M&g Plc · LSE:MNG
M&g — Investor Presentation (February 2024)
25 slides from M&g's investor presentation, February 2024
Slide 1: The BIG LTA abolition question… what needs done by April?
The BIG LTA abolition question… … what needs done by April? This is just for UK advisers – it’s not for use with clients
Slide 2: 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 studies or examples these
Slide 3: Learning Objectives
Learning Objectives By the end of this session, you will be able to: Identify those clients who Describe the actions that are impacted by the may need to be taken to abolition of the LTA improve the outcomes
Slide 4: 7 things to think about
7 things to think about Fixed and enhanced protection – contributions Scheme specific protected tax-free cash (SSPTFC) Transfer to QROPS Transitional Tax-Free Amount Certificates (TTFAC) Lump sum death benefits will be paid to a discretionary trust Pensions in payment on 5 April 2006 Enhanced protec
Slide 5: Scheme specific protected tax-free cash (SSPTFC)
Scheme specific protected tax-free cash (SSPTFC)
Slide 6: SSPTFC case study
SSPTFC case study Bob has an old OPS which is currently worth £400,000. At A day it was worth £200,000 with TFC payable of £100,000 They have Fixed Protection 2012. Maximum cash: 2023/24 2024/25 £100,000 x £1.8m / £1.5m = £120,000 £100,000 x 1.2 = £120,000 Plus Plus [£400,000 – (£200,000 x £1.8m/£1.
Slide 7: SSPTFC examples
SSPTFC examples Protection LTA 2023/24 2024/25 Difference None £1,073,100 £184,230 £184,230 £0 Enhanced (no protected %) £1,500,000 £170,000 £184,230 £14,230 Fixed 2012 £1,800,000 £160,000 £184,230 £24,230 Fixed 2014 £1,500,000 £170,000 £184,230 £14,230 Fixed 2016 £1,250,000 £178,333 £184,230 £5,897
Slide 8: Fixed and Enhanced Protection Contributions
Fixed and Enhanced Protection Contributions
Slide 9: Contributions
Contributions Fixed and Enhanced Enhanced Protection Protection LSDBA Annual Allowance Value of uncrystallized rights Auto Enrolment on 5th April 2024
Slide 10: Transfer to QROPS
Transfer to QROPS
Slide 11: Overseas Transfer Allowance
Overseas Transfer Allowance 6th April 2024 Balance 0% Balance 25% Overseas Lifetime Tax free Transfer Tax free Allowance Allowance
Slide 12: Pensions in payment on 5 April 2006
Pensions in payment on 5 April 2006
Slide 13: Pre commencement Pensions
Pre commencement Pensions Prior Benefits LSA LSDBA (using £1m) £40,000 pa scheme pension £268,275 - £250,000 £1,073,100 - £250,000 (pre A day). £18,275 £823,100 Tested after April 24 £268,275 - £0 £1,073,100 - £0 £40,000 pa scheme pension (pre A day). £268,275 £1,073,100 Tested between 06 and 24 (if
Slide 14: Enhanced Protection (% on certificate)
Enhanced Protection (% on certificate)
Slide 15: Enhanced Protected PCLS
Enhanced Protected PCLS Bob has an uncrystallised SIPP worth £4,000,000 at 5 April 2024. On 5 April 2023 it was worth £3,600,000. He has Enhanced Protection with tax free cash of 10%. Applicable Amount LSA LSDBA Amount of PCLS payable on Amount of uncrystallised funds £4,000,000 x 10% 5 April 2023 h
Slide 16: Lump sum death benefits will be paid to a discretionary trust
Lump sum death benefits will be paid to a discretionary trust
Slide 17: Death Benefits
Death Benefits Beneficiary Beneficiary Lump Sums Drawdown Annuity TESTED NOT TESTED NOT TESTED
Slide 18: Transitional Tax-Free Amount Certificates (TTFAC)
Transitional Tax-Free Amount Certificates (TTFAC)
Slide 19: LTA transition
LTA transition Bob has an uncrystallised SIPP worth £600,000. They have no protection. They have used 100% of their LTA taking benefits when the LTA was £1m Maximum cash in 23/24 is Nil. Prior Benefits Applicable Amount LSA LSDBA Maximum £268,275 - £250,000 £1,073,100 - £250,000 £1m in drawdown with
Slide 20: Transitional tax-free amount certificates: things you need to know
Transitional tax-free amount certificates 5 things you need to know Death of a Assignmen Maturity Part Individual Scheme (e.g. a life assured or PRs t for money Complete Before 1st surrenders Three Full of first capital Evidence giving rise apply or money’s redemption inRBCE excess surrender months
Slide 21: Learning Objectives
Learning Objectives By the end of this session, you will be able to: Identify those clients who Describe the actions that are impacted by the may need to be taken to abolition of the LTA improve the outcomes
Slide 22: Question Time
QUESTION TIME
Slide 23: Support
Support Articles Videos Tools & Ask the Techs Calculators Usual Contact LinkedIn My View
Slide 24: Thanks for your time
Thanks for your time Get in touch with your usual contact if you need further help.
Slide 25: M&G Wealth regulatory information
M&G Wealth is a trademarked brand of the M&G plc group, which includes 3 business divisions as follows: M&G Wealth Advice, provided by M&G Wealth Advice Limited, registered number: 08022795. Model Portfolio Services, provided by M&G Wealth Investments LLP, registered number: 0C305442. M&G Wealth Pla