SSAS FAQ

SSAS FAQ | Frequently Asked Questions

What Are SSAS'?

Pension schemes can be defined as a Small Self-Administered Schemes or SSAS' if they pay policy premiums to an insurance company and also invest their funds in other ways, such as directly in shares or commercial property. They are private pension schemes and can have a maximum of twelve Trustee members including a Pensioneer Trustee who must be approved by the Inland Revenue. SSAS' are intended to provide pensions and other benefits to controlling directors of small to medium-sized companies.

Which Company Can Set Up SSAS'?

Any company which is taxed as a trading company can set up an SSAS except the directors of investment companies. An SSAS must be operated as a common trust fund; individual members can­not have specifically earmarked assets but can have a separate account representing a proportion of the total fund.

What Are The Special Requirements For SSAS'?

The SSAS' special requirements are primarily put in place to ensure that the scheme is correctly run and that the scheme's funds do not build up excessively.

Why Are There Special Requirements For SSAS'?

SSAS' provide considerable benefits for controlling directors whose company sponsors the scheme. The directors are not only scheme members but are often also trustees. This may lead to a conflict of interest and therefore special requirements have been built in.

Who Are SSAS' Most Suitable for?

SSAS' are considered to be most suitable for people who:

• Do not understand their pension's charging structure.
• Are controlling directors of small to medium-sized firms.
• Already have an insurance company pension which has sustained losses.
• Are finding that their existing pension is not advantageous to their company's needs.
• Are worried about dependents losing out in case of death.

Why Should I Get An SSAS?

SSAS' have a lot of advantages to offer including the following:

• Full control of your own pension fund.
• Wider investment opportunities.
• Flexibility of contributions.
• Low administration costs.
• Tax advantages.
• Commercial property investment opportunities.

How Do I Setup An SSAS?

SSAS' are very easily set up and can be set up at any time. Any reputable pension adviser will be able to provide you with the necessary paperwork.