A feature of a James Hay SSAS is the ability to invest in commercial property, including business premises, tax efficiently.

However, investing in commercial property is complex. You should consider the risks carefully and take appropriate professional advice.

All property held in a James Hay SSAS will be co-owned and held in the joint names of the member trustee(s) and the James Hay professional trustee.

Here you’ll find information about the responsibilities of member trustee(s) and the forms you’ll need to provide to us if you wish to invest in property within your SSAS.

 

literatureCommercial Property Purchase Guide

Your responsibilities and our requirements if you are considering investing in property.

literatureCommercial Property Questionnaire

The information we will need about the property you are considering investing in.

literatureSSAS Property Management Resolution Form

If you are purchasing new property within a SSAS.

literatureSSAS Property Resolution

If you are taking on responsibility for managing property within a SSAS.

 

If your SSAS held property or land during the tax year 6th April 2018 to 5th April 2019 then you will need to complete and return a form for each property by the end of May 2019.

The information you provide enables us to check that the property is being managed appropriately and to complete the Pension Scheme Return (PSR) for HMRC.

Please complete a form for each property. You can download copies of the form here.

Why am I being asked to complete a SSAS Property Information Form?

Rental income and details regarding property transactions are reportable to HMRC by way of a PSR, which we are required to undertake annually. The information you provide will be used to enable us to complete the PSR.

In addition, we require that for a self-managed property within a SSAS, we must be informed of any changes that occur to the property physically, the tenants, costs associated with maintenance and renovations, ownership amendments, use of buildings, etc.

This data is important as there are a number of potential scenarios where HMRC could challenge whether the SSAS is being operated in accordance with the governing legislation and seek to raise tax charges for any failure to adhere to these requirements. The Case Studies below provide two examples of how tax charges can be incurred in this regard.  

Should HMRC seek to raise tax charges, these can be charged to the principal employer, the member(s), and the SSAS itself and can be as high as 70% across all parties. Therefore, it is vital that we hold accurate and up to date information to ensure we can evidence that all statutory requirements are being met.

I believe James Hay already has some (or all) of the data being requested, so why am I being asked again?

We are aware that some member trustees may have recently submitted the requested information and documents to James Hay, however we need to ensure the information we hold is up to date. If you wish to speak to us to discuss this, please call us on 03333 205 861.

What is deemed a “Connected Party”?

A connected party is defined as a person or persons connected to the member(s) or the principal employer, e.g. close relatives, partners or any company associated with a member or their family including directors of the principal employer and their families.

I have received this letter but the property was sold/transferred away. What should I do?

Please write to us or email ssasinfo@jameshay.co.uk and we will amend our records. Please note that if the property was sold or transferred away during the 2018/19 tax year, you will still need to complete the SSAS Property Information Form as we are obliged to provide this information to HMRC on the PSR.

My insurance doesn’t cover the requirements set out in the form. What should I do?

Please update your insurance immediately so that it meets our requirements and send us confirmation of the new cover.

Can I send original documents to James Hay?

Yes, however copies are acceptable.

We are unable to accept any liability for any documents that may become lost in the post and recommend you send any original documents via a guaranteed or recorded delivery service. When posting your completed SSAS Property Information Form and accompanying documents, please indicate in a covering note which items are originals and need to be returned. We will return these to you via recorded delivery.

If I cannot retrieve the necessary documents to complete the SSAS Property Information Form by the deadline, what should I do?

If you are unable to return the necessary information to us by the deadline, please call us on 03333 205 861.

Can I email scanned images to James Hay?

Yes. Please send scanned images to ssasinfo@jameshay.co.uk.

How do I know that my completed SSAS Property Information Form has been received?

If you wish to check that we have received your SSAS Property Information Form, please call us on 03333 205 861 or email us at ssasinfo@jameshay.co.uk.


Ensuring property is managed in accordance with HMRC rules is important to avoid tax charges. The following case studies highlight the possible costs of failing to meet requirements. Please ensure that you return your property information form promptly and keep us informed of all relevant changes regarding property held so that we can ensure evidence statutory requirements are being met.

 

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Case Study 1: Residential conversion.

The lease on a commercial property that is held in a SSAS comes to an end and the property becomes vacant. The member trustees take advice on the marketing options and decide to convert the property for residential use without consulting their financial adviser or us. The pre-conversion value of the commercial property is £160,000.

The member trustees obtain the necessary planning permission and spend £25,000 converting the building so it is suitable for use as a dwelling. The property is marketed for sale and, after a period of six months, a purchaser buys the property at the post-conversion market value of £220,000. As the building is suitable for use as a dwelling, we are obliged to report this to HMRC and tax charges will apply to the member trustees personally and to their SSAS.

The member trustees have to pay £101,750 to HMRC personally, based on:

  • A 40% tax charge on the total (pre-conversion) value of the property and conversion costs
  • A 15% tax surcharge as this total value is more than 25% of the value of the pension fund.

The member trustees provide evidence of this payment to us.

The SSAS has to pay HMRC:

  • A 15% tax charge on the total (pre-conversion) value of the property and conversion costs.
  • A 40% tax charge on the higher of the actual net rental income received or “deemed” rent for the six months between conversion and sale. The deemed rent is 10% (post-conversion value) of the property.
  • A 40% tax charge on any capital gains arising from the disposal of the property.
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Case Study 2: Rent arrears

The member trustees use the SSAS fund to purchase a shop unit. The member trustees’ company will be occupying the property on a five year lease. A RICS surveyor confirms the market rent for the property is £12,000 per annum. Rent is paid up to date for the first year but arrears of £9,500 accrue during the second year, despite repeated requests for payment. The member trustees do not provide any commercial reason as to why the rent has not been paid in full.

As the company and the member trustees are connected parties, we are obliged to report the rent arrears to HMRC. Tax charges are then due from the member trustees personally and from their SSAS. By not paying the rent, the company is also at risk of the lease being forfeited so they would have to vacate the property.

The member trustees have to pay £3,800 to HMRC, based on a 40% tax charge on the rent arrears value. The member trustees don’t provide evidence of this payment to us in time to reduce a tax charge due from their SSAS from 40% to 15%. The SSAS also has to pay £3,800 to HMRC, based on a 40% tax charge on the rent arrears value. When the evidence is received, the information is sent to HMRC and a refund of 25% is returned to the SSAS. This reduces the tax that the SSAS pays from £3,800 to £1,425.

Please note that if the company occupying the property was also the principal employer then tax charges would be payable by the company, rather than the member trustee. The liability of the SSAS remains unchanged.