SSAS Pensions

SSAS stands for Small Self-administered Pension Scheme.

Is it the right pension for me?

SSAS pensions is an HMRC Registered Pension Scheme under the terms of the Finance Acts.

A SSAS pension scheme is typically set up by the directors of a business to allow them to gain more control over how their pensions are invested. It must have less than 12 members, typically the company directors, senior executives and family members. Members can choose how their pension savings are invested and, furthermore can use their SSAS pension to invest in the company.

What can I do with a SSAS Pension?

HMRC rules allow members to invest in a range of assets including commercial property. The scheme can also offer commercial loans and could, therefore, provide a loan to the company in order to purchase an asset, such as a new building. Another difference of this defined contribution scheme is that it can borrow money, via a mortgage for example, as long as it’s for investment purposes.

Can I loan money from my SSAS pension?

HMRC rules for SSAS pensions allow members to invest in various assets including commercial property. It also allows commercial loans such as a loan to the company to purchase an asset. One of the major benefits though is that the scheme can borrow money. Such as a mortgage as long as it's for investment purposes.

The SSAS can lend to the company at 1% above the bank base rate. So, with the base rate currently at 0.5%, this is a cheap form of company borrowing. Furthermore, any interest payable by the company goes into the pension scheme.

There are various rules associated with the above options, we have the expertise and experience to guide you through these.

When Can I Drawdown My Pension?

When you reach 55 you can start to draw benefits from your SSAS pension. You can take the first 25% as a tax-free lump sum, or alternatively you can receive 25% of any withdrawals tax-free. Obviously, the amount of money you are entitled to depends on how much you and your employer have contributed and how well your pension pot has been managed and performed.

[Capital can fall as well as rise and you might not get back the original amount invested.]

Contact us today to see how we can help you with your pension.