SSAS – A solution to a business succession problem

Two directors with different goals

A long established engineering Company client of ours traded from premises that were owned personally by two directors.  Each director held a small number of insured Personal Pension Plans. Director A wanted to set a firm date for his retirement.  Director B wanted to remain in service and continue to drive the Company forward for many years.

Each Director owned 50% of the Company’s trading premises.  Director A wanted to dispose of his property investment and use the cash generated to boost his retirement capital.  Continuing Director B lacked adequate capital resources to make the purchase – and whilst the Company could have made the acquisition, the bank were reluctant to lend. We immediately considered a SSAS as a potential solution.

The solution was a SSAS

A SSAS became the solution to the problem.  Director B moved his existing pension plans into the SSAS and, using both these realised funds and a wholly allowable contribution from the Company, the SSAS Trustees purchased the retiring Director’s ownership of the trading premises.

Following this initiative, Director B later sold his interests in the Company’s premises to the SSAS trustees.

The outcome

The result of these actions was to secure the tenure of the trading premises for the Company, satisfy the retiring Director’s need for retirement capital and to subsequently release personal capital for continuing Director B to meet his personal objectives.

At PML we aim to deliver excellence in self administered pension schemes. If you would like to see what we can do for you, please contact us for an initial, no commitment, chat.

 

  • SSAS and Legal Entity IdentifiersWhat are Legal Entity Identifiers and Does Your SSAS Need One? From 3rd January 2018 it will be a requirement for legal entities and structures to obtain a reference called a Legal Entity Identifier (LEI) from the London Stock Exchange in order for the trustees of a SSAS to carry on investing. This» Read More
  • Mr D.B.PML always puts my interests first. Being a fairly cynical type, I have not always found it easy to be convinced that the pension adviser I am talking to for advice and guidance is genuinely prepared to put my interests before his own potential earnings from commission!
  • How we work closely with Financial Advisers (Part 2)A Financial Adviser had a client with insured pension arrangements of various amounts, including an arrangement with guaranteed annuity rates. The client wished to use his pension arrangements to purchase a commercial property that was owned by the sponsoring employer. Not surprisingly the Financial Adviser did not want to lose the» Read More