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Multi-member SIPP arrangement: Can I co-own with another entity?

Boardroom table

A group of individual SIPP schemes can each purchase a share of a commercial property, in a “syndicated” arrangement or group purchase. Different from a group SIPP scheme, each SIPP has its own arrangement and each will own their fixed share of the property and will receive their proportionate share in rent. They will also be liable for their proportion of any fees and costs incurred that are payable by the SIPPs. This means each person could have their own investment strategy and would be able to manage their individual attitude to risk. They can also borrow up to 50% of their net own net SIPP value to help them achieve this if need be.

Combining purchasing purchase power can be a solution to establish a SIPP. For example:

  1. Purchase – The office has been independently valued with a commercial valuation of £300k.
  2. Three business associates want to invest in the property and therefore three individual SIPPs are set up, each with their own pension scheme bank account. They transfer more than enough in to cover the purchase and they decide that Mr Ali wants to invest £150k, Mr Bernard invests £75k and Mr Charles invests the remaining £75k.
  3. A surveyor independently establishes rent on the property. Rental income is divided amongst the scheme members in accordance with the ownership of the property.
  4. With a rent of £30k, each SIPP member receives the appropriate amount in accordance with the ownership of the property. (Mr Ali receives £15k, Mr Bernard receives £7.5k and Mr Charles receives £7.5k).
  5. Tax efficient – The rent paid into the SIPP is free of income tax and any growth in the value of the property is free from CGT.
  6. Surplus cash from rent payments less any fees/charges and loan repayments can be used for investment.


The figures are indicative only and do not fully take into account Yorsipp’s fees, any adviser charges that may be due and the legal fees and disbursements it will cost to acquire part of the property or eventually the full property.


Yorsipp are authorised and regulated by the Financial Conduct Authority under reference 464198 but are not authorised or regulated to provide financial advice. The above guide is intended for use by financial advisers only and is based on a simplified case scenario and should not be construed as being indicative of a specific case or clients’ circumstances. Yorsipp will only accept new SIPP applications from a suitably qualified financial adviser. Consideration will also need to be given for legal fees/disbursements, Yorsipp’s fees, any adviser fees and any other costs associated with the property.

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