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 three 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.

SIPP loans.

Loans to unconnected UK limited trading companies are permitted.


Each loan will be assessed and approved based on our requirements: please read our Guidance notes and complete our Investment Questionnaire.

  • Secured loans: We will consider up to 95% of the net market value of the SIPP at the point of advance/purchase provided it is secured by a first charge on property with a loan to value of no more than 70%.
  • Unsecured loans: We will allow up to 25% of the net market value of the SIPP at the point of advance/purchase, with a maximum term of two years.  The total amount held in unsecured loans and shares in unquoted UK limited trading companies, must not exceed 75% of the net market value of the SIPP fund with the remaining 25% of assets to be held in readily realisable investments, i.e could be traded/sold for a reasonable price within 30 days. If the investments are in the same company, the maximum is restricted to 50%.

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.

SSAS loans 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.
 

SSAS loans to unconnected UK limited companies.

A SSAS can make loans to unconnected UK limited trading companies but certain criteria must be met which is outlined below.

  • Secured loans: Are allowed up to a maximum of 95% of the net asset value of the SSAS, provided it is secured by a first charge on property with a loan to value of no more than 70%.
  • Unsecured loans: We will allow up to 25% of the net market value of the SSAS at the point of advance/purchase, with a maximum term of two years. The total amount held in unsecured loans and shares in unquoted UK limited trading companies, must not exceed 75% of the net market value of the SSAS fund with the remaining 25% of assets to be held in readily-realisable investments, i.e. could be traded/sold for a reasonable price within 30 days.  If the investments are in the same company, the maximum is restricted to 50%.

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 a sponsoring employer but do not participate in the SSAS) are not permitted other than a loan to a sponsoring employer.

Please complete and return our Investment Questionnaire.

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