A property SSAS pension is the flexible business tool that saves you tax, funds your business and allows you to control investments.
A Small Self-Administered Scheme pension (SSAS) is a pension scheme, exclusively for company directors. It is a unique and flexible property and occupational pension scheme, specifically created under legislation for company directors in the UK. If you set up a SSAS pension, you have full access to every type of investment available to SSAS investors according to the rules set out by HMRC. A SSAS pension fund benefits from all the same tax relief and advantages as a traditional personal pension, such as a tax-free lump sum of 25% at age 55, new contributions of up to £40,000 a year and flexible drawdown.
There are several different investment options available when using a SSAS pension, but for business owners, this type of pension scheme is also beneficial for investing in commercial property or raising funds for any other aspect of running a company. For family businesses, the SSAS offers great benefits for tax efficiency, succession planning, and business continuity.
The ability to loan to the company using the SSAS loanback facility is especially useful when looking for business funding, cashflow or tax efficiency for the business.
If you’re a UK company director looking for an efficient and flexible occupational pension scheme, look no further than a SSAS pension.
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Designed for business owners who want a pension that supports their business, a SSAS pension gives you full control over the investment policy, underlying assets and funds within the pension scheme.
By allowing for the free movement of funds between the company and the pension, a SSAS pension gives you the opportunity to withdraw tax-free funds for high-yielding business and property investments. Plus it allows you to withdraw funds from your business and company contributions that benefit from tax relief and are in excess of personal limits. This means that if your company needs funds, you don’t have to go to a bank — the Director can authorise the transfer of historic contributions from the company SSAS pension to the company bank account, and vice versa. SSAS pensions are also flexible and can accommodate for your career progression by allowing you to transfer any old pensions from former employment into a new SSAS pension to help support your business of today.
Download our free SSAS pension guide to get an in-depth overview of a SSAS pension and the investment strategies available within this type of pension scheme.
What our customers say...
An excellent service from Khaleda who took us through the process of setting up our SASS pension. We were fully advised on the whole process and kept up to date regularly with all questions being answered fully. We would highly recommend using Khaleda who we can’t fault. BrilliantJessett Simon Daisy15/01/21
I cannot recommend Lewis Jones from the Landlord’s Pension highly enough. His professionalism and knowledge of SSAS’s has been outstanding. He has guided me through the end to end process of setting up a SSAS to transfer my Pension into and has never complained when I’ve sent numerous emails with... Read moreLissa Lowrie10/11/20
What Are The Benefits of a SSAS Pension?
A Small Self-Administered Scheme pension is a business tool designed to benefit your business. Not only does a property SSAS pension offer many benefits for your business today, but it also has many long-term benefits that will help you to create a bigger retirement fund, generated from the success of your business. It’s low cost, you’re in control and you get all the tax breaks associated with any other pension scheme while being able to invest in the full range of permitted investments allowed under UK legislation. Not only that, but property SSAS also allows you to fund your company when you need some extra cash.
With a SSAS pension you can:
- Invest in property
- Invest pension funds in your own business
- Avoid upfront fees and increase capital gains
- Access investment returns
- Consolidate pensions and reduce pension charges substantially.
SSAS pensions have the same attractive investment and tax benefits of a SIPP or a personal pension, but they offer far more financial planning and investment options. For example, with a SSAS pension, a company director can use up to 50% of the money in the pension as an investment in their own business, or buy shares in a business not listed on a stock exchange (including their own). Many business owners who have a SSAS pension take advantage of the ability to transfer their business premises into the pension scheme, so that company rental payments can be paid into the pension fund.
Is a SSAS Pension Expensive?
Annual fees for a SSAS pension are as little as £600 + VAT, and best of all, these fees benefit from corporation tax relief. You also benefit from a fixed fee — SSAS pension fees are not based on a percentage. The fee also doesn’t scale according to the size of your pension; instead, it will depend on the number of things you want to do with your SSAS pension, such as investing in your company, providing loans to others or investing in property bonds.
If you would like us to provide you with an accurate fixed fee that is tailored to suit your needs, get in touch, or read more about our fees for setting up a SSAS pension.
Who Is Eligible for a SSAS Pension?
To establish a Small Self-Administered Scheme pension, you need to be a Director of a limited company — 95% of SME company directors are eligible for a SSAS pension. If you are not a company director, you may wish to look at a Self-Invested Personal Pension (SIPP).
Take our 60-second SSAS eligibility test to see if you qualify and to get pre-approved for a Small Self-Administered Scheme pension.
How Can The Landlord’s Pension Help with SSAS Pensions?
The Landlord’s Pension is made up of authorised SSAS business pension experts who have been helping clients to invest in both business and residential property since 2004. SSAS pension scheme providers vary in their flexibility, which often means that business owners need to work with a SSAS pension broker that knows the market place. The Landlord’s Pension is different — we’re not just a scheme provider — we are also brokers with years of experience working with SSAS pensions.
Our clients are SME business owners and majority shareholders, and we understand that, for them, their business is the priority. Our mission is to help our clients understand how a SSAS pension can support their business, as well as show them how they can reap the full benefits.
For more information or enquiries, don’t hesitate to contact us. Our expert SSAS pension consultants are available to speak to you and guide you through your options.
Property SSAS Pension FAQ
Why choose a Property SSAS?
