Your partnership can take advantage of rules on business property which was part of the shake-up of the UK's pension legislation which came into effect on A-Day, 6 April 2006.

Until A-Day, although you could use a pension to invest in a business property, regulations generally prevented you from buying, as an investment, a property already owned by you, your firm or an associated individual.  That included family members or other businesses under your control.

Now, existing business properties can be moved into business owners' pension funds.  The new rules allow partners to share the ownership of properties between their Self Invested Personal Pensions (SIPPs), in effect creating a syndicate which is very cost effective and will allow you to benefit from generous tax breaks.

Once the property is purchased, it is then leased back to the business, with the rental income going into the pension fund tax-free.  More than one partner can have a share of the property with separate SIPPs created and used to participate in a SIPP syndicate.  It must be noted that the SIPP purchase must be at market value as selling for less would incur a tax charge.