Small Self-Administered Scheme

What is a SSAS and how do they work?  

1st March 2012

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.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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