How to set up a SSAS
Before setting up a Small Self-Administered Scheme (SSAS), it is important to consider the following:
- Eligibility: Ensure that you or your client is eligible to set up a SSAS. There must be an active, trading limited company
- Trusteeship: SSAS pension funds require at least two trustees, one to be the Professional Trustee. The scheme members will also be Trustees, and must be over the age of 18 and have the mental capacity to manage the fund.
- Compliance: The SSAS must comply with various tax rules and pension guidelines such as the Pensions Act, HMRC regulations, and, in the case of some self investments, the Financial Conduct Authority (FCA) handbook. It is important that as a Member Trustee of a SSAS, you are aware of and comply with these regulations- please see our document ‘Roles and Responsibilities of Member Trustees’ for more information.
- Investment strategy: Our Trustees must have a clear investment strategy for the SSAS, subject to regular review with chosen professionals (such as accountants and advisers) so that these objectives adequately meet long-term plans.
- Costs: Finally, a Member Trustee needs to be aware of the costs associated with setting up and managing a SSAS pension fund. These can include trustee fees, investment management fees, and legal costs.
