Full SIPP Case Study

From an article published on Citywire January 2008

‘At the time, several of our clients expressed their concern that the business being sold to Alliance Trust would reduce the level of personal service. Although like many insurance companies and pension providers it has struggled with general Sipp administration since the increased workload after ‘A’ Day, I am delighted to report that the Alliance Trust Property team has excelled themselves. A recent example of its good work was for a group of our clients who were purchasing a commercial property. We had eight Sipps investing together with borrowings and the solicitor needing to exchange quickly. A property with borrowing through a pension scheme can take time and be complicated and it required a flexible and efficient approach. Alliance Trust was superb and thoroughly deserve our praise for their competent service.’

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SSAS Case Study

A small family business, started three years ago in Devon to provide catering to companies, had outgrown its current premises. It was looking for new premises to aid further expansion but didn’t want to tie up working capital from the business. It wanted to minimise the business’s liabilities with the bank and purchase premises in a tax-efficient way.

The three family members who own the business had a meeting with their financial adviser to discuss these issues. Following the meeting, their adviser got in touch with one of Alliance Trust’s Business Development Managers and agreed that a SSAS could assist with these objectives.

The SSAS is a company pension scheme which is controlled by the family, who are both the members and the trustees of the scheme. After making the decision to set up a SSAS, a contribution was paid in from the business and that payment was used as a deposit to buy the property with the balance being borrowed by the SSAS.

The SSAS then leased the property to the business, which is now paying a commercial rent to the SSAS for occupancy. Part of the rent services the mortgage and the excess is now enjoying a healthy return in an investment account. As the income and gains from the SSAS are tax exempt, in addition to the business’s pension contribution qualifying for corporation tax relief, it has been an ideal solution.

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