On-Demand Events
15 Feb 24 90 min watch
The majority of actions a financial planner takes will have an impact on someone's tax bill.
Arriving at the income tax liability for a UK individual involves working through a 7-step calculation. An understanding of these steps is crucial in forming a strong foundation when planning in many areas – from pension tax relief to the tapered annual allowance, the taxation of investments, tax charges and much more.
Understanding these 7 steps means you can start to improve someone's tax position or at least make them aware of how much they have to pay (and how you can reduce it).
Les Cameron (Head of Technical, M&G Wealth)
Neil Macleod (Technical Manager, M&G Wealth)
On this event, Les Cameron and Neil Macleod walked through the steps in detail, answering any questions attendees had raised.
90 minute video (approximately) I Structured CPD accredited by CII
By the end of the session, you’ll be able to:
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. A client confirms that for this tax year they expect to receive salary from employment of £45,000, bank interest of £1,000 and dividends from their OEIC portfolio of £2,000. They make pension contributions to their occupational scheme of £2,500 p.a. under net pay. Assuming their assumptions are correct, what will their “total income” be for the tax year?
a) £32,930
b) £44,000
c) £45,500
d) £50,500
2. Angela has “total income” of £125,000 in the current tax year but decides to make a relief at source pension contribution of £8,000. What will her personal allowance be for the current tax year?
a) £0
b) £70
c) £4,070
d) £5,070
3. There is a statutory order for taking an individual’s taxable income. Which of the following statements is true?
a) Onshore bond gains are taxed before offshore bond gains
b) Redundancy payments are taxed before interest
c) Interest is taxed before earned income
d) Dividends are taxed before onshore bond gains
4. Which of the following is NOT a ‘tax reducer’ deducted from an individual’s tax liability at step 6 of the UK income tax computation?
a) Top Slicing Relief
b) Personal Allowance
c) Marriage Allowance
d) Onshore Bond Tax Credit
1. A client confirms that for this tax year they expect to receive salary from employment of £45,000, bank interest of £1,000 and dividends from their OEIC portfolio of £2,000. They make pension contributions to their occupational scheme of £2,500 p.a. under net pay. Assuming their assumptions are correct, what will their “total income” be for the tax year?
a) £32,930
b) £44,000
c) £45,500
d) £50,500
2. Angela has “total income” of £125,000 in the current tax year but decides to make a relief at source pension contribution of £8,000. What will her personal allowance be for the current tax year?
a) £0
b) £70
c) £4,070
d) £5,070
3. There is a statutory order for taking an individual’s taxable income. Which of the following statements is true?
a) Onshore bond gains are taxed before offshore bond gains
b) Redundancy payments are taxed before interest
c) Interest is taxed before earned income
d) Dividends are taxed before onshore bond gains
4. Which of the following is NOT a ‘tax reducer’ deducted from an individual’s tax liability at step 6 of the UK income tax computation?
a) Top Slicing Relief
b) Personal Allowance
c) Marriage Allowance
d) Onshore Bond Tax Credit
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
Submit your details and your question and one of your Account Managers will be in touch.