Planning Questions

Question 1

What is the annual allowance?

Answer 1

£60,000 (gross)

Question 2

How the does the annual allowance taper for higher earners work?

Answer 2

£1 for every £2 you earn over £260,000 allowance tapered stops at £10,000

Question 3

At what level of income does it taper?

Answer 3

£260,000 to £360,000

Question 4

What is the LSDBA?

Answer 4

The Lump Sum and Death Benefit Allowance (LSDBA) is the maximum amount of tax-free lump sum benefits that can be paid out from a pension scheme. This includes any lump sum death benefits paid out after the account holder’s death.
The LSDBA is usually £1,073,100, but it can be higher if the account holder has a protected allowance.
If the LSDBA is exceeded, the excess amount is subject to income tax.
(if they die pre 75 the LSDBA is how much beneficiaries can receive tax free)

Question 5

How many years of allowance can be carried forward?

Answer 5

Up to 3 previous tax years

Question 6

Cost to set up a Drawdown?

Answer 6

£200 initial cost

Question 7

Annual cost to run a drawdown?

Answer 7

£150 thereafter (VAT on top of both)

Question 8

How old do you have to be to start making contributions to a SIPP?

Answer 8

From birth, after 75 can still make contributions but no longer get tax relief

Question 9

What are the transfer out fees for a SIPP?

Answer 9

£25 per line of stock, Minimum of 4 (£100), cash is one line.

Question 10

What is the tax charge on pensions valued in excess of the LTA?

Answer 10

There is no LTA tax charge as of April this year.

Question 11

What tax relief is earned on personal contributions?

Answer 11

20% for basic rate tax payers and higher rate tax payers get 20% if claimed through self assesment and 45% for additional rate

Question 12

What tax relief is earned on company contributions?

Answer 12

Individuals do not get any tax relief on company contributions

Question 13

At what age can benefits be taken from a SIPP?

Answer 13

55

Question 14

How is a SIPP treated differently if the holder dies before or after 75?

Answer 14

Before 75 the SIPP can be passed down to the beneficiary tax-free, after 75 taxes can be applied. Both circumstances outside of deceased estate for IHT purposes.

Question 15

A client contributed £30,000 Net to their Killik SIPP, after tax relief how much will be contributed gross?

Answer 15

£30,000/0.8 = £37,500

Question 16

What does UFPLS stand for?

Answer 16

Uncrystallised fund pension lump sum

Question 17

Rate of tax relief on personal contributions recevied through a Killik SIPP?

Answer 17

20%

Question 18

If somebody has no income in a tax year, what can they contribute (Gross and Net)

Answer 18

£3,600 Gross & £2,880 Net

Question 19

What is the maximum percentage of a client’s wealth that can be held in Physical Gold Bullion within their SIPP?

Answer 19

30%

Question 20

What does QROPS stand for?

Answer 20

Qualified recognised overseas pensions schemes

Question 21

2 types of drawdown?

Answer 21

Flexi access & Capped drawdown

Question 22

What are the three pensions crystalisation events?

Answer 22

Going into drawdown, turning 75 or death

Question 23

What is the LSA

Answer 23

£268,275

Question 24

What are the fees?

Answer 24

MIS: wealth planning 0.25% on 1m – 0.2% over 1m (Stockbroking: 0.5% on 1m and 0.45% thereafter)

Question 25

What are the four main areas

Answer 25

IHT & Estate planning, Retirement planning, Tax efficient investing, Financial Protection, Lifetime Cashflow forecasting

Question 26

Head of Wealth Planning

Answer 26

Shaun Robson

Question 27

Head of Financial Planning

Answer 27

Will Stevens

Question 28

Fees for specialist advice on complex pensions?

Answer 28

1.5% subject to a min of £3750

Question 29

Fees on external assets?

Answer 29

0.5% on first 1m and 0.45% thereafter

Question 30

Killik complete fees?

Answer 30

1.75% for first £1 mil down to 1.5% thereafter (VAT inc.)

Question 31

Killik Complete minimum investment?

Answer 31

£500,000

Question 32

What are the three main services included in Killik Complete?

Answer 32

Tax & Trustee Services (Wills, POA’s, Trusts, Executorships) Investment Management (MIS), Wealth Planning

Question 33

What is APS

Answer 33

Additional permitted subscription - when someone can inherit an ISA allowance left behind by a spouse or civil partner when they die.

Question 34

What is the limit a Settlor can put into a Trust in any 7 seven period before triggering a lifetime Inheritance Tax charge?

Answer 34

£325,000. Everything above the threshold is taxed at 20%

Question 35

Under the Law of Intestacy (applying where the deceased leaves no will), at what age will a child be entitled to his or her share of the estate?

Answer 35

18

Question 36

At what period of intervals does the capital of a discretionary trust get assessed by HMRC?
Annual Trust Administration fee

Answer 36

Every 10 years
0.25% Killik admin fee

Question 37

Advice Process

Answer 37

1. Conversation
2. Initial Analysis
3. Cashflow Modelling
4. Review & Analysis
5. Financial Plan
6. Implementation
7. Ongoing Monitoring and Advice
8. Regular Reviews

Question 38

6 Planning Areas

Answer 38

Tax Efficient Investing
Pension Advice
IHT & Estate Planning
Lifetime Cashflow
Retirement Planning
Financial Protection

LFR TIP

Question 39

Can you subscribe to more than one ISA

Answer 39

yes more than one S&S ISA, total 20k allowances across all

Question 40

Can a grandparent open a JISA

Answer 40

ney - only parent or gaurdian

Question 41

Age to open adult ISA
LISA

Answer 41

18
18-39