ARTICLE by Graeme Robb

Graeme Robb

Capital Gains Tax Consultation

ARTICLE

T&IO Market Updates

The M&G Treasury and Investment Office look at the latest developments in investment markets with their weekly investment commentary and podcast.

ARTICLE by Mark Devlin

Mark Devlin

Retirement advice unplugged with Rory Percival

On the 23rd of June this year Vince Smith-Hughes held a webinar titled “Retirement advice unplugged with Rory Percival” where the former FCA Technical Specialist discussed the recent FCA policy statement and guidance consultation on DB transfers.

VIDEO

Mark Devlin

How to use our Extracting Company Profits Tool

A walkthrough of how to use Prudential's Extracting Company Profits tool, highlighting the calculations and functionality of this.

WEBINAR

What to do about the Company Bank Account?

In last month’s Bond Withdrawal webinar, many of the attendees asked for further information on investing corporate money. On this webinar, Graeme Robb, Senior Technical Manager, went through the key tax and planning considerations when Investing Corporate money. Cat McInally, Investment Business Development Manager looked at how our fund solutions fit in with corporate investments.

VIDEO

Prudential Market Insights Update – July 2020

Parit Jakhria, Director of Long Term Investment Strategy at the M&G Treasury and Investment Office discusses the key trigger points he has had to deal with over the last few months and what measures have been implemented.

Series E monthly update

On this webinar Paul Fidell, Senior Business Development Manager looked at the recent performance on the Series E version of PruFund.

ARTICLE by Graeme Robb

Graeme Robb

COVID-19 – Financial Planning in the ‘new normal’

COVID-19 created a seismic shock across the globe. Of course, the health, safety and wellbeing of family, friends and loved ones takes priority but we have also witnessed the need for financial guidance and support in this turbulent period. Here’s ten questions to prompt your clients on matters that might understandably have slipped their minds in these challenging times.

The Technical Team

Trust Registration Service (TRS)

Learn about the requirements of the TRS which became operational on 13 July 2017.

VIDEO

Mark Devlin

Paying a contribution for a grandchild

An example of how a grandparent paying into a pension for their grandchild can generate valuable retirement benefits as well as saving IHT.

ARTICLE by Graeme Robb

Graeme Robb

The Trust Registration Service (TRS) - Important news for advisers

The Government has just published “next steps” regarding the TRS. Before considering these, let’s briefly remind ourselves on the fundamentals.

WEBINAR

The tax treatment of discretionary trusts

On this webinar, Neil Macleod, Technical Specialist looked at the various tax aspects of discretionary trusts, including Inheritance Tax, Income Tax and capital gains treatment.

ARTICLE by Michael Watt

Michael Watt

Strategic Asset Allocation 2020 – LF Prudential Risk Managed Active & Passive Funds

The 2019 Strategic Asset Allocation (SAA) review concluded that a reduction in the expected risk profile of the funds was appropriate given the prevailing economic and capital market conditions. This reduction was driven by the stage of the economic cycle and vulnerability to exogenous shocks, on the basis that we might be presented with better opportunities in the medium- term.

VIDEO

Mark Devlin

How tax relief works

A video showing how differing methods of making a pension contribution affect the calculation of tax.

VIDEO

Mark Devlin

Higher than marginal rate relief

A video showing how the rates of tax relief can be higher than the marginal rates of tax a client pays.

VIDEO

Mark Devlin

How to use our Tax Relief Modeller

A walkthrough of how to use Prudential's Tax Relief Modeller highlighting the calculations and functionality of this.

VIDEO

Mark Devlin

What is the Personal Allowance Trap and how do you get out of it?

A look through how the personal allowance trap works, and how pension contributions can generate high rates of effective tax relief. As well as looking at intergenerational planning to alleviate IHT issues to assist those in this trap.

VIDEO

Graeme Robb

Seven steps video

Understanding the Seven Steps required to calculate a client’s income tax liability

VIDEO

Neil MacLeod

Bond tax mitigation using pension contributions

This is a short video which shows how making relief at source pension contributions can mitigate higher rate tax on bond gains.

WEBINAR

Top 10 things to know about Lifetime Allowance

The Lifetime Allowance (LTA) has been with us since 2006 but only in recent years have we found it becoming a frequent source of queries. From death to divorce and protection to planning, and a few points in between. On this webinar, Les Cameron, Head of Technical, took you through ten key pieces of LTA knowledge.

ARTICLE by Les Cameron

Les Cameron

What makes people buy a pension?

Contributions, adjusted net incomes, taxable income, relief at source, net pay and extension of tax bands.

WEBINAR

Series E monthly update

On this webinar Paul Fidell, Senior Business Development Manager looked at the recent performance on the Series E version of PruFund.

WEBINAR

Retirement advice unplugged with Rory Percival

On this webinar, we we’re delighted to be joined by Rory Percival to discuss the recent FCA policy statement and guidance consultation on DB transfers. Importantly a key theme of this session was to look at the impacts on other areas of retirement planning, and how advisers can futureproof their centralised retirement proposition.

WEBINAR

Blending discretionary and smoothed investment solutions to provide better client outcomes

There’s many different investment strategies available to financial advisers for clients in retirement picking the right one at the right time is a highly complex decision. <br/> <Br/> This webinar hosted by Colin Simmons, Business Development Manager, considered the importance of reviewing drawdown clients in these uncertain times and how blending investment strategies and investment managers could lead to better client outcomes. He was also joined by David Butler from Quilter Cheviot and Josh Legg from Curtis Banks.

ARTICLE by Adrian Gaspar

Adrian Gaspar

2020 Strategic Asset Allocation Review for PruFund Growth & PruFund Cautious

Despite the significant challenges that have prevailed so far this year and with much uncertainty still to come, as economies begin the process of re-opening, with Brexit fast approaching and a US presidential election in November, the teams within T&IO have re-assessed markets to understand where attractive long-term investment opportunities lie and how these can be implemented in PruFund portfolios.

WEBINAR

Bond withdrawals

Onshore and offshore insurance bonds have been a staple part of financial planning for decades. And like all investments there will come a time where the money is to be withdrawn. Les Cameron, Head of Technical also used a case study to demonstrate the theory.

VIDEO

Prudential Market Insights Update – June 2020

The Coronavirus is still featuring heavily in news at the moment, but as economies across the world start to slowly reopen, where are some of the key challenges and opportunities? Join Sahil Shaikh, Portfolio Manager at the M&G Treasury & Investment Office, joins us for a monthly look at the global economy.

