Can a SSAS Make Loans to Third Parties and Non SSAS Members?
Yes it can.
In making a loan into a third party, ideally that third party will be a Limited Company, it is essential that as the SSAS Member you have no connection whatsoever to that third party. You cannot be a shareholder or Director of the entity that you’re going to make the loan to. You must be completely unconnected to the third party entity that you want to lend money to.
Do You Need Security?
As a prudent scheme administrator, we would always suggest you take security against the loan. The security needs to be an asset that the pension scheme could seize if needed, should the loan not be repaid. However, security is not required by law.
One Crown Pensions is Here to Help
At One Crown Pensions, we have all the necessary forms and paperwork to enable you to offer a loan and can guide you through the whole process from how the connected party rules apply to looking at the security aspect for you.
In addition there are a number of SSAS eligible structures in the form of third party loans to investment companies. The team at One Crown Investments can inform you further and share the appropriate investments.
