Pension Options

Small Self Administered Pensions

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Small Self Administered Pensions

A SSAP gives company directors the opportunity to maximise their pension funds prior to retirement by giving them control over their investments. Unlike other pension schemes the directors can control and choose their investments.

If you are thinking about investing in property, you may wish to consider setting up a Small Self-Administered Pension Scheme (SSAP) as a very tax efficient means of doing so.

The range of investment options are extensive and include: property, structured deposits, direct investment in stocks and shares etc.

What are the tax benefits of SSAP?

This provides the Member Trustees with the following tax advantages:

  • Contributions made by the company qualify for Corporation Tax relief
  • Members’ personal contributions qualify for Income Tax relief
  • Investments grow free from Capital Gains Tax and Income Tax
  • Deposits grow free from DIRT Tax
  • A tax free cash lump sum can be taken at retirement
  • Any balance can be transferred into an Approved Retirement Fund
  • A tax free sum can be payable on death before retirement

Types of Investments

Here are some examples of which investments can and cannot be made by your SSAP. These are not exhaustive lists but give you an indication of the flexibility and range of your investment choice under a SSAP.

With some of the investments there are specific Revenue rules which must be adhered to.

Authorised Investments

  • Approved property
  • Land
  • Property syndicates
  • Shares in private companies (subject to limits)
  • Quoted equities on recognised worldwide
  • stock exchanges
  • Gilts, bonds and fixed interest stocks
  • Investment trusts
  • Unit trusts
  • Insurance company funds
  • Bank and building society deposits
  • Offshore managed funds
  • Futures and options
  • Copyrights
  • Loan notes

Prohibited Investments

  • Holidays homes with personal usage
  • Shares in your principal employer
  • Rare books and stamps
  • Works of art and antiques
  • Fine wines
  • Loans to Member Trustees or their families
  • Secured and unsecured loans to the principal
  • employer or connected person
  • Assets that could be used for member
  • Trustees’ personal gain, e.g. golf membership
  • Furniture and oriental rugs
  • Yachts and vintage cars
  • Jewellery and gem stones
  • Gold bullion
  • Connected party transactions

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