Contributions & Allowances


Annual Allowance and Lifetime Allowance

Making a contribution to your SSAS is an extremely tax-efficient way of funding your pension from your company.  

Contributions qualify for corporation tax relief and are not subject to Income Tax or National Insurance.  

The company can contribute up to the Annual Allowance for every member of the scheme.  

The maximum amount a member may accumulate is subject to the Lifetime Allowance.

The Lifetime Allowance (sum of all pension arrangements) is the amount below which you benefit from the tax-exempt status of pensions.  The Lifetime Allowance is relevant to all, except if you have pre-2009 or pre-2012 'enhanced' or 'primary' protection.

Company contributions may need to be justified to the local Inspector of Taxes as being relevant to the members involvement in the business.

The Annual Allowance includes all of a member's pension contributions. Contributions to other pension arrangements need to be deducted from the Annual Allowance in order to calculate the maximum allowable contribution to the SSAS. 

Tax Year	Annual Allowance	Lifetime Allowance
2011/12	£50,000	£1,800,000
2012/13*	£50,000	£1,500,000
2013/14	£50,000	£1,500,000

*Rules Applying post April 2012

With effect from 6th April 2012 the Lifetime Allowance is to be reduced to £1,500,000.  However, if you wish, you can register with HMRC for Pre-2012 Potection, which would allow your fund to exceed the £1,500,000 limit, but no further contributions can be made after April 5 2012.  Please contact us for further details.

Making contributions as physical assets (in specie contribtions)