Financial experts give elevator firm a major lift
A Sunderland-based financial specialist has provided a lift for a commercial elevator firm.
Northern Spire, has turned client, Rise Elevator, from tenant to commercial property owner - thanks to a tax-efficient pension scheme.
Financial advisor at Northern Spire, John Longford, highlighted to business owner, Kris McGough, that he was in a position to invest in the property through a Small Self-Administered Scheme (SSAS) pension meaning he has benefited from a £30,000 tax saving and the opportunity to receive tax-free rental income.
An SSAS pension is a contribution pension that an employer can establish for less than 12 members, to provide increased retirement benefits and greater investment flexibility – including the opportunity to invest in the company.
Once the sale is complete, the property can then be let out to the company with taxfree rental income paid into the pension scheme.
Rise Elevator, based on the Team Valley Trading Estate, Gateshead, is an engineering company that provides commercial lift, installation and repair services.
In addition, it also engineers domestic lifts and specialist car lifts.
The company, which became a Northern Spire client in 2019, has five full-time employees.
John Longford said: “There are many businesses that will be in a position to purchase existing office space but there is a huge lack of awareness that it is a viable option.
“For those eligible, such as Rise Elevator, SSAS is extremely tax-efficient and the rent paid back into the pension is tax-free, rather than dead money being paid out as an overhead.”
Mr McGough said: “Like many business owners, especially those in the early stages, I had not even considered purchasing an office space.
"I really believe it is an important message that John is trying to establish within the business community, that it is important to be aware of all options available to you when it comes to personal and business investment, including purchasing commercial property via an SSAS pension.”