Rowanmoor Sipp sales up 70% against 2011 in Q2
Reluctance of banks to lend is making more company directors take advantage of small self-administered schemes, company claims.
Rowanmoor Pensions has revealed that sales of self-invested personal pension schemes rose 70 per cent in the three months to June 2012 compared to the same period in 2011.
Additionally, sales of small self-administered schemes for the firm were up 53 per cent year on year for the three months to June.
The company claims these figures reflect a larger industry trend of increasing popularity in Ssas as the most suitable pension scheme for company directors.
Ssas are able to lend money to the sponsoring employer and associated companies, provided the loan is secured on assets of equivalent value on fully commercial terms. This means a company director can use money from the Ssas to invest in their business.
Ian Hammond, managing director of Rowanmoor Pensions, said: “With banks remaining cautious in their willingness to lend money, businesses have to do all they can to make their capital work harder for them, which is where the Ssas can really prove its worth.
“It is important to emphasise that the crucial role of being the registered scheme administrator for the Ssas should be undertaken by the chosen Ssas provider and not left to the sponsoring employer or member trustees.
“There are significant financial repercussions for the members if HMRC rules are overlooked.”