The following questions relate to the lifetime allowance.
What is the lifetime allowance for the 2014/15 tax year?
What is the rate of the lifetime allowance charge if the excess over the lifetime allowance is taken as a lump sum?
Who is responsible for paying the lifetime allowance charge?
A) The member
B) The scheme administrator
C) The employer
D) The member and scheme administrator jointly
Fred has a personal pension scheme and a stakeholder plan. In August 2013, Fred decided to crystallise his personal pension valued at £750,000. He has therefore used up 50 per cent of the lifetime allowance. What is the maximum value he can crystallise from his stakeholder plan in the tax year 2014/15 without incurring any lifetime allowance charge?
Which event does not trigger a test against the lifetime allowance or benefit crystallisation event?
A) Funds designated to capped drawdown
B) Entitlement to a lifetime annuity
C) Payment of a lump sum death benefit
D) Payment of a dependant’s pension on death of a member
Questions supplied by Technical Connection
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