Case Study - Financial Planning

• Published date: 15 October 2021
• Subject Matter: Finance and Banking, Employment and HR, Financial Services, Retirement, Superannuation & Pensions
• Law Firm: Albert Goodman
• Author: Mr Paul Holt

We were introduced to a director of a successful, expanding business, which required new larger commercial premises from which to operate.

The director each had Defined Contribution Money Purchase Pensions which collectively had a value that was more than sufficient to buy the new premises.

The director therefore decided to transfer and consolidate his pension fund within a Group SIPP to acquire the new property.

By making use of this pension scheme in this way, he saved money, having negated the need to go to his bank to borrow funds.

Holding the commercial property within his pension scheme allowed him to benefit from future tax-free rental payments to the scheme, paid by the business (also treated as a trading expense).

The property is now retained within the protected environment of his new pensions scheme. The property will not be subject to capital gains tax at the point of disposal and, furthermore, under normal...