In some cases businesses will be frustrated at having an illiquid (but possibly high value) asset in the shape of their premises and having more liquid funds inside their pension.

For these, in the right circumstances, a sale of the property to the pension fund may be worth considering. It could certainly (in theory at least and subject to satisfying the necessary conditions) be a way of releasing funds to the business whilst enabling the business to remain in occupation of the property.

Of course, there are many other aspects of such a transaction to take into account though, before deciding that it would be the right thing to do in any particular case. Professional advice is essential. Immediate issues to consider would be the availability of funds in and to (possibly through borrowing) the pension fund and the tax consequences of the disposal. This (the tax consequence) may have been softened by a fall in value making the movement into the fund (especially if the property value is expected to recover) potentially tax attractive.

Of course, if the property is owned by the business owners the proceeds could then be lent to the business by them. Then there is the payment of rent to consider. And of course provision of benefits from the fund that may be substantially represented by an illiquid asset. All issues to consider but the opportunity to release cash and potentially put future growth in a highly tax efficient environment is one that may at least be worth considering in the right circumstances.