Buying Residential Property with a SIPP

During the months leading up to the end of the 2005/2006 tax year the Government’s position was that Residential Property would be allowed to be held in a SIPP. Understandably this caused great interest in the property market coming at a time when there was rapid growth in prices. In the event, the Government changed tack on this intention and Residential Property was excluded from the SIPPs legislation that came into effect on A day - 6th April 2006.

It is currently the case that a SIPP cannot hold a residential property as an asset. You may be able to use your SIPP to invest in a pooled fund based on residential property such as a real estate investment trust (REIT). Our experts have in some rare cases been able to bring a property into a SIPP that at first glance would not be admissible. These are rare cases.

In the case of a Commercial Property with a Residential element we can sometimes find a satisfactory route to SIPPs based purchase.