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Let’s supercharge your business pension

Tony Byrne, managing director of Wealth & Tax Management, looks at a little-known scheme that is technical but ideal for the SME owner-manager.

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ARE YOU the owner-manager of a SME business? Successful, sitting on cash in your company bank account burning a hole in your pocket, bothered by the large increase in Corporation Tax from 19% to 25%, frustrated by not being able to pay enough into your pension scheme and your accountant not giving you any meaningful tax saving advice?

Well, worry no more. There is a solution for people like you. It’s technically known as a Defined Benefit Small Self-Administered Scheme, or DB SSAS for short.

What are the benefits of such a scheme?

  • Contribute between two and 3.6 times the annual allowance into a money purchase pension scheme (Defined Contribution scheme or DC for short);
  • Set up an unlimited number of SSAS;
  • Overcome the Money Purchase Annual Allowance contribution limit of £4,000;
  • Overcome the Tapered Annual Allowance contribution limit of as low as £4,000;
  • Buy commercial property – your office business premises, or example;
  • Invest in a shares portfolio;
  • Become your own bank by lending to your business for commercial purposes;
  • Corporation Tax relief on contributions;
  • Protection from creditors in the event of business failure;
  • Free of Inheritance Tax;
  • Tax-free growth until income is taken.

You may well not have heard of such a scheme nor has your accountant perhaps recommended it to you. That may be because most people have never heard of it and few pension providers offer DB SSAS.  Also, it is highly technical so few SSAS providers want to get involved in this area.  Moreover, few professionals such as accountants and even financial planners know about it.

A SSAS is ideal for SME business owner-managers, their spouses and staff.  You can have between one and 11 members of a scheme. It is in effect a super tax-efficient business trust and business tool with many benefits.

Find out more about supercharging your business pension at a one-hour Discovery Meeting either at our offices or by a video conference call at our expense worth £270 to each of the first three readers who contact us before December 31 2022. You know it makes sense. We offer a great cup of coffee too. Ring us on 01908 523740 or for free on 0800 980 4516 or email wealth@wealthandtax.co.uk.

The Financial Conduct Authority does not regulate taxation advice, inheritance tax planning or trusts. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments, and any income from them, can go down as well as up which would have an impact on the level of pension benefits available.  Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. You should seek advice to understand your options at retirement. This article is based on my own observations and opinions.


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