SSAS and SIPP
Small Self Administered Schemes (SSAS's)
An SSAS is an occupational arrangement usually set up for the Directors and Executives of a Company.
In order for the scheme to be accepted by the Inland Revenue as a SSAS the following criteria have to be met:
- There has to be less than 12 members
- There has to be at least one controlling Director
- Some or all of the assets invested in the scheme must be in other vehicles rather than just insurance policies.
SSASs are subject to the usual pension scheme rules, plus additional controls to take account of the fact that the trustees are directly responsible for managing the scheme and its investments, and because of the likelihood that the company directors, scheme members and trustees could be the same.
Areas of investment are strictly defined, and cannot incorporate personal items such as cars or residential property. Investments that can be accepted however include investment in the company's own shares, purchase of commercial property and loans to the company - subject to certain conditions.
The costs of establishing a SSAS vary and depend upon the complexity of the scheme.
Inland Revenue practice can and does change quickly at times, so the correct advice is vital.
Click here to request more information about Small Self Administered Schemes (SSAS's).
Self Invested Personal Pension Plans (SIPP's)
Whereas SSAS are legislated under occupational scheme rules, SIPP's offer similar advantages in terms of control of investments and flexibility of contributions, but under Personal Pension scheme rules.
This type of contract is aimed at high earners, and partnerships who can pool their funds together for investment purposes.
A SIPP is written under a separate trust and whilst an insurance company or other approved provider is needed to act as pension provider and trustee, other parts of the personal pensions package such as advice, investment management and investment administration, can be arranged elsewhere as the individual member requires.
Most of the providers offering SIPPS do so on a hybrid basis. They usually require a minimum regular premium to be invested into their own funds before any external investment is permitted.
Click here to request more information about Self Invested Personal Pension Plans (SIPP's).
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