The Harsant Small Self Administered Scheme (SSAS) is for small business owners looking for a pension that offers control and flexibility in planning for their retirement, while providing the opportunity to benefit their business at the same time.
The SSAS is an occupational registered pension scheme established by the sponsoring employer and is open to 11 members - usually directors or family members if a family business - and each member becomes a trustee that has control of the scheme and its investments.
SIPP or SSAS?
Company directors may choose to have individual SIPPs or a SSAS. SSASs receive contributions and transfers in the same way as SIPPs, investments are made to accumulate individual member funds and retirement options are the same as within a SIPP. Within a SSAS, however, the accumulated funds of all members can be used to purchase an asset and a loan can be made to the sponsoring employer. SIPPs can form a syndicate to purchase a large asset, property for example, but it is necessary to have an Options Agreement between the individual SIPPs and there is a syndicate administration charge. For several members a SSAS is more cost effective to run than having individual SIPPs. SIPPs cannot lend to connected parties.
Control and flexibility
Unlike most pension arrangements there is no requirement to make regular contributions to a SSAS, this give you the flexibility to adjust your contributions and investments around the success of your company. Savings and investments can be adjusted to reflect the profits and cash flow of your company. The trustees of the scheme have complete control over the investments made and the opportunities available are wide, ranging from stocks and shares to commercial property.
Benefit your business
As well as planning for the future, the Harsant SSAS allows you to help your business now. You can make loans to your business, raise mortgages and even buy shares in your own company. The SSAS could also buy the premises from which your company trades. The rent is then paid into the SSAS free of tax and if the property is subsequently sold there is no capital gains tax to pay. All of these options are designed to benefit both your business and your retirement plan.
