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SSAS Investments

Investment in the Company's Business

Buying a commercial property through a TFW pensions SSAS

It is possible for companies to reduce its tax liabilities and build a substantial retirement fund by using a TFW pensions Small Self-administered Scheme to buy the premises of the company from where its trading.

The TFW pensions SSAS fund is created and the commercial property is bought as an investment of the Scheme, using the initial contributions from the Directors.

• This would reduce the company's corporation tax bill
• Maximise the director's contribution to take advantage of annual allowance
• Rent paid by the company to the pension scheme attracts corporation tax relief
• No income tax to be paid by the pension scheme on rent received
• No capital gains tax to pay when the property is sold by the pension scheme

As well as building up substantial retirement funds, the directors can release some of the capital back into the company by making a loan-back from the SSAS fund.

Loans to the company

Locking up funds, which may be subsequently required for business, was a reason stated by directors of small companies for not establishing a pension scheme. This argument can be partially offset by using a loan back from the SSAS funds set up through TFW pensions SSAS Scheme.

Loans can be used to buy, fixed assets and are restricted to 50% of the of the net SSAS fund.

Borrowing to Invest

The trustees may also borrow money from lenders to enable them to purchase particular assets.

Other Investments

In addition to the possible investments described above, the SSAS is allowed to invest in what could be thought of as more conventional pension scheme investments. These include quoted equities (both UK and overseas), gilts, unit trusts, insurance policies and deposit accounts