Should I use a SIPP or a SSAS?
A SIPP suits anyone who wants to choose their own pension investments, whether employed, self-employed or a director.
A SIPP suits anyone who wants to choose their own pension investments, whether employed, self-employed or a director.
A SSAS is set up by a company and run by trustees, and directors use it where they want the scheme to lend to the company or to have one scheme for several directors.
The advisers for this subject: Sunny Bharj and Tony Springer
In a SIPP the provider is the scheme administrator. It holds the assets and carries out your investment instructions.
In a SSAS the trustees hold the assets and take the decisions together, and they are commonly the members themselves.
A SSAS can lend to the company that sponsors it, on five conditions set by regulations. No registered pension scheme can lend to a member. Can a SSAS lend money to my company?
A SIPP provider charges for running the plan and may charge separately for dealing, for holding property and for transfers. The charges depend on the provider and on what the SIPP holds.
A SSAS has running costs of its own, such as administration, banking and the trustees' time, and pays them whatever the size of the fund. Compare the annual cost in pounds for the fund you expect to hold under each option.
A SSAS can lend to the company that sponsors it. A SIPP has no sponsoring company to lend to.
Yes, and the same rules apply to both, including a commercial rent where your company is the tenant. Can I use my pension to buy commercial property?
Yes. The annual allowance, the minimum pension age and the tax-free lump sum rules are the same for both.
Neither a SSAS nor a SIPP can hold it without severe tax charges. Can a SSAS buy residential property?
The scheme is separate from the company, and its assets belong to the members' pensions. A sale or closure has to deal with any property the scheme holds or loan it has made to the company.
Decide what you want the pension to do, such as owning your premises or lending to the company, before you choose the scheme.
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