Pension options as ltd

[glashIFA@Paramount]

Even if the plan was genuinly to get a few BTL's for an income in retirement? i.e. they funds and assets would always stay in the pension fund?

Follwing on from Gordies reversal in the last PBR, direct investment into residential property is not allowed within a pension. However, commercial property investment is, for instance, a ltd company could purchase / part purchase their premises or any other commercial premises. Investment into residential property would be via a fund of REITS (Real Estate Investment Trusts)

[Euro-commuter]

Can you create a pension that buys a property? i.e. you put some of your Limited Companies income into a buy to let property but wrap it all up in a pension? So the company wouldn't get taxed on this expenditure?

... I might add this question: why would it be good for the Ltd Co to do this?

I know why it would be good for you, but you are not the company. Why would it be good for the company?

If the answer is, it's not good for the company but it is good for you, then what you are talking about is a benefit that the company pays you.

[oxtailsoup]

If the answer is, it's not good for the company but it is good for you, then what you are talking about is a benefit that the company pays you.

Point taken. But surely if you just put the money directly into a personal pension that has full tax relief then that amounts to the same thing? i.e. The company isn't going to benefit but you are personally (in retirement). Yet this is allowed?

I'm not doubting your comments, I'm sure you are correct. I've also heard myself before that commercial property investment is ok whereas residential is not.

I'm just confused with the above argument.

[glashIFA@Paramount]

... I might add this question: why would it be good for the Ltd Co to do this?

I know why it would be good for you, but you are not the company. Why would it be good for the company?

If the answer is, it's not good for the company but it is good for you, then what you are talking about is a benefit that the company pays you.

Pensions are designed to be a benefit to individuals not companies and so they're never really that beneficial to the company unless you're looking at soemthing like a SSAS which has a loanback facility or looking to buy the company premises.

It's simple really. Whatever is in the pension is an asset of the pension and will always remain in there. You can't put things in then take them out. If it's property then the benefit is no Capital Gains Tax on disposal but when the property is sold (which it will have to be at some time) then the sale proceeds remain in the pension fund and are used for the benefit of the individual.

[Bradley]

syndicate

Follwing on from Gordies reversal in the last PBR, direct investment into residential property is not allowed within a pension. However, commercial property investment is, for instance, a ltd company could purchase / part purchase their premises or any other commercial premises. Investment into residential property would be via a fund of REITS (Real Estate Investment Trusts)

If 10 or more get together a syndicate then you can invest in residential property. A leaseback arrangement of residential property is considered commercial and go into a SIPP.

[glashIFA@Paramount]

If 10 or more get together a syndicate then you can invest in residential property. A leaseback arrangement of residential property is considered commercial and go into a SIPP.

Sounds simple when you condense it into 3 lines. What you're talking about is what the revenue call a Residential Genuinely Diverse Commercial Vehicle (RGDV) and before people get too excited folowing Bradley's posting you should also know that there are other rules.
No private use of the properties.
Minimum combined value of £1,000,000.
At least 3 properties.
Maximum holding of 10% per individual.
No one property to account for more than 40% of the total value.

So, if finding minimum of 9 other like minded individuals is not hard enough and forming a suitable ltd company and documenting all things, then you have all these other criteria to meet.

For individuals (not syndicates) there is NO facility to invest via your pension into residential property.