A Small Self-Administered Scheme, or SSAS, is a type of workplace pension typically set up by the directors of a limited company, usually for a small group of family members or business partners who act as both trustees and members. Its defining feature is flexibility: a SSAS can loan money back to the sponsoring employer and buy commercial property in a way a standard SIPP or workplace scheme cannot. This guide explains how a SSAS works, how it compares with a SIPP, and the key 2026/27 pension allowance figures that still apply.
What a SSAS Is
A SSAS is an occupational pension scheme established by an employer, most often a family-run or owner-managed limited company, with usually no more than around 11 members -- typically company directors, their family members, and sometimes senior employees. Members of a SSAS are usually also its trustees, giving them direct, collective control over how the scheme's assets are invested.
Because members act as trustees, a SSAS suits people who want hands-on control over pension investments and are comfortable with the additional responsibilities that trusteeship brings, including compliance with pension and trust law.
SSAS vs SIPP
Feature
SSAS
SIPP
Set up by
An employer, for a group of members
An individual, for themselves
Members
Usually a small group, often connected
Individual scheme, one member
Loan to sponsoring employer
Permitted, within strict limits
Not available
Pooled assets
Assets typically pooled across members
Assets held individually per member
Loans Back to the Employer and Commercial Property
A SSAS can lend money back to its sponsoring employer -- a genuinely distinctive feature -- subject to strict conditions: the loan cannot exceed 50% of the scheme's net assets, must be secured by a first charge, must charge at least a prescribed minimum interest rate, and must be repaid over a maximum term (commonly up to five years) on a capital-and-interest basis. This can give a business access to finance from its own pension scheme rather than a bank.
A SSAS can also buy commercial property, including the trading premises used by the sponsoring employer, which the scheme then leases back to the business at a market rent -- rent that is a tax-deductible business expense for the company and grows the pension fund tax-efficiently.
Contributions and Allowances in 2026/27
Contributions to a SSAS, whether from the employer or members personally, are measured against the same UK-wide pension allowances that apply to any registered pension scheme in 2026/27: an annual allowance of £60,000 (tapering down to a floor of £10,000 for very high earners above the £260,000 threshold), a Lump Sum Allowance of £268,275 governing tax-free cash, and a Lump Sum and Death Benefit Allowance of £1,073,100.
Employer contributions to a SSAS are usually a deductible business expense for Corporation Tax purposes, subject to HMRC's wholly and exclusively test, making it a common route for directors to extract value from a profitable company tax-efficiently.
Frequently Asked Questions
What is a SSAS pension used for?
A SSAS is most often used by directors of a family or owner-managed company who want direct, collective control over their pension investments, including the ability to buy the company’s trading premises within the pension or lend money back to the business under strict conditions -- flexibility that standard workplace pensions and most SIPPs do not offer.
Can a SSAS really lend money to my company?
Yes, subject to strict limits: the loan cannot exceed 50% of the scheme’s net asset value, must be secured by a first legal charge over an asset, must carry at least a minimum prescribed interest rate, and must be repaid over a fixed term, commonly up to five years, on a capital-and-interest basis. Breaching these conditions can trigger significant tax penalties.
How many members can a SSAS have?
SSAS schemes are typically limited to around 11 members, making them suitable for a small group such as a company’s directors and close family, rather than a wider workforce. Larger employee groups are usually better served by a standard workplace pension scheme.
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Is a SSAS the same as a SIPP?
No. A SIPP (Self-Invested Personal Pension) is set up by and for an individual, with assets held separately per member. A SSAS is an occupational scheme set up by an employer for a group of connected members, with assets typically pooled, and it has extra powers -- like loans back to the employer -- that SIPPs do not have.
Can a SSAS buy commercial property?
Yes, this is one of the main reasons businesses set up a SSAS. The scheme can purchase commercial property, including the company’s own trading premises, and lease it back to the business at a market rent, which is tax-deductible for the company and builds the pension fund.
Who are the trustees of a SSAS?
SSAS members are usually also the scheme’s trustees, giving them direct legal responsibility for how the scheme is run and invested, alongside the tax and regulatory advantages of a registered pension scheme. Many SSAS arrangements also appoint a professional trustee or SSAS practitioner to help meet ongoing compliance obligations.
What is the annual allowance for SSAS contributions in 2026/27?
SSAS contributions are measured against the same UK annual allowance as any other registered pension scheme: £60,000 for most people in 2026/27, tapering down to a minimum of £10,000 for those with very high adjusted income above £260,000. Unused allowance from the previous three tax years can often be carried forward, subject to the normal carry-forward rules.
Is a SSAS suitable for a large workforce?
Not usually. SSAS schemes are designed for small, often family-connected groups such as company directors, not large or unconnected employee populations, partly because of the membership limit and the collective trustee structure. Larger employers typically use standard workplace pension arrangements for auto-enrolment instead.
What happens to a SSAS if the sponsoring company closes down?
The scheme itself continues to exist independently of the company for the benefit of its members, but the loss of a sponsoring employer can affect matters like any outstanding loanback and future employer contributions. Members typically need specialist advice to wind down or restructure the arrangement appropriately if the sponsoring business ceases trading.
What does it cost to set up and run a SSAS?
A SSAS typically involves an initial establishment fee plus ongoing annual administration charges from a SSAS practitioner or provider, covering trustee support, HMRC registration and compliance reporting. These costs are usually higher in absolute terms than a low-cost personal SIPP, but are often justified by the loanback and commercial property options a SSAS uniquely offers.
Disclaimer: This guide reflects SSAS pension rules and 2026/27 pension allowances. SSAS arrangements involve trustee and regulatory responsibilities and should be set up with a specialist SSAS provider or pension adviser. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
