However, the new carry forward rules mean that 50% tax payers could contribute up to £200,000 (gross) to their pension next tax year at a net cost of only £100,000.
Many high net worth individuals will own their own business and their commercial property premises. Their SIPP could purchase the commercial property releasing a cash sum outside their pension. They could if they wish reinvest this money into their SIPP claiming tax relief of up to £100,000 dependent on their contribution history.
Steve Latto, Head of Pensions at Alliance Trust Savings said: "SIPPs purchasing a commercial property from a member could become increasingly popular in the coming months. With the SIPP purchasing the commercial property, the owner of the business can receive a significant capital injection which they can use to make further contributions to their SIPP. The new carry forward rules mean an individual could contribute up to £200,000 gross next tax year dependent on their contribution history.
"Purchasing a commercial property can be complex and professional advice should always be sought."
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