Pension Planning

Question 1

Explain what is a relevant UK individual

Answer 1

Has relevant UK earnings for the tax year
UK Resident during the tax year or,
UK resident both when they joined the scheme and at some point in the 5 tax years prior to making the contribution or,
Individual or Spouse have earnings from overseas Crown employment

Question 2

LISA Features (4)

Answer 2

Opened by someone aged 18-40
Bonus on contributions of up to £1k pa
Max Saving is £4k pa (forms part of ISA)
Can withdraw before 60 but withdrawal charge of 25% applies

Question 3

VCT Tax Advantages (5)

Answer 3

Income Tax relief @ 30% 
Max £200k investment per tax year
Dividends Tax Free
Exempt from CGT
No BPR

Question 4

EIS Tax Advantages (5)

Answer 4

Income Tax relief @ 30%
Max £1m per tax year
Exempt from CGT
Dividends Taxable
100% BPR available after 2 years

Question 5

What does Financial Advice Market Review (FAMR) focus on? (3)

Answer 5

Affordability
Accessibility
Liabilities and consumer redress

Question 6

What does FAMR allow

Answer 6

People to take £500 tax free from their DC pot to redeem against financial advice cost - can do 3 times in different tax years.

Question 7

List the ISO 22222 Financial Planning Process (6)

Answer 7

Establish and define the relationship - TOB

Gather data - FF

Analyse and evaluate - SR

Develop and present - Presentation of report

Implement - Put plan into action

Review - ongoing reviews

Question 8

Annual/Regular Review Items - HALF PAST NINE (12)

Answer 8

Health
ATR
Legislation
Fund Performance
CaPital needs
Annuity purchase
Spouse - divorce/marriage
Tax
New Products
Income
Need for State Benefits
Estate Planning