Cash Flow — Releasing Funds Through a SSAS Property Purchase

Karl and Samantha wanted to buy a holiday apartment without taking on debt. A SSAS allowed them to sell a commercial garage to their pension scheme, releasing £150,000 in cash while keeping the asset in a tax-efficient environment.

Cash Flow — Releasing Funds Through a SSAS Property Purchase

Karl, a vet, and his wife Samantha hoped to purchase an apartment in Spain without borrowing. Their adviser demonstrated how a SSAS could purchase the commercial garage Karl owned, releasing the cash they needed while keeping the asset in a tax-efficient wrapper.

Karl owned several assets, including a commercial garage he rented to his daughter’s business. With Scottish Widows pensions totalling £310,000 for Karl and £125,000 for Samantha, their adviser Trevor showed them how a SSAS could meet multiple objectives.

By transferring their pensions into a SSAS and selling the garage to the scheme, they were able to:

• Release £150,000 in cash to purchase the Spanish apartment
• Move the garage into a tax-free pension environment
• Avoid capital gains tax on future growth
• Receive rental income into the SSAS
• Continue investing surplus funds through the scheme

This approach allowed Karl and Samantha to secure their holiday home without borrowing and optimise their retirement planning.