SSAS Pension: Can a SSAS Purchase Shares in My Limited Company?

Purchasing shares in your Limited Company is possible with a SSAS but it is something you have to be very careful about.

Purchasing Shares with a SSAS: What’s the Maximum?

The maximum amount of shares that a SSAS can purchase in an existing Limited Company is restricted to 5% of the value of the SSAS. As a result, you’ll have to wait some time before you can introduce significant capital to your business. For that reason, most people don’t use a SSAS to purchase shares in their Limited Company.

What benefits can a SSAS offer?

An Example of Purchasing Shares with a SSAS

If you have a SSAS that is worth £100,000, the maximum amount you can invest in your own Limited Company would be £5,000. Ideally, the SSAS should not own more than 49% of the Company’s shares (at least in the beginning) because you don’t want the SSAS to have a controlling interest in the Company.

However, if your SSAS has got significant value (significant value being well over £1,000,000) then clearly 5% of the value of the SSAS could become a significant amount, allowing you to introduce potentially new capital to the business.

Talk to Us

Typically, having the SSAS purchase shared in your Company is a fairly unusual way to utilise the SSAS and is not really suited to most people trying to raise capital for their business.

However, if you are looking to purchase shares in your Company using your SSAS, book a call to speak with our SSAS practitioner team. We would be happy to discuss your goals and answer any questions you have.