Posted by The Team at Brand Financial Training on May 10, 2022 in Newsletter
10 May 2022
It’s been a busy first quarter of 2022! We are preparing some exciting new resources that we can’t wait to tell you about, as well as providing all our existing resources and creating improvements wherever possible.
This month, we are talking about the Residence Nil Rate Band, because even though it’s been 5 years since this was first introduced, we still see many candidates get stuck on this particular aspect of tax planning.
The feedback from our first ever ‘bitesize’ video was fantastic – check out our latest video; it’s all about quick succession relief.
Finally, we would like to wish good luck to those sitting AF5 today, please be sure to let us know how you get on!
Best Wishes,
The Team at Brand Financial Training
Featured Article
What is the Residence Nil Rate Band?
The residence nil rate band (RNRB) came into effect in April 2017 and can be tested in any of the CII’s AF1, AF5, CF1, R01, R03 or R06 exams.
The RNRB is in addition to the normal IHT nil rate band (of £325,000 for 21/22) and is available when a home is passed on death to children (which include step-children, adopted or foster children) and their lineal descendants.
For 2021/22 the RNRB is £175,000 and is set to remain at this level until 2026.
How the RNRB Works
The value of the RNRB is the lower of the net value of the interest in the home (so after deducting any mortgage) and the maximum amount of the RNRB. If a property is worth £125,000 and is left today to a child of the deceased, £125,000 is the amount of the RNRB available. The RNRB that hasn’t been used (£50,000 in this tax year) is available for transfer to a spouse or civil partner’s estate.
The RNRB is also available to those people who have downsized or stopped owning a home after 8 July 2015 and assets of an equivalent amount (up to the value of the RNRB) are passed on death to direct descendants.
For those people with an estate with a net value of more than £2m (so after liabilities/expenses but before reliefs and exemptions such as the nil rate band, spouse exemption and business relief), the RNRB is tapered. For every £2 over the £2m threshold, £1 of RNRB is lost – so in this tax year will be lost altogether where an estate is valued at £2,350,000 and more.
In practical terms, this means that in 2021/22, we can pass on up to £500,000 IHT free. A married couple/civil partnership can leave £1million of their estate IHT free.
Watch this short, informative video that explains Quick Succession Relief. This one is perfect for your CII AF1, AF5 or R06 exam revision.
Here, we take a look at Quick Succession Relief and how it is intended to alleviate cases where the same assets would have been subject to Inheritance Tax twice within a relatively short period of time (5 years). You can find out more, including a worked example, in our latest Brand Bitesize video.
..."The calculation work book for AF4 was really helpful. A question on Return on Equity came up and I'd literally only come across this in the Brand workbook. Glad to say I passed the exam with flying colours!..."
Russell Hammond, Senior Partner, London
Passing AF4 can seem like a monumental task, especially when the study text arrives on your doorstep with a heavy thud. We offer a range of resources that will help you to feel fully prepared on exam day:
Mock Exam Papers - 3 full sets of 3 multi-part questions and answers including cross references to the relevant CII study text.
Calculation Workbook - Focusing on the calculations within the exam syllabus, the calculation workbook provides calculation questions with full step-by-step answers, detailed explanations and cross-references to the relevant CII study text.
Revision Notes - Designed for use when you are further along with your exam studies, our revision notes are a streamlined version of the learning outcomes and exam syllabus combined with self-test questions.
MP3 Audio Masterclasses - Learn by listening with our MP3 masterclasses. They allow you to absorb and understand the material in digestible chunks.
All of the above resources can be bought as part of a study kit, so you can save 10% off the cost of buying them individually.
Still not sure? Why not try before you buy? Free tasters are available for all of the resources listed above. Just click here to access all our AF4 resource tasters.
Video Tutorials and E-Mocks
Video Tutorials
We will shortly be launching our new ‘Video Tutorials’, providing in-depth revision support for some of the more difficult subject areas across the R0 exams. Our new video tutorials will focus on those subjects that we know candidates struggle with the most.
We’ve broken the study text down into digestible chunks using visually engaging video tutorials, with plenty of examples and self-test questions to keep you focused. Keep an eye out for more information on the launch of this new, exciting resource.
E-Mocks
In addition to our new ‘Video Tutorials’, we will be shortly providing brand new e-mocks with much bigger question banks to help those studying towards the R01-R05 exams. These are mock exams which can be taken on our online learning platform, designed to test your knowledge as you prepare for your CII exam. This is a new resource we are delighted to launch in response to feedback, and those who have enjoyed early access to this resource have provided 100% positive feedback!
Updates to CII Study Texts
Here’s a reminder that the CII update their study texts throughout the examinable year to either incorporate new legislations, correct errors or clarify information. Many candidates aren’t aware of this, which can result in candidates studying out-of-date information.
To find out if you have the most up-to-date information, visit the CII website, navigate to your chosen exam and click on ‘learning solutions update’ in the ‘Unit updates’ section in the sidebar.
Note that we keep our resources up-to-date with any updates from the CII.
Did You Miss These Posts on Our Blog?
Articles and Help for All Your Exams
You’ll find that there’s something for everyone when you check out our blog:
specific topics and how-to articles;
reviews of recent CII exam papers;
our Friday Five – a weekly quiz to give you a fun break from reading the study text;
study techniques that help you to retain your revision and keep your brain working for you, when you need it
Here are the blog posts you might have missed since our last newsletter:
There’s such a variety of information on offer to help you as you tackle your CII exams, that you won’t want to miss a single post. We’ve made it easy for you; just click the button below and enter your email details. Be ‘in the know’ with CII-exam-related tips and info – straight to your inbox!
Quote of the Month
..." You measure the size of the accomplishment by the obstacles you had to overcome to reach your goals. "...
Booker T Washington
Friday 5 Focus on...
"5 Questions in 5 Minutes Every Friday"
Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. The challenge is for you to answer them in 5 minutes.
Where do I find the Friday Five?
We post each week’s Friday Five to our blog first thing every Friday. You can either visit our blog every Friday at https://brandft.co.uk/blog/ or you can simply go there now, and click on the subscribe button in the top right-hand corner of the blog and sign up to receive notifications of our Friday Five posts.
Note that we don’t email the Friday Five out to everybody every Friday, so we recommend you sign up to our blog at https://brandft.co.uk/blog/ so that you receive an email notification when it is posted. It will only take you a minute to sign up.
A bit of Friday Fun, but with the added benefit of testing your exam knowledge!
