OPCO / PROPCO
The Tax-Free Rent Loop
Your trading business (OpCo) leases the premises from your pension (PropCo). The rent your business pays is a 100% tax-deductible trading expense, landing in your pension completely free of Income Tax.
Acorn Strategy Desk · Pension-Led Property & Business Finance
SIPP & SSAS Finance: Fund Commercial Property & Business Growth
Unlock your retirement funds to purchase your own business premises, or use Pension-Led Funding to inject cash directly into your trading business. Tax-free rental income, no CGT, and up to 50% leverage.
Prefer to talk? 0207 959 3882
Strategy A · Pension Property Purchase
Buying Commercial Property via SIPP / SSAS
Four reasons business owners move their trading premises into a pension wrapper.
KEEP 100% OF PROFIT
Zero Capital Gains Tax (CGT)
When the SIPP or SSAS eventually sells the commercial property, any uplift in the property's value is entirely exempt from Capital Gains Tax.
MULTIPLY YOUR FUND
The 50% Leverage Rule
A SIPP or SSAS is legally permitted to borrow up to 50% of its net asset value to fund a commercial property purchase, allowing you to buy a significantly larger asset.
CREDITOR SAFEGUARD
Ring-Fenced Asset Protection
Because the property is owned by the pension trust rather than your trading company, the physical asset is generally protected if your trading business ever faces liquidation.
Strategy B · Pension-Led Funding
Not Buying Property? Inject Cash into Your Business Instead
Two HMRC-permitted routes for turning pension value into working capital — without a high-street bank.
The SSAS Loanback (Up to 50% of Fund)
- What it is
- A SSAS is uniquely permitted to lend up to 50% of its net fund value directly back to the "sponsoring employer" (your trading business) as a commercial loan.
- The Rules
- The loan must be secured as a first charge against a business asset, charged at a commercial interest rate, and repaid in equal capital/interest instalments over a maximum of 5 years.
- The Benefit
- You bypass high-street bank rejections, pay interest back to your own retirement fund rather than a bank, and secure rapid working capital for expansion.
Intellectual Property (IP) & Asset Purchase
- What it is
- Your SIPP or SSAS can purchase intangible assets—such as your company's registered trademarks, patents, or intellectual property—from your trading business for a cash lump sum.
- The Rules
- Requires a strict independent valuation. Your business then pays a tax-deductible commercial licence fee (rent) to your pension to continue using the IP.
- The Benefit
- Releases a massive cash injection into your business without taking on traditional debt, while moving valuable IP into a tax-sheltered trust.
Choosing the Right Wrapper
SIPP vs. SSAS: Which Structure Do You Need?
Both can buy commercial property — but only a SSAS can lend money back to your trading company.
| Feature | SIPP Self-Invested Personal Pension | SSAS Small Self-Administered Scheme |
|---|---|---|
| Best For | Individuals or up to 4 partners | Family businesses & company directors (up to 11 members) |
| Commercial Mortgages | Eligible up to 50% of fund value | Eligible up to 50% of fund value |
| Business Loanbacks | Not permitted | Can loan up to 50% of fund back to trading employer |
| Setup Complexity | Lower (Run by a standard SIPP Provider) | Higher (Requires establishing a trust and scheme administrator) |
Interactive Tool
Pension Purchasing Power Calculator
Model how much commercial property your fund could control — or how much a SSAS could lend back to your business.
£400,000
Funding Goal
£45,000
Property purchases assume a 15-year mortgage at an indicative 6.75%. Loanbacks are capped at 5 years with equal capital and interest instalments at an indicative 7.00%, secured by first charge.
Maximum Commercial Mortgage (50% of fund)£200,000
Total Maximum Property Purchase Price (fund + borrowing)£600,000
Estimated Monthly Repayment to Pension£1,770
Your £400,000 fund could control a £600,000 commercial property. The expected £45,000 annual rent covers the £1,770/mo repayment 2.12x over — all landing tax-free inside the pension.
Request SIPP/SSAS Strategy ReviewIndicative illustration only. Pension borrowing requires trustee approval, a RICS Red Book valuation, and independent financial advice. Actual amounts, rates and terms depend on fund value, scheme rules, tenant covenant and lender underwrite.
Critical Regulatory, Pension & Tax Notice
Acorn Finance is a specialist commercial credit broker authorised and regulated by the FCA (#660207), not an Independent Financial Advisor (IFA), pension provider, or tax accountant. SIPP and SSAS regulations are strictly governed by HMRC. Purchasing commercial property or executing Pension-Led Funding (SSAS Loanbacks/IP transfers) involves complex rules regarding connected-party transactions, market-rate valuations, and first-charge security.
We arrange the commercial property debt or facilitate the loan structure. We do not provide advice on whether establishing a SIPP/SSAS is suitable for you, nor do we arrange the transfer of pension funds. You must seek independent financial advice from an FCA-regulated IFA and a chartered accountant before proceeding.
Knowledge & Next Steps
Related Pension & Commercial Finance Guides
Owner-Occupied Commercial Mortgages
The wider funding routes for buying your own trading premises.
Business Unsecured & Cashflow Loans
Faster, property-free working capital for your trading company.
Industrial & Warehouse Mortgages
Pension-eligible industrial units, logistics hubs and trade counters.
Corporate Office Finance
Own your office through your pension and pay yourself the rent.
Frequently Asked Questions