Fact Finding Questions

Question 1

Additional Info Required to purchase a BTL Property

13 points

Answer 1

Where is Deposit coming From?
How much emergency Fund 
Short Term Capital Requirements that may impact on purchase
Have they used Annual CGT 
Carrying Forward any losses
Any penalties on deposit account
How much of a priority is it for them 
Mortgage interest relief is restricted
Fixed or variable rate 
term of BTL
Early repayment charges 
Any plans to downsize
ATR towards mortgage

Question 2

Additional Info Required BTL regarding Property

7points

Answer 2

Have They found a property
How much is it
Experience they have of running a BTL 
Are they aware of additional insurances
How much of a priority is it for them
Protection of Debt
Names purchased in

Question 3

Additional Info Required To review Tom and Sally’s investment portfolio and improve overall tax
efficiency and To mitigate Tom’s income tax liability

6points

Answer 3

Emergency fund Required
Capacity for loss
Are they getting best rates on cash isas
Have they used CGT Exemption
Made any gains or losses in the period 
Carry forward any losses
Do they plan to use any assets for property
Short term Capital needs

Question 4

Additional Info Required To review Tom and Sally’s Review Investments 7

Answer 4

valuations of all investments
Rates being received
Use of all tax efficient investments
When were risk profiles last reviewed are they still accurate
Ethical investments / SRI
Past Performance against a benchmark
Would they consider using a DFM to look after investments.

Question 5

Additional Info Required to Review Personal Protection (11)

Answer 5

Level of income, capital required in the event of either of them becoming long-term
sick/suffering an accident?
 Would their pattern of expenditure change in the event of long-term illness?
 Adverse underwriting / exclusions to existing cover or hobbies (rugby?)
 Level of State benefits payable if Tom was unable to work through sickness
 How long would Tom’s company pay him if he were to suffer long-term illness?

 What age do Tom and Sally intend to retire?
 How much can they afford to allocate to this financial aim?
 Willingness to use other assets, savings or downsize in the event inability to work
 When do they intend to make their wills?
 Are they willing to use trusts?
 Do they have plans to marry?

Question 6

Additional Info Required to Review Business Protection (2)

Answer 6

How long would Tom’s company pay him if he were to suffer long-term illness?
 Can Tom’s company arrange further protection benefits, such as continued salary or
income protection insurance and / or life cover?

Question 7

Additional Info Required To ensure that their mortgage is repaid before retirement (10)

Answer 7

How much of an emergency fund do they require?
 Would there be any charges for switching the existing mortgage to capital and interest, or extending the term?
 Any early repayment charges on their existing mortgage
 Is the mortgage interest rate fixed or variable?
 Would they consider/ can they afford to make monthly over payments to start to
reduce the outstanding balance?
 Which of their existing investments do they wish to use for the purpose of repaying
the mortgage?
 Tax implications of sale of investments to repay mortgage in due course
 Are they willing to downsize in retirement?
 Would they be willing to use any pension commencement lump sum towards
repaying the mortgage?
Any other planned expenditure/gifts to Hannah/priority

Question 8

.Additional Info Required To ensure Tom and Sally are able to generate adequate income in
retirement. (15)

Answer 8

Planned retirement date
 How much income do they require in retirement?
 Do they expect any capital/expenditure at/in retirement?
 Inflation expectations/in today’s terms
 State Pension entitlement/BR19 forecasts?
 Willing to increase Tom’s pension – company and employee contributions
 Consider employing Sally in his business so the company can make pension
contributions on her behalf
 Affordability/budget/cashflow
 Are they willing to use other non-pension assets / use new buy-to-let to
supplement income in retirement?
 Asset allocation in pension funds/fund performance/fund choices
 Fund charges/plan charges
 Projections to retirement/ benefit statement
 Planned career changes/changes to Tom’s salary
 Ethical preferences
 Capacity for loss/assess their attitude to risk

Question 9

Additional Info Required To mitigate Tom and Sally’s inheritance tax liabilities whilst maximising the
value of the estate passed to Hannah (12)

Answer 9

Confirm position re previous lifetime gifts and use of previous IHT annual
exemptions
 Are they prepared to use capital now to reduce their mortgage?
 Are they prepared to make lifetime gifts of capital? If so, what is the level of
lifetime gifting planned?
 Are they willing to use trusts for new or existing investments, if so, who would
be the trustees and how much control/flexibility will Tom and Sally require?
 If they act as trustees, are they aware of their duties and obligations as trustees?
 How important is it to them to be able to pass their pensions intact through the
generations?
 Do they want to put in place life cover to provide for any IHT liability?
 Do they wish to make any charitable legacies?
 Considering their adventurous attitude to risk, would they consider investing in
an EIS to gain 100% Business Relief from inheritance tax after two years?
 Value of Tom’s shares in the limited company
 Is Sally a shareholder in the business?
 What is the priority of this objective?