↑Part of: SSAS pension

SSAS vs SIPP

A SSAS (Small Self-Administered Scheme) and a SIPP (Self-Invested Personal Pension) are both self-invested pension vehicles that can hold commercial property, equities, and alternative assets. They differ significantly in structure, membership, and the investment and lending options available. For most company directors with a pension fund above £75,000, a SSAS is the more powerful option.

Reviewed June 2026 · 6 minute read

What is a SSAS pension?

A SSAS is an occupational pension scheme which is usually set up by company directors. Members are jointly appointed as trustees of the SSAS scheme, giving them direct control over investment decisions. A SSAS is registered with The Pensions Regulator and HMRC.

Key features of a SSAS

  • It is an occupational pension scheme
  • Members are usually directors or senior employees of the sponsoring company
  • There is a limit of 11 members
  • Members are joint trustees with direct control over investments
  • The loanback facility allows the pension to lend up to 50% of its value to the sponsoring company
  • A SSAS can invest in commercial property, with the option to lease it back to the sponsoring company
  • A SSAS is regulated by The Pensions Regulator and HMRC

What is a SIPP?

A SIPP (Self-Invested Personal Pension) is a personal pension plan. Unlike a SSAS, a SIPP is not tied to a company — anyone can take out a SIPP as long as they meet the eligibility criteria. SIPPs provide access to a wide range of investments, including shares, bonds, and commercial property.

Additional features of a SIPP

  • A SIPP is a personal pension plan, not restricted to company employees
  • SIPPs typically offer a wider range of investment choices through the open market
  • Investment decisions are typically managed through a third-party platform or provider
  • Flexibility in drawing benefits at retirement

SSAS vs SIPP: which is right for you?

Both schemes share several similarities: both are self-invested, both can hold commercial property, and both offer flexibility in drawing benefits. The right choice depends on your circumstances, your company structure, and the size of your pension fund.

A SSAS may suit you if...
  • Your individual or combined pension fund exceeds £75,000
  • You want to pool your pension fund alongside your spouse, family members or business partner
  • You would like the option to lend money from your pension back to your company (loanback)
  • You want to manage your pension fund with a more entrepreneurial approach
  • You would like to purchase commercial property through your pension
  • You want more flexibility and control when dealing with pension investments
  • You would like flexibility in drawing benefits at retirement
A SIPP may suit you if...
  • Your pension fund exceeds £75,000
  • Investment decisions are typically managed through a third-party platform or provider
  • You want exposure to a broader range of investment markets
  • You want flexibility in drawing benefits at retirement
Key facts
  • A SSAS is exclusively for company directors and senior employees; a SIPP is open to anyone
  • A SSAS allows the pension to lend up to 50% of its value back to the sponsoring company; a SIPP does not
  • Both can invest in commercial property, but a SSAS can also lease it back to the sponsoring company
  • A SSAS has a maximum of 11 members who act as joint trustees; a SIPP is a single-member personal pension
  • A SSAS is generally most cost-effective with a fund above £75,000
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FAQs

Common questions

A SSAS can buy commercial property (and rent it back to your company), lend up to 50% of its fund value to the sponsoring employer, and invest in a far wider range of assets than a personal pension or SIPP typically allows. Members are also trustees, so you and your fellow directors control the fund directly.
Yes. Purchasing your trading premises through a SSAS is one of the most tax-efficient strategies available to a company director. Rental income paid by the company into the scheme is not subject to income tax, and any growth in property value is free of Capital Gains Tax within the fund.
The annual allowance is currently £60,000 (or 100% of earnings, whichever is lower). Employer contributions from your company count toward this but are deductible for Corporation Tax purposes, making them one of the most efficient ways to extract value from a business.
The time required to establish a SSAS will vary from case to case. Timescales depend on a range of factors, including how quickly the required documentation is provided, as well as the processing times of pension providers and HMRC. Where a property purchase or pension transfer runs alongside the setup, timescales can also be affected by solicitors and the transferring scheme.
No. A SSAS is regulated by HMRC, not the Financial Conduct Authority. TLPI acts as SSAS Administrator, a role accountable to HMRC, and is a tax planning specialist, not a financial adviser. We will refer you to an independent financial adviser where regulated advice is needed.

A SSAS (Small Self-Administered Scheme) is an occupational pension for company directors and senior employees, with up to 11 members serving as joint trustees. A SIPP (Self-Invested Personal Pension) is a personal pension available to anyone who meets the eligibility criteria. The key advantages of a SSAS for company directors are the loanback facility (lending up to 50% of pension value back to the sponsoring company), the ability to pool funds with family or business partners, and collective control over investments.

Yes. Both a SSAS and a SIPP can invest directly in commercial property. Rental income flows into the pension tax-free and any capital gain on eventual sale is free of Capital Gains Tax. A SSAS can also borrow up to 50% of its net asset value to assist with a property purchase, and can lease the property back to the sponsoring company at a commercial rent — which is then deductible as a business expense.

For most company directors with a pension fund above £75,000, a SSAS is usually the more powerful option. It allows you to pool funds with business partners or family, lend money back to your company through the loanback facility, and take more direct control over investments. A SIPP can suit directors who prefer professional management and broader access to open-market investments.

Both a SSAS and a SIPP are generally most cost-effective when the pension fund exceeds £75,000. Below this level, the fixed annual administration costs represent a higher proportion of the fund, reducing the net benefit of self-investment.

SSAS or SIPP: speak to a specialist

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