↑Part of: SSAS pension

Director's pension loan

A company director who has a Small Self-Administered Scheme can lend up to 50% of the scheme's net assets back to the sponsoring company. The loan must meet five HMRC tests: it must be secured, charged at the right interest rate, repaid in equal annual instalments over no more than five years, and limited to 50% of net scheme assets. A correctly structured director's pension loan gives the business access to capital without external borrowing.

Reviewed June 2026 · 8 minute read

Key Benefits of the Director's Pension Loan

  • Loan from pension for almost any business purpose
  • Cash injection to help grow your business
  • Tax efficient borrowing
  • No hassle, easy to set up
  • Grow your company with a Director’s Pension Loan
  • Costs are payable by pension
  • Only available to company directors
  • Make use of old frozen pensions
  • Fund your business, including commercial premises

SSAS pension scheme steps

Establish Small Self Administered Scheme (SSAS) pension

The comparison below shows the difference between borrowing from a bank and borrowing from your own scheme.

Comparison of a bank loan and a loan from your own SSAS pension to your company
A bank charges interest that leaves the business permanently and usually wants security over personal assets. A SSAS can lend to its sponsoring company instead, so the interest is repaid into the scheme rather than to a lender. The loan must meet five HMRC conditions, including a limit of 50 per cent of net scheme assets, a maximum five-year term and a first charge over an asset of at least equal value. General information only, correct as at July 2026.

Transfer old pension schemes into SSAS

Loan pension (up to 50% of total pension value) to company

TLPI supports company directors with SSAS setup, loanback administration and compliance with HMRC pension rules. 

Take our 60 second eligibility test to find out if you are eligible for a SSAS Pension

A cash injection to help grow your business

If your business is in need of a capital injection then you may be able use your old frozen pensions to do this using a Director’s Pension Loan. Most Directors have growth plans but few realise that they can strive to achieve these using money locked away in old pension funds.

Download your FREE Director's Only guide

A limited company director’s pension – technically known as a Small Self Administered Scheme (SSAS) allows Directors to use up to 50% of their pensions for use in their business. The remaining funds can be held in other permitted investments, such as commercial property. The main myth about pensions is that a Director needs to be aged 55 or over to use pension money for anything other than traditional investments but that is incorrect. The pension can actually be used by a Director to fund their business at any age whether they are 35, 45 or even 65!

How Long has this Been Possible?

Director-led pension schemes (SSAS) have been around for 40 years. You may not have heard of them because traditionally Directors have simply set up personal pensions which do not offer the same benefits as SSAS pensions. There is a tendency for advisors to not consider the company benefits of a SSAS pension and how a Director may use the funds to grow their business.

Consultants at TLPI understand the needs of a Company Director are very different to people who simply require a retirement savings vehicle and can explain how a SSAS could support your company's plans and goals.

Get Expert Help

TLPI administer Director led pensions. Consultants at TLPI are recommended by Accountants across the UK to help Company Directors use pension funds for business growth.


The starting point is to get in touch so that we can tell you if we can help. It is important that a Director does not make a mistake if they plan to use their pension for their business. HMRC have specific rules that allow a trading limited company to use pension money for trading purposes.

Talk to a SSAS specialist

A free, no-obligation call to discuss your options.

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FAQs

Director's pension loan common questions

A SSAS can lend up to 50% of its net scheme assets to the sponsoring employer at the time the loan is made. For example, if the SSAS is worth £500,000, the maximum loan is £250,000. The 50% limit is calculated on the net asset value of the scheme before the loan is made. Multiple loans to the same employer cannot in aggregate exceed 50% of net scheme assets.

The interest rate must be at least 1% above the average of the base rates of six named UK clearing banks on the date the loan is drawn down. HMRC publishes the qualifying rate periodically. The interest must be paid in cash to the scheme - it cannot be rolled up. If the interest rate is set too low, HMRC may treat part of the loan as an unauthorised payment.

The loanback must be secured by a first legal charge over an asset of equal or greater value. The asset can be commercial property, residential property owned by the company, plant and machinery, or another company asset provided the charge is properly registered and the asset value is independently verified. Unsecured loanbacks are not permitted under HMRC rules.

The loan can be used for any valid business purpose. Common uses include purchasing commercial premises, funding growth capital, acquiring another business, clearing existing borrowing, or improving working capital. The loan cannot be used to fund dividend payments or personal drawings. TLPI recommend documenting the business purpose clearly to avoid any question from HMRC about the legitimacy of the transaction.

Access capital via your SSAS pension

A free, no-obligation call with a SSAS specialist. We will walk you through the loanback process and confirm the maximum amount available from your scheme.

Book a free call SSAS overview