It is possible to borrow within a self-invested pension to purchase particular assets, such as commercial property or to otherwise benefit a scheme. We do not stipulate or limit the range of potential lenders that can be used.
One of the benefits of using a self-invested pension is the ability to borrow from within the scheme. This may include borrowing to purchase commercial property or provide benefits. In the case of a SSAS, a loan can be made to the principal employer.
The maximum amount a scheme can borrow is 50% of the net fund value of all assets at the date of the borrowing.
We do not stipulate or limit the range of potential lenders, although in the case of a SIPP the loan documentation must be individually agreed by Rowanmoor Trustees Limited before any borrowing may proceed. For a SSAS or Family Pension Trust, Rowanmoor Trustees Limited will be a party to the loan.
A valued benefit of a self-invested pension is the ability to purchase commercial property, given its potential for capital growth and rental income. Some business owners also see property as a tax efficient way to inject cash into their business.