As a business owner, using a SIPP (Self Invested Pension Plan) or a SSAS (Small Self Administered Scheme) can bring many advantages:
As they fall within the tax regime of pensions, any employer contributions work to reduce your corporation tax bill. Once the capital has been extracted from your business and into the pension, it is usually safeguarded from creditors, should you have any financial difficulties in the future.
However, SIPP’s and SSAS’s allow you much greater investment powers than a conventional Personal Pension Plan (PPP). SIPP and SSAS can invest in commercial property, hold shares in listed and unlisted companies and even in fine art and wine, should your tastes require!
If you have total pension funds of over £100,000, you may find that a low-cost SIPP is more cost-effective than your existing Personal Pensions.
To learn more about how a SIPP or SSAS could benefit you and your business, call us now on 0116 253 5600.
If your business operates out of a commercial premises, then purchasing it via your SIPP or SSAS can bring many tax benefits:
You will benefit from tax-relief from the contributions being made into the pension and the rental income will be received by the pension free of income tax. If you sell the property, there is also no Capital Gains Tax to pay. This represents a significant saving compared to owning the same property in your personal name. The SIPP or SSAS can even use bank borrowing to help pay for the property!
If you are a higher rate tax payer, then you will save significant income tax on the rental income if it is held with the SIPP or SSAS.
Small Self Administered Schemes have even more benefits, if used in the right circumstances. They work on the principle of occupational pension schemes, where there is one scheme with `pooled` assets for multiple members. This can be of great benefit for owners of businesses with several family members. A SSAS can also lend capital back to its sponsoring employer (subject to certain rules).
This is a highly complex area of financial planning. Bankfield’s Independent Financial Advisers are highly qualified in pensions, investments, trusts and taxation to help ensure you receive the very best and most up to date planning and advice.
To speak to a qualified adviser now, please call us on 0116 253 5600 or complete the enquiry form.
A pension is a long term investment. The investment value may fluctuate and can go down. Your eventual income may depend upon the size of the investment at retirement, future interest rates and tax legislation.
SSAS are regulated by the Pensions Regulator. Trust Planning and Tax Planning are not regulated by the Financial Conduct Authority. Tax treatment is based on individual circumstances and may be subject to change in the future.