Family Pension Trust (SSAS)

Regulation

• Regulated by the Pensions Regulator, not FCA
• Also regulated by HM Revenue & Customs
• Moving or converting SSAS is not a pension transfer; no transfer advice needed

Contributions and Transfers

• Employer contributions usually made by sponsoring employers
• Annual allowance and carry forward limits apply as with other money purchase schemes - £60,000 - 3 Years can be Purchased - £180,000 + Current Year £60,000 = £240,000
• Employer contributions not linked to member's earnings level but must be justifiable to achieve corporation tax deduction
• Members can make personal contributions; tax relief claimed via self-assessment
• Transfers-in accepted from any recognised pension schemes, including in-specie from SIPPs or other SSAS

Retirement and Death Benefits

• All allowable retirement and death benefits permitted
• 25% tax-free lump sum (or higher with protected sums)
• Flexi-Access Drawdown and existing Capped Drawdown options
• Annuity purchase
• Death benefits include lump sums and pensions payable in-specie

Investment Options

• Conventional Investments -

  • Central SSAS bank account for all funds

  • Deposit accounts including foreign currency

  • National Savings & Investments (excluding premium bonds)

  • Unit Trusts, OEICS, insurance company funds, trustee investment plans

  • Traded endowments, quoted shares, gilts, corporate bonds, ETFs, investment trusts, REITs

  • Overseas listed shares

  • Investments via fund platforms, wrap accounts, stock brokers

  • Discretionary fund manager accounts

• Unconventional Investments -

  • Unregulated Collective Investment Schemes (UCIS) in diverse assets (property, wine, antiques)

  • Exempt Property Unit Trusts (EPUTs), hedge funds, offshore funds

  • Gold bullion (not krugerrands)

  • Commercial property, either let to client’s business or third parties

  • Borrowing up to 50% of net fund for commercial property or other assets

  • Unquoted shares in client’s business up to 5% of fund in max 4 companies (20% total)

  • Unquoted shares in unconnected businesses (usually up to 19% ownership)

  • Futures, options, contracts for difference, foreign exchange

  • Secured loans to sponsoring companies up to 50% of fund

  • Loans to unconnected companies or individuals

  • Intellectual property and copyrights registered officially

  • Investments purchased from members and connected parties

  • In-specie payments allowed

  • Pooled or earmarked asset allocation options for members

• Non-Permitted Investments -

  • Residential property

  • Tangible movable property

  • Direct purchase of art, antiques, fine wine, stamps

  • Commodities except gold bullion

  • Spread betting

  • Trading activities

  • Wasting assets (e.g., leasehold property under 50 years)

  • Loans to connected parties except sponsoring companies

  How is the SSAS Taxed

  • Contributions provide a Corporation tax Deduction for the Company. Over £500,000 may require the relief spread over 2 years

  • Returns and Income are tax free

  • Members can take 25% Tax Free when reaching retirement age from age 55 and 57 from 2028

  • Drawdown above the 25% tax free cash is taxed at the members marginal rate

  • IHT Payable from 6th April 2027