SSAS Loanback Facility          Limited Company Directors: Difficulty Borrowing from the                                Ba...
SSAS Loanback FacilitySSAS Loanback Facility          Up to 50% of the SSAS fund can be lent to the                      ...
SSAS Loanback Facility                                What’s more the loan interest, which is anSSAS Loanback Facility   ...
Transfer of Protected Rights into your SSASSSAS Loanback Facility          Recent rule changes enabling SSAS to hold     ...
SSAS Loanback Facility          Chartwell & Lindley Trustees: part of The                                Lindley GroupDiff...
SSAS Loanback Facility                    We look forward to                                          hearing from youDiff...
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Ssas Loanbacks Limited Company Directors Powerpoint April 2012

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Limited Company Directors: Difficulty Borrowing from the Banks? Borrow up to 50% of the fund from your Pension!
An answer may lie in the SSAS loanback facility
Up to 50% of the SSAS fund can be lent to the sponsoring employer
Transfer of Protected Rights into your SSAS
The removal of Protected Rights benefits from this tax year will allow business owners to transfer funds into their SSAS pensions in order to increase funds to improve the borrowing capabilities for property purchase, as well as loanbacks for capital purchase

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Ssas Loanbacks Limited Company Directors Powerpoint April 2012

  1. 1. SSAS Loanback Facility Limited Company Directors: Difficulty Borrowing from the Banks? Borrow up to 50% of the fund from your Pension!Difficulty Borrowing from the In last year’s autumn statement the chancellorBanks? announced his intention to expand credit lending facilities for small businesses and this was confirmed withBorrow up to 50% of the fund the launch of the £20 billion National Loan Guaranteefrom your Pension! Scheme, aimed at small-to-medium-sized businesses with a turnover of less than £50 millionTransfer of Protected Rightsinto your SSAS However in 2012, there appears to be little appetite from the banks to take any further risk at this time, without very high levels of security, up front administrationChartwell Financial Services charges and interest rates that far exceed the Bank of England’s standpoint at this timeHow can we help? An answer may lie in the SSAS loanback facility
  2. 2. SSAS Loanback FacilitySSAS Loanback Facility Up to 50% of the SSAS fund can be lent to the sponsoring employer; a feature not available to SIPPsDifficulty Borrowing from theBanks? Business clients, whose banks are unwilling to lend, could borrow from their own pension pot by converting their existing personal pensions or SIPP’sBorrow up to 50% of the fund into a SSAS. A SSAS can lend a maximum of 50% of itsfrom your Pension! net assets, with interest rates of 1.5% or a maximum term of up to five years (there must be a minimumTransfer of Protected Rights rate of base rate plus 1%)into your SSAS Consider a situation where four company directorsChartwell Financial Services each have their own SIPP worth £500,000. If instead they had a SSAS, under which they are all members and trustees, having a total value of £2m, they couldHow can we help? make available a £1m loan to their company
  3. 3. SSAS Loanback Facility What’s more the loan interest, which is anSSAS Loanback Facility allowable business expense for tax purposes, is paid back into their own pension rather than to a bank.Difficulty Borrowing from the They could also choose to set a higher rate to give aBanks? better return on their investmentBorrow up to 50% of the fund There must be a first charge over an asset which isfrom your Pension! equal in value to the loan, plus interest. The loanback is only available for the company of director-owned businessesTransfer of Protected Rightsinto your SSAS Although an attraction of SSAS is that it can make a loanback to the sponsoring employer it must satisfyChartwell Financial Services the 5 key tests that must be met for the loan to be classed as an authorised payment, including; security, interest rates, term of loan, maximumHow can we help? amount of loan & repayment terms. Otherwise, an unauthorised payment charge may apply on the full value of the loan
  4. 4. Transfer of Protected Rights into your SSASSSAS Loanback Facility Recent rule changes enabling SSAS to hold Protected Rights has removed a previous barrier toDifficulty Borrowing from the some trustee member’s ability to benefit from theBanks? advantages of SSAS’s and creates new opportunities for themBorrow up to 50% of the fundfrom your Pension! The removal of Protected Rights benefits from this tax year will allow business owners to transfer funds into their SSAS pensions in order to increase funds toTransfer of Protected Rights improve the borrowing capabilities for propertyinto your SSAS purchase, as well as loanbacks for capital purchaseChartwell Financial Services Where SSAS owners have already borrowed against property assets, the new funds can be used to repay or reduce the existing borrowing. The SSASHow can we help? pays less bank interest with rental income accruing within the SSAS, creating the opportunity for further investment
  5. 5. SSAS Loanback Facility Chartwell & Lindley Trustees: part of The Lindley GroupDifficulty Borrowing from the • One of the premier financial services groups in theBanks? North WestBorrow up to 50% of the fund • 100% owned by its shareholding directorsfrom your Pension! • Specialists in pensions & retirement planning for both individual and corporate clientsTransfer of Protected Rights • Lindley Trustees have managed SSAS pensions forinto your SSAS directors since 1979 with over £150m of commercial property under SSAS schemesChartwell Financial Services • Chartwell Wealth Management manages in excess of £150m of assets on behalf of individuals, pensionHow can we help? schemes and Trusts
  6. 6. SSAS Loanback Facility We look forward to hearing from youDifficulty Borrowing from the Contact:Banks? Chartwell FinancialBorrow up to 50% of the fund Servicesfrom your Pension! Lindley Court Scott DriveTransfer of Protected Rights Altrinchaminto your SSAS Cheshire WA15 8ABChartwell Financial Services T. 0161 929 3500 F. 0161 929 3501How can we help? E. info@chartwellfs.com W. www.chartwellfs.com Chartwell Professionals and Chartwell Wealth Management are trading styles of Chartwell Financial Services Limited who is Authorised & Regulated by the Financial Services Authority. Registered in England 02578206
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