Investing via a SSAS Pension
A Small Self-Administered Scheme (SSAS) is a type of corporate pension that allows company directors to use their pension pot to invest directly in commercial property.
A Small Self-Administered Scheme (SSAS) is an incredibly powerful tool for business owners. It allows directors to pool their pension funds and take direct control over the investment decisions.
Unlike typical personal pensions, a SSAS is permitted to purchase commercial property outright. For example, a business owner could use their SSAS pension to buy their company's office or warehouse. The company then pays rent to the pension fund. The rent paid is a tax-deductible expense for the business, and it grows entirely tax-free inside the SSAS wrapper.
Loanbacks
Furthermore, a SSAS is allowed to lend up to 50% of its net asset value back to the sponsoring employer as a commercial loan. This provides business owners with a unique source of liquidity for working capital or property development.