WEBINAR

Defined Benefit Policy Statement

On this webinar, Les Cameron and Mark Devlin discussed the recent FCA policy statement. After watching the webinar you’ll have an understanding of the FCA’s requirements on DB transfer advice further to the response to CP19/25 and also the FCA’s guidance consultation 20/1.

ARTICLE by Les Cameron

Les Cameron

FCAs next steps to improve the defined benefit pension transfer market (5 June 2020)

ARTICLE by Neil MacLeod

Neil MacLeod

Where do you want your client’s (investment) recovery to happen?

When investing for the longer term it’s almost inevitable that you will experience a market downturn at some point and last month I wrote about tax points to remember if your client’s investments have fallen in value. But investment values can go up as well as down and some of the biggest market rises have come off the back of large market falls.

WEBINAR

Quarterly Market update from Prudential

On this webinar, we looked at recent performance and Expected Growth Rates (EGRs) on the PruFund range from Prudential. M&G Treasury and Investment Office provided a market update and they also gave an update on the current portfolio.

VIDEO

Neil MacLeod

The 14 Year Rule

This is a short video which explains when and how the 14 year rule applies to gifts made up to 14 years before the donor’s death.

WEBINAR

The UK and the EU: are we heading for a fall?

This webinar will help to bring you up to speed with the latest state of play Brexit negotiations and give insights into the main issues that are continuing to separate the two sides.

ARTICLE by Mark Devlin

Mark Devlin

Technical Tidbits – June 2020

I’ve been given the task of summarising five important but not greatly reported changes in our financial world this month. So, I’ll keep the summaries brief with a view as to what these change in the planning sense.

VIDEO

Barrie Dawson

What happens to Loan Trusts when the settlor dies

Short video explaining what happens to Loan Trusts when the settlor dies, including inheritance tax treatment and what happens to the underlying investment held by the trustees.

ARTICLE by Graeme Robb

Graeme Robb

Top Slicing Relief: 5 facts

A Top Slicing Relief (TSR) calculation should be embraced rather than feared. It is after all a good thing. Without it, clients could be disadvantaged by being charged in a single year on chargeable event gains accrued over longer period. Where appropriate, TSR reduces the rate of tax charged on the gain by applying a spreading mechanism. HMRC guidance tells us there are five steps involved in a calculation… or sometimes six. In honour of that, let’s consider five issues to look out for. In fact, let’s make that six!

WEBINAR

The five whats of advising trustees

With more and more people using trusts through lifetime gifting or there creation in their wills, advising trustees is a key area of financial planning. Whilst there’s some similarities with advising individuals giving advice to trustees is a very different animal. On this webinar Barrie Dawson, Technical Specialist goes through the above in more detail.

WEBINAR

PruFund Quarterly update

This quarter we’ve made a number of changes to the Expected Growth Rates (EGRs) and Unit Price Adjustments (UPAs) on a number of different products. On this webinar Paul Fidell, Business Development Manager discussed the changes made and why.

WEBINAR

Prudential With-Profit Life Fund & PruFund 2020 Strategic Asset Allocation

The investment strategy of the Prudential With-Profit funds including PruFund is reviewed at least annually through what we call the Strategic Asset Allocation (SAA).

ARTICLE

PruFund Growth & PruFund Cautious Review of 2020 to end April from the M&G Treasury & Investment Office

A longer update from the M&G Treasury & Investment Office (T&IO) following an exceptional period of investor nervousness and market sell offs driven by a human event and not economics.

WEBINAR

Pensions, Death and IHT

On this webinar, Mark Devlin, Senior Technical Manager helped you to gain an understanding of death benefits available from pension schemes, the importance of nominating beneficiaries correctly and how pensions interact with the wider IHT regime.

VIDEO

Prudential Market Insights Update - May 2020

COVID-19 brought to an end one of the longest bull markets on record, but how did markets look before the crisis? Parit Jakhria, Director of Long Term Investment Strategy at M&G Treasury and Investment Office, joins us to outline the scale of government intervention and offer his thoughts as to how this differs from previous market corrections and recessions.

WEBINAR

Retiring traditional thinking in the retirement market

On this webinar we we’re joined by a panel of experts to discuss current thinking in this market. We we’re joined by Tim Eadon, Chartered Financial Planner at Pension Transfer Specialist Firm Eadon & Co, Michael McQuillan Specialist Support Manager at O&M Systems and Andy Kirby, CEO at Money Alive.

VIDEO

Mark Devlin

Relevant Income

This short video looks at who is eligible to make pensions contributions and what parts of their income are relevant earnings.

ARTICLE by Les Cameron

Les Cameron

Shining a light on drawdown suitability

We are on the cusp of an investigation into the suitability of drawdown and wider retirement income advice. To consider what the results might be, we need to look back in time.

ARTICLE by Neil MacLeod

Neil MacLeod

Seven things you might need to know when markets fall

With markets in turmoil around the world, it’s probably not a question of whether the value of your clients’ investments has reduced, but by how much.

ARTICLE

Digesting the broader economic and market impacts of Coronavirus

Just over a month ago, global markets first confronted the reality that the coronavirus was a global issue. Since then, new cases globally have escalated rapidly and global capital markets have experienced exceptional volatility.

WEBINAR

Planning with OEICs

On this webinar Cat McInally (Investment Business Development Manager) and Graeme Robb (Senior Technical Manager) gave a short overview of Prudential’s OEIC range and the taxation of OEICs and heir use in financial planning.

ARTICLE by The Technical Team

The Technical Team

Top Slicing

In order to understand why there have been changes to top slicing relief announced in the budget, it’s useful to have a quick recap of how we got here.

ARTICLE by Les Cameron

Les Cameron

Oracle Express - Pensions Regulator guidance on COVID-19

The pension regulator has been issuing guidance to trustees, administrators and sponsoring employers of DB pension schemes in response to the Covid-19 outbreak. This has been picked up in the trade press.

ARTICLE by The Technical Team

The Technical Team

Entrepreneurs Relief

ER provides for a lower rate of CGT (10%) to be paid when disposing of all or part of a business where certain criteria are met.

ARTICLE by The Technical Team

The Technical Team

Spring Budget 2020 Tapered Annual Allowance

As had been widely speculated given issues with the NHS Defined Benefits scheme the Chancellor announced changes to the Tapered Annual Allowance.

