An SSAS, or a Small Self-Administered Scheme is a type of pension trust that is usually set up by businesses such as limited companies or a partnerships. They are generally used by family run businesses or private companies in order to benefit senior members of staff and company directors. Individuals with an SSAS pension can benefit from the usual generous tax relief options which are afforded to many other HMRC pension benefit schemes. Contributions to the SSAS can be made by the employee or its members, both of whom will receive tax relief on any contributions (subject to certain conditions).
Benefits of taking out an SSAS scheme include the following:
- A lump sum tax-free pay out in the event of the pension holder’s death before retirement
- A tax-free lump sum, which is awarded at the age of 55 when an individual retires
- Disposal of investments are not subject to capital gains tax
- Personal and company contributions are tax-deductible
- Allowable investments aren’t subject to income tax
How Many Members Can an SSAS have?
For many small businesses, an SSAS can be the ideal solution to ensure that retirees enjoy a comfortable retirement upon leaving the company. SSAS plans are limited to 11 individuals, although one or more individuals such as family members can be connected to the scheme. There are exceptions to this rule, but only when one of these members is connected to another member, wherein a 12th member can be added to the scheme.
Because of the amount of regulations involved in the setting up of an SSAS plan, they shouldn’t be taken out without expert advice, as any mistakes made during the many years in which the pension will run for could be extremely costly to individuals involved, resulting in a reduced payment upon retirement
Contact Us Today
If you’re looking to set up a SSAS in Lancaster or the surrounding areas then you should consider getting in touch with the professionals here at Prudent FPA. With many years of experience working within the pensions sector, you can be given assurance that your pension will be in the hands of competent professionals. Call us today on 01524 849955 to speak to a member of our team. You can also send us an email by filling out the form on the ‘Contact Us’ page of our website.
The value of an investment with St. James's Place will be directly linked to the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.