What is the Business SSAS pension?
The Business SSAS pension is a Small Self-Administered scheme (SSAS), established by the director of a trading company. The SSAS is the most flexible UK pension and gives control back, over frozen or dormant workplace and personal pensions.
Whilst many see pensions as boring, inflexible and inaccessible until after age 55, the Business SSAS pension is the opposite. It is merely a savings and investment account inside a tax efficient wrapper.
Created by government, under HMRC regulations, the Business SSAS allows business owners to align their pensions and their businesses to achieve optimum tax efficiency. In addition to all of the benefits traditional pensions offer, there are extensive tools and advantages such as the ability to loan to your business from your pension, invest in property, loan to a 3rd party, build a legacy, ring-fence and secure assets, save on inheritance tax and much more.
Unlike the SIPP, which is a personal pension, the Business SSAS is a corporate pension and so regulated by HMRC and The Pensions Regulator.
A Business SSAS pension scheme can have up to 11 members. These members can be other company employees and/or family members. This offers added advantage as, not only can you combine all of your own pension into one pot, but you can pool pensions with other members, giving greater investment choices and power. All members retain the same percentage portion of the total pot, but as it grows at a faster rate and enjoys extensive tax benefits, each member elevates their own funds.