I have a private pension plan that is dormant as my current contributions are focused on my teaching pension that I started 5 years ago. I am planning to purchase a commercial property, and I have tenants lined up to pay rent for the premises. Am I able to use my private pension plan (PPP) to fund part of the down payment on a commercial mortgage? If so, is the amount available the amount I have invested or a projection on how much the fund would be worth at a set date? Also, is there an age limit to use the PPP, as I am currently 45 years old? 

Arthur Weller replies  

I am assuming that the pension fund is going to purchase the commercial property, and not you personally. A registered pension scheme is allowed to purchase commercial property, and it is not 'taxable property' (see HMRC’s Pensions Tax Manual at PTM121000). However, there are rules about how much a pension scheme is allowed to borrow (see PTM124000). Very simply put, it can borrow up to 50% of the net value of the fund prior to the borrowing taking place. However, if I have misunderstood your query and you intend to personally purchase the commercial property, and you want the pension fund to lend you some money, this will contravene the rules and result in potential tax liabilities (see PTM123300).