SSAS stands for Small Self-Administered Scheme. All of the Scheme members are usually shareholder-directors or key staff. They are formed by a trust deed and rules, and allow employers and members more control over the scheme’s assets.
For a small business a SSAS can represent the ideal pension’s vehicle, particularly as the scheme can make loans or borrow to purchase assets such as commercial property- subject to certain conditions set by HMRC summarised below:
- The loan should not exceed 50% of the net market value of the 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
You should seek professional advice when considering pension planning. Your local TaxAssist Accountant would be happy to recommend a local financial advisor.