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The Revival of Small Self Administered Schemes

A New Era for Commercial Property Investment

The recent announcement of the abolition of the lifetime pension allowance cap has sent ripples throughout the UK financial industry.

This groundbreaking change has rekindled interest in Small Self Administered Schemes (SSAS) as an attractive investment vehicle, particularly for those looking to invest in commercial property. With the newfound flexibility that comes with this legislative change, SSAS pension schemes offer renewed benefits for investors looking to grow their retirement savings.

What is a Small Self Administered Scheme?

A Small Self Administered Scheme (SSAS) is a type of UK pension scheme specifically designed for small and medium-sized businesses. It allows company directors and employees to pool their pension funds and invest them collectively in a broad range of assets, including commercial property. Unlike other pension schemes, SSAS offers greater control and flexibility in investment choices, making it an ideal choice for those seeking to diversify their retirement portfolios.

The Lifetime Allowance Cap Abolition: A Game Changer

The lifetime allowance cap, which limited the total amount of pension savings an individual could accumulate before facing additional tax charges, had previously hampered the growth potential of SSAS investments. However, the government's recent decision to abolish this cap has removed this barrier, giving investors greater freedom to pursue more ambitious investment strategies.

Renewed Benefits of SSAS in Commercial Property Investment

With the abolition of the lifetime pension allowance cap, the benefits of using a Small Self Administered Scheme (SSAS) to invest in commercial property have become even more attractive. These benefits include:

  1. Enhanced Growth Potential: SSAS investors can now accumulate larger pension savings without worrying about additional tax charges, allowing for more aggressive commercial property investments and potentially higher returns.

  2. Tax Efficiency: SSAS investments in commercial property remain tax-efficient, with rental income exempt from income tax and capital gains from property sales free from capital gains tax. The removal of the cap enables investors to fully capitalise on these tax benefits.

  3. Increased Borrowing Power: SSAS schemes can borrow up to 50% of their net asset value to finance commercial property investments. With the cap removed, SSAS investors have access to greater borrowing power, which can help them secure larger or more lucrative investment opportunities.

  4. Improved Cash Flow: SSAS schemes can lease commercial properties back to the sponsoring company, generating rental income that can be used to cover the pension scheme's costs and investment expenses. The abolition of the cap allows for larger investments, potentially resulting in higher rental income.

Please note that the information provided is for educational purposes only and should not be considered as financial advice.

For more detailed and bespoke information and advice about how you could personally take advantage of the new opportunities that have arisen in the light of the lifetime pension allowance cap being abolished, contact us to arrange a free consultation.


A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless plan has a protected pension age).

The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time you take your benefits.

The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change in the future.

You should seek advice to understand your options at retirement.

Ancojada Limited trading as Ancojada Group is not authorised or regulated to provide financial advice.

All financial advice is provided by other regulated businesses.

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