A professional services director used a SSAS to consolidate scattered pensions and provide short-term business finance.
Key Numbers
£380,000
Pension pots consolidated
£120,000
Loan-back to company
BoE Base Rate + 1%
Loan interest rate
~£31,250
Corporation tax relief in year 1
5 years
Loan repayment term
The Challenge
The directors had accumulated pension savings across several previous employer schemes, totalling approximately £380,000. They also needed £120,000 to fund a new office fit-out without taking on external debt at commercial rates.
Our Approach
TLPI established a SSAS and managed the transfer of all legacy pension pots. Once the transfers were complete, the SSAS held £380,000 in a single, trustee-controlled scheme. The SSAS then made a loan-back of £120,000 to the company at Bank of England Base Rate + 1%, secured on company assets, to fund the office fit-out.
The Outcome
The directors have consolidated control over their pension investments. The loan-back repayments (capital + interest) accrue within the pension scheme. Corporation tax relief on employer contributions to the SSAS reduced the company's tax bill by approximately £31,250 in the first year.
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