Property For Pension

The major advantage of investing in property through your pension is that, there are no tax liabilities on rental income received within the pension and no capital gains tax on realised gains.

Also, the equity contribution you make to the purchase of the property attracts tax relief at your marginal rate of tax, or if the contribution is made from your company it is treated as a deductible business expense. This is in contrast to a situation where you invest in property outside of your pension, the equity contribution is typically being made from taxed income.

It should be noted that to have a properly diversified pension portfolio, you should have a balanced pension portfolio of various investments assets and not just rely on property.