Small Self-Administered Schemes (SSAS), Self-Invest Personal Pension Schemes (SIPPS) and Financial Services
What is SSAS - Small Self-Administered Scheme?
FOR DIRECTORS OF LIMITED COMPANIES

Since the mid-seventies, Company Directors have been able to establish Pension Schemes, which gives them control over their investment. Known as Small Self-Administered Schemes (SSAS), these Schemes continue to be the most flexible and popular pension arrangements for shareholding Directors.

SSAS are established with Trust Deeds and Rules - the members are selected by the Directors who are usually also the Trustees. We provide the Indepdent Trustee to help you set up and run the scheme.

The Trust Document and the Rules of the Scheme must be in accordance with HMRC requirements which register each Scheme and grant Tax Exempt approved status which gives the Trustees the tax advantages.

The Company makes contributions on behalf of the Members. Contributions are treated as a trading expense, thereby attracting Corporation Tax Relief. Unlike most pension arrangements, there is no contractual requirement to make regular contributions. This means the Company may make contributions when profits and cash flow allow. The contribution should not exceed the Maximum Contribution Annual Allowance in order obtain Tax Relief.

Perhaps the greatest benefit to Directors/Trustees is the ability to control investments. In addition to quoted equities, gilts, collective investments and cash deposits, Authorised investments include Land and Commercial Property (which may be leased back to the sponsoring company).

A Secured Loan at a commercial rate of interest back to the Sponsoring Company continues be an authorised investment. The Scheme may also borrow up to 50% of its net scheme assets.

There is no tax liability on the investments within the SSAS. Property is exempt from Capital Gains Tax on ultimate sale. However tax credits from dividend income cannot be reclaimed.

From age 55 the Member may commence taking a pension relevant to the value of the Scheme Assets. As with all pension, the Member may take a Maximum Tax Free Cash Lump Sum of 25% of the Fund Value.

You may find this hyperlink of assistance: www.hmrc.gov.uk

  • If you require further information, please click here for a detailed download.
  • If you require application forms, please click here

    Alternatively if you require further information or advice on how a Scheme may be able to help your particular situation, please complete and return the e-mail form at the end of this site activating the SSAS information button.

    For an example of the tax advantages of purchasing Commercial Property through a SSAS scheme visit the property section of this site.

    Authorised and Regulated by the Financial Services Authority