What is a SSAS pension?

A comprehensive guide to Pensions and Investments for Investing in Property

Are you looking for options to invest for the future? A SSAS (Small Self Administered Scheme) is a type of Occupational Pension Scheme with several advantages.

This type of scheme is an attractive option for investors and business owners because it can be tax-exempt. This includes Capital Gains Tax, so investments in property can generate substantial returns. Contributions to the SSAS also receive tax relief (provided some conditions are met). On this page, we will delve into what SSAS is and how to determine if it is the right option for you.

What is a Small Self Administered Scheme?

A SSAS, properly managed, is a tax-efficient retirement plan. In the past, SSAS were set up by directors of limited companies for the benefit of specific employees. Since pension simplification, partnerships and families have also been allowed to start a SSAS. A small number of family members may also join an established SSAS.

Members of a SSAS have more control over investment decisions than is usual for pension schemes. It is possible to invest wisely and make a significant return on your investment.

Who Can Start a SSAS?

A SSAS is trust-based. This means that it is run by a trustee for the benefit of the beneficiaries. In the past, it was necessary to employ a professional trustee. A professional trustee, known as a Pensioner Trustee, makes sure that the SSAS follows regulations laid out by HMRC.

Nowadays, it is possible for a member of the SSAS to act as the trustee. This is known as a Member Trustee.

Much like a traditional pension, a  SSAS pension can be invested in various areas including shares, commodities, corporate bonds and gilts, providing investors with a rather attractive array of sources for their pension returns.

What makes a SSAS an attractive option?

One of the most attractive USPs for many investors is the ability to take out a loan from a SSAS which can be injected into their limited company for justifiable purposes. However, there are strict rules on how these loans can be administered. These pension loan rules are set and stipulated by the HMRC.

  • The maximum loan term is five years

  • Interest charged on the loan must be at least 1% above the average base lending rate

  • The loan must be secured as a first charge against an asset (or assets) of at least equal value to the loan, plus the loan interest

  • The loan cannot be more than 50% of the net value of the scheme assets

  • Repayment of the loan must be made in equal annual instalments.

If you’d like to invest in property, there are advantages to doing this via a SSAS. As mentioned earlier, a properly managed SSAS is tax exempt, so you do not have to pay capital gains tax.

Coupled with the ability and flexibility to invest in property crowdfunding and loan note property bonds, a SSAS makes for an even more appealing option. The terms of these types of property investments are between one and five years, with a return on investments per annum.

What our customers say...

5/5
  • 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. Brilliant

    Jessett Simon Daisy Avatar
    Jessett Simon Daisy
    15/01/21
  • I’ve been working with The Landlord’s Pension this year to sort out historically messy pension arrangements and take control by creating a Family SSAS. Chris Brown has been an absolute pleasure to deal with, friendly professional advice all the way through. Thanks!

    Ray Georgeson Avatar
    Ray Georgeson
    03/12/20
  • 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 more

    Lissa Lowrie Avatar
    Lissa Lowrie
    10/11/20
  • Highly recommend The Landlords Pension for setting up a SSAS pension. Many Thanks to Liam, Michelle, Teresa and the team for their support throughout and making it an easy process. Looking forward to our working relationship with future investments.

    Matthew Martin Avatar
    Matthew Martin
    16/07/20
  • Many thanks to Dan,Michelle and Teresa in helping me setup the SASS very supportive throughout the whole process
    Always happy to answers any questions and I look forward to working with them
    I couldn’t have done all this without The Landlords Pension
    Thanks
    Angela Woods

    Angela Woods Avatar
    Angela Woods
    23/06/20

The Landlord’s Pension is an expert in this niche sector of financial planning and have been helping clients to invest in property since 2004