Thinking about a Small Self-Administered Scheme for your business? How Morhart Pension Services with Wards Solicitors can help

A Small Self-Administered Scheme is a defined contribution employer sponsored pension scheme.

It gives its members the flexibility to control the assets and investments themselves, including commercial property, offering tax benefits and greater control over pension funds.

This can also give more freedom over retirement planning as investments in stocks and shares, commercial property (for example the business premises) and even loan backs to the business are allowable within a SSAS.

A SSAS is limited to up to 11 members, usually directors or senior employees of the company, but can also include family members.

With this flexibility a SSAS can be invaluable, not only to help members save for their retirement in a tax-free environment, but also to assist the running of the business.

Commercial property lawyers provide vital expertise in navigating the legal complexities of buying, selling, leasing and managing commercial property within the context of a pension scheme.

Wards Solicitors’ specialist lawyers can:

• Ensure a cost effective and efficient service is always provided, allowing each transaction to proceed as quickly and as smoothly as possible.
• Provide guidance on the commercial property buying process including auctions, what to look out for and the legal process following exchange.
• Move quickly to review the paperwork and report on matters to the SSAS including title to the property and any occupational leases.
• Advise how to protect the SSAS’s interests due to any complex issues like the sale being through a liquidator with a tenant in occupation or significant rental arrears.

Deal with post completion matters including filing a stamp duty land tax return and registration at HM Land Registry.

Wards was contacted by the trustees for guidance on the auction process, things to look out for and the likely legal process following exchange at auction.

Armed with the legal advice provided, the member trustees were successful at auction in having a bid accepted on a retail pharmacy premises with an existing tenant in occupation under a formal lease.

The property was opted for VAT and Morhart went through the process of registering the pension scheme for VAT and submitting an option to tax in relation to the property in the name of the SSAS. This also allowed for the transaction to be structured as a Transfer of a Going Concern (TOGC) which made the sale price exempt from VAT, subject of course to the seller also agreeing to dispose of the property as a TOGC.

Following the success at auction, Wards was formally instructed by the SSAS for a quick 28-day turnaround between exchange and completion.

Wards moved quickly to review the auction paperwork and report on matters to the SSAS including the title to the property and the occupational lease. This was not the easiest of transactions since the sale was by way of liquidators.

Wards provided additional legal advice during the purchase as it was discovered that there were significant rental arrears from the tenant in occupation. However, the SSAS was able to make an informed decision as Wards explained the nuances involved in protecting its position.

As all parties moved quickly, completion was comfortably achieved on the scheduled completion date.

Wards dealt promptly with post completion matters including filing a stamp duty land tax return and registering the transfer at HM Land Registry. Morhart received confirmation of VAT registration which allowed the SSAS to carry out VAT invoicing for the occupational tenant, bring the SSAS’s VAT records up to date and undertake the quarterly returns to HMRC.

Morhart, Wards and Mr and Mrs A were all able to work proactively to bring this transaction together against a very tight time frame with additional matters regarding the property which needed extra attention.