A Property SSAS is the most flexible type of pension available in the UK. With this type of pension, you have access to every type of investment that is allowed under rules set out by legislation. You can make any permitted investment at any age, essentially you do not need to be 55 to take control of the money in your pension. Choose a Property SSAS to invest in property or to use for business or investment purposes.
What is a Property SSAS compared to a normal SSAS?
A Property SSAS is administered by people who know and understand property investments. A Property SSAS allows you to make all the same investments as a normal SSAS but when it comes to making an investment in property you want property people to be there to answer your questions immediately and to deal with the process of acquiring or disposing of property promptly.
What is most appealing feature about a Property SSAS?
You can invest in property, it’s low cost, you’re in control, you get all the tax breaks associated with any other pension and you get to invest in the full range of permitted investments allowed under UK legislation. A Property SSAS is a great business pension too because it can fund your company when you need cash to start or finish projects.
Essentially you can pool all of your former pensions into a Property SSAS business pension and then draw on them to fund your business to a maximum of 50% of their combined value.
How can The Landlord's Pension help me with a Property SSAS?
We are dedicated SSAS pension brokers, this is our area of expertise. We will listen to what you are trying to achieve and if your goal is possible, then we will find a SSAS pension company that can help you. We are thorough and can normally tell you on the phone if we can help you within a few minutes.
We just need to know what you currently have in terms of your pensions, your age and what your intentions are. Speak to our consultants about your pension options.
What are the extra investment options available with a SSAS over a SIPP?
The main additional benefit of a Property SSAS is that you can transfer 50% of the value of any pension you have contributed to into your company for use in your business. This is the cheapest way to access money for your company. Why go to the bank with all the red tape and hoops they make you jump through when you can simply draw on your old pension schemes instead. The money can then be used for property investment or property development, cash-flow or stock acquisition specific to your business.
This is a great way of accessing tax-free money in your pension for use in your business. There are special rules imposed by HMRC if you are planning to transfer 50% of your pension which we are familiar with. We will help to ensure you meet the obligations you must undertake.
Are there any other benefits of a Property SSAS over a Property SIPP?
It is possible to pool your pensions with other Directors or family members to give you a bigger fund to make investments. This often happens when a large property acquisition is made and greater funds are required. We tend to find this happens when a board of Directors combine pension funds to acquire a freehold property to run their business from.
Another frequent scenario we experience is where a husband and wife, who are involved in a small business, combine their pensions to give a larger pot. However the sums invested remain with the party that invested them, so for example if one party invested 75% of funds and the other only 25% then this is how the split of the pension remains, it doesn’t suddenly become 50/50.
Can I transfer current, frozen, or former company schemes into a Property SSAS?
Yes, many people do this. You simply contact your existing pension provider and get them to transfer the old pensions into your new Property SSAS. This is very straight forward and often accounts for how people start a new Property SSAS. Your old pension provider will send some paperwork in the post which you need to sign and return to them.
You should consider if there are any benefits you are giving up by transferring your old pension because when you move the pension these will be lost. You can ask your pension provider to give you this information in writing or over the phone.
Do I need investment experience, qualifications or high net worth status to start a Property SSAS?
No, the only requirement is that you are the director of a company in the UK. As a Company Director you will be familiar with making executive decisions which is what you will be doing with your pension. Most SSAS pensions are used for property investment which is also our area of expertise, so we can help if needed.
Are there any drawbacks to Property SSAS?
There are no drawbacks. A Property SSAS gets all the same benefits as any other UK pension scheme such as tax breaks, lifetime limits, drawdown age and 25% tax free cash at age 55 along with the new flexi-drawdown rules. A Property SSAS is the ultimate property and business pension.
Most people take little interest in their pensions but when they realise all of the benefits of a Property SSAS and how the money locked in a pension can be used in a small company, the SSAS pension suddenly becomes a very attractive tool to have as a part of your business plans.
Who can set up a Property SSAS?
A Property SSAS can only be set up by a company director, however the company can be of any size in terms of its turnover, profits and staff numbers. Under certain circumstances, it may not even need to be a trading company. The Landlord’s Pension has consultants that can help to set up the right Property SSAS for you. Please contact us by calling 01235 426666 or emailing firstname.lastname@example.org
How can I find out if I'm eligible for a Property SSAS pension?
You can take our quick 60 second eligibility test to find out, or you can get in touch on 01235 426666 or emailing email@example.com
What are the consultation fees?
The Landlord’s Pension offer a free, no obligation SSAS consultation to help you discover whether you are elegible for a SSAS pension, and to discuss how you could use the SSAS to grow your business. Simply get in touch on 01235 426666 or emailing firstname.lastname@example.org
What are the costs involved with establishing a SSAS?
The SSAS establishment process enables us to understand your current circumstances, and helps us work with you on your investment strategy for your fund, as well as establishing efficient trustees. There is an initial flat fee which is paid by your pension.
Independent SSAS Trustees also administer the pension scheme, and ensure that it complies with HMRC regulations. The cost varies dependent on your circumstances, but starts from £600 + VAT per annum. Our aim is to always place you with the most cost effective Trustees, and once we understand your circumstances and plans, we can provide you with an accurate fixed cost before you decide whether or not to continue.
Free, simple, SSAS advice
Are you interested in investing your pension in business or property? Do you have questions about how you can do this? If so click the button below to book your FREE, 15 minute, no obligation SSAS pension review.
One of our experienced SSAS Advisors will call you at a time that is convenient for you to offer Property SSAS Pension Advice and walk you through how pensions can be used to invest in property or business at any age.