For business owners and property investors, a Small Self-Administered Scheme (SSAS) is more than just a pension – it’s a strategic financial tool. It allows you to invest in commercial property, reduce corporation tax and even inject funds into your business through a tax-efficient loan back.
At ADD Property Finance, we can help clients set up and leverage SSAS pensions to build wealth while maximising tax benefits. Let’s break down why this could be a game-changer for your financial future.
What is a SSAS?
A Small Self-Administered Scheme (SSAS) is a pension scheme for UK business owners and directors, offering more control and flexibility compared to traditional pensions. Unlike other workplace pensions, a SSAS allows investments in a wide range of assets – including commercial property.
One of its biggest advantages? You can use the SSAS to loan funds back to your business, helping you grow your company while keeping wealth within a tax-efficient structure.
SSAS Mortgages – How Do They Work?
A SSAS mortgage enables the pension to borrow up to 50% of its net assets to acquire commercial property. This means if your pension has £200,000, it could borrow an additional £100,000 to invest in property – helping you expand your portfolio without withdrawing funds from your pension.
Many clients use SSAS mortgages and loan backs strategically to grow their pension pot while reducing Corporation Tax, even when they don’t necessarily need a cash injection.
Key Benefits of Using SSAS for Property Investment
By setting up a SSAS, you could unlock powerful financial benefits:
- Reduce Corporation Tax – Contributions to your SSAS are tax-deductible, lowering your business’s tax bill.
- Full Control of Your Pension – Unlike traditional pensions, a SSAS gives you direct control over investments within HMRC rules.
- Greater Investment Choices – Invest in commercial property, loan backs, stocks and more, tailoring your pension to your goals.
- Tax-Efficient Property Investment – Buy commercial property through your SSAS, benefiting from tax-free rental income and capital gains.
- Loan Back to Your Business – Borrow up to 50% of your SSAS value to invest in your business, providing liquidity while keeping funds in a tax-efficient environment.
- Wealth Growth & Inheritance Tax (IHT) Benefits – Assets within a SSAS can be passed on free of Inheritance Tax, making it a powerful estate planning tool.
Is a SSAS Mortgage Right for You?
If you’re a business owner or property investor looking for a tax-efficient way to invest in property and grow your pension, a SSAS could be the ideal solution.
At ADD Property Finance, we specialise in helping clients maximise their financial potential and a SSAS pension could be the perfect solution for you. Whether you want to invest in commercial property, fund your business or reduce Corporation Tax, we can guide you every step of the way.
Get in touch today to explore your SSAS options.
