Commercial Property team advises on SIPP land purchase
Mr A wanted to purchase land at a site in Gloucestershire with the intention of building a warehouse and leasing it to his company, a family-run catering supplier.
As the purchase was made using a SIPP, our commercial property team were effectively acting for two clients: Mr A and the Self-Invested Personal Pension scheme, which has its own requirements that needed to be satisfied.
The land, which is subject to planning permission, was purchased for £150,000, however, the gross development value of the site will be far higher.
We also advised on the overage for this purchase, whereby the seller is entitled to a lump sum payment from Mr A should there be successful planning application for residential development.
Daniel also recently acted for the catering supplier on the lease of another warehouse in Bristol.
Putting a commercial property into a SIPP and leasing it back to the company running the business can be an extremely tax-efficient way for business owners to plan for their future.