Buying commercial property through your SSAS: the practical roadmap
Commercial property is one of the most popular SSAS investments — and one of the most administratively involved. This step-by-step guide covers the practical process from initial property identification through to rent collection, including the documentation, valuations and borrowing arrangements you’ll need at each stage.
A SSAS commercial property purchase typically takes 12–16 weeks from instruction to completion. The seven key steps are: (1) identify property and confirm it’s non-residential and not taxable property; (2) obtain an independent RICS valuation; (3) instruct solicitors representing the SSAS trustees; (4) arrange any SSAS borrowing (up to 50% of net assets); (5) due diligence and exchange of contracts; (6) completion; (7) set up the lease and rent collection. Throughout, the SSAS administrator handles HMRC compliance and trustee documentation.
Last updated: July 2026 · 10 min read · UK 2026/27 tax year
Step 1: Identify the property and confirm eligibility
The property must be commercial — office, warehouse, retail, factory, agricultural, mixed-use commercial. Residential property is prohibited under PTM125000 and would trigger up to 70% tax. Check carefully where mixed-use is involved (e.g., shop with flat above — the residential element creates issues).
The property must also pass arm’s-length tests if it’s being purchased from or leased to a connected party (typically the sponsoring company or its directors). HMRC’s default expectation is open-market value pricing supported by an independent RICS valuation.
Step 2: Obtain an RICS valuation
A formal valuation by a RICS-registered surveyor is non-negotiable for SSAS-held property. The valuation establishes:
- Market value at the date of purchase (must match the price paid where the seller is a connected party).
- Market rental value (sets the floor for any subsequent lease to a connected occupier).
- Use class and any planning constraints affecting future use.
Allow 2–4 weeks for the valuation, depending on the surveyor’s schedule. The fee is paid from the SSAS bank account and is a deductible expense.
Step 3: Instruct solicitors representing the SSAS trustees
The SSAS trustees (usually the directors of the sponsoring company) instruct their own solicitors. The solicitors’ client is the trust — not the company — even though the trustees and directors may be the same individuals. This separation is important for legal clarity, especially in connected-party transactions.
The solicitor handles: title investigation, contract drafting, exchange, completion, registration with HM Land Registry in the names of the trustees. Allow 6–10 weeks depending on title complexity.
Step 4: Arrange SSAS borrowing if needed
SSAS schemes can borrow up to 50% of net scheme assets from a commercial lender to fund a property purchase. For a scheme with £500k net assets, that’s £250k of additional buying power. Combined with the existing £500k, total buying power = £750k.
Some directors combine the SSAS borrowing limit with a loanback contribution from the sponsoring company in a complementary structure. See SSAS Loanback Rules for the loanback mechanics. The two limits (SSAS borrowing 50% + loanback 50%) are independent of each other.
Step 5: Due diligence and exchange of contracts
Standard commercial property due diligence applies: title checks, planning history, environmental searches, structural surveys (if separate from the RICS valuation), VAT position (does the seller opt to tax? — see Commercial Property & VAT). Trustees sign the contract at exchange; the solicitor coordinates with the SSAS administrator on funding logistics.
Step 6: Completion
At completion, the SSAS bank account funds the purchase. Funds flow: SSAS → solicitor client account → seller. HM Land Registry registers the property in the names of the SSAS trustees. The property is now a SSAS asset.
Step 7: Set up the lease and rent collection
If the property is to be leased to the sponsoring company (or any connected party), a formal lease must be put in place at open-market rent per the RICS valuation. The lease sets out:
- Rent amount and payment frequency (typically monthly or quarterly)
- Term (typically 5–15 years for SSAS-owned commercial leases)
- Rent review mechanism (typically every 3–5 years)
- Repair and insurance responsibilities
- Break clauses, if any
Rent flows from the company’s bank account into the SSAS bank account. For the company it’s a tax-deductible expense; for the SSAS it’s tax-free income that grows the pension.
Indicative timeline and costs
- Property identification: 1–4 weeks (varies)
- RICS valuation: 2–4 weeks
- Solicitor work to exchange: 6–10 weeks
- Exchange to completion: 1–2 weeks
- Lease setup post-completion: 1–2 weeks
- Total typical timeline: 12–16 weeks
Typical cost components paid from SSAS funds: RICS valuation, legal fees, Stamp Duty Land Tax (per HMRC rates on commercial property), survey, and lender fees if borrowing. All are deductible expenses for the scheme.
7 steps
The property purchase journey
- Identify + confirm non-taxable
- RICS valuation
- Instruct solicitors
- Arrange any borrowing
- Due diligence + exchange
- Completion
- Lease setup + rent collection
Funding sources
How to fund the purchase
- SSAS cash from contributions
- SSAS commercial borrowing (50% of net assets)
- Pooled member funds (up to 11 members)
- Loanback from sponsoring company (additional)
Frequently asked questions
Can my SSAS buy property from my own company?
Yes, but it must be at open-market value supported by an independent RICS valuation. HMRC requires arm's-length pricing on connected-party transactions.
How long does a SSAS property purchase take?
Typically 12–16 weeks end-to-end, comparable to a standard commercial purchase plus a few extra weeks for SSAS-specific compliance steps.
Can my SSAS borrow to buy property?
Yes — up to 50% of net scheme assets from a commercial lender. This is separate from the loanback rules (which relate to lending out, not borrowing in).
Does my SSAS pay Stamp Duty Land Tax?
Yes. SDLT is paid on commercial property purchases at the standard HMRC commercial rates. The SSAS bank account funds the SDLT payment.
Can my SSAS reclaim VAT on a property purchase?
Possibly — depends on whether the seller has 'opted to tax' the property. If yes, VAT is charged and the SSAS may register for VAT to reclaim. See our Commercial Property & VAT guide.
What rent should my company pay to the SSAS?
Open-market rent per a RICS valuation. The same rent the property would command on an arm's-length basis. HMRC will scrutinise below-market rent.
What if the company can't pay the rent?
The lease is a legal agreement; trustees must enforce it like any other commercial landlord. Sustained non-payment can be treated as an unauthorised payment by HMRC.
Sources & references
- HMRC: Pensions Tax Manual PTM010000
- HMRC: PTM030000 — Scheme administrators
- HMRC: PTM120000 — Investments
- The Pensions Regulator
- HMRC: PTM121000 — Authorised employer loans (loanback)
Disclaimer: This article is for educational purposes only and does not constitute financial advice. SSAS pensions are corporate occupational pension schemes registered with HMRC and overseen by The Pensions Regulator (TPR); they do not fall under FCA regulation. For personalised advice, consult a separately FCA-authorised independent financial adviser.