If you’re a property developer or business owner, you’ve likely asked yourself this question: Can I use my pension to fund my next project? With development costs rising and traditional finance routes becoming more expensive, tapping into your pension might sound like a dream. But with the right structure, it’s not only possible, it could be a game-changer.
At GoldHouse Accounting, we support clients across the UK and Dubai to grow their property businesses using smart, tax-efficient strategies. One of the most powerful tools? The SSAS pension.
Can You Really Use a Pension to Build Property?
Yes, but not just any pension.
A SSAS (Small Self-Administered Scheme) is one of the few pension types in the UK that gives business owners control over how their pension is invested. That includes the potential to use it in connection with property development. While you can’t use a SSAS to buy residential property directly, there are clever, HMRC-compliant ways to use your pension to support and fund your business’s development activity.
What Is a SSAS and How Does It Work?
A SSAS is a type of occupational pension scheme designed for company directors. Unlike a personal pension or SIPPs, a SSAS gives you more flexibility and control, allowing you to:
- Make tax-deductible contributions from your company
- Pool funds with other directors or family members
- Invest in commercial property
- Lend money back to your business (within strict rules)
- Grow wealth in a tax-free wrapper
- Pass funds to future generations outside of Inheritance Tax
This means you can build your pension and your business at the same time without giving away control or relying solely on banks or outside investors.
How Loanbacks and Pension Funding Apply to Developers
The most common way developers use SSAS funds is through a loanback, where the SSAS lends up to 50% of its value to the sponsoring business. That money can then be used as working capital or to co-fund development activity — as long as it benefits the company and is structured correctly.
The loan must be:
- Secured against an asset
- Repaid over five years
- Made in equal instalments
- Set at a commercial rate of interest (at least 1% above the base rate)
Used strategically, this can give your business the boost it needs to get a project off the ground — while keeping the interest payments inside your own pension pot.
You can also use your SSAS to purchase commercial property (like office space or mixed-use buildings), or to co-invest with your company in certain structures, giving you even more options to build long-term value.
Pros and Limitations You Need to Know
The biggest benefits of using a SSAS in your development business include:
- Tax relief on company contributions
- No tax on growth inside the pension
- Flexible control over investment decisions
- Asset protection and estate planning benefits
- Interest from the loanback goes back into your pension
However, there are limitations. You can’t use a SSAS to buy residential property, and all investments must meet HMRC rules. Loanbacks must be secured, correctly documented, and repaid on time. You’ll also need to work with a professional trustee and administrator to ensure everything is managed compliantly.
It’s not a quick or DIY solution but when done right, the long-term benefits are substantial.
Combining Pension Funds with Investor or Director Capital
One of the most powerful uses of a SSAS is combining pension funding with other sources of capital. Many developers use a SSAS to fund part of a project alongside:
- Director loans
- Private investor equity
- SPV or holding company profits
- Traditional finance (only allowable if it’s a joint first or second charge)
This spreads risk, improves liquidity, and allows you to build projects while keeping more value inside your structure. If you’re planning to scale or reinvest, this can create a stable base of wealth that’s protected from tax, creditors, or personal liability.
Is SSAS the Right Fit for Your Development Strategy?
A SSAS won’t suit every developer but if you’re running a profitable limited company, have pension capital or want to start building a long-term pot, and you’re looking for more strategic control over your money, it could be the missing piece in your development strategy.
At GoldHouse, we help clients align SSAS pensions with their business, property, and personal wealth goals. Whether you’re funding your next build or planning your exit, our team ensures your structure supports your future, not just your next deal.
Book a call with GoldHouse today to explore how a SSAS pension could support your property business and help you protect your wealth, reduce tax, and build a legacy that lasts.
