Tax Benefits of a SSAS Pension
A SSAS provides exceptional tax efficiency - six distinct advantages built into the pension structure from day one.
Six Tax Advantages at a Glance
Each of the following advantages applies to all SSAS schemes registered under Part 4 of the Finance Act 2004. Tax treatment depends on individual circumstances and rules may change.
25%
Corporation Tax Relief
On employer contributions
0%
CGT on Investments
All gains sheltered in pension wrapper
0%
Income Tax on Rent
Rental income exempt within SSAS
£60,000
Annual Allowance
Per individual, tax year 2026/27
3 Years
Carry Forward
Unused allowance from prior years
Changing
IHT on Pension Pot
Outside estate until April 2027; IHT applies thereafter
The Six Tax Advantages Explained
Each advantage applies to all SSAS schemes registered under Part 4 of the Finance Act 2004. Tax treatment depends on individual circumstances and rules may change.
Corporation Tax Relief
Employer contributions are an allowable business expense. At 25% Corporation Tax, a £50,000 contribution costs the company only £37,500.
Income Tax Relief
Director contributions receive tax relief at the marginal rate. Higher rate taxpayers claim further relief via self-assessment.
CGT Exemption
All investments inside the SSAS - including commercial property and quoted shares - are exempt from Capital Gains Tax on disposal.
Tax-Free Rental Income
Rental income from commercial property held in the SSAS is received free of Income Tax within the scheme.
Annual Allowance & Carry Forward
£60,000 annual allowance in 2026/27, with the ability to carry forward unused allowance from the prior three tax years for large one-off contributions.
Inheritance Tax Advantages
Pension funds held in a SSAS generally fall outside the estate for Inheritance Tax purposes, subject to discretionary trust rules and beneficiary nominations. Note: from 6 April 2027, unused pension funds become subject to Inheritance Tax under legislated changes.
Corporation Tax Relief - Worked Example
Employer contributions to a SSAS are treated as an allowable business expense under Section 196 of the Finance Act 2004, subject to HMRC's ‘wholly and exclusively’ test.
Example: £50,000 Employer Contribution
CGT Exemption - Worked Example
Property Sale Inside the SSAS
Held outside a pension: potential CGT of £45,000-£60,000 at 18-24% rates.
Inside the SSAS: the entire £250,000 gain is sheltered within the pension wrapper - zero CGT payable.
Annual Allowance and Carry Forward
The standard Annual Allowance for pension contributions is £60,000 per individual in 2026/27. Unused Annual Allowance from the previous three tax years can be carried forward, allowing larger one-off contributions in profitable years.
For directors, coordinating the timing of employer contributions with the company's financial year can maximise tax efficiency - particularly in years with exceptional profits.
Inheritance Tax Advantages
Pension funds held in a SSAS are generally outside the estate for Inheritance Tax until 6 April 2027; from 6 April 2027, unused pension funds become subject to Inheritance Tax under legislated changes. Subject to discretionary trust rules and the nomination of beneficiaries, this has made the SSAS a powerful IHT planning tool alongside its primary function as a pension.
Until April 2027, the pension pot passes to nominated beneficiaries through the trust structure outside the probate process and outside the estate for IHT. Directors considering this advantage should take early advice given the forthcoming legislative change.
IHT Changes from April 2027
How it works
From introduction to fee paid — a simple 5-step process.
You make the introduction
Register, then send them your link or ask them to get in touch. Takes a couple of minutes.
We have the conversation
One of our consultants speaks to them within 1 business day. You do not need to explain how any of it works.
The scheme is set up
If it suits them, TLPI handles the set-up and the HMRC registration.
You get paid
£500 when their scheme is registered with HMRC. You send us an invoice and we pay within 14 business days.
They get the benefit
They end up with a pension their company can pay into, that can hold their business premises.
You make the introduction
Register, then send them your link or ask them to get in touch. Takes a couple of minutes.
We have the conversation
One of our consultants speaks to them within 1 business day. You do not need to explain how any of it works.
The scheme is set up
If it suits them, TLPI handles the set-up and the HMRC registration.
You get paid
£500 when their scheme is registered with HMRC. You send us an invoice and we pay within 14 business days.
They get the benefit
They end up with a pension their company can pay into, that can hold their business premises.
Know a company director who should see this?
Register to refer them. You make the introduction - we have the conversation.
Register to refer