Company Director Pension Fund

Can a company have one fund for its directors and if so can that fund purchase investment property from those same directors?

The simple amswers are :

• Yes and
• No

The Company can set up a group type scheme for its Directors. This could be a Defined Benefit scheme or a Defined Contribution scheme. If the Directors wish to "influence" the investment stratgey of the scheme then a Small Self Administered Pension Scheme might be a solution.

However, no matter what structure is established, the scheme cannot acquire assets from the Directors. This would be in breach of the arms-length Revenue rules where property cannot be acquired from or rented to the Company or any of its Directors. All investment activity must be arms-length.

Whilst the SSAPS structure does allow the Trustees (Directors) to influence the investment of the fund, it must comply with Revenue rules in this regard:

• arms length purchase and disposal
• the fund cannot "trade" in property investments
• cannot purchase holiday homes
• purchase of overseas property is conditional
• pride in possession articles not permitted (paintings, yachts etc)

With increasing regulation etc, this is an area where you need to seek professional advice.

What is a 'Small' self administered pension scheme?

I got some advice yesterday on a self administered pension scheme and was told that if I don't put at least 15,000 a year into it then it's not worth doing.