The new pension scheme rules have had some beneficial effects for clients who want to operate a SSAS. HMRC insisted on actuarial reports every three years and so you needed to appoint an actuary. Pension simplification has removed this requirement meaning a SSAS scheme does not require an actuary and should now be less costly and onerous to run.

The investments are almost identical with the main exception being that the SSAS can lend up to 50% of its value back to the sponsoring employer for a business purpose of that company. This loan has to be on a commercial basis at a specified interest rate, effectively 1% over bank base rate. The loan is secured by the pension scheme with a first charge over an asset of equal value to the total loan and interest, and is for a maximum 5-year period. The loan repayments must be by capital and interest.

Contributions made by an employer to a SSAS are set against the profit and loss of a company to obtain a reduction in the corporation tax bill.

Individual contributions paid are on the net pay basis so that they come from your gross salary before the deduction of income tax.