Case Studies

Posted on 23rd September by Graham Laverick

A SSAS Case Study: Mr & Mrs Smith Family Printers

Are you thinking about implementing a SSAS in your business and want to know more about how it could benefit you.

We’ve helped many business owners make the most of their future by putting a SSAS in place for their company. This case study will give you an idea of how a SSAS can work for a business and the financial rewards that can be generated.


Mr & Mrs Smith are both 40 years old and own a family business. The business owns a commercial property that it purchased outright 2 years ago. The company makes an annual net profit of £70,000 after the owners take their salary, which is usually taken in dividends and put into various savings accounts for their retirement.

The Plan

Mr & Mrs Smith set up a SSAS and transferred their commercial property into the scheme, paying a commercial rent of £8,000 for the property into the pension fund. They also decided to each make a £20,000 cash contribution into the scheme each year and to invest the pension fund in a relatively low risk product.

What were the results?

The realistic financial projection for Mr & Mrs Smith’s SSAS pension scheme over 15 years was impressive.

With a SSAS, the couple will:

  • Contribute a total of £48k per annum

  • Produce a total fund of almost £1.3 million

  • Protect all the assets from any financial threat in the future

  • Have the flexibility and control to change the investment strategy in the future

  • Comply with their Auto Enrolment obligations

  • Protect their commercial property from Capital Gains Tax if and when they decide to sell

  • Create a robust source of funding should their business require it in the future

How is all of this possible?

  1. Maximising contributions by making them form the company

Previously, pension contributions were made from the dividend taken and the Smiths therefore paid corporation and Dividend Tax on this amount. However, because contributions from a company into a SSAS on behalf of directors are allowable expenses, all of the Smiths contributions now go into their pension fund and no tax is deducted.

2. Transferring the property into the pension

Because the pension now owns the commercial property, the business has to pay a Market rent for use of it. This has the benefit of increasing the cash going into the pension pot and the company will less Corporation Tax because the rent is an allowable expense. In addition, the capital value of the property will be free of Capital Gains Tax as it is a pension and all assets in a pension grow tax free.

3. Being trustees of their own scheme

A SSAS is a trust based pension and has more investment options than any other scheme. Mr & Mrs Smith are both Members and Trustees of the Smith Pension and, as Trustees of the scheme, they decide how they invest funds in the scheme.

4. Have complied with their Auto Enrolment Obligations

Like many other business owners, Mr & Mrs Smith were unaware of the fact they would have to comply with new Auto Enrolment regulations to provide a pension scheme for their 6 employees. Prismatic Wealth have organised a no cost (other than contributions) solution for the Smith’s and taken compliance and regulatory issues.

5. Protected their Assets

Because the SSAS is a trust, all assets in it are protected. This means that should the business run into financial difficulty, all assets in the fund would be safe from creditors and their retirement fund would still be safe.

6. Create a robust source of funding

With a SSAS the trustees can lend up to a 50% of the available fund back to their business so, should their business, buy new commercial property or equipment, or free up some cash to help with a cash flow problem they now have a secure source of funding. This is a far more attractive option than any other type of fund as a) you know the funding will be granted b) although you do have to pay interest, it is paid to yourself so the money is not lost.

The Future

Mr & Mrs Smith can now look forward to a comfortable retirement with confidence.

They will have access to ongoing support from Prismatic Wealth and an annual review to make any amendments necessary to keep their plan on track.


In this instance, a SSAS was by far the best option for Mr & Mrs Smith as it maximised their contributions, optimised their Tax Situation, and brought a number of other benefits.


For more information, please call our offices on 01642 661600 or email us at