Pension Schemes - Frequently Asked Questions

Small Self-administered Schemes

Loans

Q. I am an administrator of a Small Self-Administered Scheme which has made a loan to a company. Should the interest paid by the company be received gross, or net of tax?

A. Section 94 of the Finance Act 2002 introduced changes to Section 349 ICTA 1988. There is now no requirement for a borrowing company to deduct tax from interest payments, paid to the scheme administrator, on or after 1 October 2002 in respect of a loan made from a SSAS. The new provisions apply regardless of the length of the loan, and date on which the loan was made.

SSAS Property Valuations

Q. I am a SSAS trustee reporting a property purchase/sale/lease on form PS7012 and need to submit an independent valuation to APSS. When should the valuation be dated?

A. APSS expect the independent valuation to reflect the true market value of the property at the time of the relevant transaction. APSS will accept valuations up to 6 months old but trustees have a responsibility to take into account material changes to the property from the effective date of the valuation to the time of the transaction. APSS do, however, reserve the right to have all valuations checked by the District Valuer as at the date of the transaction and not at the time of the valuation.

Q. What is the trigger date for the valuation?

A. 6 months before the date of completion of purchase or sale; or date of lease; or date of agreement for lease.

Q. I am a SSAS trustee who has recently purchased a property and I need to complete a further form PS7012 for the subsequent leasing. The original valuation is now over 6 months old. Do I need to obtain a new valuation?

A. This a commercial decision for the trustees. APSS may accept a letter from the original valuer confirming that there is no change to the original market value. However, the trustees have a duty to act in the best interests of the scheme members and therefore a more up-to-date valuation may be required.

   
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