For many business owners in the UK, investment decisions often boil down to one question: “How do I fund it?” Whether it is buying a commercial property, acquiring another business, or investing in growth, the first instinct is to call the bank. But what if there were a way to fund these big moves without taking out a traditional loan?
Enter the SSAS Pension Scheme — a quiet powerhouse that allows company directors to tap into their retirement funds now to support business ambitions, all while keeping tax efficiency on their side.
And for UKPA companies helping clients navigate payroll, tax, or compliance, understanding the ins and outs of SSAS could unlock serious value — for your clients, and for your own business.
What Is an SSAS Pension Scheme, and Why Should You Care?
A Small Self-Administered Scheme (SSAS) is a type of occupational pension trust. It is designed mainly for company directors and senior employees of limited companies. Unlike traditional pensions that are largely tied up in the hands of fund managers, an SSAS puts you in the driver’s seat.
Set up properly, it allows up to 11 members (typically directors or family members working in the business) to pool their pension pots and decide how the funds are invested. That includes shares, commercial property — and crucially, loans back to the business.
So instead of going cap-in-hand to a bank, directors can effectively be their own lender by borrowing from their SSAS.
How Does It Work?
Here is the gist:
· You set up an SSAS through a specialist provider and register it with HMRC.
· Members (typically directors) transfer existing pensions into the SSAS.
· The SSAS builds up a pot, which can then be used to either invest or lend.
· The company can borrow up to 50% of the SSAS’s total value, secured against an asset and paid back with interest.
That means if your SSAS is worth £400,000, your business could borrow up to £200,000 from it. The loan must be secured (often against commercial property), repaid in equal instalments over a maximum of five years, and charged interest at a commercial rate (typically 1% above base).
It is not free money — but it is your money, working for your business.
What Can You Use It For?
SSAS pensions are particularly popular for:
· Buying commercial property (like an office, warehouse, or factory), which the business can then lease back from the pension.
· Lending funds to the company to support expansion, equipment purchases, or acquisition deals.
· Making unlisted share investments in other companies (if aligned with the SSAS rules).
· Pooling family wealth: SSAS schemes allow multiple family members to build up and control a combined pension fund.
The beauty lies in flexibility — something that is sorely missing from many mainstream pension plans.
Tax Advantages That Make a Difference
SSAS pensions come with a host of tax benefits:
· Contributions are tax-deductible for the company (up to annual limits), reducing Corporation Tax.
· Growth inside the pension is tax-free — no Capital Gains Tax on property appreciation or dividends.
· When the SSAS owns commercial property, rent paid by the business goes into the pension tax-free.
· Loans made to the business are paid back with interest, helping the fund grow faster.
In essence, you are moving money from one pocket to another — but doing so in a way that keeps HMRC happy and builds long-term value.
The Catch? You Need to Do It Right
An SSAS is not a DIY pension. It requires careful setup, ongoing administration, and strict compliance with HMRC rules. This is where many companies trip up — and where UKPA firms can really shine.
If a loan is made on the wrong terms, or if an investment strays into prohibited territory (like residential property or personal assets), the tax penalties can be harsh.
That is why having expert support — from accountants, financial advisers, and specialist pension administrators — is not optional.
Why This Matters for UKPA Companies
If you are a UKPA-registered firm offering payroll, tax, bookkeeping or advisory services, you already have the trust of your clients. You know their businesses. You have visibility over their cash flow and long-term goals.
Helping them explore and properly manage an SSAS pension is a natural extension of that support — and an opportunity to stand out in a crowded market.
You could:
· Introduce them to qualified SSAS providers
· Help calculate tax-deductible contributions
· Manage rent payments or loan repayments via payroll
· Ensure proper accounting and documentation of all SSAS transactions
· Offer ongoing compliance support to prevent mistakes
Not only does this deepen your relationship with clients, but it also positions your firm as a forward-thinking adviser — not just a service provider.
Final Thoughts
In today’s economic climate, access to capital is getting tougher. Interest rates are still high, and traditional lenders are tightening up. Yet sitting inside thousands of pension pots across the UK is capital that could be working harder — if only business owners knew how to unlock it.
The SSAS Pension Scheme offers a smart, tax-efficient way to do exactly that. It is not for everyone, and it needs to be managed carefully. But for the right business, it can be the key to funding growth, buying property, or simply gaining more control over long-term wealth and aml identity verification.
For UKPA companies helping clients plan for the future while managing today’s numbers, there is no better time to talk about SSAS. It is time to dig beneath the surface, because the funds your clients need might already be sitting in their pensions.
