Small Self Administered Scheme  

Ssas popularity soars as SMEs look for funds

Another risk is that to receive a loan, the scheme has to disinvest some of its assets or funds – a requirement that may prove testing given the ongoing volatility in asset prices.

Mr Tilley said: “While it may look like a good idea to get money into the business, if you are crystallising a 25 per cent loss in the pension, if markets go back up, and you miss that upturn, you could have cost yourself by taking the loan from the pension fund, rather than a bank.”

Timescales must also be considered. Whitehall Group’s Mr Mattison said delays in securing finance from banks had resulted in some clients turning to Ssas for loans.

But Stephen McPhillips, technical sales director at Dentons Pension Management, said structuring a Ssas loan can take longer than first thought.

Mr McPhillips said: “It can take time for HMRC to accept and register a new Ssas – and no money can be paid into the Ssas until HMRC does.”

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