How do I create a SSAS?
Please contact Guardian for an application form Tel No 01254 660333
What are the minimum and maximum contributions for a SASS?
There is no minimal contractual amount required in a Guardian SSAS. There is no maximum level of contributions that the company can pay into a SSAS on behalf of its employees, however the company may only achieve corporation tax relief on an amount of £225,000 in 2007/2008 per employee. This is at the discretion of the local inspector of taxes.
Can other funds be transferred into a SSAS?
A SSAS can receive transfers from most other pension arrangements that a member may hold, although we would recommend that financial advice is taken prior to any transfer.
Retirement & Death Benefits
Once a decision has been made to take benefits, Guardian will be called upon to calculate the Inland Revenue maximum benefits to which the member is entitled. A tax free lump sum can be taken from the fund upon retirement of their share of the fund together with an annual pension which can be taken directly from the fund (this is known as an unsecured pension pre age 75 and an alternative secured pension post age 75), for the duration of the members life. The member can continue working whilst drawing benefits from their scheme and can defer taking benefits until age 75 years. Upon the members death the members fund may be taken as a tax-free lump sum and can be paid to a nominated beneficiary or a dependent depending on the retirement status of the member upon death. In addition an annual pension is payable with the remaining fund, to the surviving spouse or a financial dependent.
What are Permissible Investments in a SSAS?
The Trustees are responsible for implementing an investment strategy although the assistance of a professional advisor is usually required. The majority of investments held within a SSAS are usually free from income, corporation and capital gains tax which include bank and building society deposit accounts, quoted and unquoted shares, derivatives, British government stocks, fixed interest investments, collective investments etc.
Upon the members death the members fund may be taken as a tax-free lump sum and can be paid to a nominated beneficiary or a dependent depending on the retirement status of the member upon death. In addition an annual pension is payable with the remaining fund, to the surviving spouse or a financial dependent.
Other considerations
- The Trustees can register for VAT.
- The Trustees can borrow to assist with the property purchase, however, this is restricted.
- The Trustees can purchase or sell property from a scheme member or anyone connected to the members, however these type of transactions must be carried out at ''arms length'' and supported by an independent valuation.
For more information on purchasing a property within the pension scheme please contact Guardian Tel No 01254 660333.
Certain information will be required to proceed with a property purchase. Please request an questionaire and return it to us with as much information as possible.
Can a SSAS provide loans to the employer company?
Yes. Loans to the employer company are a permissible investments but are subject to a maximum limit of 50% of the fund value. The loan must be established on a commercial basis and take first charge on an asset. Please contact Guardian for more information.
Can Shares be included in a SSAS?
There is also the option of purchasing shares on and off the stock exchange, there are certain Inland Revenue requirements that need to be met when looking at unquoted shares and certain information will be required should we proceed.
Summary
A SSAS is a flexible, tax efficient way of saving for retirement. However, it is important to take specialist advice prior to making any investment decisions otherwise the tax exempt status of the scheme can be withdrawn which will result in severe tax implications.