--- title: "Small Self-Administered Schemes (SSAS)" id: "1774" type: "page" slug: "small-self-administered-schemes-ssas" published_at: "2026-08-19T10:50:42+00:00" modified_at: "2026-08-19T12:46:00+00:00" url: "https://sipwealthmanagement.co.uk/small-self-administered-schemes-ssas/" markdown_url: "https://sipwealthmanagement.co.uk/small-self-administered-schemes-ssas.md" excerpt: "[fusion_builder_container admin_label=\"\" type=\"flex\" hundred_percent=\"no\" hundred_percent_height=\"no\" min_height_medium=\"\" min_height_small=\"\" min_height=\"\" hundred_percent_height_scroll=\"no\" align_content=\"stretch\" flex_align_items=\"flex-start\" flex_justify_content=\"flex-start\" flex_wrap_medium=\"\" flex_wrap_small=\"\" flex_wrap=\"wrap\" flex_column_spacing=\"\" hundred_percent_height_center_content=\"yes\" equal_height_columns=\"no\" container_tag=\"div\" menu_anchor=\"\" hide_on_mobile=\"small-visibility,medium-visibility,large-visibility\" status=\"published\" publish_date=\"\" class=\"\" id=\"\" html_attributes=\"W10=\" margin_top_medium=\"\" margin_bottom_medium=\"\" margin_top_small=\"\" margin_bottom_small=\"\" margin_top=\"0px\" margin_bottom=\"0px\" padding_top_medium=\"\" padding_right_medium=\"\" padding_bottom_medium=\"\" padding_left_medium=\"\" padding_top_small=\"\" padding_right_small=\"\" padding_bottom_small=\"\" padding_left_small=\"\"..." --- Small Self-Administered Schemes (SSAS)[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T13:46:00+01:00# Small Self-Administered Schemes (SSAS) ## A pension built around your business A Small Self-Administered Scheme (SSAS) is an occupational pension scheme, typically established by the directors of a private limited company. Unlike a personal pension, a SSAS is administered by its trustees, who are usually also the scheme’s members. This gives business owners collective control of the scheme’s investments and access to features no other UK pension offers, most notably the ability to lend money to the sponsoring company. A SSAS can be particularly attractive where several directors or family members wish to pool pension assets and make collective investment decisions, which is why SSASs are often described as “family pensions”. ## Why consider a SSAS? A SSAS may be suitable if you: - Own or manage a limited company. - Have combined pension funds of over £200,000 across the intended members. - Want to pool pension assets with business partners or family members. - Are considering purchasing commercial property through your pension. - Wish to explore lending money from the pension scheme to your business. - Require greater flexibility than a traditional pension arrangement can offer. Although SSAS arrangements provide considerable opportunities, they also involve trustee responsibilities and additional administration, making professional advice particularly important. ## Lending to your business: the SSAS loanback The feature that most clearly sets a SSAS apart is the **loanback**. A SSAS can lend up to 50% of its net assets to the sponsoring company, provided strict HMRC conditions are met. Broadly, the loan must be secured by a first legal charge over an asset of sufficient value, carry a commercial rate of interest (at least 1% above average bank base rates), be repaid in equal instalments of capital and interest, and run for no more than five years. For a growing business, this means the directors’ own pension fund can finance the company, with the interest paid back into their pension rather than to a bank. Loans that fail HMRC’s tests trigger significant tax charges, so structure matters; this is exactly where specialist advice earns its keep. ## Buying commercial property through a SSAS Like a SIPP, a SSAS can purchase commercial property (offices, industrial units, shops or land) and can borrow up to 50% of its net assets to help fund the purchase. Pooling members’ funds creates buying power that individual pensions often lack. A SSAS can even buy property from a connected party, including the sponsoring company or its directors, provided the transaction takes place at an independently verified market value. The company then pays rent into the scheme: a deductible expense for the business, growing tax-efficiently inside the pension. Holding your trading premises this way is one of the most popular reasons directors establish a SSAS. ## SSAS or SIPP? A [Self Invested Personal Pension (SIPP)](https://sipwealthmanagement.co.uk/self-invested-personal-pension-sipp/) is a personal arrangement for an individual. A SSAS is a company-sponsored scheme for up to 11 members who act as trustees together. The practical differences: a SSAS can lend to the sponsoring company and pools members’ funds, but it costs more to run and requires joint decision-making. Where the loanback and pooling features aren’t needed, a SIPP is usually the simpler answer. We advise on both and will recommend whichever genuinely fits. ## Professional SSAS advice in Swansea Whether you are establishing a new scheme, taking over the running of an existing one, or exploring a loanback or property purchase, independent advice helps you use a SSAS’s flexibility without falling foul of the rules. *Call 01792 720 200 to speak to a SSAS specialist. We advise trustees and directors across Swansea, South Wales and beyond.