Small Self Administered Pension Schemes (SSAPS)
A Small Self Administered Pension Scheme (SSAPS) is an approved company sponsored pension arrangement where the member trustee decides how the funds are invested. Usually the investments are made outside of insurance companies.
Who can invest in an SSAP?
The vast majority of SSAPS are established in respect of company directors and key employees. By establishing an SSAPS the member retains control of the funds and investment decisions in his/her own scheme. The Revenue Commissioners require that a Pensioneer Trustee, such as Newcourt Pensioneer Trustees, be appointed to operate such schemes.
Investment choice, control and flexibility
As with all our self-invested products, funds can be spread between a wide range of allowable investments including:
- Direct share dealing facilities through a nominee stock broking account/online platform
- Direct property and syndicated investments
- Bank deposit accounts
- Structured products such as tracker bonds
- Institutional funds including many leading external investment managers
- A variety of collective investment schemes including unit trust arrangements
Introduced in the Finance Act 2004, a SSAP is able to borrow for the purchase of property assets. The level of allowable borrowing is determined by the lender based on normal commercial criteria. The Revenue Commissioners have however imposed certain restrictions on the term and type of loans which are allowable. Where a property is purchased into a SSAPS using borrowings the repayments may be met by rental income and future pension contributions.
Significant tax advantages
Pension contributions paid into a SSAP are deductible against corporation tax for the company and against income tax for the member. As these are pension trusts all rental income and other investment income from investments in the Republic of Ireland are exempt from Income Tax and exempt from Capital Gains Tax. Similar exemptions apply to property investments in the U.K.
Newcourt administration and charges
Newcourt take the hassle out of the necessary administration associated with an SSAP. We provide a complete trustee package covering all aspects of scheme administration as outlined under current Revenue legislation.