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Owners & directors pension

There is a great deal of scope for the interplay between pension provisions and tax planning. Pensions not only help save for retirement but also acts as a tax saving vehicle throughout the business owners’ working lives. Since business owners need greater control and flexibility, pensions such as SIPP and SSAS may be ideally suited to meet their personal and business requirements.

How we can help:

  • Review your existing pension arrangements for performance and compliance
  • Advice on effectively utilising your SIPP & SSAS
  • Help set up and manage your SIPP or SSAS

For more information on how we can help in this area, please contact us.

SIPP

A Self invested personal pension plan is a personal pension arrangement which allows you to make direct investment choices from a wider range of investments than normally offered by pension providers. SIPP is particularly useful for owners of small businesses, who can buy premises through their pension funds. A SIPP can borrow up to a maximum of 50% of the net fund value, for example to purchase company premises for leaseback. This would help mitigate corporation tax through rent deductions and when the property is sold by the pension fund there will be no capital gains tax to pay.

Key features

  • Greater investment control
  • Income tax relief (and corporation tax and national insurance relief on company contributions)
  • Invest significant single or regular contribution
  • Transfer funds from previous underperforming pension arrangements
  • Wide choice of ethical investments
  • Purchase unquoted shares
  • Commercial property purchase
  • Borrow for property purchase
  • Flexible retirement options

For more information on how we can help in this area, please contact us.

SSAS

Small Self Administered Scheme (SSAS) offers business owners choice and flexibility while building a pension fund. Contributions paid to a SSAS are subject to the same rules as other registered pension schemes. This means there is no limit on the level of member contributions but tax relief is restricted to the higher of £3,600 or 100% of UK earnings. Contributions made by the employer are also unlimited.

With effective planning, you can make your SSAS work for your business, whilst simultaneously building a substantial pension fund to benefit yourself and your family in retirement. For example, the pension fund may be used to own your company premises for leaseback or in tough economic times the pension fund can be used to finance your business.

Key features

  • There must be fewer than 12 members
  • Greater investment control
  • Income tax relief (and corporation tax and national insurance relief on company contributions)
  • Invest significant single or regular contribution
  • Transfer funds from previous underperforming pension arrangements
  • Purchase unquoted shares
  • Commercial property purchase
  • Borrow for property purchase
  • Loans to the company
  • Flexible retirement options

For more information on how we can help in this area, please contact us.


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