Continuing professional development

This three-part course looks at the key aspects of inheritance tax (IHT), including when IHT is payable on death estates and in respect of lifetime gifting. The course is primarily for protection advisers arranging term or whole of life cover in trust to provide funds to meet an IHT liability.

Learning objectives

To understand:
Part 1

• how to estimate IHT payable on death – allowing for exemptions, reliefs and the various nil-rate bands (NRBs)

Download part 1 now (PDF, 2MB)

Part 2

• the IHT implications of lifetime gifting, including the exemptions available to cover regular premiums for policies in trust; potentially exempt transfers (PETs); and taper relief

Download part 2 now (PDF, 2MB)

Part 3

• the similarities and differences in IHT treatment when clients make chargeable lifetime transfers (CLTs) rather than PETs.

Download part 3 now (PDF, 1MB)

This two-part course looks at the different types of trusts used with protection policies. It explains the inheritance tax (IHT) treatment of the premiums and when IHT periodic and exit charges can apply.

Learning objectives

To understand:

Part 1

• the different types of trusts used with protection policies

Download part 1 now (PDF, 2MB)

Part 2

• the IHT treatment of premiums when protection policies are set up in trust
• when IHT periodic and exit charges can apply to discretionary and flexible protection trusts.

Download part 2 now (PDF,  2MB)

This course explains the requirements for a policy to be relevant life cover providing a tax-advantaged employee benefit. It explains the tax treatment of the policy and the associated trust.

Learning objectives

To understand:

• How to set up a relevant life policy.
• How to set up a relevant life trust.
• The potential tax advantages of relevant life cover.​

Download now (PDF, 504KB)

This course explains how life and critical illness cover can meet business protection needs. It covers key person loss of profits and loan protection cover. It explains the components of shareholder and partnership protection arrangements - including the similarities and differences.

Learning objectives

To understand the key characteristics of:

• key person loss of profits and loan protection cover
• shareholder protection arrangements - buying shares on a shareholder's death or critical illness
• partnership protection arrangements - buying a business share on a partner's or LLP member's death or critical illness.

Download now (PDF, 1MB)

This course is primarily aimed at advisers arranging life and critical illness cover linked to meeting business protection needs. It outlines the main ways trading businesses can be established along with their tax treatment. It also summarises the main financial planning considerations for each type of business.

Learning objectives

To understand the key characteristics of:

• sole traders, their tax treatment and financial planning needs
• partnerships and limited liability partnerships, their tax treatment and financial planning needs
• private and public limited companies, their tax treatment and financial planning needs.

Download now (PDF, 1MB)

The lifetime allowance charge was abolished on 6th April 2023 following the​ Spring Budget announcement on 15th March 2023. Following a transitional​ period, the lifetime allowance itself was abolished on 6th April 2024.​ From this date onwards, three new allowances operate in its place.​

​The three new allowances are:

• The Lump Sum Allowance, which limits​ tax-free cash,
• The Lump Sum and Death Benefit Allowance,​ that also limits lump sums as well as lump sum​ death benefits, and
• The Overseas Transfer Allowance, that deals​ with transfers to QROPS.

Learning objectives​

To understand:

• The calculation of tax-free cash following the abolition of the lifetime allowance
• The operation of the new Lump Sum Allowance
• Transitional Tax-Free Amount Certificates and which clients they might be suitable for.

Download now (PDF, 3MB)

When it comes to choosing between investment bonds and collective investment schemes there is no one-size-fits-all solution. Many clients – and some advisers – will have a steady preference for one or another but a more objective analysis is possible by comparing the tax effects on otherwise identical investments. This is possible because the funds that can be selected within an investment bond are often simply collective investment funds owned or made available by the life assurance company.

That said, deciding which is most suitable for a given client is more an art-form than a mathematical exercise and should involve an assessment of the client’s current financial situation and their likely position throughout the investment period as well as when they come to access the funds.​

This course looks at the tax treatment and features of both products and considers when they might be suited to a particular client. First, we’ll recap on the tax rules, starting with Bonds, and then move onto a comparison between the two.

Learning objectives

To understand:

• The tax treatment of Investment Bonds​
• The tax treatment of Collective Investment Schemes​
• Which product is likely to be more suitable in a range of different clients.

This course explains the two different structures of UK registered pension schemes, their differences and similarities and the way in which the different methods of member tax relief are often utilised.

Learning objectives

To understand:

• The differences and similarities between contract-based and trust-based schemes
• The utilisation of ‘net pay’ and ‘relief at source’ contributions under both
• The circumstances in which one scheme structure might be preferred to the other.
  

Download now (PDF, 2MB)

The current ‘exempt-exempt-taxed’ pension system incentivises payments into registered pensions by providing an up-front tax exemption on member contributions. This course looks at the operation of tax relief within defined contribution schemes and the limits that currently apply to members.

Learning objectives

To understand:

• The 'relief at source' and 'net pay' methods of tax relief
• The amount of tax relief available
• Tax relief against dividend income.
  

Download now (PDF, 2MB)

The current ‘exempt-exempt-taxed’ pension system incentivises payments into registered pensions by providing an up-front tax exemption for the member. This is achieved by providing tax relief on contribution up to the member’s annual allowance for the tax year. This course looks at how the annual allowance operates and how unused annual allowances from previous years can be carried forward.

