Savings Polcicies

Question 1

What is an endowment plan?

Answer 1

Mainly A savings/investments vehicle with life cover

Gives generous tax treatment within fund and life cover

Question 2

Describe a lisa (3)

Answer 2

£4k per person and receive a £1k top up for first home or retirement
Under 40s only

Question 3

Describe a jisa (9)

Answer 3

£9k input a year (could increase)
Until 18 years old when switch to cash/s&s or access
Can manage from 16
Offers more options than friendly society plans etc
Wide range of funds to suit risk profile
Lower fees
More Flexibility
Tax free returns (fund will grow quicker due to roll up)
Parents can open-and avoids the £100 limit on child savings income
Can vary contributions

Question 4

What was a CTF (4)

Answer 4

£9k input
Closed in 2011
Got a voucher of £50/£500 from the go
Have control at 18 yo

Question 5

Features of ISA(11)

Answer 5

20k allowance
Liquid
Portable
Withdraw anytimd
Put back in in tax year
Interest, divs, property all income tax free
Initial charge (c1-5%), annual charhe 1-1.5%
Legislation risk-less changes than pensions
Additional permitted subscription:spouse could inherit on death gifted
CGT free
Isa manager arranges with HMRC if pay over

Question 6

What is bed and isa (3)

Answer 6

Sell investements held outside snd purchase inside isa wrapper

To counter paying more tax in future on investments

Have to sell to pay as cash or share option schemes and approved share incentive schemes can transfer directly in