Use of my SIPP to finance holiday let property

Use of my SIPP to finance holiday let property

13:52 PM, 21st March 2016, About 6 years ago 9

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I have a property which I am planning to turn into a holiday let before 1st April 2017. I have funds in my SIPP (self invested personal pension) which I would like to use as part of the finance for the property.pension

I think that you can use a SIPP to invest in Commercial property my question is, does a fully furnished holiday let qualify as a commercial property?

I would also be interested in information from anyone who has used their SIPP for such an arrangement.

Many thanks



Mark Alexander - Founder of Property118 View Profile

11:02 AM, 22nd March 2016, About 6 years ago

I'm not certain but I think UK holiday let properties are still classified as residential and cannot therefore be owned by a SIPP.

Hopefully, somebody better qualified than me will come along to confirm the position.

Steven Burman

12:14 PM, 22nd March 2016, About 6 years ago


I looked into this a few years ago and the advice I received then was that a holiday let is deemed to be residential rather than commercial unless it is designed to be 'seasonal' accommodation. This is property that is clearly meant to be used on a temporary basis and would not be suitable for permenant habitation. The 'rule of thumb' I was given is that if the property has a 'full' kitchen (including an oven) then it is deemed to be residential, whereas a 'kitchenette' without a full oven is not.

The best thing to do is to speak to your SIPP fund manager as it will be up to them to decide whether any potential investment meets the SIPP investment criteria.

Hope this helps


Benjamin James

12:15 PM, 22nd March 2016, About 6 years ago

Hi Pete, it doesn't. It only qualifies when there are more than 14 properties in one block so business rates are charged and payable...


12:35 PM, 22nd March 2016, About 6 years ago

Reply to the comment left by "Benjamin James" at "22/03/2016 - 12:15":

business rates can appy to a single holiday let property , and then exempted on smll bus rate relief as long as min number of days let & advertised to let is acheived - from memory i think it is approx 100 days (?)

Benjamin James

12:42 PM, 22nd March 2016, About 6 years ago

Reply to the comment left by "Trendo " at "22/03/2016 - 12:35":

My mistake, 14 was playing in my head. It's if your property is available for let more than 140 days per year then business rates apply... See the link here


12:46 PM, 22nd March 2016, About 6 years ago

Unless you are in Wales !

"If your property is in Wales and both available to let for 140 days or more per year and actually let for 70 days, it will be rated as a self-catering property and valued for business rates"

Peter Mclelland

12:43 PM, 23rd March 2016, About 6 years ago

Thanks for the advice everyone

Kind regards



17:15 PM, 23rd March 2016, About 6 years ago

Business rating does not make it a commercial property though. I have a holiday let and it falls outside most lending criteria and commercial property tax category (it has its own). The advice above to ask your SIPP provider or IFA is sensible.

lorna carnegie

18:35 PM, 14th February 2017, About 5 years ago

It's a bit of a minefield I think. Holiday lettings can also attract business rates even if they do not meet the minimum occupancy conditions, for example if services are offered, e.g. catering and it is considered and "exclusive use venue". I wondered if this would have any bearing on whether the property is deemed to be commercial and therefore SIPPable or indeed if the local authority classification impacts this.

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