The perfect SIPP property application: Speed things up by sending everything we need on day one

This article is intended for financial services professionals only. None of the information contained in this article should be received as advice. Pensions are a complicated area of financial planning and IPM suggests that financial advice from a suitably regulated financial adviser is sought before an individual takes any action in respect of their pension savings.

Commercial property purchase within a SIPP is an area of strength for IPM.

As of March 2026, we own over 1,200 properties on behalf of our clients.
We currently have over 100 transactions in progress.
Almost 60% of the new SIPPs we established in 2025 involved property purchase or transfers.
Despite concerns around how the introduction of IHT will impact commercial property SIPPs from 2027, we continue to receive a high level of enquiries from financial advisers about this type of work.

You may have previously read some of our content relating to SIPPs and property purchase, including:

A common theme with property purchases within a SIPP is that for many transactions there seems to be a degree of urgency; urgency from the vendor pushing the sale, urgency from the client wishing to get the transaction completed as soon as possible, and urgency from the tenant as they may need to be in the building by a certain date.

We get it. Property is a far more emotive investment within a SIPP than a traditional stocks or shares portfolio. This is why we employ a dedicated property team, a member of which is allocated to each individual transaction from instruction through to completion. When things get tricky with a purchase, and invariably they do(!), having that direct contact with an individual who is familiar with the transaction can prove invaluable in getting the deal over the line.

With that said, as things unfold as a purchase progresses, there are several areas where advisers can help manage their clients’ expectations even before solicitors have been instructed, and IPM can help you with this.

Approach any new SIPP property purchase as two pieces of work

For some advisers we work with, SIPP property purchase is something they are familiar with, have recommended previously, and they are comfortable with the processes. However, for many this will be the first or one of the few times they have carried out this kind of work.

From an initial enquiry, often with clients who are keen to progress matters, purchasing a property through a SIPP can appear overwhelming!

Given our experience, we can help advisers with this. We suggest that advisers look at this as two pieces of work:

Firstly, setting up and funding a new SIPP. This process is no different from any other pension work an adviser may carry out. However, in this case, you are looking at a pension arrangement that can facilitate a property purchase – a bespoke SIPP like IPM’s. Advisers would carry out their research on suitable providers and make their recommendations in the usual way. The only real additional consideration at this stage is that there is a specific amount of money the SIPP will need to fund the purchase.
Secondly, the purchase itself. This can only start formally once the above has been carried out. Once at this point, usually other parties will take over the day-to-day work on the transaction (the SIPP provider, solicitors etc)

By breaking the process down and explaining this to clients at the outset, this can help manage expectations and gives a clear direction of travel.

Speak with IPM about the transaction before giving the advice

This would fall into the first bullet point above.

With SIPPs able to purchase “any” commercial property, this is a very broad description which can lead to a wide variety of scenarios. While we can never guarantee that any transaction will be acceptable to IPM until the SIPPs are established and solicitors instructed, we can help look at a specific property that your client may be considering.

If there is something glaringly obvious which means it would not be acceptable, either to IPM or under HMRC guidelines for SIPP property transactions, we can point this out at the research stage as opposed to going through a SIPP establishment / pension switch, only to find this out after a lot of time, effort, and in some cases money has been spent.

IPM’s starting point is to have our property enquiry form completed, which our property team will review. If you would like a copy for a transaction you are considering, you can request one here.

Is there borrowing required?

Whilst manageable, if borrowing is required in a transaction this would give rise to additional considerations, both from a planning and practical point of view.

A SIPP can borrow up to 50% of the value of its assets. Where there is a shortfall between the value of the SIPP and the purchase price, a client can arrange for borrowing to fund this gap so long as the amount borrowed does not go above this 50% limit.

At IPM, we do not have panels of banks we ask clients to select from, so they are able to negotiate with the bank that can offer them the best deal. We’ll then take over once we’ve instructed solicitors.

From an advice perspective, including borrowing in a transaction will 1) take longer, as there is an additional party in the chain who will have their own requirements to be met and 2) cost more, as the bank will have its charges, solicitors will charge more, and IPM makes a one-off fee for facilitating a purchase with borrowing.

Is the property VAT-registered?

Whether VAT will apply on a transaction will be a matter of fact and can be confirmed by the vendor. It is not always the case that, where the owner / tenant is VAT-registered, the property will be VAT-registered too.

Where a property is VAT-registered, there are two main areas to consider:

If VAT applies on the purchase price, then the SIPP needs to have the purchase price plus an additional 20% to complete the transaction. This is despite the fact the SIPP can often reclaim the VAT at the first quarter date after completion. From an advice perspective this will have an impact on funding for the SIPP.
In some instances, a transaction can be treated as a transfer of going concern (TOGC). This means that although a property is VAT registered, VAT will not be applied on the purchase price.

IPM would always suggest specialist VAT advice is sought on any transaction involving a VAT registered property.

Is the transaction connected?

A connected party is a term defined by HMRC and can apply where a property transaction involves, directly or indirectly, the beneficiary to the SIPP.

HMRC want to ensure that individuals do not indirectly benefit from a property transaction to a pension fund, in which they have an outside interest:

Where the SIPP beneficiary, their spouse, family member, or a company that they are involved with is selling a property to a SIPP, this must be done at market value as set by a RICS surveyor. This is to ensure that 1) by paying less than market value a high value asset is not being placed in the tax-efficient environment of a SIPP for less than it is worth, or 2) by overpaying for the property, this can see more money being released from the pension fund than should be the case.
Where the SIPP beneficiary, their spouse, family member, or a company that they are involved with is the tenant of the property owned by the SIPP, market value rent must be paid to the SIPP for use of the property as determined by a RICS surveyor. This is so 1) the company is not receiving a benefit by renting a property on the cheap, which otherwise would not ordinarily be the case, or 2) the company is not overpaying rent, thus avoiding Corporation Tax and putting more money into the client’s pension fund.

IPM cannot instruct solicitors until certain things are in place

This comes back to the above where we talk about splitting this piece of work into two parts. Making this point clear to clients at the outset of your conversation sets the tone for how things will move forward.

Only when the adviser can formally recommend setting up a SIPP with IPM can practical steps start to take place:

All SIPPs involved in the transaction have been established with IPM.
Our fully completed property purchase questionnaire has been received by our property team.
All SIPPs involved in the purchase have been funded, with a minimum of £1,500. We can either wait until any transfers come in for this or, if a client is able, they can pay a contribution to the SIPP upon establishment so we can get things moving quicker.

Ultimately how quickly we can get to this point will depend on all parties involved providing what is needed in a timely manner.

Be patient!

We understand the pressures around property transactions, and we appreciate that this purchase may be a part of a bigger picture a client may have going on.

From conversations that we have with advisers, we often get the impression that buying a property through a SIPP is this overly complex thing which will take forever. We will admit that this is not the same as recommending an ISA top-up!

But ultimately buying a property through a SIPP should not take that much longer than any other transaction. It is still one party selling a property, another purchasing it, and, in between, solicitors acting in the best interests of both parties.

Where IPM can help is by being available to both our advisers and clients. We employ a dedicated and experienced property team, a member of which is allocated to each transaction giving you and your client a point of contact from instruction through to completion and beyond. There are times when things don’t go to plan, and our team can work with you to (hopefully!) find a solution that suits all parties.

With that said, property transactions take time. There can be periods where it feels like nothing is happening, but work is going on in the background to get the purchase over the line. So, we ask for patience too, as responding to regular chasers stops us from actually doing the work we need to do!

Get in touch

To talk to us about what you have read here and discover how we can help you and your clients, email info@ipm-pensions.co.uk or call 01438 747151.