Two office buildings have been snapped up at a new £4m development in Stockton.
Barnard Castle-based Rokeby Developments has announced the sale of two office buildings before construction commences at Bowesfield.
Archers Law has used the benefit of a Self Invested Personal Pension - SIPP - to buy the building.
Chief executive David Collier believes moving into the new premises will be a more accurate reflection of the size and stature of the business, which the present premises fail to do.
He said: "All of the members of Archers Law have contributed funds to the SIPP to purchase our new offices. I believe this shows their positive commitment to the future growth of the firm.
Nick Fordy of Rokeby Development's said: "This was a complex deal that has taken some time to come together, but Rokeby is delighted with the end result and the fact that both units have been sold prior to construction work commencing shows a mutual trust between the end users and ourselves.
"Commercial property is still seen as a good investment and in the Tees Valley area indications are that demand is still strong."
"A SIPP can be used to invest in commercial properties directly or via property shares; for example a person could buy a property through their pension and run a business from it."
Buying a commercial property through a SIPP is reasonably straightforward and can give a number of benefits:
* The cash in a SIPP can be used as a deposit for the purchase.
* The trustee can borrow up to 75pc of the purchase price to help fund the purchase.
* The purchase price should be within a margin plus or minus 10pc of the market value of the property.
* A property can be bought for the benefit of more than one SIPP member.
* Contributions to the SIPP will attract tax relief at the marginal rate, so by buying a property in this way it allows the tax relief to be used to help towards the cost of buying the property.
* The trustee can lease the property back to a business at a commercial rent which is paid into the SIPP.
* The rent paid is a justifiable business expense that can be offset against the business income for tax purposes.
* Rental income coming into the SIPP does not count as a contribution - just income from the investment. This means that contributions within the usual Inland Revenue limits can continue.
* No tax is paid on the rental income when it is received into a SIPP, so any mortgage repayments will be paid out of the gross rental income in the fund.
They must be confident that Gordon Brown is not going to change the SIPP plans again.
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