Unlocking the Power of SSAS Pensions for Commercial Property Investment

When it comes to planning for your retirement, there are various options available, but not all of them offer the same level of flexibility and control as a Small Self-Administered Scheme (SSAS) pension. Unlike a 'standard' personal pension, a SSAS pension empowers you to invest in a considerably broader range of assets, including commercial property. This opens up exciting opportunities to craft your unique retirement strategy, unshackled from the limitations of traditional pension funds offered by providers.

In this comprehensive article, we'll delve deep into the concept of SSAS pensions and how they can serve as a robust vehicle for property investment. The aim of this article is to give you a thorough understanding of the advantages, opportunities, and strategies that SSAS pensions offer in the realm of property investments.

Understanding SSAS: A Flexible Pension Option

A Small Self-Administered Scheme (SSAS) is a pension trust established by a limited company or partnership. Typically, SSAS pensions are set up by private and family-run limited companies, primarily for the benefit of owner-directors and senior employees. In the case of SSAS pensions, the members themselves also serve as trustees, granting them a high degree of control and flexibility over the scheme's assets and investment choices—all within a tax-efficient framework.

Who Can Utilise a SSAS Pension Scheme?

SSAS pensions are designed for self-funded occupational pension schemes created by limited companies (and, in certain cases, partnerships) with the primary aim of benefiting their directors, senior employees, and even family members. These schemes are particularly attractive to business owners seeking greater control over their pension investments and the unique opportunity to utilise their pensions to invest in assets such as property. It's common practice for each SSAS member to serve as a trustee, reflecting the desire for flexibility and control among scheme members, which is a driving force behind the increasing popularity of SSAS pensions in the UK.

Leveraging SSAS Pensions for Property Investment

So, how can you use a SSAS pension as a vehicle for property investment? This strategy may seem complex, but it offers significant advantages for High Net Worth and Sophisticated Investors looking to build their financial future and invest in an alternative asset class such as property development.

Property investment is a perennial favourite among investors for several reasons. The historical stability of tangible assets like real estate, which has the ability to provide consistent returns, and the security of bricks and mortar against market volatility are just a couple of their advantages. When you invest in property through a SSAS pension, you enjoy the added benefit of asset protection. Property held within a SSAS pension is shielded from creditors and is excluded from your estate, ensuring its preservation for future generations.

However, it's essential to note that HMRC regulations stipulate that SSAS pensions may only invest in or hold commercial property. Direct (or indirect) investment in residential property is not permitted. Nonetheless, there are various ways to invest in residential property that comply with HMRC rules. These options include property loans, bonds, crowdfunding, and loans to third-party property developers. These alternative property investment methods can provide substantial capital growth potential while requiring relatively low time commitment and management.

Furthermore, you have the option to transfer existing property assets into your SSAS pension, providing both protection from creditors and attractive tax benefits.

Five Ways to Profit from Property Investments Through Your SSAS Pension

1. Increased Returns: Tailor your investment strategy and objectives to maximise returns. Returns paid into the pension fund are exempt from income tax.
2. Cost Efficiency: With only one set of fees, you can streamline costs by paying all expenses through the SSAS property pension.
3. Tax Efficiency: Enjoy a range of tax benefits, including favourable business, personal, and inheritance tax treatment when your pension funds are invested within the SSAS.
4. Business Expansion: A SSAS can issue loans to your limited company, allowing you to deposit profits and withdraw them as a loan, resulting in increased tax relief, with access to working capital where needed.
5. Capital Gains Tax Benefits: Assets held within the SSAS, such as property, are exempt from capital gains tax when sold.

What are the SSAS-eligible property investment opportunities on offer from Acorn Property Invest?

If you are a certified investor interested in investing through your SSAS pension, we’d like to invite you to explore our SSAS-eligible investment opportunity. Please sign up to access the complete investment summary.

YOUR CAPITAL IS AT RISK IF YOU INVEST 

Investment opportunities available via Acorn Property Invest are exclusively targeted at exempt investors who are experienced, knowledgeable and sophisticated enough to sufficiently understand the risks involved, and who are able to make their own decisions about the suitability of those investment opportunities. All investors should seek independent professional investment and tax advice before deciding to invest. Any historic performance of investment opportunities is NOT a guide or guarantee of future performance and any projections of future performance are not guaranteed. All investment opportunities available via Acorn Property Invest are NOT regulated by the Financial Conduct Authority (FCA) and you will NOT have access to the Financial Services Compensation Scheme (FSCS) and may not have access to the Financial Ombudsman Service (FOS).