Pension legislation restricts investment in most types of residential property, or any other property where an individual would be able to gain some form of personal benefit.

Most types of commercial property and land are acceptable under this legislation, but care must be taken to ensure that any risks associated with the purchase are carefully managed. All property purchases and any lease arrangements must be on a fully commercial basis at arm’s length.

This guide explains the pros and cons of investing in property through a Sipp, the tax implications of this sort of investment and what the regulator has said about using your pension to purchase bricks and mortar.

Supporting material was provided by: Gareth James, technical resources manager at AJ Bell; Robert Graves, head of pension technical services at Rowanmoor; Martin Tilley, director of technical services for Dentons Pension Management; Claire Trott, head of technical support of Talbot & Muir; Christine Hallett, chief executive of Carey Pensions UK; and Andy Leggett, head of Sipp business development at Barnett Waddingham.