SIPPs can invest in commercial property in or outside the UK including the following:  Shops  Offices Industrial units Business units Warehouses Garages Hotels and guest houses Nursing homes Public houses Forestry and agricultural land Development land Leisure property (Golf course, property with sporting rights) Residential property investment Investment in residential property is only alowed when it is made through a collective investment fund or a diversified investment  company. A pension scheme cannot make a direct investment in residential property without tax charges applying. Using a private unit trust or unquoted company will not get round the tax penalty, unless exemptions apply. These exemptions include: 1. real estate investment trust (REITs) 2. trading concern 3. other kinds of vehicle A trading concern must meet certain conditions to qualify for the exemption: the vehicle's main activity is the carrying on of a trade, profession or vocation, and the vehicle is not controlled by the pension scheme or an associated person, and the purpose of the investment into the vehicle must not be to enable a member or connected person to use the property. For other kinds of vehicle the conditions to qualify are that: the vehicle must contain at least 3 properties any single property is not more than 40% of the fund any individual, with connected people, controls no more than 10% of the fund the fund is over £1 million For advice on property purchase and assistance locating commercial property, please use the enquiry form.