Both our SIPP and SSAS schemes can make loans as investments but we will carry out relevant due diligence and restrictions may apply in certain circumstances.
SIPP and SSAS schemes can make loans to unconnected unquoted UK companies but loans to members (or those connected to members) are not permitted other than a loan by a SSAS to a sponsoring employer.
Loans will only be acceptable if they are genuine investments of a pension scheme and are made on commercial terms. We will require a minimum of 3 years' positive trading accounts if the loan is to an unconnected UK limited trading company and is not secured by a first charge on property of sufficient value.
Each loan will be assessed and approved based on our requirements: please read our Guidance notes and complete our Investment Questionnaire.
For both secured and unsecured loans, a balance of at least £5,000 in the SIPP default bank account must be maintained after the loan has been made.
Loans to individuals (including members), partnerships or trusts, or companies connected with members are not permitted.
SIPP loans must be constructed as genuine investments. We reserve the right to request the information that will allow us to consider and approve SIPP loans. Please complete and return our Investment Questionnaire.
A SSAS can make loans to unconnected UK limited companies and to a sponsoring employer. In both cases certain criteria must be met which is outlined below.
Loans to unconnected UK limited companies must be agreed between the trustees and the borrower.
For both secured and unsecured loans, a balance of at least £5,000 in the SSAS default bank account must be maintained after the loan has been made.
Loans to individuals (including members), partnerships or trusts, or companies connected with members (including companies that are associated with the sponsoring employer but do not participate in the SSAS) are not permitted other than a loan to a sponsoring employer.
Loans to a sponsoring employer can be made only if a number of conditions are met. Failure to satisfy any of the conditions for a loan to a sponsoring employer will be an unauthorised employer payment and give rise to tax penalties on the sponsoring employer and the SSAS.
Please complete the relevant questionnaire for our consideration if you wish to consider a SSAS loan to a sponsoring employer or other SSAS loan.
For more information please Contact us.
Whatever your retirement needs, one of our experts will be happy to discuss how we can help you achieve your goals.