The Finance Act 1973 introduced the ability for companies to set up pension schemes for their Controlling Directors similar to those arrangements available to employees.

In 1974 the concept of Pensioneer Trustee came into being and with it a SSAS was created where membership was less than twelve members. This allowed the Trustees to invest the pension fund monies outside of the normal insurance company restrictions.

Since it’s creation the SSAS has become an increasingly popular vehicle for pension provision and tax planning for Controlling Directors and there are approximately 40,000 currently in existence. They have been of particular interest to those individuals who wish to make pension provision for their retirement whilst at the same time wish to utilise these funds to aid their businesses.

The key feature of a SSAS and their key advantage over other types of pension vehicles is the ability to invest funds in the sponsoring employer and/or an associated employer(s) in the form of loans, share purchase, purchase of Company assets eg. property. This makes the SSAS a valuable tool in not only assisting the Controlling Director with retirement provision but the sponsoring employer’s own financial planning.

It is an Inland Revenue requirement that a Pensioneer Trustee, approved by the Inland Revenue, is appointed to a SSAS, a role that Richard Pedro has been formally approved to undertake having demonstrated to the Inland Revenue a comprehensive understanding of how these schemes operate and the requirements of the Inland Revenue.

All decisions regarding investment for the SSAS are made by the Trustees, excluding the Pensioneer Trustee, and all members will normally be appointed as a Trustee.

Richard Pedro & Company will prepare all paperwork to establish a SSAS and will make arrangements for an actuarial report to be prepared on set up and every three years thereafter to confirm the contributions that may be made to the SSAS. All negotiations with the Inland Revenue to obtain and maintain approval as well as any subsequent wind up will be undertaken by Richard Pedro & Company on behalf of the Trustees.

Key Features

1. Tax exempt status – tax free growth on fund, tax relief on contributions paid, no tax on member in relation to contribution paid by the sponsoring employer.
2. Ability to invest the funds in the sponsoring employer and/or associated employer(s).
3. Full control of fund by member(s).
4. Flexibility in provision of benefits, contributions paid.