Company Pension Planning Case Study

The Client

Our client, a limited company, had been trading in a specialist area of the medical market for many years; they had been offered the opportunity to take on new product lines which complement their existing offering.

The company owned their business premises from which they operated with a value of £350,000, debt free other than a floating charge held by the bank for the overdraft. The MD had a personal pension plan valued at £450,000.

Their Needs

The company already had an overdraft facility, £100,000, which was adequate for day to day needs but the new lines would need substantial initial investment in stock putting significant strain on the business.

The MD wanted to know if there were any ways of structuring his personal pension arrangement could be used to help his business.


We set up Small Self-Administered Scheme (SSAS), transferred in the £450,000 funds from the MD’s personal pension. The SSAS then purchased the property from the company and subsequently entered into a commercial rental arrangement with the company.


This released £350,000 back to the company which then had more than sufficient funds to finance expansion without being beholden to the bank. The rent on the business premises is an allowable expense and will be covered easily from the increased profitability.

The MD now has an asset in his pension scheme receiving a guaranteed (subject to the ongoing profitability of the company) return and can plan for retirement. In addition the company has surplus funds which could be paid into the MD’s pension which would be a benefit for him and more than offset a small Corporation Tax liability on the gain on the sale of the property.

We have also established a regular ongoing review service to help invest the future pension contributions and rental income the scheme receives.

This information is not intended as investment advice. The products mentioned above are not suitable for everyone and you should seek advice before deciding to invest.