Thread by @TJiMTS

💡 What if I told you you could buy property using pre-tax money—and never pay tax on the rent or profits?

This isn’t a loophole. It’s a game-changing strategy called a SIPP (Self-Invested Personal Pension). Here’s how it works 🧵👇

What’s the Secret?

Most people let their pension sit in underperforming funds, losing money to fees.

But with a SIPP, you can take control—and invest in high-value assets like commercial property.

It’s not just about growing your pension. It’s about doing it tax-free.

Why Use a SIPP to Buy Property?

The advantages are unmatched:

🔑 Pre-Tax Money: Buy property using funds that haven’t been taxed.
🔑 Tax-Deductible for Business Owners: If your company makes the contributions, they’re a corporation tax-deductible expense.
🔑 Tax-Free Rent: Rental income flows into your SIPP without income tax.
🔑 Tax-Free Growth: No capital gains tax when the property increases in value.
🔑 Build Wealth Twice: Your property builds equity and grows your retirement pot.

How It Works

Getting started is simpler than you’d think:

1️⃣ Open a SIPP with a provider that supports property investments.
2️⃣ Transfer funds from your existing pensions (most providers handle this for you).
3️⃣ Use those funds to buy commercial property—outright or via a mortgage.

Your SIPP owns the property, but you control the investment.

Why Business Owners LOVE This Strategy

If you’re a business owner, here’s where it gets even better:

When your company makes contributions to your SIPP:
✅ They’re tax-free to you.
✅ They’re a deductible expense, reducing your company’s corporation tax bill.

So you’re not just avoiding taxes—you’re actively getting a tax break.

It’s like turning your pension into a tax-efficient property portfolio.

Why It Beats Buying Personally

Let’s compare:

🔍 Buying Personally:
🚨 Pay income tax on rent.
🚨 Pay capital gains tax when you sell.
🚨 Buy using post-tax money.

🔍 Buying via a SIPP:
✅ No tax on rent.
✅ No tax on capital gains.
✅ Use pre-tax or corporation-tax-deductible money.

The savings are immense.

Is There a Catch? (And What About Leasing to My Business?)

There are rules:
1️⃣ You can only buy commercial property (no residential).
2️⃣ You can’t use the property personally (e.g., as a home).

But here’s the exciting bit:
✅ Your business can lease the property from your SIPP at market rates.
✅ The rent becomes a deductible expense for your business.
✅ That rent flows tax-free into your pension.

It’s like turning rent into retirement savings. Perfect for owner-managed businesses!

Why Now is the Time to Act

With rising taxes and economic uncertainty, smart financial strategies are essential.

Using a SIPP to buy commercial property lets you:
✔ Save money on taxes.
✔ Build long-term wealth.
✔ Diversify your investments.

It’s a wealth-building strategy designed for uncertain times.

Ready to Take Control?

Your pension is your money. Don’t let it sit idle in underperforming funds.

I share strategies like this—and more—in my newsletter, The Weekly Reconciliation.

Join hundreds of ambitious business owners using tax and investments to grow their wealth. Sign up here 👇
smithjohnson.activehosted.com/f/1

Have questions? Let’s talk in the comments.

Ready to work with an accountancy firm that actually understand proactive tax planning? DMs are open.

Your future self will thank you. 💬