WEBINAR

Digesting the broader economic and market impacts of Coronavirus

Mark Riggall (Head of Client Portfolio Management) and Parit Jakhria (Director of Long Term Investment Strategy) discussed the economic and capital market impacts of the coronavirus crisis, the scale of the subsequent fiscal and monetary policy measures, and talk through the challenges and indeed opportunities for long term investors.

VIDEO

Prudential Market Insights Update - February 2020

Phil Butler, M&G Treasury Office joined us down the line to discuss the latest developments in the geopolitical events at the forefront of the market such as Brexit, the coronavirus and tensions between the US and Iran.

VIDEO

PruFund Explained

Client facing video that describes how PruFund works.

ARTICLE by The Technical Team

The Technical Team

Spring Budget 2020

VIDEO

Prudential Market Insights Update April 2020

The Coronavirus has disrupted more than just the economy, as many people now find themselves working from home. So, how important is communication during these unprecedented times, and has the government’s response turned the outbreak from a healthcare into an economic crisis? Join Phil Butler, Multi-Asset Portfolio Manager, M&G Treasury and Investment Office, in this month’s update for more.

WEBINAR

PruFund – Back to basics

Recent market volatility as a result of the global Coronavirus pandemic has prompted a lot of questions about many things in the investment world. With that in mind, we thought it might be useful to provide you with a reminder and full explanation of some key aspects of our successful PruFund proposition and hopefully answer some of those questions. This webinar covers topics including the smoothing process, the holding account and unit price adjustments.

WEBINAR

ISA planning – using 2020 foresight

During the course of this webinar, we explored the various planning angles using an ISA, which might suit some of your client in the new tax year end and beyond. It included option for both accumulating and decumulating clients, and ensuring tax benefits are fully utilised.

WEBINAR

ICAEW – maintaining income amid market turmoil

On this webinar Vince Smith-Hughes discussed strategies for dealing with clients who may have seen significant drops in their fund values whilst in drawdown, or about to enter drawdown.

WEBINAR

Annual Allowance – 2020 and beyond

On this webinar Mark Devlin, Senior Technical Manager, covered the Annual Allowance with a key focus on the Tapered Annual Allowance and the impact and financial planning opportunities arising from Spring Budget 2020.

VIDEO

Barrie Dawson

5% tax deferred allowance

Short video explaining how to calculate 5% tax deferred allowance on insurance bonds.

VIDEO

Mark Devlin

Turning capital losses into gains

This short video looks at how you can use pension tax relief to recover capital losses.

ARTICLE by The Technical Team

The Technical Team

Pension recycling

Pension recycling is where a pension lump sum, or pension income, is recycled by reinvesting the income or lump sum into pension as a tax relievable contribution.

ARTICLE by The Technical Team

The Technical Team

Enhanced protection

Enhanced protection was introduced by Finance Act 2004. Individuals who were eligible and continue to hold enhanced protection will not suffer any lifetime allowance excess tax charge when they take pension benefits in excess of the lifetime allowance.

ARTICLE by The Technical Team

The Technical Team

Tax relief on employer contributions

Discover how an employer can receive tax relief on pension contributions for an employee.

ARTICLE by The Technical Team

The Technical Team

Flexi-access drawdown vs UFPLS

Discover useful guidance to help you consider whether flexi-access drawdown or UFPLS is the most appropriate route to achieve the client’s objectives for accessing benefits from their pension pot.

ARTICLE by The Technical Team

The Technical Team

Uncrystallised funds pension lump sum (UFPLS)

Information on uncrystallised funds pension lump sum (UFPLS); what it is, why it was introduced and how it is taxed.

ARTICLE by The Technical Team

The Technical Team

Taxation of pension income

We outline how pension income is taxed as earned income, using Pay As You Earn (PAYE) and cover some key considerations. Usually the income is initially set up with an ‘emergency tax code’.

ARTICLE by The Technical Team

The Technical Team

Pension fixed protection explained

With the Lifetime Allowance being reduced over time to £1.0m, more and more people are facing the potential of being liable to LTA excess charges. Consideration of the availability of LTA protection is therefore a vital part of pensions planning.

ARTICLE by The Technical Team

The Technical Team

Lifetime Allowance (LTA): Q&A

Questions from advisers answered on the lifetime allowance, including queries about protection, LTA excesses, pre A-day benefits, LTA on death and other general questions.

VIDEO

Neil MacLeod

The Order of Gifting

The order gifts are made is important to mitigate the impact of IHT charges on discretionary trusts. Find out more here.

ARTICLE by The Technical Team

The Technical Team

Interaction of tax relief and annual allowance

Tax relief rules and annual allowance rules work separately. Both sets of rules must be correctly considered to ensure pension savings are tax efficient.

ARTICLE by The Technical Team

The Technical Team

How best to extract profits from your business

Discover the three main ways to extract profits from a limited company and how these can be used to improve your client’s financial situation.

ARTICLE by The Technical Team

The Technical Team

What is Pension Lifetime Allowance?

For pensions, the Lifetime Allowance (LTA) is the overall limit of tax privileged pension funds a member can accrue during their lifetime, before a Lifetime Allowance tax charge applies. The standard Lifetime Allowance is currently £1,073,100 (2020-2021).

ARTICLE by The Technical Team

The Technical Team

Annual allowance for pension savings

A review of the main changes to annual allowance since its introduction on 6 April 2006, as well as common issues to consider.

ARTICLE by The Technical Team

The Technical Team

Lifetime allowance (LTA) – uncrystallised funds pension lump sum (UFPLS) case study

We look at the process for the lifetime allowance test when paying an uncrystallised funds pension lump sum

ARTICLE by The Technical Team

The Technical Team

Salary sacrifice: pension planning ideas

There are a number of planning opportunities around Salary Sacrifice (or Exchange) which can produce the same pension contribution at a lower net cost, or a higher pension contribution at the same net cost.

VIDEO

Les Cameron

Who is liable for the tax when a bond is under trust?

Find out who is liable for the tax on an insurance bond chargeable event where the plan is held under trust.

VIDEO

Mark Devlin

What is the child benefit trap and how do you get out of it?

A look through how the child benefit trap works, and how pension contributions can generate high rates of effective tax relief. As well as looking at intergenerational planning to alleviate IHT issues to assist those in this trap.

