Business First May-June 2017 Business First May 2017 | Page 15

MOREINFORMATION
What is a SSAS?
Over the same time period, its client base
has risen from just over 120 schemes to more
than 300, including some of Northern
Ireland’s best­known companies, business
men and women and high net worth
individuals.
This period of major growth was boosted by
the firm’s move to its current offices.
However, Allison explained SSAS Solutions
had already been on the growth trajectory:
“When we set up SSAS Solutions, there were
only two of us working full­time on the
business so we operated from a small rented
office space.
“This suited our needs at the time but it
proved an inefficient way to spend company
cash as rent ate into our profits, and such was
the pace of growth, we quickly outgrew the
office.
“Our medium­term objective had been to
purchase a property from which the business
could operate and grow, but this soon became
a short­term goal, due to the demand for our
product.
“Our office accommodation at the time was
inhibiting further expansion as we were
unable to recruit and storage was also
becoming an issue.
“We then used our own product – a SSAS –
and by a combination of utilising accrued
pension funds and new company pension
contributions, we were able to purchase our
own business premises.
“The premises are owned by the pension
trust and leased back to SSAS Solutions.”
Tax shelter
The arrangement means that Allison and
Michael now own their business premises but
have acquired them with the help of tax relief
and as a result of the many tax advantages of
the SSAS.
The pension pot continues to grow as it
accumulates rent tax­free from the leasing of
the building back to SSAS Solutions ­ which
also enjoys a tax deduction for the rent.
As Michael explained, the strategy adopted
is representative of the planning and advice
offered to SSAS Solutions clients:
“Clients come to us because they want to
grow their business and are seeking efficient
ways to do so while sheltering their profits
from tax, and that is exactly what we have
done with our own business.
“There are numerous investment
opportunities which become available by
setting up a SSAS but the most common are to
purchase commercial property or to secure a
loan back to the sponsoring company.
“It is not by chance that the purchase by the
pension trust of our own property coincided
with the beginning of a period of rapid growth
for SSAS Solutions which has continued to the
present day.
“Our SSAS has been successful because the
rent paid by the tenant (SSAS Solutions) is
equivalent to an 8 per cent yield which
produces a steady investment return for the
pension fund.”
Bespoke
The scheme, and others set up by SSAS
Solutions, has been particularly effective
because it was tailored to the specific needs of
Allison an