Please see the key differences of SSAS & SIPP noted below:

Many people, Professional Advisers included, are often confused and unaware of the very real and distinct differences between SSAS and SIPP. They are absolutely not the same, and most certainly do not create the same outcomes.

Let’s have a quick look at some of the key differences. These are significant – we will be happy to explain these to you:

SSAS:

SSAS is designed for business owners / Directors use and will benefit the Business and the Pension

SSAS allows for up to £500,000 per annum to be contributed to the SSAS

SSAS offers the facility of your business borrowing up to 50% of the SSAS value, for commercial uses including the purchase of Residential property in your business  

SSAS is its own singular trust arrangement

SSAS has up to 11 members – effectively creating a Family Trust / succession plan 

SSAS will allow the “pledge” transfer of existing assets into the SSAS, such as Commercial Property or Shareholdings

SSAS can have multiple sponsoring employers – say for example you have many businesses which are profitable

SSAS is regulated by The Pensions Regulator (TPR)

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  SIPP:

SIPP are single person, personal pensions, not specifically designed for business people or business use

SIPP’s are part of a master trust and carry the potential of the pooled risk of the unregulated / risky investment choices and regulatory issues, burdens and costs of other investors

SIPP’s are restricted to £60k annual contributions

SIPP’s will not accept pledged transfers of existing assets

SIPP’s are becoming expensive and cumbersome at holding commercial property as this is now regarded as a non-standard asset type by the FCA

Group SIPP’s are also becoming expensive, especially where commercial property is involved 

SIPP’s are regulated by the FCA