Rent arrears

Changes in our approach to rent arrears from Monday 26 January 2026 

Here are answers to questions you may have about our updated approach to rent arrears. This applies to any property held in a Barnett Waddingham SIPP.

1. Why are you sending me this communication?

We are contacting all members who hold property in their SIPP to explain changes we’re making to the way we manage rent arrears. These changes are being introduced from Monday 26 January 2026. While there might not be rent arrears on any property held in your SIPP, it’s still important we make you aware of our updated approach.

If our records show you have a financial adviser, we’ve emailed them a copy of this communication.

2. What changes are you are making?

We’re introducing stricter processes to help speed up the recovery of unpaid rent on any property held in a SIPP with us. If a tenant hasn’t responded to our initial steps to recover rent arrears, we’ll give them 30 days’ notice to resolve their arrears. If arrears still aren’t paid during this period, we’ll look to take legal action to recover the outstanding rent. 

If your tenant has missed any rental payments, depending on their connection to you (see Question 5) we may ask your permission before contacting them directly. We’ll contact tenants (as we currently do) to discuss their arrears and after each contact we will confirm the outcome to you, including details of any agreed repayment plan.

3. Why are you changing your process?

It is our duty to chase non-payment of rent and act where we’re unable to recover the funds ourselves. We understand that financial circumstances remain challenging across many business sectors. We’ll continue to explore and agree repayment solutions before instructing solicitors, but our change of approach reduces long, drawn-out disputes with tenants over rent.  

4. Does it really matter if the occasional rental payment is missed?

Yes. Non-payment of rent can significantly impact the value and smooth running of your SIPP, and arrears can quickly mount up. Tenants cannot assume there’s no consequence if they continue to build up arrears which they might not be able to afford, or want to, repay. 

If you are connected to a tenant (see Question 5) we’re also required to report non-payment of rent to HMRC, and this situation could potentially lead to high tax charges which your SIPP will need to cover. 

We take our responsibilities to HMRC seriously and will not hesitate to take action on arrears to protect the value of your SIPP and the other members in the scheme. 

5. What does it mean to be connected to a tenant

You’re connected to a tenant if you are: 

• their spouse or civil partner;
• a relative of the tenant. Relative is defined as brother, sister, ancestor or lineal descendant. Relative doesn’t cover all relationships, for example you’re not connected if you’re the individual’s nephew, niece, uncle or aunt;
• the spouse or civil partner of a relative of the tenant; 
• a relative of the tenant’s spouse or civil partner; or 
• the spouse or civil partner of a relative of the tenant’s spouse or civil partner. 

6. What will happen to any existing arrears on properties once the changes are made?

Any existing arrears will remain in place, and our updated process will also apply to them.

7. Why are arrears so important when the SIPP and the property belong to me? 

It’s true that the SIPP is in your name and is intended to provide you with retirement benefits. However, you don’t own the property held in your SIPP. Any property is an asset of the pension scheme and held by the Trustees. When making decisions, the Trustees must consider the interests of all beneficiaries which is why arrears must be recovered. 

We’re required to report non-payment of rent by any connected party to HMRC, and this could potentially lead to high tax charges which your SIPP will need to cover.

8. Will the approach towards arrears be the same across the four UK jurisdictions?

The approach to us initially contacting you and the tenant will be the same regardless of where in the UK the property is. There are different legal frameworks across the UK jurisdictions and significant differences in the associated local costs. 

If we need to take legal action to recover any arrears, we’ll contact one of the solicitors from our chosen panel who acts in that jurisdiction. All the solicitors on our panel have extensive experience in dealing with property transactions involving pensions, and regularly support us in our duties relating to arrears on properties. Any associated costs will need to be met by your SIPP.

9. What if my professional property manager is already in contact with the tenant about the arrears and I don’t want solicitors involved?

We’re pleased to hear your professional property manager is actively taking steps to recover the arrears. Please contact us to explain what has been agreed and to discuss how we can help. You may also want to let them know about the changes we’re making to our process.

10. Should I appoint a professional property manager to look after the property in my SIPP?

We don’t insist you appoint a professional property manager. We do recommend one for more complex arrangements, for example where a property has multiple tenants or where you might need help dealing with tenants, as their duties would typically include collection of rents and any arrears. 

11. How do I remove a tenant who has missed a rental payment? Or a tenant I suspect might soon be in financial difficulty?

Please call us if you’d like a tenant, whether or not they are in arrears, to vacate a property before, or at the end of their tenancy term. We always recommend you have a rent-paying tenant in the property rather than leaving the property vacant, as additional costs can apply to make sure the property remains secure and insured.

12. How can I check that my tenant is paying their rent on time?

You can check your tenant has paid their rent by going online and looking at your Transaction history in the member dashboard. You will also be able to view your cash account and can check you have enough liquidity for any upcoming charges due on your property. If you don’t already have online access, then please contact us and we can set this up for you.

Alternatively, your annual benefit statement will list all transactions on your SIPP for the past year, or you can contact us and we can check any tenant payments for you.

13. What suitability checks do you carry out on tenants?

We do not undertake credit checks on tenants, but you can request (as we can) additional security such as a rent deposit or bank guarantee, or for guarantor(s) to be made party to the tenancy. You are responsible for ensuring the suitability, financial or otherwise, of any tenants and tenant guarantors.

14. What happens if the tenant has died?

If a tenant has sadly died, please contact us as soon as possible to let us know. We can help you navigate the sensitive balance between helping your tenant’s next of kin and deciding about future tenants for the property. Rent arrears can quickly mount up and future rent will still need to be paid. While we understand this won’t be the priority of the next of kin, the impact of arrears can become significant at an already difficult time. We’ll always look sympathetically at this type of arrears situation and explore ways we can help.

15. Who can I speak to about arrears or other queries about my SIPP?

You can contact our expert SIPP Property team on 0330 128 9887 or propertyteam@bwsipp.co.uk to discuss arrears, or any other SIPP queries. Our updated Property Guide is now available on our website. This guide explains more about the ongoing considerations when holding a property in your SIPP including managing tenants, insuring your property and the role of independent professionals to help you, including the benefits of appointing a property manager.

We cannot give you or your tenants any advice about tax, debt management or queries with HMRC, and recommend you contact your financial adviser.

If you don’t have a financial adviser then the Personal Finance Society (PFS), the professional body for the UK financial planning profession has a directory where you can find a qualified financial adviser in your area. 

If you are worried about any type of debt and looking for advice, the Government-backed MoneyHelper offers free, impartial guidance that might be able to help you.

Before contacting any adviser, including firms offering debt management solutions, please make sure they’re authorised by the Financial Conduct Authority (FCA). Any advice given by a firm that isn’t authorised may be wrong, misleading or not suitable for your circumstances. You can check an individual or firm is authorised on the FCA’s website.