Owner-Managed Businesses

Leveraging the benefits of a Small Self-Administered Scheme (SSAS) for Chubb Bulleid

6th September 2022

Old Mill has a longstanding relationship with Chubb Bulleid’s Partner, Richard Cussell, having been advising the business for some 25 years. It’s a relationship that has evolved from being primarily accountancy based to one that now sees us providing business financial planning and specialist pensions advice. Steve Woodham, Pensions Manager and David Rice, Financial Planner caught up with Richard at Chubb Bulleid’s office in Wells.

Using a SSAS to buy premises

Chubb Bulleid are a local firm of Solicitors with offices in Wells, Street and Somerton in the heart of Somerset. When the opportunity arose for them to buy additional premises in Wells, it was the catalyst for some of the existing partners to move away from Self-invested Personal Pensions (SIPPs) and take advantage of the benefits of setting up a SSAS.

As part of setting up the SSAS and as part of their succession planning Chubb Bulleid decided to invite five more of their partners to effectively invest in the business, increasing the total number of partners invested to a total of eight. By transferring their existing pensions into the SSAS, the five additional partners invested directly in property with their pension funds for the first time. This also increased the size of the total pension fund available to use towards purchasing the new property.

‘Having had a bad experience with another pension provider we wanted to work with local people we know and trust.’

Richard Cussell, Partner at Chubb Bulleid

Key benefits for Chubb Bulleid of buying the property through the new SSAS
  • Capital growth of the property is free from Capital Gains Tax
  • Rental income paid by the company is free from Income Tax and paid to their own pension scheme rather than a third-party tenant
  • Company contributions paid qualify for Corporation Tax relief
  • Members benefit from Income Tax relief on pension contributions that they put into the SSAS
  • The pension fund assets are held outside of the members estate and therefore free of Inheritance Tax
  • Additional control of their investments
  • The property is an asset of the SSAS
  • Existing pensions were transferred into the SSAS allowing the partners to invest part of their pension funds in the property.

Old Mill's ongoing SSAS Management

When you appoint Old Mill to manage your SSAS we:

  • Act as Scheme Practitioner to ensure the scheme complies with pensions legislation
  • Prepare the necessary annual financial statements
  • Provide technical and administrative support, including cash reconciliation and annual fund split calculations
  • Complete information reporting requirements to HMRC, the Pensions Regulator and scheme members on behalf of the Scheme Administrator
  • Process invoicing and collection of any rent payable.

‘Setting up the SSAS helped cement people in to the business, and the opportunity for them to buy in to the business will help with continuity. The additional partners not only got ownership of bricks and mortar, they also got the opportunity to benefit from their pensions during their working lives.’

Richard Cussell, Partner at Chubb Bulleid

If you’d like to know more about our pension service, please contact our Senior Pensions Team Manager, Steve Woodham or click here