ARTICLE by The Technical Team

The Technical Team

Pensions can be a valuable tool in an individual's tax planning

Information on how pensions can be used to mitigate child benefit and personal allowance tax traps as well as mitigate tax on bond and CGT gains.

ARTICLE by The Technical Team

The Technical Team

Annual allowance: scheme pays Q&A

Answers to common questions on using the Scheme Pays option to meet annual allowance excess charges

ARTICLE by The Technical Team

The Technical Team

Inheritance tax and pensions

See the situations where inheritance tax may apply in relation to pensions.

ARTICLE by The Technical Team

The Technical Team

Money purchase annual allowance (MPAA) - Case studies

Case studies demonstrating how the MPAA works for a selection of tax years.

ARTICLE by The Technical Team

The Technical Team

Pension death benefits: Q&A

Answers to some common questions we’re asked on the topic of pension death benefits,including options for how these may be paid, how payments are taxed, if a lifetime allowance test applies etc.

ARTICLE by The Technical Team

The Technical Team

The seven steps required to calculate an individual’s income tax liability

ARTICLE by The Technical Team

The Technical Team

Gifting (using trusts) and Inheritance Tax

Learn about Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs), how they differ, their interaction with each other and their impact on Inheritance Tax.

ARTICLE by The Technical Team

The Technical Team

Spousal bypass trust: the facts

Discover what spousal bypass trusts are, why they might be used and the tax implications of using them.

ARTICLE by The Technical Team

The Technical Team

Individual Savings Accounts (ISAs): the facts

The Individual Savings Account (ISA) is a tax exempt savings vehicle for UK resident investors.

ARTICLE by The Technical Team

The Technical Team

Pensions and inheritance tax: planning ideas

Pension planning and making contributions for others can be an effective way for the donor to reduce their taxable estate while saving into a pension for someone else.

ARTICLE by The Technical Team

The Technical Team

Phased retirement

Pension flexibility has increased the options available for those who wish to phase retirement. Discover the main types of withdrawal method and how it works in practice.

ARTICLE by The Technical Team

The Technical Team

Chargeable event gains for bonds and starting rate for saving: Q&A

Questions from advisers answered about setting chargeable events gains for bonds against the starting rate for savings.

ARTICLE by The Technical Team

The Technical Team

Tax relief on member contributions

Learn how tax relief for a member operates including eligibility, methods of claiming tax relief and case studies.

ARTICLE by The Technical Team

The Technical Team

Reduce the impact of the high income child benefit charge

The high income child benefit tax charge (HICBC) impacts those who have adjusted net income over £50,000 and are (or their partner is) receiving child benefit. Reducing adjusted net income can reduce the impact.

VIDEO

Mark Devlin

Tapered Annual Allowance - getting your income correct

This short video focuses on the calculation of the Adjusted and Threshold income limits for tapered annual allowance purposes.

ARTICLE by The Technical Team

The Technical Team

Income tax personal allowance: the facts

What you need to know about the income tax personal allowance.

ARTICLE by The Technical Team

The Technical Team

Comparing pension and buy-to-let as retirement planning vehicles

Buy to let property, as well as pensions, continue to be popular investment vehicles for retirement planning. We look at the advantages and disadvantages of each.

ARTICLE by The Technical Team

The Technical Team

Top slicing relief for bonds taxation: the facts

What you need to know about top slicing relief, how it works and more.

ARTICLE by The Technical Team

The Technical Team

Small pots and defined benefit trivial commutations

Information on small pots and defined benefit trivial commutations, including payment, effect on entitlements to benefits and crystallised and uncrystallised benefit rights.

ARTICLE by The Technical Team

The Technical Team

The new State Pension

The new State Pension replaces the previous rules, which offered the basic and any additional state pension entitlements, for anyone reaching State Pension age on or after 6 April 2016.

ARTICLE by The Technical Team

The Technical Team

Tax-free cash and protection

Information on tax-free cash (TFC) and how it can be protected; the type of Lifetime Allowance protection held can also impact the calculation of the maximum TFC.

Planning for +£50,000 tax-free annually

Nobody likes paying tax, but luckily our tax system offers legitimate opportunities to diminish tax payments. Clients can enjoy a substantial level of tax-free income by taking advantage of the various allowances within the tax system…and it’s not that technical.

ARTICLE by The Technical Team

The Technical Team

Transfer to or from qualifying recognised overseas pension schemes

Discover the main considerations when transferring a pension to or from a Qualifying Recognised Overseas Pension Scheme and new rule changes.

ARTICLE by The Technical Team

The Technical Team

Important Information about Trusts

Everything you always wanted to know about trusts but were afraid to ask! This document shares the answers to common questions about existing trusts.

VIDEO

Neil MacLeod

Attorneys and Gifting – England and Wales

An overview of the types of power of attorney available and what authority attorneys have to make gifts.

ARTICLE by The Technical Team

The Technical Team

Tapered annual allowance: planning ideas and potential pitfalls

Discover how the tapered annual allowance works, and the related planning issues.

ARTICLE by The Technical Team

The Technical Team

Salary sacrifice: the facts

Learn about salary sacrifice: what it is, why do it and what the drawbacks are.

ARTICLE by The Technical Team

The Technical Team

Tapered annual allowance for high income client pensions

Information on tapered annual allowance for high income client pensions.

VIDEO

Graeme Robb

Company Owned Bonds

Understand the corporation tax implications for a company investing in an Insurance Bond.

ARTICLE by The Technical Team

The Technical Team

Individual protection 2014 and 2016

With the Lifetime Allowance being reduced to £1m, more and more people could potentially be liable for Lifetime Allowance excess charges. This makes considering Lifetime Allowance protections a vital part of pensions planning.

ARTICLE by The Technical Team

The Technical Team

Money Purchase Annual Allowance (MPAA)

The money purchase annual allowance, or MPAA, was introduced with pension freedoms and this limits the amount of money which can be contributed to a money purchase scheme once pensions have been flexibly accessed before a tax charge is payable.

VIDEO

Graeme Robb

Top Slicing Relief

Understanding Top Slicing Relief. Why it exists and how it works.

ARTICLE by The Technical Team

The Technical Team

Pension contributions: Q&A

Questions from advisers answered on tax relief and annual allowance (including carry forward) considerations when contributing to pensions.

