For business owners and their families, a SSAS pension is one of the most powerful — and least understood — planning tools available in the UK.

Unlike a standard personal pension or even a SIPP, a SSAS gives trustees direct control over how pension assets are invested, including the ability to lend money back to the sponsoring employer.

The Basics

A Small Self-Administered Scheme (SSAS) is an occupational pension scheme established by a company for a small group of employees — typically directors and senior family members. Unlike a retail pension, the SSAS is not administered by an insurance company or fund manager. The trustees run it, subject to the scheme rules and HMRC’s registered pension scheme legislation.

Most SSAS schemes have between 2 and 11 members. Each member can contribute up to the annual allowance, and the company can also make employer contributions.

Key Features

Investment Flexibility. A SSAS can hold commercial property, shares in unquoted companies within limits, loans to the sponsoring employer, UK gilts, and a range of alternative assets.

Loanback. A SSAS can lend up to 50% of its net asset value to the sponsoring employer on commercial terms, repayable over a maximum of five years and secured appropriately.

Commercial Property Purchase. A SSAS can purchase commercial property and lease it back to the company at a market rent. Rental income accumulates within the pension free of income tax, and the property grows within the wrapper free of capital gains tax.

Death Benefits. Pension funds sit outside the estate for inheritance tax purposes. On death before crystallisation, the fund can be passed to nominated beneficiaries, potentially free of both IHT and income tax if the member dies before 75.

SSAS vs SIPP

A SSAS is trustee-led, can allow loanback, can hold certain unquoted shares, and is often more flexible for business-owning families. A SIPP is provider-administered and does not permit loanback to the employer.

Getting It Right

A SSAS is a regulated arrangement. Trustees have legal duties, and HMRC will penalise unauthorised payments harshly. A professional pensioneer trustee is not always legally required but is strongly recommended, particularly during establishment.

For business owners and their families, a SSAS pension is one of the most powerful — and least understood — planning tools available in the UK.

Unlike a standard personal pension or even a SIPP, a SSAS gives trustees direct control over how pension assets are invested, including the ability to lend money back to the sponsoring employer.

The Basics

A Small Self-Administered Scheme (SSAS) is an occupational pension scheme established by a company for a small group of employees — typically directors and senior family members. Unlike a retail pension, the SSAS is not administered by an insurance company or fund manager. The trustees run it, subject to the scheme rules and HMRC’s registered pension scheme legislation.

Most SSAS schemes have between 2 and 11 members. Each member can contribute up to the annual allowance, and the company can also make employer contributions.

Key Features

Investment Flexibility. A SSAS can hold commercial property, shares in unquoted companies within limits, loans to the sponsoring employer, UK gilts, and a range of alternative assets.

Loanback. A SSAS can lend up to 50% of its net asset value to the sponsoring employer on commercial terms, repayable over a maximum of five years and secured appropriately.

Commercial Property Purchase. A SSAS can purchase commercial property and lease it back to the company at a market rent. Rental income accumulates within the pension free of income tax, and the property grows within the wrapper free of capital gains tax.

Death Benefits. Pension funds sit outside the estate for inheritance tax purposes. On death before crystallisation, the fund can be passed to nominated beneficiaries, potentially free of both IHT and income tax if the member dies before 75.

SSAS vs SIPP

A SSAS is trustee-led, can allow loanback, can hold certain unquoted shares, and is often more flexible for business-owning families. A SIPP is provider-administered and does not permit loanback to the employer.

Getting It Right

A SSAS is a regulated arrangement. Trustees have legal duties, and HMRC will penalise unauthorised payments harshly. A professional pensioneer trustee is not always legally required but is strongly recommended, particularly during establishment.