If you are interested in purchasing one of the units, it may be possible to do this through a pension scheme, rather than borrowing from a bank. This is a tax-efficient approach whereby your pension scheme owns the trading premises and your business leases it from your scheme; rent goes directly into your pension.
Our commercial units at Eurotech Park are capable of being purchased within a small self-administered scheme (SSAS) pension or a self-investment pension plan (SIPP), with both vehicles offering a tax-efficient method of holding commercial property and sheltering income and gains from tax.
A SSAS can be established by any employer – including limited companies, partnerships and even sole-traders. As long as you have a trading business and at least one employee, then you can have a SSAS. Scheme membership will typically include the directors and partners of the sponsoring business, but can be extended to include other family members. A SSAS can be used to acquire a wide range of assets, including commercial property or land, which can then be leased to your own or another business.
As James Priday, Managing Director of Prydis Wealth, explains:
“A SSAS allows you to invest your pension assets with a high degree of flexibility and offers significant control to pension scheme members. As well as tax relief on company and personal contributions, the SSAS can provide a great way to finance your own business (through a loan), to purchase your trading premises and lease it back, or to borrow money within the pension to provide additional liquidity for investment purposes.”
A SSAS pension allows up to twelve members to save for their future, provide capital for their business, and use a wide range of other investment assets as well as their own or other commercial property.
For someone not wishing or able to use a SSAS, a SIPP can provide similar investment opportunities, including the purchase of commercial property, where allowed by the scheme trustees.
Prydis offer retirement planning services to help individuals and businesses build a future-proof retirement plan and can arrange or manage both SIPP and SSAS pensions.
Disclaimer. The information in this post does not represent investment advice. By clicking on the links above, you will be leaving the Burrington Business Park website. We do not accept any liability resulting from visiting third-party websites. If you are in any doubt about what action you should take, we recommend you seek advice from a suitably qualified financial adviser, such as Prydis Wealth Limited.