Choosing the best SIPP provider for commercial property is a crucial move for UK investors looking to diversify their retirement savings.

A well-structured SIPP can hold commercial assets like offices or warehouses, offering tax-free rental income and capital gains, advantages that make real estate one of the most efficient long-term pension investments⁵.

But getting it right means navigating strict HMRC rules, borrowing limits, and provider capabilities.

In this guide, we’ll show you exactly what to look for, so you avoid costly mistakes and make the most of your property investments inside a pension.

What Is SIPP Property Investment?

Investing through a Self-Invested Personal Pension (SIPP) allows you to directly acquire commercial property, such as offices, warehouses, or shops, using pension funds. Any rental income and capital gains are shelter-free from income tax and Capital Gains Tax within the pension wrapper⁵.

Only commercial property is permitted within a SIPP, residential real estate is excluded. Your chosen provider will hold the property title in the SIPP and manage rent payments back into the pension, contributing to its growth.

This structure delivers two core advantages:

• Tax efficiency: Rental income and sales profits are entirely tax-exempt within the pension.
• Portfolio diversification: Property typically behaves independently of stocks and bonds, offering stability and income in volatile markets.

Later sections show you how to select suitable providers, explore funding methods like gearing, and manage risks and compliance steps, helping you make informed decisions and maximise returns from SIPP-held commercial property.

What Should You Know Before Investing in SIPP Property?

Before diving into commercial property via a SIPP, it’s vital to understand tax implications, investment characteristics, and regulatory rules specific to this asset class.

Tax Efficiency

All rental income and capital gains from SIPP-held commercial property are completely tax-free within the pension structure, no income tax on rent, and no Capital Gains Tax on disposal.

This can significantly boost long-term returns compared to personal ownership or corporate holdings⁶.

Learn More: SIPPs Tax Relief

Rental Income & Capital Growth

Rental income flows directly into the SIPP, compounding tax-efficiently and providing immediate contribution to your pension pot.

Capital appreciation upon sale also remains entirely tax-free, reinforcing how SIPP property can effectively strengthen retirement savings.

Portfolio Diversification

Commercial property often shows low correlation with equities or bonds, making it a powerful diversifier that can stabilise returns and reduce portfolio volatility.

Risks & Regulatory Constraints

• Liquidity & management: Commercial assets require ongoing oversight, maintenance, tenant management, and possible vacancies.
• Property type restrictions: Only certain commercial uses are permitted by HMRC; retail, industrial, and office properties are allowed, while residential and holiday lets are excluded.
• Gearing limits: Any loan used for property purchase must not exceed 50 % of the SIPP’s net asset value.
• Compliance overhead: Providers often require professional surveys, formal leases, and adherence to health and safety standards.

Commercial property in a SIPP can bring tax-free income, capital growth, and diversification. But it also demands active management, regulatory compliance, and expert guidance.

What Are the Benefits of Commercial Property in a SIPP?

Investing in commercial property through a SIPP gives UK pension holders a valuable combination of tax efficiency, income potential, and long-term control over asset growth.

The key benefits are:

• Tax-Free Income and Gains - Rental income and capital gains earned within a SIPP are entirely exempt from Income Tax and Capital Gains Tax, making this one of the most tax-efficient ways to hold property⁷.
• Regular Rental Income - Commercial properties often offer long-term leases, providing a steady stream of income paid directly into your pension.
• Capital Appreciation - As commercial property values increase over time, any gain realised from a sale within the SIPP is not taxed. This allows full reinvestment back into your pension.
• Portfolio Diversification - Commercial real estate usually has a low correlation with stocks and bonds, helping to reduce risk and improve overall portfolio stability.
• Greater Investor Control - SIPPs allow investors to choose specific properties based on personal goals, market views, or preferred sectors.
• Borrowing Flexibility - SIPPs can borrow up to 50 percent of their net value to help fund property purchases. While this can increase returns, it also introduces risk from loan repayments and interest rate changes.
• Collective Purchasing Power - Several SIPP holders can pool funds to buy more expensive or higher-yield commercial properties than they could afford individually.
• Inheritance Efficiency - When the SIPP holder dies, commercial property can often be passed to beneficiaries tax-efficiently, depending on how the estate is structured.

These benefits are compelling, but managing commercial property inside a pension involves additional responsibilities.

In the next section, we’ll cover the main risks to be aware of.

What Are the Risks of Commercial Property in a SIPP?

Investing in commercial property through a SIPP involves several risks that could impact retirement savings.

