City Trustees - part of Mattioli Woods

News and Media

11 December 2014

Pensions Perspective: Can my client use residential property within his SIPP?

Unfortunately controlling ownership of residential property is no longer viable within a scheme. However, there still remains a number of ways of developing, or indeed owning, residential property via a pension scheme - it is entirely possible to develop residential property via a SIPP, up to a point.

The key factor is that a pension scheme may not own a controlling share in a property which is suitable for use as a dwelling, which is defined in the rules as a property which has a certificate of habitation. An opportunity therefore exists to develop residential properties through a pension scheme and sell them prior to final completion of the build. The sale of the property could be made to the member of the scheme or indeed a connected business, who could then complete the property and sell it on the open market. This may offer your client an investment opportunity and indeed a source of development for finance. However, care must be taken in terms of CGT, and transactions must be structured correctly.


Pension Perspective is a weekly feature from City Trustees, covering questions that our experienced sales and technical teams have received from advisers. The Q&A covers a range of subjects including property, pension contributions, protection, auto-enrolment and more.

City Trustees operates a free technical helpline for advisers for support with pension challenges. Tel: 0116 240 8731 or email:


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