Learning objectives

To understand:

• How the annual allowance restricts pension tax advantages
• How carry forward operates.
  

Download now (PDF, 2MB)

For historical reasons, pension income is subject to income tax through PAYE. The scheme member requests a withdrawal, the provider calculates and deducts an amount of tax which it forwards to HM Revenue & Customs (HMRC) and then pays the remainder – the net withdrawal – to the client. As with salary, this system works very well for regular, predictable payments. Ad-hoc payments, such as those often paid from DC pensions, can be more complicated. This mini CPD course explains some of the complexities that can arise.

Learning objectives

To understand:

• When emergency tax may be applied to pension withdrawals.
• The calculation of emergency tax on a month 1 basis.
• How emergency tax applies to Scottish and Welsh taxpayers.

Download now (PDF, 566KB)

The annual allowance limits how much can be saved into pensions during a tax year. Where it is exceeded, an annual allowance charge – an income tax liability – arises. Liability for the charge falls on the member: either by meeting it directly through self-assessment or by having their pension benefits or entitlement reduced to cover the amount of the charge. The latter is referred to as ‘scheme pays.’

Learning objectives

To understand:

• How the annual allowance charge operates.
• When mandatory scheme pays can be used.
• When voluntary scheme pays might be available.

Download now (PDF, 427KB)

An individual’s earnings determine how much they can contribute to pension schemes in a tax year with tax relief added. This limit does not apply to employer contributions.

In terms of eligibility, tax relief is granted to those who make personal contributions to a pension scheme provided that they are under age 75 and qualify as a relevant UK individual – broadly UK residents and those with earnings subject to UK tax. The maximum amount that can be contributed during the tax year including tax relief is the higher of 100% of earnings or £3,600 gross.

Learning objectives

To understand:

• What types of income fall into the category of relevant UK earnings.
• How earnings limit what can be paid into a pension.
• The £3,600 basic amount.

Download now (PDF, 426KB)

What are they?

Dividends are the post-tax profits distributed by companies to their shareholders. They are often paid annually, but can be paid more frequently. A huge range of companies pay dividends – from FTSE 100 firms to small, family-owned companies. Investment funds often use a corporate structure and utilise dividends to distribute the income generated by the underlying investments.

Learning objectives

• To understand the tax treatment of UK dividends
• To understand the consequences for owner managed businesses of receiving dividends
• To be able to calculate dividend tax liabilities in straightforward situations.

Download now (PDF, 1MB)

HM Revenue & Customs (HMRC) place a limit on how much can be paid into a pension around the time when tax-free cash has been received. This limits members’ ability to use tax-free cash to pay contributions that attract further tax relief. The risk of not having this constraint is obvious: members who can access benefits would be able to draw their full tax-free cash and pay it back in as a contribution benefiting from tax relief on contributions up to their earnings or annual allowance limit.

Learning objectives

To understand:

• HM Revenue & Customs pension commencement lump sum recycling rules
• How to identify situations where the recycling rules may apply
• The ability to recycle pension income.

Download now (PDF, 2MB)

The money purchase annual allowance (MPAA) was introduced alongside the Freedom & Choice regime. It restricts total annual contributions to money purchase schemes to £10,000 once ‘flexible access’ has occurred.

Learning objectives

To understand:

• How 'flexible access' triggers the MPAA
• What doesn't trigger the MPAA
• How exceeding the MPAA gives rise to an annual allowance tax charge.

Download now (PDF, 800KB)

This course explains the UK income tax treatment of bare trusts, interest in possession trusts and discretionary trusts.

Learning objectives

To understand:

• bare trusts and interest in possession trusts under UK rules
• discretionary trusts including tax pools, under UK rules
• the above types of trusts where they fall under the settlor-interested trust or vulnerable beneficiary rules.

Download now (PDF, 882KB)

In this mini CPD course we look at income tax bands and allowances for individuals.

Learning objectives

• To understand the different categories of income
• To be able to calculate the income tax liability for a simple scenario
• To understand how the calculation is affected by pension contributions.

Download now (PDF, 1MB)

Salary sacrifice takes advantage of complexities in the pension tax relief system to generate a substantial improvement in the value of contributions or amount of take home pay compared to paying contributions directly. Provided that it is set up correctly, it is a perfectly legitimate approach to pension funding, and recently was one of a number of benefit types exempted from an overall reform that withdrew the tax benefits of salary sacrifice. Any future reform of pension tax relief is likely to include contributions paid by salary sacrifice.

Learning objectives

To understand:

• The calculation of income tax and national insurance contributions on taxable earnings
• The enhancements available when salary is given up for employer pension contributions

Download now (PDF, 609KB)

The freedom and choice reforms introduced new pension income options for Money Purchase schemes. This course explains the range of options now available.

Learning objectives

To understand:

• flexible Money Purchase pension income options
• guaranteed Money Purchase pension income options
• how different options or a blend of different options can meet client needs.

Download now (PDF, 813KB)

This two-part course focuses on the key points of UK pensions legislation applying to internationally mobile members.

Learning objectives

To understand:

Part 1

• factors determining who can join a UK pension scheme
• pension contributions after a member becomes non-UK resident for tax purposes
  
  Download part 1 now (PDF, 3MB)
   

Part 2

• transferring UK pensions overseas including an outline of the QROPS rules
• considerations when transferring overseas pensions to the UK.
  
  Download part 2 now (PDF, 2MB)