the property.