Small Self-Administered Scheme (SSAS)

A SSAS is a Registered Pension Scheme, the members of which are usually owners, directors or key employees of a sponsoring employer. Whilst subject to the same rules relating to contributions and benefits as conventional insured arrangements, the SSAS affords much greater flexibility and control over the investment of the scheme’s assets.

The list of approved investments is extremely long and in addition to standard investments, such as Unit Trusts or Insurance Company Funds, includes the following:

Commercial property
Commercial loans, including to the sponsoring company
Stocks and shares, including the sponsoring company’s

Through such investments, the SSAS offers the opportunity for pension fund assets to be used for the benefit of the sponsoring company. For example, the pension fund may purchase a commercial property, which it may then lease back to the company. The pension fund will receive any rent free of tax and has no capital gains liability on any subsequent sale of the property. The company has a secure tenancy and does not need to access funds to source the purchase of premises.

A further advantage of a SSAS is that it permits pensions to be paid from the scheme without the need to purchase an annuity, thus allowing continued control and flexibility of investments.

Each scheme requires a Scheme Administrator, whose role is:

Registering the pension scheme with HMRC
Reporting events relating to the scheme to HMRC
Making regular returns of information to HMRC
Providing information to scheme members, and others, regarding the Lifetime Allowance, benefits and transfers

Unlike many service providers, who seek to offload the Scheme Administrator role (and any attendant penalties should breaches in legislation occur) to the individual member trustees, Organon can and will fulfil this official role whilst acting as Professional Trustee to the SSAS.