Independent Red Book valuations of commercial property held within SIPP and SSAS pension schemes — for acquisition, triennial review, in-specie transfer and HMRC-compliant reporting, prepared for trustees and scheme administrators who need a figure they can rely on.
A pension scheme that owns commercial property needs that property valued by an independent RICS Registered Valuer at several points in its life. The valuation is not a formality — it sets the price the scheme can pay or accept, governs the scheme’s reporting, and keeps the arrangement on the right side of HMRC’s connected-party rules. We prepare those valuations on a genuinely independent basis, report in accordance with the RICS Red Book, and liaise directly with trustees, administrators and advisers so the figure does its job without friction.
We act on the full range of property a scheme is permitted to hold — offices, industrial and warehouse units, trade counters, retail premises and the freehold of owner-occupied business premises — across London, the South East and UK-wide on instruction.
When a scheme buys a property, the trustees need an independent valuation to confirm that the price is at arm’s length — particularly where the seller is the member, their business or another connected party. An over-payment between connected parties can give rise to an unauthorised payment charge, so the valuation has to be defensible. We provide a Market Value (VPS 4) opinion and, where the scheme is funding the purchase in part through borrowing, we report on the figures the lender and administrator will rely on.
Property held in a SIPP or SSAS is normally re-valued at least every three years so the scheme accounts and any in-house rent reflect current value. Where the property is let back to the member’s own business, HMRC requires the rent to be at full open market value — too low and the shortfall can be treated as a contribution; too high and it can be an unauthorised payment. We provide both the capital valuation and, where required, an open market rental opinion, so the rent review between scheme and connected tenant stands up to scrutiny.
Property can be contributed to or moved between schemes in specie rather than sold for cash, and it can change hands on divorce or on a member leaving a scheme. Each of these needs an independent value, and each engages HMRC’s connected-party rules. We value for in-specie contributions and transfers, for pension sharing on divorce, and on the wind-up or restructuring of a scheme, and we are comfortable working alongside the scheme’s tax counsel and administrator to get the basis exactly right.
Every valuation is carried out by a RICS Registered Valuer and is independent of the member, the scheme and any introducing adviser — which is precisely what makes it useful to a trustee. We turn instructions around to the timetable the transaction actually needs, agree fees in advance, and are happy to provide periodic desktop updates between full reassessments where a scheme holds property over the long term.
As a rule, at least every three years — the ‘triennial’ review — and additionally on any acquisition, disposal, in-specie transfer, or event such as divorce or a member leaving the scheme. Your administrator may require an interim valuation more frequently if circumstances change.
Because much of what a scheme does with property happens between connected parties — the member, their business, the scheme. HMRC needs comfort that those transactions are at open market value. A valuation by an independent RICS Registered Valuer who is not the member or their adviser is what provides that comfort.
It must be at full open market rental value, evidenced independently. If the rent is below market, HMRC can treat the shortfall as a contribution; if it is above market, it can be an unauthorised payment. We provide the open market rent opinion that keeps the connected-party letting compliant.
It is the contribution or transfer of the property itself, rather than cash, into or between pension schemes. Each leg needs an independent value as at the relevant date. We prepare those valuations and work alongside your administrator and tax counsel on the basis required.
Greater London and the South East as standard, and the rest of the UK on instruction. For schemes holding several properties we can value a portfolio together while reporting each asset transparently.