Here are the key considerations to evaluate:

• Low liquidity - Commercial properties can take months to sell at a fair price, unlike highly liquid assets like stocks and that may affect your ability to access funds.
• Market and economic volatility - A downturn in the commercial real estate market, caused by economic slowdown or sector-specific issues, can reduce rental income and property values.
• Ongoing costs during vacancies - The SIPP must cover expenses such as maintenance, insurance and property taxes, even when units are unoccupied, which can diminish returns.
• Repair and compliance expenses - Commercial buildings require regular inspections and often expensive upgrades to health and safety, building regulations and environmental standards.
• Interest rate and loan repayment risk - Borrowing to acquire property increases exposure to rising interest rates and hefty repayments that may cut into your net income.
• Tenant-related risks - Dependable rental income depends on tenant quality. Risks include lease defaults, late payments and vacant periods.
• Environmental and regulatory liabilities - Unexpected environmental issues, such as contamination, can incur legal penalties and cleanup costs under commercial property regulations⁸.
• Concentration risk - A large SIPP holding a single asset lacks diversification. A poor-performing property can disproportionately impact your overall pension.

Before committing, conduct full due diligence, legal surveys, environmental checks and tenant background.

Diversify your SIPP’s assets and consult a commercial real estate specialist.

How Can You Hold Commercial Property in a SIPP?

A Self-Invested Personal Pension (SIPP) gives you the option to hold UK commercial property as a direct investment. This includes offices, warehouses, shops, industrial units, and land used for commercial purposes.

Here are the main ways you can include commercial property in your SIPP:

Direct Purchase

Use your SIPP funds to buy a commercial property. The title is held by your SIPP trustee, and all rental income is paid directly into your pension.

This is the most common route for new property acquisitions.

In-Specie Transfer

If you already own commercial property, you may be able to transfer it into your SIPP. This removes it from your personal estate, and future rent or capital gains are tax-free within the pension.

However, you may face Stamp Duty Land Tax and Capital Gains Tax when making the transfer.

Group Purchase

You can pool funds with other SIPP holders to buy a property jointly. This is often used when a single investor’s SIPP does not have enough to fund the purchase alone.

Ownership is split proportionally and each SIPP receives its share of the rent and value.

Borrowing (Gearing)

Your SIPP can borrow up to 50 percent of its net value to help fund a property purchase.

For example, if your SIPP is worth £200,000, it can borrow up to £100,000. This increases buying power but also introduces risk. The loan must be repaid from pension assets or rental income⁹.

How to Choose the Right SIPP Provider for Property Investment

To find a provider suited for commercial property within a SIPP, focus on the following essential criteria:

• Proven commercial property expertise - Track record in handling tenant agreements, legal title transfers, environmental due diligence, and property disputes, evidence of real-world deal experience is crucial¹⁰.
• Comprehensive service range - Look for providers offering support across the full property lifecycle: acquisition, leasing, management, valuation updates, and disposal.
• Transparent, competitive fee structure - Opt for fixed annual custody fees under £200 and transaction charges below 0.3%, so you retain more rental yield.
• Wide investment flexibility - Ensure the provider supports various commercial assets (e.g., offices, retail, warehouses, land), as well as gearing, in-specie transfers, and syndicated purchases.
• Strong borrowing capabilities - Providers should offer SIPP loans up to 50% of the pension value and maintain partnerships with lenders familiar with SIPP gearing.
• Responsive customer and technical support - Access to dedicated property desks, legal teams, and pension specialists is vital, especially for first-time investors or complex property deals.
• FCA regulation and compliance framework - Ensure the provider is UK-regulated; audit frequency, trustee liability protection, and HMRC compliance should be clearly outlined.

Match provider strengths to your priorities, cutting fees if you’re fee-sensitive, or selecting a property-specialist provider (like Dentons or ATSipp) if you need hands-on support.

The right choice should align with both immediate property objectives and long-term retirement planning.

Who Are the Best SIPP Providers for Commercial Property?

Here are some top SIPP providers in the UK for investors considering commercial property. Each has distinct strengths depending on your needs:

Hargreaves Lansdown

Indirect exposure only (via REITs, property funds), not direct commercial property ownership. Useful if you prefer a diversified fund-based approach¹¹.

Learn More: Hargreaves Lansdown SIPPs

AJ Bell

Supports direct commercial property in its Platinum platform. Widely praised for competitive fees and excellent customer service¹².

Learn More: AJ Bell SIPPs

Curtis Banks

One of the few providers with a strong track record in direct commercial property—managing thousands of properties since 1971. Offers full end-to-end services including acquisition, management, leasing, and legal compliance¹³.

Learn More: Curtis Banks SIPPs

James Hay

Experienced in commercial SIPP use, including acquisition and leasing. Known for flexible service and online trading options, often with lower transfer fees¹⁴.

