A Small Self-Administered Scheme (SSAS) pension is a type of UK pension in the form of a tax-efficient scheme, exclusively for business owners. By switching to a SSAS you can take control of your pension funds and invest them at your own discretion, in your business and property.
What is a SSAS Pension?
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A SSAS (Small Self Administered Scheme) is a type of Occupational Pension Scheme with several advantages. We are often asked, what are the benefits of a SSAS pension and the answer is extensive. As well as the same benefits traditional pension offer, a SSAS has much more control and flexibility to allow you to achieve your aims and goals, including increased investment choice and power, tax efficiency, business and pension alignment and much more.
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.
Why start a Small Self-Administered Scheme pension (SSAS)?
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.
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.
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What our clients say
Recently been working with Tom at the Landlords Pension through a recommendation from a close friend. Tom is very knowledgeable and explained their services very clearly. Really helpful and friendly guy who immediately put me at ease. Always at the end of the phone or email ready to answer any questions I have.
Janine Rose
November 2020
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
August 2020
Wouldn’t hesitate to recommend there services to open a SASS, massive thanks to Dan, Michelle and Teresa who made the setup seamless, very supportive throughout the whole process.
Look forward to many years of successful investments with The Landlords Pension
Angela Woods
July 2020
Highly recommend The Landlord’s Pension for opening a SSAS. They are highly professional yet friendly and personable. They are really helpful and keep you informed every step of the way. It’s refreshing to pay for a service by a company who actually do what they say they are going to, with zero aggravation and problems! Thank you guys 🙂
Vicki Prosser
February 2020
I recently opened my SSAS through The Landlord’s Pension and they have been professional, approachable and efficient throughout. Simon, Teresa and Michelle have all been great in answering my questions and queries and doing their best to ensure the process of transferring over my existing pension has been a smooth and seamless one. I would have no hesitation in recommending them.
Steve Brazil
January 2019
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
03/12/2020
We had a number of workplace and final salary pensions, dotted all over the place and decided to pull them all into one SSAS. Laura and the team were excellent in explaining what to expect and keeping us advised every step of the way, in fact as part of the fact-find, we came across pensions we didn’t realise we had! I manage my own SSAS, but I know that Laura is at the end of the phone if I need her and she will not hesitate to help. I couldn’t recommend The Landlord’s Pension enough, they were absolutely brilliant!
