What is a SSAS and why have a SSAS?

Published by Andrew Roberts on

What is a SSAS?

A Small Self Administered Scheme (SSAS) is a pension trust set up by a limited company or a partnership. SSASs are primarily set up by private and family run limited companies for the benefit of the owner directors and senior employees. The members are also trustees and so have control and flexibility over the Scheme assets and investment choices in a tax efficient environment.

A SSAS is registered with HMRC and so benefits from the usual generous tax reliefs afforded to pension schemes such as:

  1. Company and personal contributions are deductible against tax
  2. No income tax on allowable investments
  3. No capital gains tax due on disposal of investments
  4. A tax free lump sum from age 55 on retirement
  5. A tax free lump sum on death before retirement.

There are rules and regulations laid down by HMRC relating to each of the above.  We have the experience and expertise to guide you through these.

Why a SSAS?

In addition to the usual tax exemptions available for pension arrangements, SSASs can offer other benefits for entrepreneurial business owners including:

  1. Purchasing commercial property to be leased back to your business (or third party)
  2. Loans to the sponsoring employer
  3. Investing in your company by buying an equity stake
  4. Transferring assets from you, or your family, personally (known as ‘in-specie’ transfers).

There are restrictions on transacting with you or your company - our consultants can advise you on these.

What services does Barnett Waddingham offer?

We will:

  • Provide the governing trust documentation to establish the SSAS
  • Register the SSAS with HMRC and other authorities
  • Act as a professional trustee if required (we do for over 95% of our clients)
  • Manage the online HMRC reporting portal
  • Maintain scheme records for the trustees
  • Offer a bank account with online viewing access
  • Provide technical support and assistance regarding the relevant rules
  • Keep trustees abreast of rule changes.