Contributions
and Transfers
Members and sponsoring employers can make one-off or regular pension contributions to their SSAS. Also, members can normally make transfers from their other pension arrangements to their SSAS.
Members and sponsoring employers can make one-off or regular pension contributions to their SSAS. Also, members can normally make transfers from their other pension arrangements to their SSAS.
Members and their employers can make one-off or regular pension contributions to their SSAS, and these will be eligible for tax relief , subject to certain conditions.
The maximum total contributions for a member (including those from their employer) that will be eligible for tax relief against their income from employment or self-employment in any tax year is the Annual Allowance for that year – this is £40,000 for the 2020/2021 tax year, although this will be reduced on a tapered basis for high earners.
Individuals who have been a member of a registered pension scheme can carry forward any unused Annual Allowance (again, reduced on a tapered basis for high earners) from the previous three tax years.
There are other rules and restrictions that it is important to be aware of, including the following:
Members can normally transfer benefits from other pension arrangements to their SSAS, which can accept in-specie asset transfers as well as cash transfers.
When considering a transfer to a SSAS from another pension arrangement, the member should consider the benefits that they would be giving up and any costs and charges associated with the transfer. In addition, if a cash transfer is being made then the member’s pension fund may be out of their preferred investment market for a period of time while the transfer is being effected. The member will bear the risk of market movements during this period.
Warning: We strongly recommend that that if you are considering a transfer then you should obtain professional guidance from an adviser regulated by the Financial Conduct Authority before proceeding in order to gain a comprehensive understanding of any potential risks.