Small Self Administered Schemes
SSASs are special types of occupational pension schemes for up to 11 members, usually the controlling directors of small companies.
One or more of the members must be connected, which means that SSASs are often family-operated companies with just two or three members.
Benefits of SSASs
The main attraction of an SSAS compared with an insured scheme is the range of investment opportunities – for example, commercial property available to the trustees.
SSASs are administered by a trustee so there is no requirement to invest in a conventional way via an insurance company, as investments are held in the name of – and managed by – the trustees.
Other benefits include the following:
- The power to make loans to the directors’ own company and to borrow.
- The SSAS is protected from creditors.
- Company contributions are regarded as an allowable expense for corporation tax purposes.
- Directors’ contributions qualify for income tax relief, normally at their highest rate.
Inheritance Tax Planning
For family businesses, a well-managed SSAS can help with Inheritance Tax planning. The scheme will potentially enable a retiring older generation to leave the business to the younger family members without imposing a cash flow problem – or being forced to sell to an outsider to raise money for retirement.
While they offer many attractive benefits, SSASs are complex investments that are subject to strict rules. Our team at TR Wealth have many years’ experience in the pension market allowing us to assist you in making the correct decision.