SSAS Pensions are an effective mechanism for business owners to tax efficiently invest for their retirement. A major advantage of SSAS pensions for business owners is the SSAS pensions ability to interact with their business interests. Whilst SSAS pensions providing business funding is nothing new, it has historically been in a niche market. The current business banking climate has made the benefits of utilising SSAS pensions more attractive to business owners as a SSAS pensions investment options can reduce a business’s reliance upon the banks.
Business owners with SSAS pensions will be aware of the two main business interactions SSAS pensions can provide, the purchase of commercial property and the ability to loan funds to a business. However, SSAS pensions rules extend to enable SSAS pensions trustees to invest in intangible assets. Intangible assets include intellectual property which the majority of business will own, but may not have previously valued. SSAS pensions can allow investment in intellectual property such as trademarks, domain names, copyrights and patents.
The benefit of SSAS pensions utilising intellectual property as an investment mechanism is that the investment structure is different from that of a SSAS pensions loan. The intellectual property is owned by the scheme and for the right company; this can offer significant tax planning opportunities, whilst providing a vital injection of working capital.
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