A Small Self-Administered Scheme (SSAS) is a type of occupational pension scheme established for the directors and senior employees of a business. It is set up under trust by the sponsoring employer for the benefit of the scheme members.
Each member will have a ‘share,’ or interest, in the SSAS fund. This will depend on the contributions and transfers paid in by, or on behalf of, a member, their share of any investment growth (or loss) and any relevant payments made from the SSAS for them. The amount of benefits that a member can receive will depend on the value of their share of the SSAS fund at the time they decide to take the benefits.
A SSAS can also be used to make a loan to the sponsoring employer or to acquire commercial property. Not only does this inject valuable cash flow into the business, but it also provides a regular income which is free from income tax. There are a number of other advantages to holding property within a SSAS, including tax relief on any contributions used to purchase the property.
A SSAS will not be suitable for all investors. You should speak to one of our independent financial advisers if you have any questions, as they will be able to search the whole of the market to find the best possible option for you and your business.