Property via Pension
Pensions have a great tax advantage that small business owners can use to boost the amount they save for retirement, while also giving their company a cash injection now.
One way is for the business owner to use their existing pension savings to buy their company premises.
Their pension then owns the premises so, instead of paying rent to a landlord, the company pays its rent into the business owner's pension.
These monthly rental payments - which are likely to be considerably more than the business owner was paying into a personal pension then goes into their pension pot tax-free.
As the premises are owned by a pension, any capital gains they make are free of tax too. Together these two factors can increase the amount being paid into the business owner's pension each month and can help them build up a larger nest egg quicker.
You'll need a flexible type of pension called a Self-Invested Personal Pension - or Sipp
The value of your investment or pension can fall as well as rise and you may not get back the original amount invested.
The levels, bases and reliefs from taxation are subject to the individual circumstances of the investor and may be subject to future change.
The property market can be illiquid; consequently, there can be times when investors in property will be unable to sell their investments.