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Small Self Administered Schemes (SSAS)

A Small Self Administered Schemes (SSAS) is a company scheme where the members are usually all company directors or key staff.  A SSAS is set up by a trust deed and rules and allows members / employers, greater flexibility and control over the scheme's assets. Key benefits are:

• Generous contribution levels. Contributions paid to a SSAS are subject to the same rules as other registered pension schemes.  Consequently there is no limit on the level of member contributions but tax relief is restricted to the higher of £3,600 or 100% of UK earnings.


• Contributions made by the employer are also unlimited.  Employer contributions are deductible against corporation tax provided that they are wholly and exclusively for the purposes of the employer's trade. 

Loans can be made to the sponsoring employer but are subject to certain conditions set by HMRC.  These include:

• The loan should not exceed 50% of the net market value of the scheme's assets
  
  
• The loan should be secured against assets of an equal value by way of a first charge
  
  
• The loan's terms should be no longer than 5 years
  
  
• Interest of  at least 1% above bank base rate should be charged on the loan
   
• The trustees of a SSAS can invest in a broad range of investments, including:

For reasons such as these, Small Self Administered Schemes (SSAS) are becoming a very popular choice in the UK.