Learn More: James Hay SIPPs

Barnett Waddingham / IPM

Recognised for competitive fee structures, particularly on transfers and administration. Ideal for investors wanting hands-on commercial property support with transparent costs¹⁵.

Learn More: Barnett Waddingham SIPPs

Choosing the Right Provider

• Want direct ownership and hands-on support? Go with Curtis Banks or AJ Bell Platinum.
• Prefer indirect exposure? Hargreaves Lansdown lets you invest via property funds.
• Need low transfer fees and flexibility? James Hay or Barnett Waddingham are solid choices for value and service.

Here’s a clear comparison table showing the top SIPP providers for commercial property investment:

Provider	Direct Property Ownership	Typical Fees	Key Strengths	Best For
Curtis Banks	✅ Yes	Setup: ~£500 Annual: ~£400+VAT	End-to-end property support, strong expertise	Serious investors managing property directly
AJ Bell (Platinum)	✅ Yes	Setup: ~£300–£500 Annual: ~£200–£300	Competitive pricing, good service, FCA-regulated	Direct property investors with cost focus
Barnett Waddingham	✅ Yes	Setup: From £500 Annual: £200–£400	Personalised admin, transparent fees, group purchases supported	Collaborative or pooled property buyers
James Hay	✅ Yes	Setup: ~£300+ depending on deal Annual: Varies	Flexibility in leasing, tech support	Tech-savvy or fee-sensitive investors
IPM	✅ Yes	Setup: Case-by-case Annual: ~£250–£400	Boutique-level support, efficient transfer handling	Clients needing close personal assistance
Hargreaves Lansdown	❌ No (indirect only)	Platform fee: 0.45% of fund value	Access to REITs and property funds, user-friendly interface	Investors seeking property exposure via funds

Which UK SIPPs Offer Broader Investment Options?

If you want to include commercial property in your SIPP but also retain access to a wider range of assets (like stocks, funds, or bonds), here are providers that offer both flexibility and property access, all while diversifying your portfolio.

Curtis Banks

• Offers full direct property options (individual purchase, group or joint deals, geared acquisitions)
• Also provides access to traditional funds, equities, gilts, and cash holdings

Standard Life

• Supports individual and group purchases of UK commercial property (e.g., shops, offices, warehouses, industrial units, development land)
• Excludes property types such as holiday lets, nursing homes, solar-powered sites, pubs, caravan parks, petrol stations, and overseas properties
• Also offers a wide fund range including active, passive, and ESG options

Killik & Co (via Barnett Waddingham)

• Direct property investing is supported; application, transfer, and ongoing management handled by Barnett Waddingham
• In addition, Killik’s SIPP platform opens exposure to equities, bonds, funds, and investment trusts

Fidelity and Hargreaves Lansdown

• Do not support direct commercial property investing
• But both offer excellent access to real estate exposure through REITs, commercial property funds, and ETFs
• Provide broad investment access including shares, bonds, mutual funds, and cash – forming a fully diversified portfolio

Goal	Best Providers
Direct commercial property	Curtis Banks, Standard Life, Killik & Co
Broad investment access + property	All three above
Indirect property exposure	Fidelity, Hargreaves Lansdown

For optimal flexibility, choose a SIPP provider that combines direct property support with traditional investment options.

How We Selected the Top SIPP Providers for Commercial Property

To recommend the best SIPP providers for commercial property investment, we reviewed each firm using strict selection criteria designed to match the needs of UK-based investors.

We focused on providers that not only support direct commercial property ownership but also offer long-term value, flexibility, and regulatory reliability.

Our evaluation was based on the following factors:

• Proven experience in managing commercial property within SIPPs
• Range of services, including acquisition, leasing, compliance, and exit support
• Transparent and competitive fees for both setup and ongoing management
• Investment flexibility, covering pooled ownership, gearing, and transfers
• Loan support, including access to commercial lenders and property borrowing expertise
• Customer service quality, including response times, dedicated teams, and adviser support
• Regulatory status and compliance, ensuring full FCA regulation and adherence to HMRC rules
• Reputation and client reviews, assessing satisfaction, complaints, and transparency
• Technology infrastructure, such as online account access, reporting tools, and digital processing

Providers that scored well across these areas were shortlisted to ensure they meet both the technical and service expectations of property-focused pension investors.

Common Questions

In Conclusion

Choosing the right SIPP provider for commercial property is one of the most important decisions in building a tax-efficient, income-generating pension strategy. A well-chosen provider offers more than just access to property, it delivers the legal, financial, and administrative support needed to make your investment successful.

By focusing on fees, flexibility, property expertise, and service quality, you can align your provider with your long-term retirement goals.

The best SIPP partner is one that not only helps you invest in commercial property today but supports your strategy for growth, diversification, and financial security over time.