Setting up and
running a SSAS
For the family
operated company or entrepreneurial director
the SSAS is an excellent pension vehicle for
long term planning and family protection;
for short term company planning with respect
to the flexible investment options; and also
provides significant pre-retirement exit strategy
tax planning and savings.
They were first introduced
into the UK with the Finance Act 1973 which
made it possible for controlling directors
to join occupational pension schemes, consequently
the Small Self Administered
Scheme was created for this purpose.
Who can have a SSAS?
Due to the potentially higher
investment risks associated with a SSAS,
membership is usually restricted to controlling
directors. The number of members is limited
to 11 and one or more of the members must
be connected. This means it is often the
case that private family operated companies
opt for a SSAS and there are typically only
2 or 3 members.
Establishing a SSAS
A SSAS is an exempt approved
occupational pension scheme that must be
established under an irrevocable trust with
associated trust deed and rules.
Usually the trustees are all
the members plus the professional trustee.
A bank account in the name
of the trustees needs to be established
so that the assets of the company are kept
separate from those of the SSAS members.
HMRC require that the professional trustee
is a co-signatory of the bank account.
When the SSAS is submitted
for approval it must be accompanied by an
actuarial valuation report (AVR). This report
will detail a number of factors including
the members' income, ages, retirement age,
the contribution rate and how the assets
are invested.
 Get
in touch if you'd like to know
more or discuss all tax planning options
open to directors
Or
click here to learn about using a SSAS
to purchase commercial property
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