What are the benefits of a SSAS?

A major benefit of a SSAS is that it can offer the employer increased flexibility on where the scheme’s assets can be invested.

 

What are the benefits of a SSAS?

One of the biggest benefits of a SSAS is the control that it permits members over where the scheme’s funds are invested. This flexibility also means that SSASs can be a great vehicle for business growth, as they can be used to grant a secured loan to the company - of up to 50% of the fund value of the SSAS - or to purchase shares in the business. 

SSASs also inherit all of the usual benefits available for pension schemes, such as;

  • A tax-free lump sum at retirement
  • No income tax on permitted investments
  • No capital gains tax on the disposal of investments

In addition to those, SSASs have their own benefits, which can be especially useful for business owners. These SSAS benefits include;

  • Commercial property can be bought and leased back to the business - or any other third party
  • They allow business owners and their employees to group their pension assets
  • Loans can be made to the principal employer (subject to conditions)
  • They allow investment in non-standard assets
  • They only have one scheme charge - even if there are several members - so they can be cost-effective