Autumn Budget October 2024: Only SSAS Protects You
In light of the changes that have come from the budget, the question so many people are asking is, how am I going to protect myself?
There have been various changes to tax that have been announced and the key solution is a SSAS.
What is a SSAS?
A SSAS is a Small Self-administered Scheme. It is a pension scheme for your Limited Company and it has unique features that protect you against some of the major taxes. A SSAS can hold up to 11 members.
Typically, we see a person and their spouse or partner included as members and we also see children, as long as they’re over the age of 18. This is a key feature of the SSAS and it enables generational wealth to be built and passed down in a similar way to a family wealth trust.
SSAS Tax Relief
In terms of taxes, there are a few key taxes that SSAS protects you from:
Corporation Tax
Simply making a payment into your SSAS from your Limited Company of £60,000 provides a corporation tax saving of £15,000. That £15,000 is saved on that one transaction in the present tax year. That’s a significant saving.
Furthermore, if you have a spouse or a partner who does exactly the same thing, assuming they’re also a director of the Company, the contribution potential is doubled. So, it goes from a £15,000 saving to a £30,000 saving.
The corporation tax savings alone from those two contributions can create sufficient profits in the Company to control the corporation tax bill.
Inheritance Tax
SSAS is an inheritance tax free zone. However, you’re not permitted to make transfers into a SSAS specifically for this purpose. There are rules against this. But one of the natural byproducts of the general use of SSAS as a business aid is that it’s technically a pension but it is also a help to your business and your family, should you wish to add them as members.
One of the benefits is that inheritance tax is not present. This means all of the assets within SSAS are out of your estate. This is a huge benefit and also makes it far easier and faster to pass assets, upon your death, from one member to another through what we call a Letter of Wishes.
Capital Gains Tax
SSAS is a capital gains tax free zone. This means if you purchase commercial property in your SSAS, you can build a property portfolio of multiple properties within SSAS. Any increase in that commercial property’s value is free from capital gains tax - a significant benefit.
A SSAS Pension Scheme Gives You Control
Thinking and planning ahead is another significant advantage. The fact that SSAS can benefit spouses, partners and children is especially appealing with the new budget changes. And you can also enter into a SSAS with other people, from other directors in your Company to colleagues or friends you are particularly close to.
A SSAS also offers a wide berth of investment opportunities that range from low notes and bonds to gold, crypto currency, and many others.
Is SSAS Regulated?
SSAS is overseen by HMRC, regulated by The Pensions Regulator and it has been going for many, many years - since 1973, making it the oldest pension scheme in the UK.
How Much Does SSAS Cost?
A SSAS costs less than the average accountant and when you consider the huge tax savings that can be made, it’s peanuts.
Watch: How much does a SSAS cost?
SSAS is the Solution to the Autumn Budget Changes
The key solution to the Autumn Budget announcements is to open a SSAS. Book a call with us to discuss opening a SSAS and protecting your wealth for you and your family’s future.
