Approved Investments
You can take a far more active role in the management of your pension’s assets than would be possible via an insured arrangement.
You can invest in almost anything that is permitted by HM Revenue & Customs, some examples of which are listed below:
- stocks and shares quoted on a recognised exchange (subject to pre-approval in certain jurisdictions and on certain exchanges, eg AIM and similar)
- investment trusts
- deposit accounts
- UK Real Estate Investment Trusts (REITs)
- Venture Capital Trusts (VCTs)
- units/shares in collective investment schemes
- structured products
- insurance company managed funds and unit linked funds
- managed portfolios of collective investments
- traded futures and options (relating to stocks and shares on a recognised futures exchange) through your investment manager;
- traded endowment policies
- exempt authorised unit trusts
- commercial property, with or without a mortgage
- agricultural land
- gold bullion
Loans from a SSAS
One of the distinctions with a SSAS is that it can loan up to 50% of the net pension fund assets to an associated company subject to the following conditions:
- the loan must be secured as a first charge on an asset of at least equal value to the capital and interest over the term
- interest must be charged at no less than 1% above the average base rate of the six leading high street banks
- the loan must be repaid in equal instalments of capital and interest over a period not exceeding 5 years
Loans may also be made to third parties but it is not possible to make loans to the members or anyone connected to them. This means that a SSAS established by a self-employed business owner or partnership may not lend money back to their business. Loans to third parties are not restricted to 50% of the fund.
Disclaimer: please note that although the above are permitted, any decision to invest is at the trustees’ discretion.
Examples of investments that are not permitted include:
- residential property
- private company/unlisted shares
- loans to the member or anyone connected to the member
- other exotic assets, such as vintage cars, wine, stamps and art works
Important Note: certain investments, although allowable, may present significant risk/volatility/liquidity issues. We strongly recommend in all cases you seek the advice of a suitably qualified adviser.
