Frequently Asked Questions

What is a SSAS?

A SSAS is pension trust that gives its members control of their pension funds and assets. A SSAS allows members to invest funds at their own discretion.

A SSAS has access to every type of investment that is allowed under rules set out by legislation, as with traditional pensions. In addition, a SSAS has additional investment privileges, such as investing in property or investing in your business, amongst other things. You can make permitted investments at any age; you do not need to be 55 to take control of the money in your pension.

What is SSAS Practitioner?

A SSAS Practitioner is an individual or firm that supports the setup and administration of a Small Self-Administered Scheme (SSAS), helping ensure it is structured correctly and complies with HMRC rules. They provide technical and administrative support but are not a responsible or statutory role, meaning full control and accountability remain with the scheme trustees.

Who can be a member of a SSAS?

A SSAS is an occupational pension scheme, so membership is limited to employees (including directors) of the sponsoring employer. In practice, it is most commonly used by company directors and controlling shareholders of owner-managed businesses. Family members of the director can also be members of the SSAS, even if they are not employees of the business. The minimum age for membership is 18, and benefits can normally only be taken from age 55 (rising to 57 in April 2028).

How many people can join a SSAS?

A SSAS can have up to 11 members. Members are typically also trustees of the scheme, which means they have a direct say in investment decisions. This collective structure can increase the fund's purchasing power - useful when buying commercial property, for example.

Can I transfer an existing pension into a SSAS?

Yes, in most cases. Funds held in personal pensions, SIPPs, and other occupational schemes can typically be transferred into a SSAS. TLPI will review any existing arrangements before proceeding to confirm that a transfer is appropriate and that no valuable guarantees would be lost. Where the transfer involves safeguarded benefits of £30,000 or more, you will need to take regulated financial advice before proceeding - we can help you find the right adviser.

What is a loan-back and how does it work?

A loan-back is where the SSAS lends money to the sponsoring employer. The rules are strict: the loan must not exceed 50% of the scheme's net asset value, must be secured by a first charge over an asset of at least equal value, must carry a commercial rate of interest (currently HMRC-prescribed as a minimum of 1% above the base rate), and must be repaid over a maximum of five years. Used correctly, a loan-back can inject capital into a business while keeping the funds within the pension environment.

What happens if a loan-back is not repaid on time?

If a loan is not repaid according to the agreed terms, HMRC may treat the outstanding amount as an unauthorised payment, which triggers significant tax charges - currently 40% on the member and up to 15% on the scheme. It is essential that loan-backs are properly documented, monitored, and repaid on schedule. TLPI manages this process as part of its administration service.

Can a SSAS hold shares in the sponsoring employer?

Yes, but within strict limits. A SSAS can hold up to 5% of its net assets in shares of the sponsoring employer (and no more than 20% in total where there is more than one sponsoring employer). Such holdings are classed as employer-related investments, and exceeding the 5% limit breaches the employer-related investment rules and can carry tax penalties. TLPI monitors this as part of ongoing administration.

Can the SSAS buy commercial property that I personally own?

Yes. A SSAS can purchase commercial property from a member or from the sponsoring company, provided the transaction is at full open market value as determined by an independent RICS-qualified surveyor. This can be a useful way to release capital from a property while retaining it within the business environment and enjoying the pension tax advantages.

What types of commercial property can a SSAS hold?

A SSAS can hold most types of commercial property - including offices, warehouses, industrial units, retail premises, agricultural land, and mixed-use buildings. It cannot hold residential property (including holiday lets and student accommodation). If a property has a mixed commercial/residential element, specialist advice is needed.

What is the difference between a SSAS and a SIPP?

Both are flexible pension wrappers that can hold commercial property and a wide range of investments. The key differences are: (1) A SSAS is an occupational scheme tied to a specific employer, while a SIPP is a personal arrangement. (2) A SSAS can lend money to the sponsoring employer - a SIPP cannot. (3) A SSAS is collectively managed by members as trustees, giving directors direct control. (4) A SSAS can be more cost-effective for a group of directors pooling assets.

What is the MPAA and when does it apply?

The MPAA (Money Purchase Annual Allowance) is a reduced annual allowance of £10,000 that applies once you have flexibly accessed pension funds - for example, by drawing income from a flexi-access drawdown arrangement. It does not apply if you have only taken a tax-free cash lump sum. If the MPAA applies, you can still contribute up to £10,000 per year to money purchase schemes (including a SSAS), but no higher - making it important to plan carefully before accessing pension funds.

What happens to my SSAS when I die?

On death, remaining SSAS funds can be passed to your nominated beneficiaries, who may take them as a lump sum or move them into a drawdown arrangement. The tax treatment depends on your age at death and the type of benefit paid.

From 6 April 2027, most unused pension funds and death benefits will be included in the value of your estate for Inheritance Tax purposes. Funds passing to a surviving spouse or civil partner, or to a registered charity, remain exempt. Before that date, unused pension funds generally fall outside the estate for IHT.

A SSAS can still be an effective way to pass wealth across generations, but the 2027 changes make it more important than ever to plan ahead. TLPI will guide you on structuring your nominations and wider estate planning appropriately.

Can I take benefits from my SSAS while still working?

Yes. You can begin drawing benefits from a SSAS from age 55 (rising to 57 in April 2028) while continuing to work and contribute. You can take up to 25% of your fund as a tax-free cash lump sum (subject to the lump sum allowance of £268,275 across all schemes), with the remainder going into drawdown or used to purchase an annuity.

How is a SSAS taxed?

Contributions into a SSAS receive tax relief at your marginal rate (within allowance limits). Investment growth, rental income, and interest accumulate free of income tax and Capital Gains Tax within the fund. Benefits taken as income are subject to income tax. From 6 April 2027, most unused pension funds and death benefits will fall within the member's estate for Inheritance Tax, apart from funds passing to a surviving spouse, civil partner or registered charity. Separately, death benefits are subject to income tax in the hands of beneficiaries where the member died after age 75 (and are generally income-tax-free where the member died before 75).