Top five chargeable queries of 2017
By Kirsten Hastings, 15 Dec 17
One of the most common topics prompting advisers to reach out to life companies for support was around chargeable events. With a myriad of changes in recent years, it is little wonder that the already complicated topic has many UK advisers scratching their heads. Canada Life has put together a list of the five most common chargeable event queries advisers asked in 2017.
The fourth most frequently asked chargeable event query related to student loans.
Most children heading to higher education need to supplement their finances with a student loan. Where that child could also potentially benefit from an investment bond, consideration needs to be given to the exit strategy, if that occurs when the child is working.
The child may have to make additional student loan repayments if they receive savings income of more than £2,000 ($2,686, €2,274) a year. Savings income includes interest on stocks, shares or savings.
Chargeable gains are treated as savings income so, where a gain is realised and assessed on the child, they could be asked to make loan repayments of 9% of the gain.
Tags: Canada Life
