Do you have a self-invested personal pension plan (SIPP) that allows you a certain amount of flexibility on how your fund is invested? You may find that your fund could invest in commercial property.
Do you rent your present business premises?
If the answer to both these questions is yes, you might like to consider purchasing business premises from your SIPP.
This would shelter any future gains on the eventual sale of the property from Capital Gains Tax and any rents paid by your business to the SIPP would be received tax-free.
In certain circumstances, you may also be able to use your pension pot to lend monies to your business. This has the added attraction that interest paid will accumulate tax-free in your fund.
Readers who find either of these opportunities attractive should discuss their options with their pension’s adviser.
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