* *Please note: pension rules and tax legislation may change in the future, and the value of investments can fall as well as rise. Tax treatment depends on your individual circumstances.* ## Frequently Asked Questions What is a Small Self-Administered Scheme?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:44:59+01:00## [What is a Small Self-Administered Scheme?](#collapse-1-1776) A SSAS is an occupational pension scheme established by a limited company, typically for its directors and senior employees, with a maximum of 11 members. The members are normally also the trustees, giving them collective control over how the scheme’s assets are invested, including options unavailable to other pensions such as lending to the sponsoring company. What is the difference between a SSAS and a SIPP?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:45:27+01:00## [What is the difference between a SSAS and a SIPP?](#collapse-1-1778) A SIPP is an individual personal pension. A SSAS is a company-sponsored scheme whose members act as trustees together. The key practical differences: a SSAS can lend up to 50% of its assets to the sponsoring company and pools members’ funds for larger investments, but it costs more to administer and decisions are made jointly. Can a SSAS lend money to my business?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:45:53+01:00## [Can a SSAS lend money to my business?](#collapse-1-1780) Yes, up to 50% of the scheme’s net assets, provided HMRC’s conditions are met: a first legal charge over an asset of sufficient value, a commercial interest rate of at least 1% above average bank base rates, equal capital-and-interest repayments, and a maximum five-year term. Loans that breach these rules trigger substantial tax charges, so professional structuring is essential. Can a SSAS buy property from my company or from me?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:46:25+01:00## [Can a SSAS buy property from my company or from me?](#collapse-1-1782) Yes. A SSAS can purchase commercial property from a connected party, including the sponsoring company or its directors, provided the transaction is at an independently verified market value. This can release capital into the business while securing the premises within the pension. How many members can a SSAS have?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:46:50+01:00## [How many members can a SSAS have?](#collapse-1-1784) Up to 11. Most schemes consist of company directors and their family members, with all members usually acting as trustees. This pooling of funds and control is why SSASs are often used as multi-generational “family pensions”. How much does a SSAS cost to run?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:47:17+01:00## [How much does a SSAS cost to run?](#collapse-1-1786) A SSAS involves meaningful set-up and annual administration costs, typically justified only where combined member funds are around £200,000 or more, or where you will genuinely use the loanback or property features. We set out the full costs before you commit, and will tell you honestly if a SIPP would serve you better. Do I need a professional trustee or administrator?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:47:39+01:00## [Do I need a professional trustee or administrator?](#collapse-1-1788) There is no legal requirement to appoint one, but every SSAS must be registered with HMRC and comply with pension legislation, and trustees are personally responsible for the scheme. Most schemes appoint a professional administrator to handle registration, reporting and compliance. We can arrange and coordinate this as part of our advice. How does the April 2027 inheritance tax change affect a SSAS?[admin](https://sipwealthmanagement.co.uk/author/admin/) 2026-08-19T11:48:01+01:00## [How does the April 2027 inheritance tax change affect a SSAS?](#collapse-1-1790) From 6 April 2027, unused pension funds (including SSAS funds) will normally count towards a deceased member’s estate for inheritance tax, with exemptions for spouses and civil partners. Trustees and members should review death benefit nominations, scheme funding and withdrawal strategy ahead of the change. Last reviewed: August 2026 ## See also [Self Invested Personal Pensions](https://sipwealthmanagement.co.uk/self-invested-personal-pension-sipp/) | [Retirement Planning](https://sipwealthmanagement.co.uk/retirement-planning/) | [Auto Enrolment (employers)](https://sipwealthmanagement.co.uk/auto-enrolment-pensions/) ## Small Self-Administered Scheme Enquiry Complete the short form below to arrange a free initial meeting. Alternatively, call us on [01792 720 200](tel:01792720200) .