If you run a small business and have a Small Self-Administered Scheme (SSAS) pension, you're likely already aware of the flexibility it offers compared to standard pension arrangements. Most SSAS holders invest in the usual mix — commercial property, stocks, shares, and bonds. But there's a lesser-known avenue that's particularly relevant if you're involved in the supported living sector, and it's one that relatively few investors have explored. 

What's the connection between SSAS and supported living? 

SSAS schemes are tightly governed by HMRC, and one of the clearest rules is that residential property is off-limits. Invest in the wrong type of property through your SSAS and you could face substantial penalties. However, the HMRC pension tax manual does carve out specific exceptions — certain property types that would ordinarily be classed as residential are treated differently when particular conditions are met. 

Some forms of supported living accommodation fall within these exceptions. For property investors and care sector professionals who hold a SSAS, this creates a genuinely interesting opportunity — provided you go about it the right way. 

Not all supported living properties qualify 

This is where it's important to be clear-eyed. The exception is not a blanket approval for the entire supported living market. HMRC sets out specific cohorts of individuals whose accommodation may qualify, and there are notable exclusions. Properties providing care for care leavers, for example, do not meet the criteria. Children's homes, on the other hand, are frequently allowable within a SSAS — which opens up a particularly compelling niche for investors already active in that space. 

The bottom line is that eligibility is determined by the specific tenant group being housed, so due diligence on this point is essential before proceeding. 

The potential tax advantages 

For properties that do meet the HMRC criteria, holding them within a SSAS can be genuinely powerful from a tax perspective. Any growth in the property's value sits outside the scope of capital gains tax, and rental income generated within the scheme is received tax-free. For those already running businesses in the care sector, there's an added dimension — it can be a highly tax-efficient structure for owning the very properties your business operates from. 

Tread carefully 

The opportunity is real, but so are the risks of getting it wrong. A few principles are worth keeping front of mind. 

Always speak to your SSAS administrator before taking any steps. They can assess whether a specific property meets the necessary criteria under current HMRC guidelines, and their guidance is invaluable before committing to anything. It's also worth remembering that HMRC regulations evolve, so what qualifies today may be subject to change — staying informed is part of managing this kind of investment responsibly. 

It should also go without saying that attempting to stretch or bend the rules to make a property qualify when it doesn't is a risk not worth taking. The penalties for breaching SSAS regulations are significant, and the reputational damage in a sector built on trust can be just as costly. 

Finally, nothing in this article constitutes financial advice. Before making any investment decisions involving your pension, you should always seek guidance from a qualified financial adviser who understands both SSAS regulations and the supported living market. 

Is this right for you? 

For the right investor — particularly those already operating in or investing around the care sector — incorporating eligible supported living properties into a SSAS could be a smart, tax-efficient strategy that aligns your pension with the work you're already doing. It requires careful planning, professional advice, and a thorough understanding of the rules, but the potential upside makes it well worth exploring. 

At Supported Living Gateway, we have hands-on experience with investing through SSAS structures. If you'd like to understand more about how this might apply to your situation, get in touch with us at hello@supportedlivinggateway.com, and we'll be happy to point you in the right direction.