Tax Planning — Maximising Contributions Through a SSAS

Three co-directors wanted to invest more into their pensions. By using a SSAS, they were able to maximise unused allowances, purchase their trading premises, and significantly reduce their corporation tax bill.

Tax Planning — Maximising Contributions Through a SSAS

Joe, Sandra and Bill from ABC Limited wanted to strengthen their retirement planning after years of reinvesting profits. Their adviser Andrew showed them how a SSAS could unlock contribution allowances and purchase the company premises for long-term tax efficiency.

ABC Limited had strong cash reserves and owned its trading premises. With small pension pots totalling £248,000 and unused annual allowances stretching back three years, the directors were well positioned to benefit from SSAS planning.

Andrew recommended:

• Transferring all existing pensions into the SSAS
• Maximising unused allowances, contributing £432,000
• Building a combined SSAS value of £680,000
• Using the SSAS to purchase the company premises

This strategy delivered multiple benefits:

  1. Significant corporation tax savings

  2. Long-term capital growth free from capital gains tax

  3. Tax-deductible rental payments back into their pension

  4. Retention of large company cash reserves

  5. Continued control over their trading building

The directors were amazed at the efficiency and long-term value of the SSAS structure.

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New Beginnings — Buying a Business Premises Through a SSAS