Two directors with different goals
A long-established engineering Company client of ours traded from premises that were owned personally by two directors. Each director held a small number of insured Personal Pension Plans. Director A wanted to set a firm date for his retirement. Director B wanted to remain in service and continue to drive the Company forward for many years.
Each Director owned 50% of the Company’s trading premises. Director A wanted to dispose of his property investment and use the cash generated to boost his retirement capital. Continuing Director B lacked adequate capital resources to make the purchase – and whilst the Company could have made the acquisition, the bank was reluctant to lend. We immediately considered a SSAS as a potential solution.
The solution was a SSAS
A SSAS became the solution to the problem. Director B moved his existing pension plans into the SSAS and, using both these realised funds and a wholly allowable contribution from the Company, the SSAS Trustees purchased the retiring Director’s ownership of the trading premises.
Following this initiative, Director B later sold his interests in the Company’s premises to the SSAS trustees.
The outcome
The result of these actions was to secure the tenure of the trading premises for the Company, satisfy the retiring Director’s need for retirement capital and to subsequently release personal capital for continuing Director B to meet his personal objectives.
