Dealing with a lifetime allowance charge on death


MON, 12 APR 2021

In a previous article I looked at the situation where individuals exceed their lifetime allowance (LTA) during their lifetime, and how the resultant LTA charge is calculated and accounted for. However, if a LTA charge is generated on the death of an individual, it’s dealt with in a different way. A test against an individual’s …

Supporting Vulnerable Clients


MON, 15 FEB 2021

The 2020 Financial Lives Survey indicated that 46% of UK adults could be considered vulnerable, and even more so since the pandemic took hold in March last year. Vulnerability is consequently a key area of focus for the FCA and they’re understandably insistent that advisers treat their clients right. So is your business prepared? In …

Pension Freedoms nearly 6 years on: advisers’ jobs more important than ever


FRI, 12 FEB 2021

From the outset SIPPs were considered as a means of making it easier for people to manage their own pension arrangements. But their true potential in wealth management arguably took a further 26 years to develop, through the introduction of pension freedoms in 2015. Many feared that it would quickly go downhill from there, with …

Quantifying the impact of a lifetime allowance charge


MON, 21 DEC 2020

Every individual has a lifetime allowance (LTA) which sets the total capital value of pension savings that they can draw as tax privileged benefits. There’s no limit to the amount of pension savings an individual can have. However, tax privileges are recouped through the LTA charge where the LTA is exceeded. In this technical article …

Business owners beware of potential CGT changes


FRI, 18 DEC 2020

The recommendations that the Office of Tax Simplification (OTS) put forward in its review of capital gains tax (CGT), published on 11 November, has created quite a stir, and rightfully so. Neil MacGillivray warns that if the key proposals are adopted, then current CGT planning opportunities may be lost, particularly for owner managed businesses. The …

Covid-19 vs Tax


WED, 16 DEC 2020

“The level of spending is unprecedented in ANY peace-time period in this country. In October, the Institute of Fiscal Studies forecast that government borrowing was set to climb to £350 billion this tax year. That’s 17 percent of GDP. Now, in normal times, borrowing is about 2% of GDP. So, we’re looking at more than …

Weathering a defined contribution pensions storm


MON, 16 NOV 2020

With changes to defined contribution pensions on the horizon, I look at the burden this could bring on investors who pay higher or additional rate tax… During the summer HM Treasury published a call for evidence around pension tax relief. The premise behind the request is that certain low earning individuals do not enjoy tax …

Platforms must prepare for the inevitable tax consequences of Covid


THU, 29 OCT 2020

With the ongoing global pandemic continuing to loosen the government’s purse strings, Head of Technical Support, Neil MacGillivray looks at the Chancellor’s potential recovery options and the impact it could have on how advisers use platforms… According to the Office for Budget Responsibility, the cost of the Covid-19 pandemic is likely to be more than …

Annual Allowance: Back to Basics


MON, 12 OCT 2020

In the first of our new podcast series, we’re shining a light on the annual allowance… In essence, the annual allowance is a straightforward concept; namely a mechanism to control the tax advantages of pension savings. However, over the years, the successive governments and their constant tinkering with pension tax legislation has added layers of …

Common sense prevails … finally


MON, 28 SEP 2020

Advisers up and down the country would have breathed a sigh of relief following the Supreme Court’s decision in the case of HMRC v Parry and others [2020] UKSC 35, (commonly known as the “Staveley case”), around IHT on transfers made by clients in ill health. In his latest blog Neil MacGillivray reflects on the …