I Own a Shop with a Flat Above, Can I Put It into My Pension?

We get asked this question quite often because a lot of people own a shop with a flat above. 

SSAS Pension and Mixed Use Property

As we’ve said before, you cannot own residential property inside a SSAS pension scheme. However, in the case of owning a shop with a flat above, there is a potential solution to this issue. As ever, it’s a case of looking at the specific property in question to see if there is an opportunity there.

Splitting the Property Title

Certainly, there is an opportunity there if you were able to split the title on the property so that the commercial property on the ground floor holds the freehold title to the property and the solicitor creates a leasehold title on the flat above. This allows you to move your residential portfolio to commercial and hold your property investment inside a SSAS.

You will need to purchase separately into either a Company or own the property personally. From a pensions point of view, where the property is held is largely irrelevant as the pension scheme will have a split title anyway, so we can buy the freehold commercial trading premises and put that into the pension scheme for you. 

One of the key criteria to enable us to do that is the flat must have a separate entrance to the commercial property. Usually this is the case, however this is something you should be aware of.

SSAS Pension Commercial Property

So, yes, it is possible to own a shop with a flat above and put it into a pension, provided we split the title so that the flat is owned by you, a Company, or a third party. We can, of course, get the commercial property on the ground floor into the pension scheme. Then we have rent coming into your SSAS tax free and we’ve moved the commercial property into a fantastic tax free zone.

Watch: Advantages of a SSAS Purchasing Commercial Property

Speak to a Member of the One Crown Pensions Practitioner Team

So, yes, it is possible to own a flat above a shop and put the commercial premises into a SSAS pension scheme by splitting the title on the property. 

If you would like to discuss this further, please book a call to speak with a member of the One Crown Pensions SSAS provider team. We’d be happy to help answer any questions you may have.

For more information about property ownership within a SSAS pension scheme, visit our SSAS Video Hub.