About this guide
A SSAS pension gives UK company directors access to a layered set of tax advantages — from Corporation Tax relief on employer contributions through to CGT-free investment growth and, under current rules, Inheritance Tax efficiency. This guide is for directors who want a complete, accurate picture of every tax benefit a SSAS provides, how each one works in practice, and what the proposed April 2027 changes to pension Inheritance Tax mean for planning decisions being made today. All figures are based on the 2025/26 tax year.
What you'll learn in The Director's Tax Benefits Guide
- Corporation Tax relief on employer contributions. How company contributions reduce taxable profits, the three CT rate bands for 2025/26 (19%, marginal up to 26.5%, 25%), and a worked savings table showing CT relief at each level — from £30,000 contributions through to £188,000. The “wholly and exclusively” test explained, and what constitutes a commercially justifiable contribution.
- The annual allowance and carry forward. The £60,000 standard annual allowance for 2025/26, how it applies to combined employer and employee contributions across all schemes, and how unused allowance from the previous three tax years can be carried forward. A worked example showing a director with £150,000 of carry-forward headroom in addition to the current-year allowance.
- The tapered annual allowance. The rules that reduce the annual allowance for very high earners — threshold income above £200,000, adjusted income above £260,000, with the allowance tapering to a minimum of £10,000. Most directors are unaffected; the guide explains who needs to check.
- Tax-free investment growth. How income tax and Capital Gains Tax are both absent from investments inside the SSAS wrapper. An illustrated 20-year property comparison: £700,000 in total wealth created inside the SSAS versus approximately £483,000 outside it, on the same property held for the same period.
- Income tax relief on personal contributions. How basic rate relief works at source; how higher-rate and additional-rate taxpayers claim further relief through self-assessment; and why employer contributions are generally more tax-efficient for directors than personal contributions.
- The Pension Commencement Lump Sum (tax-free cash). The £268,275 Lump Sum Allowance for 2025/26, how it applies to the first 25% of the fund accessed, and what happens when the fund grows beyond the point where 25% exceeds the cap.
- Inheritance Tax treatment — current rules and the April 2027 changes. Under current rules, SSAS funds sit outside the estate for IHT. Under proposed legislation effective 6 April 2027, unspent pension funds will be included in the estate and subject to IHT at 40%. What the change means in practice, the planning window that exists before implementation, and the key questions directors should be discussing now.
- National Insurance advantages. How employer pension contributions avoid Employer NI (currently up to 15%), the salary sacrifice mechanism for crystallising both employer and employee NI savings, and the administrative requirements for a valid salary sacrifice arrangement.
This guide is written for you if…
- You are a UK company director who wants to understand how a SSAS reduces your Corporation Tax bill and whether contributions are justifiable given your company's profit level
- You are approaching year-end and want to understand how carry forward works and whether a larger-than-normal contribution is possible in the current tax year
- You are a higher-rate or additional-rate taxpayer and want to understand the full tax picture including income tax relief on personal contributions
- You are planning for retirement and want to understand the Pension Commencement Lump Sum rules accurately — particularly the £268,275 cap
- You have a significant SSAS fund and you are concerned about the April 2027 Inheritance Tax changes and want to understand what they mean for your planning
This guide is educational. All figures are based on 2025/26 tax rules. It does not constitute financial or tax advice.
Straight from the guide
“At the main Corporation Tax rate of 25%, a £100,000 employer contribution saves £25,000 in Corporation Tax. Every pound your company contributes to the SSAS is a pound that would otherwise be taxed.”
“For every £2 of adjusted income above £260,000, the annual allowance reduces by £1, down to a minimum of £10,000. Most directors under the threshold do not need to concern themselves with the taper.”
About this guide
Written by SSAS practitioners with over two decades of experience in pension tax planning for UK company directors. Published by Holtram TLPI Ltd, HMRC Scheme Administrator (A0140182), operating within The Pensions Regulator's framework. Established 2003.
Questions about this guide
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You receive your guide by email within minutes. The follow-up email series covers SSAS fundamentals, the loanback, property investment, and the April 2027 IHT changes in more depth.
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How much can my company contribute to a SSAS each year?
The standard annual allowance is £60,000 per member for 2025/26, covering combined employer and employee contributions across all pension schemes. If you have unused allowance from the previous three tax years, carry forward allows you to contribute significantly more in a single year. The guide includes a worked example.
Will the April 2027 IHT changes definitely happen?
The changes were announced in the October 2024 Budget and the legislation is in draft. The direction of travel is clear, but details are still subject to consultation and may change before the April 2027 implementation date. The guide covers what is known, what remains uncertain, and what planning options exist in the interim.