The Family SSAS

A Family SSAS brings up to 11 family members into one Small Self-Administered Scheme. Pooling pension funds increases the capital available for commercial property, employer loans, and other investments. Assets accumulate across generations in a tax-efficient wrapper, and the pension fund passed to beneficiaries on death — making the Family SSAS one of the most powerful structures for family wealth planning.

Reviewed June 2026 · 8 minute read

An example of an efficient Family SSAS strategy

Background

John and his wife, Jean, are proprietors of a successful company. They have two sons, Tom and Tim, and are focused on planning for their retirement whilst ensuring a seamless transition of the business to their sons.

Strategic Actions:

Utilising a Small Self-Administered Scheme (SSAS):

Property Transfer: John and Jean decide to sell their business premises to their SSAS. The company then pays rent to the SSAS for the use of the premises. This rent is considered an allowable business expense, providing tax benefits, and the income received by the SSAS is exempt from income tax, facilitating the growth of the SSAS (i.e. pension funds).
Profit Reduction: The rental payments reduce the company’s taxable profits, thereby decreasing the year-end tax liability.
Family Asset Growth: Funds are effectively transferred from the business to the SSAS, ensuring that assets remain within the family.

Involving the Next Generation:

SSAS Membership: John and Jean invite Tom and Tim to join the SSAS. This inclusion allows for shared decision-making and prepares the sons for future business responsibilities.
Retirement Planning: Pension Drawdown: Upon retirement, John and Jean opt to draw 25% of their pension fund tax-free, spreading withdrawals over several years to optimise tax efficiency and preserve funds within the SSAS.
Funding Retirement Benefits: The rent received by the SSAS provides cash flow to support John and Jean’s retirement benefits as needed.

Enhancing the SSAS Fund:

Additional Contributions: With John and Jean no longer drawing salaries, the company reallocates funds to make additional contributions into the SSAS on behalf of Tom and Tim, promoting the growth of the pension fund.
Asset Appreciation: The business premises, now owned by the SSAS, appreciate in value, further increasing the fund’s worth. If the property is sold, the proceeds are free from Capital Gains Tax.

Consideration of Inheritance Tax (IHT) Changes:

Recent legislative changes, announced at the Autumn Budget in 2024 and taking effect from 6 April 2027, have impacted the IHT landscape, specifically relating to SSAS pension schemes. Previously, SSAS benefits could be passed to beneficiaries free from IHT. Under the new rules however, death benefits from SSAS will form part of an individual’s estate for IHT purposes. However, speak to our advisers as there are plenty of strategies that can be integrated to overcome these new challenges.

Alternative Strategy: Establishing a Family Investment Company (FIC):

In light of the new IHT implications for SSAS, John and Jean consider establishing a Family Investment Company (FIC) as a complementary strategy, in addition to the SSAS.

Structure and Benefits:

Company Formation: A FIC is a private limited company where family members are shareholders. John and Jean can transfer assets into the FIC, such as cash or investments, in exchange for shares.
Control and Flexibility: As directors, John and Jean retain control over the company’s operations and investment decisions, while gradually passing economic value to Tom and Tim through share distribution.
Tax Efficiency: The FIC structure allows for potential mitigation of IHT, as growth in the value of the company can be attributed to shares held by the next generation, reducing the taxable estate of the parents. Additionally, corporation tax rates on retained profits within the FIC are generally lower than personal income tax rates.

Conclusion:

By adapting their succession and retirement planning strategies to account for recent IHT changes, John and Jean can effectively manage their estate’s tax liabilities. The establishment of a Family Investment Company offers a viable alternative to the SSAS, providing control, flexibility, and tax efficiency in passing wealth to future generations. It is essential to consult with experienced advisers to tailor these strategies to specific circumstances and ensure compliance with current tax laws.

This is just one example of how the Family SSAS can be used for succession planning, whilst still providing retirement benefits and business growth.

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Family SSAS — common questions

How many members can a Family SSAS have?

A SSAS can have up to 11 members. All members must be connected to the sponsoring employer — typically as directors or senior employees of the company that established the scheme. Family members who are also directors or employees of the sponsoring company can join, making the scheme a shared pension vehicle for the whole family leadership team.

Can my spouse or children join the Family SSAS?

Yes, provided they meet the connection requirement — usually that they are a director or employee of the sponsoring employer. A spouse who is also a director can join immediately. Adding children who work in the business is also possible. Each new member contributes their own pension entitlement to the pooled fund, increasing the total assets available for investment.

How does a Family SSAS pass assets to the next generation?

Until 5 April 2027, unused pension funds in a SSAS generally sit outside the member’s estate for Inheritance Tax. From 6 April 2027 this is changing: under legislation progressing through Parliament, most unused pension funds and death benefits will be brought into the member’s estate for Inheritance Tax. On death, a member’s share of the fund can still be nominated to beneficiaries: children under 23 can receive a dependant’s pension and older beneficiaries can receive a lump sum. From April 2027, you should plan on the basis that the value will form part of the estate rather than pass outside it. There are planning strategies that can help, and our advisers can talk these through with you.

Does a Family SSAS need a professional administrator?

There is no legal requirement for professional administration, but TLPI strongly recommends it. Every trustee — and in a Family SSAS that means every member — is personally responsible for ensuring the scheme complies with HMRC rules and The Pensions Regulator's requirements. A professional administrator handles accounts, returns, HMRC correspondence, and investment documentation, so the family members can focus on investment decisions.