Alan and Pete operated a business installing cats-eyes in roads and motorways. The company owned its property which it used both for storage of stock and equipment and as an office. It let part of the building to a friend called Steve who ran a local delivery firm. He was paying them rent of £600 per month on an informal basis with no lease or tenancy. The property was originally purchased by the company five years ago and was subject to VAT which the company paid and then reclaimed through their next VAT return.

Alan and Pete wanted to raise some capital in the business to purchase new stock and transport. The company did have £40,000 as cash available but needed approximately £120,000. Their IFA suggested they establish a SSAS as they both had existing pension schemes they could use.