Private & Confidential 
Mr Andros Ktorides
The Greek Limited

4 April 2007

Dear John,

Further to our telephone conversation on Friday, please find enclosed a guide on SSAS, together with key features document which explores SSAS in more depth.

By way of a summary, a small self administered scheme (SSAS) is an employer sponsored pension scheme, as such it should be established by an Employer, who appoints Trustees to hold the scheme’s fund. Members are also invited to join the scheme and they will need to be Trustees also. The requirement for an Employer is required at outset and ideally this should be a Limited Company. The members do not have to be employed by the Employer.

The contributions can be from the Company, the members or a third party. All investments are held in your names, albeit as trustees of the scheme. You solely make the investment choices, but you can delegate this if you choose. The scheme can borrow, lend, transact with each of you as individuals and with the Company, albeit on arms length terms.  The guide I provided to you sets out those rules, it also contains details on benefits payable and how the scheme generally operates.  

As part of the set up process, an administrator must be appointed. They are responsible for the payment of any taxes due from the scheme. The administrator duties but not the legal liability, is delegated to us as a registered HMRC Pension Practitioner. Our role is to fulfil all the administration duties to ensure that your scheme remains tax exempt. 

The cost to set up the SSAS amounts to £450 plus VAT for one member, the annual administration charge is the same and both are payable annually in advance. Any additional members added to the scheme are charged at the rate of £200 per member and the administration fee is also the same.  You will have to make a small levy to the Pension Scheme Registry, typically £36.00 p.a. plus a £35.00 Data Protection Act fee. As advised, we do not charge for telephone calls, emails and general advice. Also, if you have some ideas that you wish to run by me or wish to get together to discuss these, I am more than happy to help you.  

The areas where the annual administration charge cannot cover will be on special projects, such as the set up and payment of scheme retirement benefits or the purchase of property. For this we will agree a budget with you in advance. By way of an example, the cost for the purchase of overseas land is £300-£500 depending on how complex the transaction. For the case in mind it involved some private land held by the member in Greece who sold that land to his scheme for a cash payment. The land is being redeveloped and the future sale of the land will be capital gains tax free as the SSS is tax exempt.

I attach also our terms of business which sets out how we operate our services. In summary we are Pension Practitioners in the truest sense and look after all HMRC and Pension Scheme administrative matters on behalf of you. We provide all the documentation to operate the Scheme and also give scheme advice. We do not promote investment products and are not Independent Financial Advisors. The nature of our business is to provide the framework and guidance to clients who wish to hold and invest their own pension funds, rather than pass it to a third party. 

If you wish to get together to go through SSAS and our services, I can meet with you on the lunchtime/afternoon of 18th April in Colwyn Bay if this is convenient for you as I am in Wrexham in the early morning and then in Liverpool in the evening.

Yours sincerely

Gavin McCloskey
Technical Consultant