Executive pension schemes.
To preserve confidentiality of pension provision, or achieve greater flexibility of investment choice, many directors of small to medium sized family businesses make use of an executive pension scheme.
Such a scheme is subject to occupational scheme rules.
Small Self Administered Schemes (SSAS).
Small self administered schemes (SSAS) could be considered as wrappers for executive pensions but allows greater investment flexibility than a standard insured executive pension scheme.
A SSAS is not invested solely in insurance policies and has fewer than 12 members.
A SSAS has certain advantages for small companies, including:
1. Loans can be made to the company - 25% of the assets of the fund for the first two years (excluding transfers in) and 50% thereafter.
2. The fund can be used to purchase commercial property and the trustees have power to borrow within limits to finance such a purchase.
