Small Self Administered Schemes

A SSAS is an occupational pension scheme for up to 11 members that is usually suited to the shareholding directors of limited companies. The employer is governed by a Trust Deed and Rules and is a separate legal entity from the sponsoring scheme.

Such a scheme enables the company directors to provide for retirement in a highly tax efficient way, whilst providing advantages to their business in the form of a flexible use of capital and reductions in taxation.

The tax benefits of a SSAS include:

• No tax on income, other than equity dividends.
• The ability to potentially reclaim some tax deducted at source on income.
• No tax on capital gains.
• Contributions made by the company attract corporation tax relief subject to local tax inspectors’ discretion.
• A tax free cash lump sum can be taken at retirement before age 75.
• Lump sum death in service benefits are usually payable free from inheritance tax.

Under HM Revenue and Customs pensions simplifications rules introduced from 6th April 2006, there is now no longer a requirement for a SSAS to have a pensioner trustee although some product provider still insist on this. In addition a new role was introduced known as a Scheme Administrator. This will usually fall on the scheme trustees automatically and will involve registering with HMRC and potentially making returns to both HMRC and the pensions regulator with fines for late returns.

Through our association with Essential Trustees Limited we are able to offer a full trustee package of services – www.essentialtrustees.co.uk.

Essential Trustees Ltd is a separate firm therefore WR Financial Management Limited is not responsible for the information contained on within the website.

Tax assumptions are those currently applicable and are subject to statutory change. The value of the tax advantages will depend on your individual financial circumstances.