What flexibility does a SSAS give?

SSAS pensions – also known as small self-administered pension schemes – offer a lot of flexibility which is one of the key reasons they are popular with Directors due to the extensive flexibility and control over the investment policy and assets.

1. Mrs Santi and her family own a large restaurant chain in Edinburgh and want to extend and modernise one of the properties.
2. The company (the sponsoring employer) sets up a SSAS for the Scheme Members who are all senior personnel within the business.
3. The Trustees of the SSAS are responsible for the day to day running of the SSAS and are responsible for making any investment decisions.
4. With a SSAS, a loanback is permitted and the employer can take out a loan for the value of up to 50% from the scheme’s net assets.
5. They do so in order to release funds for the property extension and the loan company then pays the pension scheme.
6. Tax efficient – any growth on the business value is generally free of Capital Gains Tax.

Yorsipp are authorised and regulated by the Financial Conduct Authority under reference 464198 but are not authorised or regulated to provide financial advice. The above guide is intended for use by financial advisers only and is based on a simplified case scenario and should not be construed as being indicative of a specific case or clients’ circumstances. Yorsipp will only accept new SIPP applications from a suitably qualified financial adviser. Consideration will also need to be given for legal fees/disbursements, Yorsipp’s fees, any adviser fees and any other costs associated with the property.