SSAS/SSIPs Pensions....

helen.somers · 18 November 2009 at 2:43PM

Hi,

I have a chance to setup a SSAS with 3 other members to purchase a commercial property and to receive the rental income from it. We will all be transferring our current pensions into the SSAS to pay for the initial property along with a small loan.

I was wondering whether anyone can confirm that SSAS rules prohibit transfer of the accrued rental income out of the SSAS to individual pensions on a regular basis, obviously divided up according to the percentages invested by each member in the first place? Is this possible? Really looking to prevent one member deciding they want to retire/transfer their entire portion of the SSAS, the others having to use the non-property part of the fund to buy them out, and the remaining members then being left with just the property that may or may not be worth anything, if that makes sense?!!

Thanks for any knowledge you have,
Helen
:rolleyes:

helen.somers · 21 November 2009 at 7:27PM

Thanks Peter.

The idea of a SSAS still makes some of us feel uneasy so another option being looked at is that each member has their own SIPP that part owns the property and receives their portion of the rental income.

With this in mind, I have the following questions:

1) If I went down the SIPP route, am I right in thinking the only real differences with a SSAS are the slightly higher administration charges and the fact that you cannot loan back to the company?

2) With 4 by individual SIPPs, would we still need a shareholders style agreement as far as buying the property goes?

3) If I went down the SIPP route, would there be any reason to keep my existing personal pension going as well. That is, carrying on paying my existing contributions into the personal pension (I do salary sacrifice so some of my contribution is made direct by my employer) and keeping the SIPP for the property and rental income only. From what I've read I'm thinking that I would probably be better off (fee wise, and investment option wise) combining everything into the SIPP?

4) Am I right in thinking that the Protected Rights part of my Personal Pension (I have since contracted back in) can now be paid into a SIPP (but still can't be paid into a SSAS)? And that there is no need to treat this bit of my pension differently. That is, it can be invested in anything the SSIP allows?

Thanks in advance to anyone who can confirm or otherwise my understanding!!
Helen
:rolleyes:

SSAS/SSIPs Pensions....

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