SSAS providers in employer loanbacks warning

The issue has been pushed into the limelight recently as some SMEs have been forced to borrow from their pensions because of difficulties raising business loans from banks. Founder employers are able to borrow money from the pension fund, provided that they offer an asset as collateral. However, if an employer then defaults on the loan where an encumbered asset has been given as security, the trustees could face a tax charge of up to 55% on the asset when they receive it. Assets such as plant and machinery, book debt, company shares and fine wine collections could leave trustees subje...