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The Technical Connection Quiz: 13 March

To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions.

The following questions relate to the lifetime allowance.

Question one

What is the lifetime allowance for the 2014/15 tax year?

A) £1.8m

B) £1.5m

C) £1.25m

D) £1m

Question two

What is the rate of the lifetime allowance charge if the excess over the lifetime allowance is taken as a lump sum?

A) 22%

B) 25%

C) 45%

D) 55%

Question three

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

Question 4

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?

A) £1m

B) £750,000

C) £625,000

D) £500,000

Question five

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 

Access full CPD, technical updates and business generation ideas through Techlink Professional. Go to www.techlink.co.uk and click theContact Us link at the top of the screen and then request your free trial from the drop down menu.

_________

Answers

1) C
2) D
3) D
4) C
5) D

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