Small Self-Administered Schemes (SSAS) and their benefits

Small Self-Administered Schemes (SSAS) have become an increasingly popular option for UK pension schemes, and one of the investment options available to SSASs is purchasing a commercial property. However, buying a commercial property within an SSAS can offer both benefits and risks.

The main benefit of investing in commercial property through an Small Self-Administered Schemes (SSAS) is tax advantages. Rental income generated by the property is tax-free within the scheme, and any capital gains made on the sale of the property are also exempt from tax.

Additionally, the members of the SSAS can have greater control over their investments and can choose the property they wish to invest in. Commercial property can provide an alternative source of income and can help spread risk across different asset classes.

There are also added benefits if the SSAS purchases a commercial building that the SSAS members business trades out of as the rent charged is effectively additional pension contributions outside of the individuals Annual Allowance for pensions.

However, there are also risks associated with investing in commercial property through an SSAS. Liquidity risk is a significant concern, as commercial property investments are typically hard to sell quickly.

Property market risk is also a factor, as commercial property values can be volatile and are subject to fluctuations in the property market.

Moreover, owning a commercial property within an SSAS comes with the responsibility of managing the property, including finding tenants, maintaining the property, and ensuring compliance with relevant regulations. If the property is not managed properly, it can lead to additional costs.

As with any investment decision, it is essential to carefully consider the benefits and risks associated with purchasing a commercial property within an SSAS, and to evaluate the scheme’s overall investment objectives, risk tolerance, and financial situation.

As always please speak to your accountant and financial advisor to ensure you acting as tax efficiently as possible and avoiding any issues down the road.


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At NR Barton we understand the importance of trust and through our integrity we make sure this underpins absolutely everything we do.

We like to do the best for our clients and this isn’t always easy. We aren’t afraid to use our integrity to confront difficult situations. We firmly believe that acting with our utmost integrity those difficult conversations will help to build our trust with our clients. Sometimes the difficult option is the best.

It is also our integrity that has helped us to build a strong local relationship in our market place and the thrive as a business for the last seventy years.

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