Small Self-Administered Scheme

SSAS stands for Small Self-Administered Scheme. All of the Scheme members are usually shareholder-directors or key staff. They are formed by a trust deed and rules, and allow employers and members more control over the scheme’s assets.

For a small business a SSAS can represent the ideal pension’s vehicle, particularly as the scheme can make loans or borrow to purchase assets such as commercial property- subject to certain conditions set by HMRC summarised below:

• The loan should not exceed 50% of the net market value of the scheme's assets
• The loan should be secured against assets of an equal value by way of a first charge
• The loan's terms should be no longer than 5 years
• Interest of at least 1% above bank base rate should be charged on the loan

You should seek professional advice when considering pension planning. Your local TaxAssist Accountant would be happy to recommend a local financial advisor.

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.