The coalition Government announced in their first emergency budget on 22nd June 2010 that they intended to review the existing pension scheme rules
What is a SSAS?
A Small Self Administered Scheme is effectively a pension trust which acts as a tax shelter and enables a greater degree of investment flexibility and individual control when compared to more traditional types of pension arrangements e.g. SIPPs.
A SSAS is sometimes referred to as the 'grown-up' version of a SIPP.
Who can have one?
These schemes are established by employers and the membership would normally include Directors/Partners of owner managed businesses and in some cases other family members or key employees. In fact, a SSAS is now the pension vehicle of choice for entrepreneurs.
Why are they different to ‘ordinary’ pension schemes?
A much wider range of tax efficient investment opportunities are available within these schemes, including:
- Commercial property and land
- Agricultural land
- The scheme can borrow to fund investment opportunities
- Loans back to the sponsoring employer (a facility not available under any other type of pension arrangement)
- Loans to unconnected third parties
- Listed and unlisted shares (including those of the sponsoring employer)
- Investment Trusts
- Foreign Currency
With our independent advice, the pension scheme can become an essential tool for the owner managed business and, indeed, can be controlled in much the same entrepreneurial way.
Many opportunities exist, including joint ventures with the business and/or with the individual members - therefore enabling business owners to consider the scheme assets when making decisions which affect both them and the business.
The pension fund cheque book remains firmly in the client's pocket!