The property can be freehold or leasehold, but if leasehold we will need to examine the lease to make sure it is acceptable. It must be in the UK and commercial, although there are two ‘job related’ exemptions relating to residential property. Commercial property includes:

• Hotels and motels
• Nursing homes
• Public houses
• Land whether developed land, farmland or forestry.
• Non residential ground rents

As with any property purchase there are typically several costs involved including legal costs, probably valuation fees and possibly the lender’s fee. We will instruct solicitors or valuers chosen by you or your adviser. Other costs, depending on the size of the property, could include stamp duty land tax and this is currently 4% if the total purchase price is more than £500,000. For properties purchased for £500,000 or less, there are reductions in stamp duty land tax. If VAT is payable on the purchase price then stamp duty land tax will be payable on the VAT inclusive sum.

Should the purchase not go ahead, and if you prefer, you can elect to pay any outstanding costs yourself rather than from your SIPP.