Small Self Adminstered Scheme (SASS)
SASS's are a type of Occupation Pension Plan designed in the main for small, often family run, business'. The HMRC rules allow for more control and a greater range of investments to be held within a SASS than Personal Pension Plans, notably equities and property. Rules for contributions, benefit withdrawal etc are the same as for other personal pension schemes. It should be noted however that the structure of a SSAS requires all members to be Trustees and the scheme is subject to HMRC Occupational Pension Scheme Rules and Reporting.
SSAS's are often used in Family Business' as the assets can remain invested in the pension scheme and as younger family members take over the business, they access the assets through the membership of the scheme.
The Trustee make choices about what assets are bought, leased or sold, and decide when those assets are acquired or disposed of. The investment strategy is unanimous and all members are invested in the same manner.
Permitted assets include:
- Stocks and shares listed on a recognised exchange
- Futures and options traded on recognised futures exchange
- Authorised unit trusts and OEIC and other UCITS funds
- Unauthorised unit trusts that do not invest in residential property
- Unlisted Shares
- Investment trusts subject to FCA regulation
- Unitised insurance funds from EU insurers and IPAs
- Deposits and deposit interests
- Commercial property (inc. hotel rooms)
- Ground rents (as long as they do not contain any element of residential property)
- Traded endowments policies
- Derivatives products such as a Contract for difference (CFD)
- Loan Back to Sponsoring Employer (at Commerical Rates)
Commerical Property Purchase
One of the most common uses for a SASS is for the purchase of a commerical property. The property can then be let, usually to the members own firm, providing investment income and, over the longer term, capital growth. SASS's can borrow money (subject to legislative limits) to help facilitate the property purchase.