GPC are one of a limited number of companies that continue to offer a complete SSAS administration and trustee service. We do so because we feel that SSAS’s offer real benefits to company directors and sponsoring businesses. SSAS’s offer most of the advantages of a SIPP along with the additional ability to loan money to the sponsoring company. A SSAS may also be very cost effective when establishing schemes for a number of directors at the same time.
A SSAS opens up a wider variety of investment than the usual pension scheme allowing greater control of the investment strategy. Existing pension arrangements can be transferred into the plan and another major feature of a SSAS is that it can purchase property. It is a fantastic way to purchase property due to the tax breaks that these schemes attract;
- The company can benefit from the injection of cash.
- The property will be protected from company creditors.
- The property will not be subject to capital gains tax (when in the SSAS).
- The pension scheme will benefit from receiving rental income.
- The property can be passed down through generations of family.
A SSAS, unlike a SIPP, has the ability to loan money to the member’s company. It may also purchase the company premises with or without the assistance of borrowings and then lease back the premises to the members own company.
There are various tax benefits available. Contributions paid by the company on behalf of a member may be allowable as an expense of the company against corporation tax, investments predominantly accumulate free of income and capital gains tax and a proportion of the members share of the fund can be paid out as a tax free lump sum on retirement.
At retirement the choices are the same as for the SIPP.