A SSAS allows your business to contribute pre-tax profits and obtain tax relief on those payments. This will reduce the amount of tax your business pays. We will help you and your accountant determine the amount that will qualify.
Loans to the business
Payments made to the pension bank account can be invested back in to the business in the form of a secured loan, which the business will repay on secured, commercial terms. The business will get tax relief on those interest payments.
Shares in the business
A SSAS can also hold shares in the business, of up to 5% of its assets. This means that the pension scheme will receive dividend income and future disposal of shares can be tax free on the pension scheme.
A SSAS is created under a discretionary trust. This allows the pension scheme's asset to be kept legally separate from those of the Company and its creditors.
The Company can sell and transfer assets it owns to the SSAS, provided that there is a sound commercial benefit to the scheme for doing so and the asset would not be taxable on the scheme or the members.
Guarantee and debentures
In difficult times, the Company may be looking for short-term funding whilst waiting for book debts to be settled by creditors. If it is prudent and commercially rewarding for the SSAS to do so, the scheme can act as a guarantor to the business or unconnected third party.
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