SIPP Property Tax Relief Guide 2025 | Trueman Brown

Investing in Commercial Property with SIPP Property Tax Relief

Understanding SIPP Property Tax Relief

SIPP property tax relief allows investors to buy commercial property through a pension while benefiting from generous tax advantages.

In 2025/26, HMRC continues to exempt rent and capital gains within a SIPP, making it one of the most efficient ways to grow pension wealth.

What Properties Qualify

You can hold offices, warehouses, shops, hotels, or care homes within a SIPP.

Mixed-use sites are acceptable provided any residential area is not occupied by you or your relatives.

Borrowing of up to 50% of the fund’s value remains permitted under the 2025/26 rules—helping investors expand portfolios efficiently while maintaining SIPP property tax relief benefits.

Renting to Your Own Business

Under HMRC’s latest rules, rent paid from your business to your SIPP must still be at market value.

The advantage? The rent is tax-deductible for the company and tax-free within your SIPP—maximising SIPP property tax relief and building retirement savings faster.

 

“Infographic explaining how SIPP property tax relief works for commercial property investors in the UK, highlighting benefits, qualifying properties, 2025/26 tax updates, and Trueman Brown contact information. Designed in royal blue.”

Example

Amira, an architect, purchases a studio through her SIPP for £250,000 using a 40% loan.

Her firm pays commercial rent directly to the SIPP, enjoying full corporation tax relief on rent paid, while the pension grows tax-free.

She also gains from any capital appreciation on sale.

Key 2025/26 Tax Changes for SIPP Property

  • Annual Allowance: remains £60,000, subject to tapering.

  • Capital Gains: still exempt on property growth inside a SIPP.

  • VAT Treatment: if opted to tax, VAT on property purchase can be reclaimed by the SIPP.

  • Pension Commencement: from 2025/26, lump-sum drawdown age increases to 57.

​How Trueman Brown Can Help You With SIPP Property Tax Relief

At Trueman Brown, our chartered accountants and tax advisers specialise in SIPP property tax relief strategies for investors and business owners.

We provide end-to-end guidance—from property selection and valuation to liaising with pension trustees and HMRC.

📧 mark@truemanbrown.co.uk
📞 01708 397262

Our expertise ensures every investment remains compliant while maximising your pension and property tax efficiencies.

FAQs About SIPP Property Tax Relief

Can I use my SIPP to buy residential property?
No. HMRC still prohibits residential property, except in limited cases like certain care home units.

What are the main tax benefits?
No income tax on rent, no capital gains tax, and corporation tax relief for your business when rent is paid to the SIPP.

Can my SIPP borrow to buy property?
Yes, up to 50% of the SIPP’s net asset value under 2025/26 regulations.

Is VAT reclaimable?
If the SIPP elects to tax, VAT on purchase or renovation can be reclaimed through the SIPP’s VAT registration.

How do I start?
Contact Trueman Brown at mark@truemanbrown.co.uk or 01708 397262 for tailored advice.

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