Property

This is a very tax efficient way of many small to medium sized businesses purchasing their own office or factory to trade from.

The SSAS can also borrow up to 50% of the fund value toward the purchase. e.g. If the accumulated fund value is £200,000 then a further £100,000 can be raised by way of mortgage giving a total fund available of £300,000.

From the 2011/12 tax year a contribution of up to £50,000 can be made per annum per individual member, and accumulated pension funds invested elsewhere or from previous employment may also be transferred in to increase the SSAS fund value (though it should be noted that National Insurance funds accumulated by contracting out cannot).

Commercial property is not residential, even if used on a commercial basis as a buy to let, but shops, offices, warehouses and even football stadia and golf courses are acceptable.

If purchased from a connected party, i.e. principal employer, scheme member or family, then all transactions must be at arms length and on a commercial basis; this is achieved by an independent valuation on any sale or purchase as well as the relevant rental agreement.

Get in touch if you'd like to know more or discuss all tax planning options open to directors