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Small Self Administered Scheme (SSAS)

What is SSAS?

The small Self Administered Scheme (SSAS) is a registered occupational pension scheme established under trust buy an employer, for the benefit of the scheme members or with a trustee of employer in relation to the scheme.

Who can have SSAS?

Membership to SSAS is typically for use by business owners, usually the controlling directors and members of a partnership. Often private family operated companies opt for a SSAS and there are usually only 2 or 3 members.

Contributions

SSAS can accept money from your business or personal contributions. Contributions attract tax relief according to your circumstances and TFW pensions can guide on your payments.

Investments

Your SSAS can invest your money in a variety of investments. The three main exceptions are residential property, unquoted companies and personals chattels. TFW pensions can help you understand the implications with your investments.

Investments in the companies 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 from SSAS

A loan can be made from the SSAS, provided it is not to you or anyone connected to you.Typically the loan can be to your company.we will help you to structure this tax efficiently

Loan 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

SSAS can borrow money on commercial terms up to 50% of its net assets to assist with purchases. Example would be, your SSAS scheme can take a mortgage to buy a commercial property if there is in sufficient money in the SSAS. We can guide you to make the purchase tax efficient.

Access to your money

You can take 25% of the fund as tax free lump sum, from age 50 (this is due to increase to age 55), you can take the rest as an income from the scheme. We will work this out for you making sure you do not increase your lifetime allowance.

Scheme bank account

We will open a bank account with Abbey National with whom we have a special arrangement so that it is faster and easier. We will be co-signatory to the account.