Small Self-Administered Scheme (SSAS)
A bespoke occupational pension for business owners offering maximum control. A SSAS can lend back to your company, hold commercial property, and invest in a wider range of assets.
By Omair SaoLast reviewed — rates for the 2026/27 tax year. See how we check our figures.
How It Works
A SSAS is a trust-based occupational pension set up by a company for directors. The company makes tax-deductible contributions. Trustees control investments. Up to 50% of the fund can be lent back to the company at commercial rates. The scheme can purchase commercial property which the company rents.
Tax Treatment
Same tax treatment as other registered pensions. Contributions receive corporation tax relief. Growth is tax-free. 25% tax-free lump sum from age 55 (57 from 6 April 2028). Unique ability to lend back and hold commercial property.
Tax Advantages
- Corporation tax relief on employer contributions
- Tax-free investment growth
- Loanback facility — borrow from your own pension
- Purchase commercial property — rent goes into pension tax-free
- No employer NI on contributions
Who Is This Suitable For?
Business owners wanting maximum pension investment control, particularly those who want to purchase commercial property or lend money back to their company.
Worked Example: Lending half of a £200,000 SSAS back to the company
- 1After several years of employer contributions the SSAS holds £200,000.
- 2The trustees lend the company 50% of net assets — £100,000 — secured by a first charge over an asset, at a rate at least 1% above the average base rate of the main high street banks.
- 3The loan must be repaid in equal annual instalments of capital and interest over no more than five years: £20,000 of capital a year plus interest.
- 4At an assumed 6%, year-one interest is £6,000: a deductible company expense that arrives in the pension free of tax.
Result: The SSAS turns pension money into working capital for the business, at the price of strict HMRC conditions and real trustee responsibility.
Illustrative figures using the 2026/27 rules on this page, last checked on 25 September 2026.
Advantages and Drawbacks
Advantages
- The loanback facility has no equivalent in a SIPP, and the interest benefits your own pension rather than a bank.
- Members' funds can be pooled to buy the company's trading premises, with the rent growing inside the pension untaxed.
- Employer contributions receive the same corporation tax and NI treatment as any company pension contribution.
Drawbacks
- Breaching any loan condition — security, rate, term, amount or repayment schedule — makes the loan an unauthorised payment with heavy tax charges.
- Setup typically costs £2,000 to £5,000, with annual fees of £1,000 to £3,000, so small pots are not economic.
- If the company fails, the loan may be irrecoverable and the security has to be enforced against your own business.
Notes for Limited Company Owners
A SSAS is sponsored by your company and must be registered with HMRC, with up to 11 members who are typically directors and family, each usually acting as a trustee responsible for compliance. Take professional administration seriously, because HMRC scrutinises scheme loans closely.
Common Mistakes
- Using the loan to plug a cash crisis without a realistic repayment plan; missed instalments are an unauthorised payment.
- Securing the loan on an asset worth less than the loan, which fails the first-charge test from day one.
- Letting the company occupy SSAS-owned property rent-free or below market rent.
Who Should Avoid It
Anyone who wants a simple, low-cost pension or has no genuine use for loanback or a premises purchase; a SIPP does the same job for less effort.
Official Sources
The rules on this page come from the following official pages and were checked on 25 September 2026. Read how we check our figures.
Related Calculators
Frequently Asked Questions
SSAS vs SIPP?
A SSAS is linked to a company and offers loanback and pooled investments. A SIPP is personal. The key SSAS advantage is lending to your company and buying commercial property with pooled funds.
How does loanback work?
Up to 50% of net assets can be lent to the employer at commercial rates, secured against a first charge on an asset, repaid within 5 years.
Is it expensive?
Setup costs are £2,000-£5,000 with annual fees of £1,000-£3,000. Justified for significant pension assets or commercial property purchases.