Yes, you can buy your company premises and here are some advantages of doing that:
– It can inject cash flow back into your business
– Tax relief is received on any contributions paid to purchase the property
– Costs and fees to buy the property are payable from the SSAS
– The property is protected from creditors in the event of company insolvency
– Growth in the value of the property when sold is free of Capital Gains Tax
– Rent paid provides a regular income which is free from Income Tax
– Rent is an allowable business expense against the company corporation tax bill
You just need to note here that this purchase is a “connected party” transaction. This also applies if you are purchasing from another person/company that is connected to you, for example your cousin or wife.
This just means that the property needs to be purchased on an arm’s length basis so the property will need to be valued by a qualified valuer to make sure a fair purchase price has been paid. If you need any clarification on this point, drop us an email and we will gladly talk this through with you.
If the SSAS is buying property from someone totally unconnected to the scheme and its members, a price is paid that has been negotiated between buyer and seller and a valuation is not needed.
A general definition of a ‘connected person’ is your spouse, a relative of either you or your spouse, the spouse of a relative of you or your spouse and a company which is controlled by you and/or persons connected with you. You may have to read that a few times!