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What is a SSAS?
A SSAS (Small Self-Administered Scheme) is a scheme designed for Limited Company Directors with a SSAS pension offering significant benefits over other pension schemes. A SSAS provides its Members with full control over SSAS assets as well as the added benefit of being in an environment free from Capital Gains Tax (CGT), Corporation Tax, and creditors, enabling you to significantly:
- Grow family wealth
- Support your Company
- Protect your legacy
- Reduce your tax
- Diversify your investments
- Secure your retirement
Small Self-Administered Scheme: SSAS Explained
SSAS pensions are usually set up by Directors of small to medium sized businesses, with a view to provide a pension fund for themselves (and oftentimes their family) at retirement.
SSAS brings with it the following benefits:
- SSAS contributions reduce your Corporation Tax bill.
- Assets are protected against Inheritance Tax (IHT) until 2027.
- Assets are protected against Capital Gains Tax (CGT).
- One Crown Investments 12-18% p.a. opportunities are permitted.
- The ability to utilise Corporation Tax savings by purchasing commercial property in a tax free environment.
- Enables scheme members to purchase commercial property from their Company with SSAS funds, thereby moving the property into a tax free environment.
- Tax free rental yields.
- Potentially eliminates the need for future bank borrowing, with funds able to be loaned from the SSAS to your Limited Company.
- Effectively enables you to move your current investments into its tax free zone.
The key thing is that you, as the Director, have control. You are the Administrator. You make the investment decisions. You grow the fund. You determine who its members shall be. This means a spouse/partner and children over the age of 18, who don’t work for your organisation, are able to benefit and become members, creating for your family an intergenerational wealth fund.
We at One Crown Pensions help with HMRC’s application process and the paperwork and once it receives HMRC approval, you’re good to get investing! Book a call with us to find out more.
Why Choose a SSAS Pension?
SSAS provides significant flexibility and control over your funds. All assigned trustees of the pension scheme can make key decisions about the SSAS and where their funds are invested. This is one of the major benefits of SSAS; it puts you in charge of your financial future and offers full transparency around your retirement savings.
Is SSAS a Regulated Pension Scheme?
SSAS pension schemes are regulated by the The Pensions Regulator and officially registered with HMRC. As a result there are various submissions that are required to be made on a yearly basis, something we at One Crown Pensions are able to help you with. SSAS therefore provides scheme members with the same tax advantages as other pension schemes. Visit the SSAS Video Hub to learn more.
Advantages of a SSAS
While SSAS pensions work in a similar way to other defined contribution pension schemes, there are some differences that set SSAS apart:
Control
SSAS members have a high degree of control over scheme investments. This allows for bespoke investment strategies with the ability to yield better returns than traditional pension schemes. Feel free to speak to one of our friendly consultants at One Crown Investments for more information.
Investments
Investments within SSAS grow tax-free. From commercial property investments to Fixed Income Bonds paying up to 18% for a 12 month term. Some can even be compounded. Please speak to our sister Company One Crown Investments for more information.
Loan Back to the Company
Under certain circumstances and with proper adherence to regulations, SSAS pensions are able to make loans to the sponsoring Company. This can provide your business with a vital source of capital without need for bank borrowing.
Commercial Property Purchase
SSAS schemes are eligible to invest in Commercial Property, offering the opportunity to grow wealth tax free, through property ownership and benefiting from rental income. For maximum tax efficiency, SSAS schemes are able to buy commercial property from your Limited Company, moving the property from a taxed environment to a tax free environment.
Tax Efficiency
Corporation Tax Efficiency
Contributions made by your Company into the SSAS are tax-deductible, reducing your Company's overall Corporation Tax liability on those amounts up to 25%. Furthermore, because your SSAS is an occupational scheme, fees and costs associated with the running of the SSAS can be paid by the Sponsoring Employer.
Inheritance Tax
Assets within SSAS are not liable for Inheritance Tax until 2027, giving Members the ability to seamlessly pass assets through generations.
Capital Gains Tax
Commercial property within SSAS is not subject to Capital Gains Tax.
Spouse/Partners
Adding a spouse or partner as a member provides additional tax efficiencies, with both sets of allowances able to be maximised and benefitted from.
Future Planning
Wealth Preservation
Contributions made by your Company into the SSAS are tax-deductible, reducing your Company's overall Corporation Tax liability on those amounts up to 25%. Furthermore, because your SSAS is an occupational scheme, fees and costs associated with the running of the SSAS can be paid by the Sponsoring Employer.
Flexible Retirement Planning
SSAS pensions offer flexibility in retirement planning. Members can choose when and how to access their pension benefits, allowing for a customised retirement strategy.
Business Exit Strategies
For business owners looking to exit their businesses, a SSAS can be used as part of an exit strategy.
We Regulate SSAS Pension Schemes
Although SSAS pension schemes are self-regulated, this does not exempt members from legal obligations. The rules governing SSAS pensions are complex and failure to comply can result in penalties that severely impact both your business and finances.
A SSAS is required to make yearly submissions to both HMRC and the Pensions Regulator. Therefore, it is essential to choose a practitioner who can provide guidance and ensure the scheme doesn’t fall foul of regulations and requirements.
Corporation Tax Efficiency
Contributions made by your Company into the SSAS are tax-deductible, reducing your Company's overall Corporation Tax liability on those amounts up to 25%. Furthermore, because your SSAS is an occupational scheme, fees and costs associated with the running of the SSAS can be paid by the Sponsoring Employer.
Inheritance Tax
Assets within SSAS are not liable for Inheritance Tax until 2027, giving Members the ability to seamlessly pass assets through generations.
Capital Gains Tax
Commercial property within SSAS is not subject to Capital Gains Tax.
Spouse/Partners
Adding a spouse or partner as a member provides additional tax efficiencies, with both sets of allowances able to be maximised and benefitted from.
