Dipfa Coursework- Pension Planning
Advanced Financial Advice Cover Sheet
|AFA Coursework |
|Submission deadline 02 March 2012 |
|For Internal Use Only |
| |1st Mark |2nd Mark |
|Part A | | | | |
|Part B | | |
|TOTAL Awarded: | | |
[pic]
|Please type your Word Count for Part A (only) in the following box: |3845 |
If you do not agree to the ifs using any part of this submission as an exemplar, please enter an N in the following box
‘Pension Planning: Use it or lose it?’
The pension planning needs of company directors are wide and varied. With pensions legislation set to experience further changes on the 6th April 2012, time is limited for those wanting to take full advantage of pension planning. The following article aims to raise your awareness of how financial advisers can be of assistance in planning, both pre and post retirement.
We will begin by looking at current pension’s legislation, the changes made to the annual allowance, the impending changes to the lifetime allowance including new rules regarding ‘Fixed Protection’. We will also consider the taxation of pensions.
Taxation
Tax Relief- Individual Contributions
The primary benefit of pension is the tax relief that is applied to an individual’s pension contributions. If you invested £800 into a pension, you would receive tax relief at your highest rate of income tax. Therefore a basic rate tax payer would have £1000 invested. For a higher rate tax payer, the additional 20 per cent owed is paid back through an adjustment to the following year’s tax code and personal allowance or by rebate direct from HMRC.
It is
|AFA Coursework |
|Submission deadline 02 March 2012 |
|For Internal Use Only |
| |1st Mark |2nd Mark |
|Part A | | | | |
|Part B | | |
|TOTAL Awarded: | | |
[pic]
|Please type your Word Count for Part A (only) in the following box: |3845 |
If you do not agree to the ifs using any part of this submission as an exemplar, please enter an N in the following box
‘Pension Planning: Use it or lose it?’
The pension planning needs of company directors are wide and varied. With pensions legislation set to experience further changes on the 6th April 2012, time is limited for those wanting to take full advantage of pension planning. The following article aims to raise your awareness of how financial advisers can be of assistance in planning, both pre and post retirement.
We will begin by looking at current pension’s legislation, the changes made to the annual allowance, the impending changes to the lifetime allowance including new rules regarding ‘Fixed Protection’. We will also consider the taxation of pensions.
Taxation
Tax Relief- Individual Contributions
The primary benefit of pension is the tax relief that is applied to an individual’s pension contributions. If you invested £800 into a pension, you would receive tax relief at your highest rate of income tax. Therefore a basic rate tax payer would have £1000 invested. For a higher rate tax payer, the additional 20 per cent owed is paid back through an adjustment to the following year’s tax code and personal allowance or by rebate direct from HMRC.
It is
Bibliography: Mobile Applications • HL LIVE., (2012) Hargreaves Landsdown Textbooks • Williams, S., Bloxham, J., (2011) Financial Times Guide to Personal Tax 6th Edition (2011/2012) Prentice Hall 2011 • Conen, M, (2011) Diploma for Financial Advisers – DipFA Advanced Financial Advice Retirement Options (2011/2012) IFS School of Finance This book has provided me with a point of reference throughout my career • Gable, S (2009) Taxbriefs Tax Guide (2009/2010) – Taxbriefs financial publishing – 9th June 2010 Periodicals