Paul has been concerned about James’s pensions, not because he wants him to retire (he claims), but because of James’s great age (thanks Paul!). James wanted to buy the Stalybridge office so he could control the premises and receive rent rather than it disappearing to the landlord each month, but unfortunately, he didn’t have the funds just sitting in his bank account!
What he was able to do however was to open a Small Self-Administered Scheme (SSAS’s) pension scheme, transferring his old pension schemes into it, and enabling the scheme to buy the property. Now the rent is adding to James’s pension pot not being given to the landlord. The additional advantage of this is that the SSAS can augment the purchase price with borrowings and can in the future lend money to the business, cutting out the bank. As you can see this is a really flexible structure for owner run businesses, and one well worth considering.
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