CASE STUDIES
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Joint Property Purchase
Joint Property Purchase to Fund Business Expansion
How a dispensing optician used a SSAS and Company joint purchase to acquire, refurbish, and gradually take full ownership of their new premises.
Commercial property
Full conversion costs
Into new SSAS
SSAS & Company
Outgrowing Existing Premises.
Our client had built a thriving dispensing optician business. After several years of strong trading and natural growth, they had outgrown their existing rented premises. When a much larger vacant commercial property became available on the same road — a former veterinary practice in need of full refurbishment — it presented the ideal opportunity to expand while minimising disruption to the business.
With existing personal pensions totalling just over £250,000, the clients decided to take greater control of their retirement planning and business growth. They transferred these pensions into a new Small Self-Administered Scheme (SSAS) sponsored by their Company and administered by Seabridge SSAS.
The Acquisition
Purchase price of £325,000 plus £120,000 for full conversion. The SSAS and Company purchased jointly, each contributing £162,500, alongside a £120,000 commercial mortgage.
Rent That Works Harder.
Following the purchase, the Company pays 50% of the market rent to the SSAS — creating a tax-efficient structure that benefits both the business and the pension.
Treated as a deductible business expense, reducing Corporation Tax
Provides regular income to the SSAS to help repay its share of the commercial mortgage.
Keeps the investment entirely separate from the trading business.
Gradual Buyout Through Contributions & Rent.
Over the coming years, surplus rental income and ongoing company contributions will enable the SSAS to buy out the company’s remaining share, eventually becoming the sole owner of the property.
Path to Full Ownership
The SSAS gradually acquires the company’s 50% share using surplus rental income and tax-efficient company contributions — moving towards 100% SSAS ownership of the commercial property.
Company Contributions
Ongoing company contributions into the SSAS continue to be:
- Corporation Tax-deductible, providing efficient tax planning for the business owners
- A secure way to build long-term pension value
Significant Tax Advantages for the Future.
A Small Self-Administered Scheme (SSAS) is a powerful, HMRC-registered pension designed exclusively for company directors and business owners. Unlike traditional pensions where your money is locked away in a “black box,” a SSAS gives you total control, allowing you to invest your retirement funds directly back into your business or commercial property.
No Capital Gains Tax
If the property is sold at a profit in the future, no CGT is payable within the SSAS.
Creditor Protection
The property is ring-fenced from business creditors, providing security for the owners.
Tax-Free Lump Sum
From age 55 (57 from 2028), they can take a tax-free lump sum from the fund.
Tax-Advantaged Growth.
Rental income grows the SSAS in a tax-advantaged environment, compounding over time.
Could a Joint Property Purchase Work for Your Business?
Discover how Seabridge SSAS can help you acquire commercial property tax-efficiently, build pension value, and take control of your premises.