Rowanmoor Pensions has warned its clients to avoid tax charges on unpaid rent on properties leased through SSAS schemes.
Ian Hammond, managing director of Rowanmoor Pensions, says: “If the rent is not paid when due, the scheme becomes a creditor of the employer and as such should be treated the same as any other creditor. “Should other creditors be given preferential treatment at the expense of the pension scheme then the amount outstanding will be treated as an undocumented loan, which in turn would be treated as an unauthorised payment, with tax charges of up to 70%. "Equal treatment means the amount outstanding will be treated as a debt and will not be subject to an unauthorised payment charge. “Th...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes