Pension planning

Ongoing changes to pension tax relief, and reductions to benefits for higher earners, mean that businesses may be looking at other tax-efficient pension options.

If a company already owns or wants to purchase commercial property, it can be very tax-efficient for the shareholders to purchase the property using certain types of pension fund.

The company can then pay rent at commercial rates to the pension fund. Rent paid is usually an allowable business expense, reducing the company’s taxable profit, while the rental income is in a tax-efficient environment, where generally any growth in value is free of capital gains tax and income received is free of income tax. Pension funds are currently inheritance tax-efficient too.

If you are considering buying or transferring commercial property, expert advice is essential to ensure that property, you are using the most tax-efficient structure for your circumstances.

For more information on how our team can assist with property tax, please contact us.

Meet the team

Rachael Verinder
Rachael Verinder
Tax Partner
Rob Chedzoy
Rob Chedzoy
Tax Partner
Simon Denton
Simon Denton
Tax Partner
Michael Bagg
Michael Bagg
Tax Director
Hannah Gooding
Hannah Gooding
Senior Tax Manager
Leon Cane
Leon Cane
Tax Manager
Tim Rowe
Tim Rowe
Tax Manager
Vanessa Clark
Vanessa Clark
Tax Manager