How To Consolidate More Than One Pension Into A SSAS

A SSAS (Small Self-Administered Scheme) is a pension trust which can be used to allow investors, landlords and developers to invest into property in a more tax-efficient manner.

SSAS schemes are typically set up by small companies for the benefit of directors & employees. Members of a SSAS have complete discretion as to where any funds are invested, making it a popular source of financing when it comes to investing into property.

Setting Up A SSAS

To set up a SSAS, you must have a sponsoring employer as they are a form of occupational pension scheme. This is usually a limited company which must first be registered with Companies House. Then you must choose scheme members and trustees (trustees are the legal owners of the scheme property and have full responsibility for how its run – including discretion on which members can join the SSAS and which can’t). The final piece of the puzzle is to appoint a Scheme Administrator, who is responsible for ensuring the scheme is fully compliant with pension law, and that HMRC have all relevant information they may require.

Once you have the correct parties in place, you need to register the scheme with HMRC. This is normally done by the Scheme Administrator. Once the scheme is registered with HMRC, a bank account can be created in the name of the pension scheme.

Funding The SSAS

At this point, contributions can then be made to the SSAS either by personal means, from the company, or by transferring existing pensions into the scheme. The Scheme Administrator will oversee this process (they must be registered with HMRC and may also be a professional trustee).

One thing to note, is that if you are transferring a defined benefit or final salary scheme into the SSAS you will need to seek the advice of an FCA regulated advisor to do that.

A SSAS allows spouses, other family members, and fellow investors, to pool their funds, expanding their investment options. Investing into property in this way is incredibly tax efficient, substantially saving you on income tax, corporation tax and capital gains tax, on both rental income and gains.

In summary, a SSAS is a clever strategic way to build a property investment portfolio for your retirement, which also prepares your portfolio for succession in a tax efficient way. It may appear complex but working with a specialist in this field will help you navigate the process in a timely and efficient way.

To read real-life case studies of how other investors have used a SSAS to invest into different types of property across the UK, follow us on social media.