Decision tool
Which pension should a limited company director have?
A SIPP covers the basics. A SSAS goes considerably further - lending to your own company, buying the premises you trade from, holding one property across several directors. Which one is right for you depends on whether you are a company director, and on what you want the pension to do. Answer six questions and see.
Talk it through with a specialist
A free, no-obligation call with a TLPI consultant, who will look at your company, your existing pensions and what you are trying to do, and tell you plainly whether a SSAS is worth setting up.
Book a free callWhat each scheme is permitted to do
| What you want to do | SIPP | SSAS |
|---|---|---|
| Lend money from the pension to your own company | No | YesUp to 50 per cent of the fund, over five years, on HMRC terms. |
| Buy commercial property or land | YesDepending on the provider. | Yes |
| Lease that property back to your own company | No | YesRent accumulates inside your own scheme. |
| Hold one property jointly with co-directors in a single scheme | No | YesOne trust, with each member's share recorded separately, so members act together on a single asset rather than co-owning it across separate schemes. |
| Bring a spouse, family member or key employee into the same scheme | No | YesUp to eleven members, all connected to the sponsoring company. |
| Act as a trustee of your own scheme | NoThe provider is trustee. | YesMembers are normally trustees and approve every investment. |
| Carry the scheme on into the next generation | No | YesThe family are already members of the same scheme. |
| Set it up without a UK limited company | YesOpen to anyone who meets the eligibility criteria. | NoA UK limited company must act as the sponsoring employer. |
| Hold unit trusts, OEICs, exchange traded funds and gilts | Yes | Yes |
| Hold residential property | No | NoNot permitted in any registered pension scheme. |
Further reading
Want to understand the two structures in more detail?
Our SSAS vs SIPP guide explains how each scheme works, who acts as trustee, what each one can invest in and when one may suit you better than the other.
These are corporate structures governed by HMRC rules and, as pension schemes, overseen by The Pensions Regulator. Holtram TLPI Ltd is registered with HMRC to administer pensions. This tool gives general information and an indicative result. It is not personal tax, financial or legal advice.