ARTICLE by The Technical Team

The Technical Team

Small pots and defined benefit trivial commutation: Q&A

Answers to common questions on the topics of small pots and triviality

ARTICLE by The Technical Team

The Technical Team

Pension transfers and conversions, including DB to DC transfers

We explore the advantages and disadvantages of transferring a DB scheme to a DC type scheme and the assessment process, including Transfer Value Analysis Systems (TVAs).

ARTICLE by The Technical Team

The Technical Team

UK investment bonds: taxation facts

Information on UK investment bonds, including what they are, identifying chargeable events, part arrangement (5% rule) and part assignments.

ARTICLE by The Technical Team

The Technical Team

Welsh Rate of Income Tax - Facts

How Income Tax differs for Welsh taxpayers

ARTICLE by The Technical Team

The Technical Team

Carry forward of unused annual allowance for pension savings

Carry forward of unused annual allowance may allow a member to absorb or reduce any annual allowance excess paid in the current tax year which, in turn, would reduce any potential annual allowance charge amount.

ARTICLE by The Technical Team

The Technical Team

When can retirement benefits be taken?

Information on when can retirement benefits be taken, exceptions and key points.

VIDEO

Mark Devlin

Annual Allowance – Scheme Pays

Everything you need to know about pension schemes paying a member's annual allowance tax charge.

ARTICLE by The Technical Team

The Technical Team

Inheritance Tax meets Child Benefit Tax

How inheritance tax planning can also help lower tax on a family basis and help with retirement planning.

VIDEO

Graeme Robb

Company Owned OEICs

Understand the corporation tax implications for a company investing in OEICs.

ARTICLE by The Technical Team

The Technical Team

AIFs for individual investors: planning ideas

Authorised investment funds are collective investment schemes authorised and regulated by the Financial Services Authority (FSA).

ARTICLE by The Technical Team

The Technical Team

Death benefits from defined contribution schemes

Learn about the different types of death benefit, including those from defined contribution schemes, and the way they’re taxed.

ARTICLE by The Technical Team

The Technical Team

Lifetime Allowance and Annual Allowance planning for the high net worth client

Here’s what you need to consider in relation to the Lifetime Allowance and Annual Allowance to see if pension saving is still right for high net worth clients.

ARTICLE by The Technical Team

The Technical Team

Annual allowance: scheme pays

Using the scheme pays option to meet annual allowance excess charges

ARTICLE by The Technical Team

The Technical Team

Annual allowance, including carry forward, money purchase AA and tapered AA: Q&A

Pensions simplification brought us the ‘annual allowance’ for pension savings, on 6 April 2006. At its highest level this reached £255,000 but, since then, we’ve seen a massive drop in the AA limit followed by the ability to ‘carry forward’ unused annual allowance to offset AA excesses.

ARTICLE by The Technical Team

The Technical Team

Early retirement planning

For the young and those with good levels of disposable income the dream of an early retirement at 55 could be achieved by bridging the income gap before State Pension is payable.

ARTICLE by The Technical Team

The Technical Team

How to use our annual allowance calculator tool

To help you know what information is needed to carry out AA calculations, and how to correctly populate the fields in our calculator.

ARTICLE by The Technical Team

The Technical Team

Scottish Rate of Income Tax - Facts

How Income Tax differs for Scottish taxpayers

ARTICLE by The Technical Team

The Technical Team

Top slicing relief for bonds taxation: planning ideas

What you need to know about the interaction of a personal pension contribution and top slicing relief .

ARTICLE by The Technical Team

The Technical Team

Offshore Bonds Taxation explained

Information on taxation of offshore bonds. Find out how offshore life assurance bonds are taxed in the hands of individuals and trustees.

ARTICLE by The Technical Team

The Technical Team

Income tax rates and order of tax

Learn how different types of income are taxed and how they fit into an individual’s income tax calculation.

WEBINAR

Using trusts in Inheritance Tax Planning

On this webinar we looked at the use of standard insurance company trusts and how they can play a part in delivering the right inheritance planning outcomes for your clients. We looked at the four How’s – how they work, how you use them, how they are set up and how they’re taxed.

ARTICLE by The Technical Team

The Technical Team

Chargeable event gain and personal allowance: Q&A

Answers to questions from advisers on the effect of the chargeable event gain on personal allowance.

ARTICLE by The Technical Team

The Technical Team

What is EIS, VCT or SEIS?

What is EIS, VCT or SEIS and what tax reliefs do they offer to investors? Find everything you need to know in our Knowledge Library.

ARTICLE by The Technical Team

The Technical Team

Discretionary trust taxation

What is a Discretionary Trust and what are the tax implications, charges and bands? Find everything you need in our knowledge library.

ARTICLE by The Technical Team

The Technical Team

Transferable nil rate band: planning ideas

Learn about the interaction of discretionary will trusts and the inheritance tax transferable nil rate band.

ARTICLE by The Technical Team

The Technical Team

Corporate-owned bonds

Understand the corporation tax implications of a company investing in an insurance bond.

ARTICLE by The Technical Team

The Technical Team

Gift aid donations by individuals: the facts

Gift aid is a tax-efficient way of gifting to charities.

ARTICLE by The Technical Team

The Technical Team

UK investment bonds: taxation planning ideas

Discover tax planning opportunities with UK investment bonds.

ARTICLE by The Technical Team

The Technical Team

AIFs for individual investors: the facts

An overview of what authorised investment funds are and how they are taxed.

ARTICLE by The Technical Team

The Technical Team

Offshore Bond Taxation planning ideas

Information on tax planning with offshore policies, including what they are, time apportionment relief and excluded property trust.

ARTICLE by The Technical Team

The Technical Team

Inheritance Tax annual exemption

What you need to know about the annual £3,000 exemption for Inheritance Tax purposes.

ARTICLE by The Technical Team

The Technical Team

Transferable nil rate band: the facts

Learn the practical steps surrounding the transfer of the inheritance tax nil rate band.

WEBINAR

Monthly Investment update

On this webinar, Paul Fidell, Business Development Manager looked at the recent performance of the PruFund range of funds available on Prudential’s Retirement Account. Mark Riggall, Head of Client Portfolio Management at M&G Treasury and Investment Office provided a market update.

ARTICLE by The Technical Team

The Technical Team

Income tax personal allowance: planning ideas

Personal allowance planning involves reducing adjusted net income given the £100,000 income limit for personal allowance purposes.

