M&g Plc · LSE:MNG
M&g — Investor Presentation (March 2022)
17 slides from M&g's investor presentation, March 2022
Slide 1: 2022 Landscape Planning
2022 Landscape Planning The information that follows is based on our understanding of current taxation, legislation and HM Revenue & Customs practice as of March 2022 all of which are liable to change without notice. This is just for UK advisers – it’s not for use with clients
Slide 2: Important Information
Important Information This content is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which are liable to change without notice. The impact of any taxation (and any tax reliefs) depends on individual circumstances. Where content includes case stud
Slide 3: Learning Objectives
Learning Objectives By the end of this session, you will be able to describe the impact of recent tax changes and the current economic climate on advice on: : Intergenerational Company Profit Wealth Investments Extraction Planning This is just for UK advisers – it’s not for use with clients
Slide 4: Corporation Tax wef 1 April 23
Corporation Tax wef 1 April 23 27.00% 26.5% 26.00% 25.00% 25% 24.00% 23.00% 22.00% 70% 20% 10% 21.00% 20.00% 19.00% 19% 18.00% Effective Rate This is just for UK advisers – it’s not for use with clients
Slide 5: The "years"
The “years” l Year 1/4/21 Financial Year 1/4/22 Financial Year 1/4/23 Financial Year 1/1/21 Accounting period 1/1/22 Accounting period 1/1/23 Accounting period 31/12/21 31/12/22 31/12/23 Tax Event here Tax Event here 23/24 financial year 22/23 financial year - 3/12ths at 19% - All at 19% - 9/12ths a
Slide 6: Extracting £100 of profit…
Extracting £100 of profit… 2021/22 2022/23 2023/24* Salary Dividends Salary Dividends Salary Dividends Below Secondary Threshold £100.00 £ 81.00 £100.00 £ 81.00 £100.00 £ 75.00 Secondary Threshold to Primary Threshold £ 87.87 £ 81.00 £ 86.92 £ 81.00 £ 86.92 £ 75.00 Basic Rate £ 59.75 £ 74.93 £ 58.02
Slide 7: What percentage of your clients who make employer pension contributions were prompted by accountant?
What percentage of your clients who make employer pension contributions were prompted to do so by their accountant? A. More than 75% B. 50 - 75% C. 25 - 50% D. Less than 25%
Slide 8: Case study – historic cost
Case study – historic cost XYZ ltd prepares accounts on a historic cost basis, the company year matches the financial year. It usually has profits around £100,000. It holds an onshore investment bond that currently has an £100,000 gain. 2022/23 2023/24 Bond gain £100,000 £100,000 Grossed up £125,000
Slide 9: What is most common type of investment advice you provide for SME clients?
What is most common type of investment advice you provide for your SME business owner clients? A. Personal investment advice only B. Corporate investment advice only C. Both corporate and personal investment advice D. We have no SME business owner clients.
Slide 10: Securities Cash Insurance policies
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% £0 £50,000 £100,000 £200,000 £300,000 £500,000 £1,000,000 £2,000,000+ Securities Cash Insurance policies UK residential buildings Other buildings and land Loans and Other assets Source: www.gov.uk/government/statistics/inheritance-tax-statistics-table-124-
Slide 11: Securities Cash Insurance policies
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% £0 £50,000 £100,000 £200,000 £300,000 £500,000 £1,000,000 £2,000,000+ Securities Cash Insurance policies UK residential buildings Other buildings and land Loans and Other assets Source: www.gov.uk/government/statistics/inheritance-tax-statistics-table-124-
Slide 12: Who is most likely to bring up intergenerational planning?
Who do you find is typically most likely to bring up the topic of intergenerational planning? A. Clients who are looking to cascade wealth B. Clients who may in the future be the recipient of that wealth C. Me as the adviser
Slide 13: Happy birthday “£3,600 if more”
Happy birthday “£3,600 if more” IHT bill Family £2,880 21yrs at 1% £67,598 £27,039 £40,559 £95,754 £3,600 21yrs at 4% £95,754 £0 20% £81,391 40% £67,028 This is just for UK advisers – it’s not for use with clients
Slide 14: Support for you
Support for you Adviser to client material Intergenerational Planning Hub Trusts and IHT modeller Family Wealth Unlocked Report Inflation Modeller Techy Thursdays Extracting Company Profits Tool Adviser guide to corporate investing Talk to a Techy MyView Technical Hub This is just for UK advisers –
Slide 15: Learning Objectives
Learning Objectives By the end of this session, you will be able to describe the impact of recent tax changes and the current economic climate on advice on: : Intergenerational Company Profit Wealth Investments Extraction Planning This is just for UK advisers – it’s not for use with clients
Slide 16: Thanks for your time
Thanks for your time Get in touch with your usual contact if you need further help.
Slide 17: M&G plc is a company incorporated in England
M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not