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.
“The key for not only our clients but for anyone whose scheme property is let back to their company is to pay all rentals on time and in accordance with the terms of the lease.”
Last week Standard Life renewed its SASS portfolio administration contract with Rowanmoor Pensions.
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