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