Richard Mattison: Shoring up balance sheets via SSAS

SSAS business loans explained

clock • 2 min read

Why pay more than 10% interest per annum on a small business loan when you can borrow from your own pension scheme at 1.75% fixed for five years? That is the question posed by Richard Mattison

As Rishi Sunak tells us to prepare for Bank of England base rates to hit 2.5% in the next year, business owners would do well to explore the options available to shore up their company's balance sheets. One of the attractions of small self-administered pension schemes (SSAS), which are authorised by the senior pensions regulator (TPR) and whose rules are strictly enforced by HM Revenue & Customs (HMRC) is that they allow members to borrow from their own SSAS. One is allowed to borrow up to 50% of the value of the SSAS to invest in your own business and, better still, HMRC's rules stat...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Initial 900 SIPP clients transfer out of stricken Hartley Pensions

Initial 900 SIPP clients transfer out of stricken Hartley Pensions

Hartley went into administration in July 2022 over ‘toxic’ investments

Jenna Brown
clock 07 January 2025 • 1 min read
Overseas pension transfers: How recent rule changes impact recent and future advice

Overseas pension transfers: How recent rule changes impact recent and future advice

Daniel Bosiacki looks at recent rule changes that affect overseas pension transfer advice...

Daniel Bosiacki
clock 06 January 2025 • 3 min read
Exploring pensions outsourcing as a route to unlocking efficiencies

Exploring pensions outsourcing as a route to unlocking efficiencies

'Unlocks the potential for iterative improvement'

Julia Fintz
clock 24 December 2024 • 7 min read