SSAS Pension: Business Exit Strategies: How a SSAS Pension Can Help
Using SSAS as part of a business exit strategy is extremely helpful and here’s why…
What is a SSAS Pension Scheme?
SSAS is established by a Limited Company, and always for the Directors of that Limited Company, so over the years it can become an integral part of your long-term business strategy.
The SSAS should be one of the primary ways that you have been taking money out of your Limited Company in a highly tax efficient manner, by making contributions for yourself and possibly for your fellow Directors as well.
This helps reduce the corporation tax you’re paying on an annual basis and would be seen as a prudent and sensible business strategy, particularly by those looking to buy your business, as it demonstrates that you are running your business in a tax efficient manner.
SSAS and Your Business Exit Strategy
SSAS should have been a way that you built up long term wealth to support your business exit goals, hopefully in addition to the very large cheque somebody’s going to give you for your business.
When people are looking to exit their business, they often look at the assets on the balance sheet, especially the commercial property. If you’ve had commercial property on the balance sheet for a while, you may want to have a chat with us and your accountant.
Book a call to speak with a member of our SSAS practitioner team.
Adding Commercial Property to SSAS: The Benefits
A SSAS acquiring commercial property is always a very good move for a number of tax reasons:
It Takes Property Off the Balance Sheet: one of the biggest benefits of moving your commercial property portfolio into a SSAS is that it removes these properties from the balance sheet, protecting your property assets from creditors.
It Puts Your Property into a Low Tax Environment: when properties are held within SSAS, the rent coming in would be gross low income tax with no capital gains tax and no inheritance tax to pay until 2027.
You Can Retain Property Ownership: If you’ve put the property into the SSAS, there’s a good chance that your buyers may wish to rent the commercial premises from you. This allows you to keep hold of the property’s ownership and enjoy a steady income into your SSAS and a reliable retirement income.
Learn more about SSAS and property.
Start Planning Your Business Exit Strategy Early
In our experience, most business sales can take up to three years before they come to fruition and there can be a lot of legal back and forth. Therefore, if you are thinking about selling your business, it’s good to start planning this sale at least three to five years ahead of when you want to do it.
Come and talk to us at One Crown Pensions. Together we can start planning your business exit strategy and discuss how SSAS could help you. Book a call to speak with a member of our SSAS provider team today.