WEBINAR

PruFund and Treasury & Investment Office update

On this webinar hear from Paul Fidell (Senior Business Development Manager), Mark Riggall (Head of Client Portfolio Management) and Parit Jakhria (Director of Long Term Investment Strategy) for an update on the PruFund announcements and the impact on the asset allocation.

WEBINAR

Spring Budget 2020

Our technical team are here to digest those big announcements that affect financial planners and tell them what we think it means for their clients and advice.

ARTICLE by The Technical Team

The Technical Team

Miscellaneous pension tax and trusts

In this article we cover some of the miscellaneous budget announcements impacting pensions, tax and trusts.

The Technical Team

UK Tax & Allowances

Information on UK tax and allowance for the years 2017/18 and 2018/19

WEBINAR

The politics of Covid 19 – has the pandemic changed the role of government forever?

Faced with unprecedented public health crisis the response of the Government has been similarly extraordinary, with major restrictions imposed on business and household functions and billions of pounds in support being made available to them. On this webinar, Michael Collins, Director of Government Affairs examined the politics behind the handling of Covid 19 in the UK and what it means for the future role of Government.

ARTICLE by The Technical Team

The Technical Team

Inheritance Tax Potentially Exempt Transfers

Learn how outright gifts are dealt with for inheritance tax purposes and the implications of death within seven years.

ARTICLE by The Technical Team

The Technical Team

Residence Nil Rate Band (RNRB): Planning

This article provides an opportunity to learn about the planning options available for clients to maximise the RNRB.

WEBINAR

Webinars with Selectapension and O&M systems

On these webinars, we've focused on the pension switching advice and have been joined by two of the largest adviser software providers O&M systems and Selectapension.

WEBINAR

Prudential Risk Managed Passive and Active 2019 review and 2020 outlook

On this webinar Phillip Butler; Portfolio Manager and Cat McInally, Business Development Manager, discussed how the Risk Managed Passive and Risk Managed Active fund ranges performed in 2019 and highlighted both the main tactical and strategic asset allocation positions taken.

VIDEO

ESG Investing

Ben Constable-Maxwell, Head of Sustainable and Impact Investing with M&G Investments discusses ESG, who it is for, strategies, drivers and ESG in practice.

ARTICLE by The Technical Team

The Technical Team

Residence Nil Rate Band (RNRB): Facts

Learn about the availability of the RNRB for clients.

The Technical Team

Trust Registration Service (TRS) 5MLD Consultation

Just two and a half years ago the Fourth Money Laundering Directive (4MLD) came into effect giving rise to the Trust Registration Service (TRS).

ARTICLE by The Technical Team

The Technical Team

Discretionary Trust 10 yearly charge – 10 pointers

The UK tax system is complicated, so no wonder the Office of Tax Simplification (OTS) was established to give independent advice to the government on making things easier for taxpayers.

ARTICLE

The Scottish Budget 2020 - no change to income tax rates

Following the sudden resignation of Scotland’s Finance Secretary, Derek Mackay, the Scottish Budget was delivered by the Minister for Public Finance and Digital Economy, Kate Forbes.

WEBINAR

Family Fortunes webinars

Planning for the succession of family assets can be a complex and sensitive process, with “Family Fortune” potentially becoming “Family Feud”. Nevertheless, it’s an area where you can demonstrate the true value of comprehensive advice to your clients.

ARTICLE by The Technical Team

The Technical Team

Trustee record keeping

Find out which records are required for a trust with this useful guide for trustees.

ARTICLE by The Technical Team

The Technical Team

Trustee investment considerations: the facts

Learn the overriding duties of trustees in relation to investments.

ARTICLE by The Technical Team

The Technical Team

Individual savings accounts (ISAs): planning ideas

Help your clients make the most of their individual savings accounts (ISAs).

ARTICLE by The Technical Team

The Technical Team

Charities and insurance bonds: implications

Find out why HMRC considers it prudent for a charity to take professional advice before purchasing an insurance bond or accepting a transfer from a donor.

ARTICLE by The Technical Team

The Technical Team

Trustee residence status rules for the UK

Learn how the residence status of trustees as a body under UK rules is determined.

ARTICLE by The Technical Team

The Technical Team

Normal expenditure out of income exemption

Learn how normal expenditure out of income can be a valuable inheritance tax exemption, and how to plan with it.

ARTICLE by The Technical Team

The Technical Team

Types of chargeable event gains on bonds and how to calculate them: Q&A

Questions from advisers answered on types of chargeable event gains for bonds and how to calculate them.

ARTICLE by The Technical Team

The Technical Team

Loan trusts: the facts

Loan trusts are designed for individuals who wish to undertake IHT planning but are unwilling to make outright gifts.

ARTICLE by The Technical Team

The Technical Team

Discounted gift trusts: payments to beneficiaries

Information on discounted gift trusts and payment to beneficiaries; what to consider for payment to a beneficiary of a discounted gift trust while the settlor is still alive.

ARTICLE by The Technical Team

The Technical Team

Investment bonds – segment surrender v surrender across the segments

What you need to know about choosing how to withdraw funds from a bond when the whole bond is not being encashed.

ARTICLE

5% Tax Deferred Allowance for bonds: Q&A

Questions from advisers answered about the 5% tax deferred allowance and how it relates to chargeable event gains on bonds.

ARTICLE by The Technical Team

The Technical Team

Family investment companies

Information on family investment companies, including how using a family investment company is an inheritance tax (IHT) strategy for individuals with large estates subject to IHT.

The Technical Team

Clubs, societies and charities – problems investing in insurance bonds

Understand why investing in insurance bonds is problematic for unincorporated associations and charities.

ARTICLE by The Technical Team

The Technical Team

Discounted gift trusts: the facts

Learn about the role discounted gift trusts play in inheritance tax planning.

ARTICLE by The Technical Team

The Technical Team

Domicile status for individuals: the facts

Understand why domicile status can be important in establishing an individual’s tax liability.

ARTICLE by The Technical Team

The Technical Team

What duties and responsibilities do trustees have?

Learn the duties and responsibilities of trustees

ARTICLE by The Technical Team

The Technical Team

Inheritance Tax relief for business property

Business property relief is a valuable inheritance tax relief for business owners whether making a lifetime transfer or on death.

