The impact of the extended GAD tables »
From the date that the changes to the capped drawdown GAD
tables where announced in January it was unclear at what point they
would need to be used from which caused a lot of confusion. A few
days after the announcement that rates were to change, it was
announced that these should be used from the 6th April.
This raised even more questions given the GAD rates change on the
1st of the month so could cause some unfairness.
Using trusts to gift property »
According to the latest estimates, HMRC's inheritance tax
receipts are to be about £4,637m for 2015-16, which is an increase
of 22% from 2014-15. Since 2009-10 IHT receipts have increased year
on year on average by 12% each year. Some of it is due to the nil
rate band being frozen at £325,000 since April 2009 but the main
reason is rising asset values. Unsurprisingly perhaps at Technical
Connection we receive an increasing number of questions about
planning for effective reduction of estates through gifts. This
goes hand in hand with the desire of many parents to help their
children on the property ladder.
Are you thinking about all of the risks? »
One of the first discussions many planners have with new clients
will be one that focuses on their views about risk. In many cases,
this discussion is based on investment risk i.e. a risk versus
return discussion in which you, as a planner, look to understand
what tolerance your client has for the amount by which their
portfolio value can vary over time.
Diversity is key for the new build market »
Prior to Legal & General New Build Club launching into
the market three years ago, the industry was dominated by just two
Meeting the needs of an ageing population »
With ONS figures predicting that one in three babies born
in 2013 will reach their 100th birthday, considerations
around how the mortgage industry and its regulators should evolve
to meet the needs of an ageing population will remain a long-term
Mortgage safety net benefit becomes a loan and charge... »
Welfare safety net provision in the form of “Support for Mortgage Interest “ (SMI) assistance has been available within our benefit system to support owner occupier claimants’ mortgage interest payments since 1948.
Changing face of pension planning »
Since the pension freedoms there has been a great deal of
discussion about consumers cashing in their pensions as soon as
possible after age 55 and living on the bread line through
retirement. This may well be the case for those with smaller pots,
but those that have saved significant amounts both in and outside
their pensions will be looking at their pension pots in different
ways such as an IHT vehicle. This will clearly mean that the
conversations held with advisers will be changing. It won't
necessarily be about how and when they access their funds, but more
about what other assets to rely on to preserve their pension
benefits for future generations. This will mean advising clients
for longer on their pensions as it may no longer be secured by way
of an annuity at some point before death. In addition, moving
pensions from secure income in a defined benefit schemes are
appealing to those wanting to preserve funds beyond their
Dividend v salary v pension revisited »
In this second article we examine, with examples, a few typical
situations that put some numbers behind the general consideration
of the relative position of dividends or salary as the most
effective means of withdrawing money from a company for
shareholding directors. But before doing so we would point
out that since the first article was written, the Finance (No2)
Bill 2017 received Royal Assent. One of the clauses in the
Bill that was omitted from the Act was the one to reduce the
dividend allowance from £5,000 to £2,000 with effect from tax year
2018/19. We must wait until after the June General Election
to see whether the new government will legislate for the
Are pilot trusts dead and buried? »
It has been suggested that, following the introduction of the
rules on same-day additions to existing settlements in the Finance
Act 2015, there is no longer room for pilot trusts in estate
planning. Is this really the case? Is IHT planning using the
Rysaffe principle still viable?
Mortgage qualifications a must for advisers »
The Society's recent survey found 61% of members supported a standalone lifetime mortgage qualification for pensions and investment advisers so they could sell such products without having full mortgage qualifications.
Tax efficient savings »
Many times we hear "my property is my pension" where people are
talking about their home or buy to let portfolio but by combining
property and pensions more tax efficiency could be achieved.
Dividend v salary v pension revisited »
Considering the options and tax consequences for funds derived
from profits is only really relevant in relation to owner/managers
of private limited companies. Profits derived by the
self-employed are assessed to tax on the sole trader no matter how
those profits are spent. The same is true for partners and
members of a LLP - they are taxed on their share of profits whether
it is drawn or not.
Technology providers to continue evolution in mortgage advice »
The recent announcement that Equifax have teamed up with
Castlight in order to provide a real-time affordability platform,
provides further evidence that technology providers will not rest
on their laurels in their bid to provide advisers with the best
possible tools to do their jobs.
Conveyancers must think digitally to succeed in 2017 »
These are unpredictable times for the property market with
forecasts changing from joyfully optimistic to the polar opposite
within what feels like the blink of an eye, but there is one thing
I am sure of - the future of conveyancing is online.
2017 Spring Budget - The pension changes »
Following on from our previous article looking at the
non-pensions Budget changes, this article looks at the main
pensions changes, as announced.