How Business Owners Can Use a SSAS Pension to Fund Growth
What is a SSAS Pension and Why Should Business Owners Care?
If you own a business and aren’t leveraging a Small Self-Administered Scheme (SSAS) pension, you could be missing out on one of the most powerful tools for tax efficiency and business growth. A SSAS isn’t just another pension—it’s a multi-functional investment vehicle that lets business owners build wealth while simultaneously funding their company’s expansion.
Let’s break down how a SSAS can be used to grow your business, tax-free and legally, of course.
1. Use Your Pension to Lend Money to Your Business
One of the biggest SSAS advantages? You can loan up to 50% of your pension value back to your own company. This is known as a SSAS loanback.
Example: If your SSAS has £200,000, your business could borrow up to £100,000 from the pension, at commercial loan terms.
Rules to Follow:
The loan must be secured against a company asset (e.g., property or equipment).
It must be repaid within five years.
Interest rates must be commercially reasonable.
Why This Is Powerful: Instead of borrowing from a bank (with their painful interest rates), you’re borrowing from yourself—keeping the money within your business ecosystem.
2. Buy Commercial Property Through Your SSAS
A SSAS can buy commercial property, lease it to your business, and collect rent—all in a tax-efficient way.
How It Works:
The SSAS purchases a commercial property.
Your business rents the property from the SSAS.
The rent paid goes straight back into the pension—growing your retirement pot tax-free.
Win-Win: Your business gets premises, your pension fund grows, and you sidestep corporation tax on rental income. And because the rent isn’t classed as a pension contribution, the rent isn’t restricted by the annual allowance limit.
3. Invest in a Wide Range of Assets (Beyond Just Stocks & Shares)
Unlike standard pensions, a SSAS lets you invest in a broader range of assets that can directly benefit your business.
Commercial property; Business loans (to yourself or others); Gold & alternative assets; Stocks, bonds & ETFs; Discretionary Fund Managers (DFM).
This flexibility makes a SSAS particularly attractive for business owners looking for investment diversification beyond traditional pensions.
Final Thoughts: Is a SSAS Right for You?
A SSAS isn’t for everyone—it requires careful management and compliance and can cost a few ££££ to set up. But for business owners looking to: Reduce tax liabilities; Fund business growth using pension assets ; Invest in property, loanbacks, and alternative assets …it could be one of the most powerful financial tools at your disposal.
p.s. not advice obvs!