ARTICLE by The Technical Team

The Technical Team

Discounted gift trusts: changing the underpinning investment

Learn about changing the underpinning investment on a discounted gift trust which has been used for lump sum inheritance tax planning.

ARTICLE by The Technical Team

The Technical Team

Excluded Property Trusts

Learn about the role Excluded Property Trusts play in inheritance tax planning.

ARTICLE by The Technical Team

The Technical Team

Purchased life annuities: the facts

See how purchased life annuities provide a guaranteed income normally until death or expiry of a fixed term.

ARTICLE by The Technical Team

The Technical Team

Gifting guidance for attorneys and deputies

Here’s how an attorney or court appointed deputy can make gifts on behalf of another person.

ARTICLE by The Technical Team

The Technical Team

Loan trust: planning ideas

Loan trusts can be used to plan for inheritance tax, school fees, pensions and death benefits.

ARTICLE by The Technical Team

The Technical Team

Probate Trust

Learn about the role Probate Trusts play to ease the process on death of an insurance bond applicant.

ARTICLE by The Technical Team

The Technical Team

Gift Trust

Learn about the role insurance company gift trusts play in inheritance tax planning.

ARTICLE by The Technical Team

The Technical Team

Chargeable event gains on a bond and capital gains tax: Q&A

Answers to questions from advisers on the interaction of chargeable event gains on a bond and capital gains tax.

ARTICLE by The Technical Team

The Technical Team

Inheritance Tax taper relief

Find out how taper relief can reduce the tax payable on lifetime gifts.

ARTICLE by The Technical Team

The Technical Team

Life assurance policies and insurable interest requirements

Learn what insurable interest means and its different categories.

ARTICLE by The Technical Team

The Technical Team

Personal Injury Trust

A personal injury trust is the name given to trusts which are usually set up by solicitors from payments as a result of an accident, injury or malpractice.

ARTICLE by The Technical Team

The Technical Team

Trusts for disabled persons

Learn about the special tax treatment for trusts that are set up for vulnerable beneficiaries.

WEBINAR

Les' big fat quiz of the year

Our technical team have been answering questions all year and on this webinar Les Cameron, Head of Technical, turned the tables with a quiz for you covering the most common queries of the year.

WEBINAR

Quarterly market update from Prudential

This webinar looked at recent performance and Expected Growth rates on the PruFund range form Prudential. M&G Treasury & Investment Office provided a market update and gave an update on the current portfolio positioning for PruFund.

WEBINAR

PruFund - standing by you and your clients for 15 years

On this webinar, Paul Fidell, Senior Business Development Manager will cover key events of the last 5 years, how these have impacted upon investments, how PruFund has come through for investors and also look at some comparative performance numbers.

VIDEO

Sequencing of risk return

Vince Smith-Hughes discusses sequencing of risk return. Look at examples of income taken, the order of returns and the possible impact on the future value of the fund.

VIDEO

Protecting investor interests from the inside

Ciaran Mulligan, head of investment management oversight at the M&G Treasury and Investment Office, discusses his role and provides insight into our internal and external governance and due diligence processes.

VIDEO

Investing in alternatives for 15 years

Michael Howard, head of alternatives at M&G plc discusses his role and provides insight into some of the unique alternatives assets we invest in that underpin our portfolios.

VIDEO

Getting the best return in the smoothest possible way

Parit Jakhria, Director of long-term investment strategy at the M&G Treasury and Investment Office, discusses his role and how we align our long-term investment strategy with our clients aims and objectives.

WEBINAR

Brexit Update

On this webinar, Branamira Radoslavova, Head of Government Relations, Europe and International discussed the outcome of the Brexit discussions following the deadline of 31 October. She also summarised what the outcome means for financial services and what to expect in the months to come.

WEBINAR

Prudential Investment insights

Phil Butler, Multi Asset Portfolio Manager at M&G Treasury and Investment Office gave a year end update for LF Prudential Risk Managed Active and LF Risk Managed Passive fund ranges. He covered what were the main fund highlights for 2019, performance update, market overview and possible opportunities and headwinds for 2020.

WEBINAR

2020 and beyond seminar

We live streamed the final seminar on the 29 October. Hot on the heels of the latest FCA pension transfer advice consultation paper 19/25, what better time is there to find out what this means for you and advice in the future.

WEBINAR

FCA Paper CP19/25 panel debate

During this debate Vince Smith-Hughes and Les Cameron of Prudential were joined by Andy Kirby, CEO of Money Alive, Director of Mint Wealth Management and AdviserHome, Rory Percival, Regulatory Consultant and Damian McPhun, Partner at Beale & Co Solicitors. The panel not only looked at the details within the consultation but also the implications in the wider advice market and what this will mean for advisers in the future.

ARTICLE by The Technical Team

The Technical Team

Pension Section 32 & Buyout policies

Information on section 32 policies, what they are, when it would be used and the difference between it and a personal pension.

ARTICLE by The Technical Team

The Technical Team

Pension miscellaneous: Q&A

Here we answer a few common questions we are asked about pensions.

ARTICLE by The Technical Team

The Technical Team

Legal structures of pension schemes

An explanation of the different legal structures for pension schemes, including personal and group pensions and master trusts.

ARTICLE by The Technical Team

The Technical Team

Pension Drawdown – everything you need to know

Drawdown allows pension holders to take a tax-free lump sum and reinvest the remainder as an income. Specific approaches include capped drawdown, flexi-access drawdown and optional, short-term annuities. The most appropriate method will depend on whether your client’s scheme was in place before 6 April 2015, and their particular aims and objectives.

ARTICLE by The Technical Team

The Technical Team

Additional protection for flexible pension consumers

The government has introduced new requirements to help protect pension consumers, as well as changes to guidance, advice and support.

ARTICLE by Paul Fidell

Paul Fidell

Risk and suitability: How can the industry get it right?

Suitability comes in many different forms, and there is a growing need for asset managers to better align fund processes with the requirements of the client.

ARTICLE by The Technical Team

The Technical Team

Protected early pension age

Information on protected early pension age and the three categories of members with the right to take benefits before the minimum pension age, along with the conditions affecting them.

ARTICLE by The Technical Team

The Technical Team

Pension commencement lump sum (tax-free cash)

Information on pension commencement lump sum (tax free cash), including key points, limits, entitlement and how to calculate the amount of tax-free cash.

ARTICLE by The Technical Team

The Technical Team

What is a pension annuity?

