Calculator
How much pension would you need?
This calculator applies the stated rules — Stamp Duty Land Tax at commercial rates and the SIPP’s statutory 50% borrowing limit — to the figures you enter. It is arithmetic, not advice: the full workings are explained in the guide it accompanies.
How the calculation works
The pension must cover more than the price on the brochure. The calculator builds the total requirement from four parts, then applies the borrowing rule:
- SDLT at commercial rates. 0% up to £150,000, 2% from £150,001 to £250,000, and 5% above £250,000 — banded, so each rate applies only to its slice of the price. Where the purchase is subject to VAT, SDLT is charged on the VAT-inclusive amount.
- Professional costs. Legal fees and searches, an independent RICS valuation, and the SIPP provider’s property purchase fee. The defaults reflect the typical ranges stated in the guide; every figure is editable.
- A cash buffer. Most providers require working cash inside the SIPP for insurance, fees and any void period.
- The 50% borrowing rule. A SIPP can borrow up to 50% of its net assets. Because the limit is measured against the pot, not the price, the maximum purchase is roughly 1.5× the pot — which is why the “pot needed with borrowing” figure is the total requirement divided by 1.5.
Rent, if entered, is shown as a gross yield on the total requirement — the whole amount the pension commits, not just the headline price. The same arithmetic appears as worked examples throughout the complete guide.
Frequently asked questions
How is Stamp Duty Land Tax calculated on commercial property?
SDLT on non-residential property is banded: 0% on the first £150,000, 2% on the portion from £150,001 to £250,000, and 5% on everything above £250,000. On a £359,999 unit that is £7,500. Where the sale is subject to VAT, SDLT is calculated on the VAT-inclusive amount.
How much can a SIPP borrow to buy a property?
A SIPP can borrow up to 50% of its net assets, secured on the property. Because the borrowing is measured against the pot rather than the price, the maximum purchase is roughly 1.5 times the pension pot: a £200,000 pot can support around £300,000 of total spending.
What costs does the calculator include?
SDLT at commercial rates, legal fees and searches, an independent RICS valuation, the SIPP provider’s property purchase fee, and a working cash buffer most providers require inside the scheme. The defaults reflect the typical ranges stated in our guide and every figure is editable.
Does the calculator handle VAT?
Yes. New commercial developments are normally sold plus VAT at 20%. Tick the VAT option and the calculator charges SDLT on the VAT-inclusive price — the correct treatment — while showing the VAT itself separately, because a SIPP can usually register and opt to tax to recover it, or buy as a TOGC with no VAT payable.
Is this calculator financial advice?
No. It applies stated rules — SDLT bands and the statutory SIPP borrowing limit — to figures you enter. It is arithmetic, not a recommendation. Always take independent financial advice before making pension decisions.
Important: This guide is for general information only and does not constitute financial, tax, pension or investment advice. Pension and tax rules can change and their impact depends on individual circumstances. Any purchase through a SIPP is subject to your SIPP provider's approval. Always take independent financial advice before making pension decisions. Tax figures stated as at the 2026/27 tax year. This site is operated by Yeats.