Proactive act as HMRC Approved Scheme Administrators for over 60 Clients’ Small Self- Administered Pension Schemes-(SSAS).

What is a SSAS?

Quite simply the “Rolls Royce” of Pension Schemes! They are used to reduce or eliminate Corporation Tax and allow Clients to take charge of investing their own pension funds.


What does it cost?

Proactive charge a “one-off” establishment fee of £1,500 to appoint the first Trustees, produce minutes and provide HMRC with all the required information to gain their approval. After that there is an annual charge of £500 for completion of annual Tax and PSO Returns. As these are HMRS approved Schemes they offer Client’s the most tax efficient and least controversial method of reducing corporation tax and providing for retirement.

What can a SSAS Invest in?

In essence, a SSAS pension allows a much broader range of investments compared to traditional pension arrangements. These include:

  • Commercial Property
  • Industrial / Retail Units
  • Agricultural Land
  • Commercial Land
  • Regulated Collective Investments such as Unit Trusts, OEICS and ICVCs
  • Gilts and Fixed Interest stocks
  • Investment Trusts
  • Direct Quoted Equities
  • Trustee Investment Plans
  • Loan back to the Principal Employer


Of the above the two options most frequently used by our Clients are: Commercial Property Investment and loans back to the Principal Employer.


Example 1-Why buying a Commercial Property through your SSAS makes sense!

Commercial property, when purchased using a pension, has a broad meaning and includes land for development, high street premises, factories, car parks, hotels or pubs. We are often asked if it is possible to invest in residential property with a pension. Whilst a SIPP or SSAS should not invest in residential property, there are some exceptions. Care homes, hotels and designated student Halls of Residence are not treated as residential property. There are 4 key benefits to holding a commercial property within a SASS.

  • Tax relief on contributions paid to the SSAS which can be used to purchase the property.
  • Rent paid by the tenants can be treated as a business expense and can reduce the income and corporation tax liability of the tenant. If the tenant is the Client’s Company this is effectively double tax relief!
  • Any gain on the property value is free from Capital Gains Tax.
  • Rent is paid to the SSAS and is free from Income Tax.
  • As the property will be held within a Trust should the Principal Employer face liquidation the property is protected from Company creditors.

Example 2-Why using the loan back facility through your SSAS makes sense!

While a SIPP has many of the advantages of SSAS, where a SSAS comes into its own is it’s ability to lend 50% of the fund value within it back to the Client’s Limited Company. Effectively the Client uses the SSAS monies as a “Bank” -This is known as “moving monies in a circle”. It is probably the most tax efficient planning that a Company Director can undertake.


Take a look at a SSAS Example


The next step.

If you would like us to set up a SSAS and go over the benefits of doing so please contact our MD- Jon Dickinson on 07712 856364 or e-mail