What is the Difference Between SIPP and SSAS?
SIPP is a self-invested personal pension scheme, regulated by the FCA. It has a wide choice of investments, mostly investment trusts and unit trusts. Some SIPP providers do offer access to commercial property purchases, but less often. SIPP’s also cannot loan back to the sponsoring employer. SIPP is a personal contract, set-up by the individual.
SSAS, on the other hand, is set-up by your Company. If you have a trading Limited Company then your Company would set-up the SSAS which becomes a pension scheme of the Company. This is one of the key differences.
SSAS has a much wider range of investment choices. Please check with your SSAS provider what they are prepared to allow because the rules and options differ. One Crown Pensions can accept a wide range of investments. Commercial property purchases are very popular with many of the Directors that we deal with.
In addition, one of the key differences between SIPP and SSAS is that you can have more than one member in your SSAS. You can have up to 11 members in SSAS. In effect it is creating a pooled fund which does increase your buying power inside SSAS.
Please speak to the team at One Crown Investments who will be able to help and guide you through the options that are available.
