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Small Self Administered Scheme (SSAS)

 
 
 
Small Self Administered Schemes are employer sponsored pension arrangements primarily designed to provide pensions and other benefits for the owners/directors of small to medium-sized companies.
 
A Small Self Administered Schemes main advantage over more traditional types of pension arrangement is that you are able to retain control over the investment selection process for your retirement savings. You may choose to make the investment decisions yourself, or appoint an investment manager or adviser.
 
A Small Self Administered Scheme may invest in a wide range of assets including commercial property or land, company shares, gilts and bonds, bank and building society deposit accounts, hedge funds and so forth.
 
Another major advantage of a Small Self Administered Scheme is the ability to make loans to the sponsoring employer. Certain conditions for the loan are set by HMRC.
 
*        The loan should not exceed 50% of the net market value of the pension scheme’s assets
*        The loan should be secured against assets of an equal value by way of a first charge
*        The loan’s terms should be no longer than 5 years
*        Interest of at least 1% above bank base rate should be charged on the loan
 
Using this loan back facility could provide the following advantages:
 
*        Ready access to funds as part of a business plan
*        No requirement to renegotiate further lending with the Company’s existing bankers
*        Interest and capital payable on the loan is payable to the directors own pension fund
 
If you wish to discuss the above further or require information on any of our services, then please contact us. 
  
 
Any reference to legislation and tax is based on FPP’s understanding of UK law and HMRC practice. These may be subject to change in the future. Tax rates and reliefs will also change and their value to you will depend on your individual circumstances. No guarantees are given regarding the effectiveness of any of the above strategies.