Small Self-Administered Scheme (SSAS) Explained

For the directors and employees of private companies and family owned businesses, the Small Self Administered Scheme, or SSAS pension scheme, can provide significant benefits over more traditional pension options. A SSAS provides greater control and flexibility over the assets held and investment choices available. 

Used to its maximum a SSAS can be used to invest in a wider range of investment opportunities that have the potential to deliver higher returns than more mainstream investment products.  With the added benefits of holding commercial property and the ability to make loans back to the sponsoring company, the SSAS is becoming a more popular choice for entrepreneurial private companies.


What are the SSAS pension rules?

A small self-administered scheme (SSAS) is a popular type of workplace pension that is independently managed by the company that sets it up. There are some rules - and features - associated with a SSAS that you should be aware of. 

What is a SSAS pension?

A Small Self Administered Scheme - known as a SSAS - is a type of employer-sponsored defined contribution workplace pension scheme that can be independently managed by a company for 11 members or less.

A SSAS is primarily aimed at private and family owned businesses, and they are typically set up by the directors of a business in order to gain more control over how their pension contributions are invested. 

Who are SSAS pensions for?

A SSAS pension is generally for entrepreneurs and directors of privately owned companies or family owned businesses. Companies with a SSAS can be of any size in terms of turnover and profit, but there can be no more than 11 members of the SSAS.

What are the benefits of a SSAS?

A SSAS benefits from the usual features of a more traditional pension scheme, such as a tax free lump sum at retirement, no income tax on permitted investments and no capital gains tax on the disposal of investments.

However, it is the increased flexibility of a SSAS that brings major benefits to its members.

What can a SSAS invest in?

A SSAS pension has the ability to invest in a much wider range of investments than more traditional pension schemes. Assets and investments that can be held by a SSAS may include;

- Loans back to the sponsoring employer

- Commercial property and land

- Agricultural land

- And more