In recent months, Curtis Banks has noticed a considerable increase in queries regarding connected party purchases, whereby a person uses their pension to purchase a property they already own (such as business premises). The provider said it believes this is being driven by business owners looking to release cash back into their businesses.

The firm has also seen more queries about purchasing land and woodland rather than a commercial building. The provider said it believes this is being driven by individuals who have been able to accrue additional savings during the Coronavirus pandemic due to lower outgoings and are now looking to invest their cash.

Financial advice firm Red Star Wealth said it is also seeing an increase in enquiries from clients looking to include commercial property in their SIPP.

Kristen Cunliffe, managing director at Red Star Wealth, said: “Similarly to Curtis Banks, we are also seeing sustained interest from clients who would like to include a commercial property investment in their SIPP.”

Commercial property is a popular investment for many SIPPs due to the tax efficiency of the investment, including rent being paid tax free directly to the SIPP, and no Capital Gains Tax on disposal.

Commercial properties can be purchased by individual SIPPs or groups of SIPPs, as well as groups that include both SIPP and non-SIPP parties.