New business shows strong growth

During 2021, Dentons has seen an increase in commercial property purchase new business cases of 13%.  Overall, new business cases were up 26% compared to 2020 levels and up 27% compared to pre-pandemic 2019 levels. Over 53% of new business cases in 2021 were transfers-in from other SIPP providers. Single Portfolio cases (where a client invests solely through only one investment manager or investment platform) were up 54%.

Commercial property remains a popular investment within a self invested personal pension (SIPP) or small self administered scheme (SSAS) due to the tax efficiencies of holding it within a pension, including rent being paid tax-free directly to the pension scheme and no Capital Gains Tax on disposal.  It is, however, a very complex topic because every property is unique and property investment is therefore one of the most common technical fields that Dentons’ Sales and Marketing  team answers queries on.

David Fox, Director of Sales & Marketing: “The pandemic has lasted  longer than anyone might have anticipated, and customer needs have adjusted accordingly. Throughout 2021 we saw continued interest from advisers’ clients who were interested in  investment into commercial property within a SIPP or SSAS. Over 41% of all the new SIPPs that we set up last year included commercial property and this trend looks set to continue in 2022.

“There is perhaps a misconception that commercial property investment is largely confined to things like warehousing and offices, but that simply isn’t the case in our experience; we hold a wide range of properties, ranging from recording studios to industrial units and retail premises.“