A guide to pension annuities: the essential facts and issues to consider.

ARTICLE by The Technical Team

The Technical Team

Transfers: Q&A

Here we answer a few common questions we are asked about pension transfers.

ARTICLE by The Technical Team

The Technical Team

Types of pension arrangements

A summary of the main types of pension arrangements, including money purchase (defined contribution), defined benefits and cash balance schemes.

ARTICLE by The Technical Team

The Technical Team

Pensions and divorce

Courts dividing assets during a divorce can take into account most pension rights. The settlement can be reached by offsetting, an attachment/earmarking order or a pension sharing order.

ARTICLE by The Technical Team

The Technical Team

Primary protection

Primary protection was introduced by Finance Act 2004 to protect people from unnecessary tax charges where their total benefits were valued at £1.5m (the newly introduced lifetime allowance) or more on 5 April 2006.

ARTICLE by The Technical Team

The Technical Team

Pensions and divorce: Q&A

We provide answers to typical questions from advisers on pension plans impacted by divorce proceedings.

ARTICLE by The Technical Team

The Technical Team

RAC, SIPP and SSAS pensions

Insight into three other types of money purchase pension schemes - retirement annuity contracts, self-invested personal pensions schemes and small self-administered schemes.

ARTICLE by The Technical Team

The Technical Team

Death benefits for defined benefit schemes

Find out about the types of death benefits that can be paid from a defined benefit scheme and how they’re taxed.

WEBINAR

Investment Insights

On this webinar, Sahil Shaikh, Multi – Asset Portfolio Manager at M&GPrudential Treasury and Investment office dicsussed the recent implementation of the 2019 Strategic Asset Allocation for the LF Prudential Risk Managed Active and LF Prudential Risk Managed Passive Funds ranges. He covered what the main changes were in the 2019 Strategic Asset Allocation, why the changes been made and a performance update and market overview.

WEBINAR

Handling income and investments with care

On this webinar, Neil MacLeod and Vince Smith – Hughes, discussed with Tony Miles of My Care Consultant how different types of income and investments are treated in respect of local authority financial assessments, and how much individuals are required to contribute to their financial care in different circumstances. In addition they discussed the use of care consultants and the different ways advisers firms can use them.

ARTICLE

What is ESG investing?

Ben Constable-Maxwell, Head of Sustainable and Impact Investing at M&G Investments discusses ESG investing and the driving forces behind it.

WEBINAR

55%, 25% or 0%: How much should you pay, when it comes to LTA?

On this webinar Jacqueline Clezy worked through a typical case study demonstrating the highly nuanced area of Lifetime Allowance planning.

WEBINAR

FinTech Webinar Week

Learn more about our FinTech Webinar Week.

Frequently Asked Questions about MiFID II & IDD disclosure

Frequently Asked Questions about MiFID II & IDD disclosure

ARTICLE by Michael Howard

Michael Howard

Why invest in alternatives?

Michael Howard, Head of Alternative Investments analyses how alternative assets can benefit multi-asset portfolios.

ARTICLE by The Technical Team

The Technical Team

Transfer to or from qualifying recognised overseas pension schemes

Discover the main considerations when transferring a pension to or from a Qualifying Recognised Overseas Pension Scheme and new rule changes.

ARTICLE by The Technical Team

The Technical Team

Transferring a pension scheme

Learn about what’s allowed and what’s not allowed by HMRC when a member of a pension scheme transfers their accrued pension rights from one scheme to another.

ARTICLE by The Technical Team

The Technical Team

When can retirement benefits be taken?

Information on when can retirement benefits be taken, exceptions and key points.

ARTICLE by The Technical Team

The Technical Team

Income or assets overseas – client notification obligations

If you give advice about tax, or are a financial institution, you may need to send a letter to clients who have income or assets overseas.

WEBINAR

Quarterly Market update with Prudential

On this webinar we looked at recent performance and Expected Growth rates on the PruFund range from Prudential.

ARTICLE by Mark Devlin

Mark Devlin

3 things to think about Annual Allowance at tax year end

As I’ve been given a limited word count to make this article “small & punchy” expect a few links to other articles to follow, possibly a few more links than I intended given my opening!!

ARTICLE by Les Cameron

Les Cameron

Start to look at what’s next

We’re into tax year end and many people are busy getting all those things done as 5 April looms, whether that be finalising pension contributions, using up allowances or bed and breakfasting those capital gains.

Get your Investment Matters CPD certificate

Thanks for coming to our recent ‘Investment Matters – Review, Plan, Action’ seminar. We hope you got a lot out of it.

ARTICLE by The Technical Team

The Technical Team

Death benefits and annuities

Learn about the death benefits that can be provided if a member purchases an annuity contract, and the resulting taxes payable.

ARTICLE by The Technical Team

The Technical Team

Pension switches without safeguarded benefits

Information on pension switches without safeguarded benefits. We answer 'What is a pension switch?' and how it is different from a pension transfer.

ARTICLE

Glossary of Multi-Asset Investing

Changing demographics, globalisation and technology are just some of the factors pushing capital from Western economies to Eastern economies over the past thirty years. Are multi-asset portfolios at risk of being left behind amid such historic regime shifts? Parit Jakhria, Director of Long-term Investment Strategy at Prudential Portfolio Management Group (PPMG) explores these regime shifts.

ARTICLE

Multi-asset allocation amid ‘shifting’ economic centres of gravities

Changing demographics, globalisation and technology are just some of the factors pushing capital from Western economies to Eastern economies over the past thirty years. Are multi-asset portfolios at risk of being left behind amid such historic regime shifts? Parit Jakhria, Director of Long-term Investment Strategy at Prudential Portfolio Management Group (PPMG) explores these regime shifts.

ARTICLE

Why the rules are less clearly defined for multi-asset funds today

Multi-asset is evolving from straight forward cautious and balanced outlooks to outcome-orientated and targeted-return strategies. But as investors enter a new era of quantitative tightening, a focus on traditional, long-term metrics will be key to achieving success according to Prudential Portfolio Management Group’s (PPMG) Andy Brown.

ARTICLE

Capital markets research and modelling: The engine of a multi-asset portfolio

As the universe of multi-asset solutions continues to grow, the key to delivering long-term, stable returns often relies on how well the underlying drivers of risk and return are understood and managed in a portfolio. But how easy is it to model the possibilities? Dipanjan Roy of PPMG explains.</