These illustrative scenarios show how a SSAS can be used in practical, real-world situations to support business growth, improve tax efficiency and strengthen long-term planning. Each example demonstrates a different SSAS application, from property acquisition to authorised employer loans and succession planning.
If you’re new to SSAS or would like a refresher, you may find our pages What is a SSAS? and The IFGL SSAS helpful before exploring the examples below.
SSAS SOLUTIONS IN ACTION: ILLUSTRATIVE CASE SCENARIOS
ABC Ltd
ABC Ltd creates a SSAS, transferring £350,000 of existing pensions and adding a £100,000 employer contribution. This provides £450,000 toward buying larger trading premises, with the remainder funded through commercial borrowing. The company leases the property back at £40,000 p.a., giving the directors control over pension assets while reducing corporation tax.
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The directors and their adult children transfer £480,000 into a SSAS, plus a £10,000 employer contribution, creating £490,000. The business takes an authorised employer loan of £240,000—within the 50% limit—secured against property valued at £310,000. This creates liquidity for an acquisition while the SSAS receives capital and interest repayments.
Read moreDale Farmers Ltd
A new SSAS receives pension transfers and employer contributions totalling £510,000. The scheme purchases farmland from the company at a RICS‑assessed value of £450,000, releasing capital for new projects. Rent of £50,000 p.a. is paid to the SSAS, supporting long‑term pension growth and succession planning.
Read moreThese scenarios highlight the flexibility and strategic value of a SSAS when used in the right circumstances. Whether the objective is unlocking capital, enabling expansion, purchasing commercial property or supporting multi-generational planning, SSAS arrangements can offer practical, controlled solutions that align pension strategy with business goals.
To explore how SSAS structures could support your clients’ planning needs, or to discuss a scenario in more detail, please get in touch. We're here to help you identify opportunities and structure compliant, effective solutions.
People Also Ask
What is a SSAS pension?
A Small Self-Administered Scheme (SSAS) is an occupational pension scheme typically set up by the directors or owners of a privately held business. Unlike standard personal pensions, a SSAS allows its members — who are also trustees — to make collective investment decisions, including purchasing commercial property, making authorised loans to the sponsoring employer, and investing in a broad range of assets. A SSAS combines personal retirement planning with direct business financial strategy.
Can a SSAS be used to purchase commercial property?
Yes. One of the most common uses of a SSAS is the purchase of commercial property, including the trading premises of the sponsoring employer. The business can then lease the property back from the SSAS at an open market rent. Rental income accumulates tax-free within the scheme, and lease payments made by the business may be deductible for corporation tax purposes.
What is an authorised employer loan in a SSAS?
An authorised employer loan allows a SSAS to lend money directly to its sponsoring employer. HMRC rules require that the loan does not exceed 50% of the total net asset value of the SSAS, must be secured by a first ranking legal charge over assets worth at least the loan amount, must be repaid with interest at a commercial rate, and must be repaid within a maximum term of five years.
Who can be a member of a SSAS?
A SSAS is available to employees and directors of the sponsoring employer. In practice, family-owned businesses often include directors and their adult children who are also employed by the business, making the SSAS a powerful tool for multi-generational planning. All members are also trustees and share in the investment decision-making.
How can a SSAS support succession planning?
A SSAS can include the next generation as members, building pension wealth for those taking over the business. Purchasing key assets — such as farmland or commercial premises — through the scheme can spread ownership across the family and reduce future Inheritance Tax (IHT) exposure. Employer contributions supporting a planned transition are also corporation tax deductible.
What are the tax advantages of a SSAS?
Employer contributions are generally deductible against corporation tax. Investment growth within the SSAS — including rental income from property — accumulates free of income tax and capital gains tax. Rental payments by the sponsoring employer may also be corporation tax deductible. On retirement, members can take a Pension Commencement Lump Sum (PCLS), a portion of which is typically tax-free.