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The Technical Connection Quiz: 27 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 IHT gifting.

QUESTION ONE

Peter would like to make a gift to his adult son, Paul. He has made no previous gifts. How much can he gift without any lifetime inheritance tax being payable?

A) £325,000

B) £328,000

C) £331,000

D) Any amount he wishes

QUESTION TWO

Which type of trust would be suitable where someone wishes to make a gift but can’t decide who should benefit?

A) Interest in possession

B) Discretionary trust

C) Bare trust

D) Accumulation and maintenance trust

QUESTION THREE

Sandra and Brian’s granddaughter is getting married next month. How much can they jointly give under the ‘gifts in consideration’ of marriage exemption?

A) £1,000

B) £2,500

C) £5,000

D) £8,000 

QUESTION FOUR

Which of the following do not count as ‘exempt person’ for inheritance tax purposes?

A) Your grandchildren

B) Your spouse/civil partner

C) Dependant elderly relatives

D) Dependant children

QUESTION FIVE

What is the benefit of taper relief?

A) It reduces the value of the gift

B) It reduces the amount of inheritance tax payable

C) It reduces the amount of any lifetime inheritance tax

D) It reduces the amount of interest payable on a gift

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) D
2) B
3) C
4) A
5) B

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