View more on these topics

The Technical Connection Quiz: 30 January

The Technical Quiz MM 480


Brian would like to make a cash gift for inheritance tax purposes in favour of his minor grandchild. Which of the following would be most suitable?

a)     Discretionary gift trust

b)    Discretionary loan trust

c)     Bare gift trust

d)    Bare loan trust


At what age is a child in England and Wales entitled to take legal possession of the assets held in a bare trust for them?

a)     16 years

b)    18 years

c)     21 years

d)    25 years


Imelda would like to carry out inheritance tax planning but is unsure whether or not she would like to retain access to the gifted amount. Which of the following would meet her objectives?

a)     Discretionary gift trust

b)    Interest in possession trust

c)     Bare gift trust

d)    Discretionary loan trust


Under the terms of Paul’s will, a discretionary trust is created for the benefit of his minor niece and nephew. The trustees invest in a life insurance investment bond. Who will be taxable on any chargeable event gains?

a)     UK resident trustees

b)    The beneficiaries

c)     Paul

d)    Paul and the trustees


Phil decides to set up a discretionary trust, having made one other chargeable transfer five years ago of £100,000. How much can he settle without any liability to inheritance tax?

a)     £225,000

b)    £231,000

c)     £325,000

d)    £331,000

Questions supplied by Technical Connection 

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



1 C

2 B

3 D

4 A

5 B


‘Political noise’ sees Fidelity’s Wright up exposure to energy and banks

Fidelity Worldwide Investment fund manager Alex Wright has upped exposure in energy and banks despite the “political noise” the sectors have been generating. Speaking at a Fidelity conference in London last week, Wright, who manages the £2.9bn Fidelity Special Situations fund said there is “clearly a lot of political noise around big business.” As a result, Wright is […]


HMRC wins action against gilt tax avoidance scheme

A tax avoidance scheme known as Project Corbiere has failed in its third bid for legitimacy, saving UK tax revenues of around £100m. The scheme was promoted by NT Advisers and involved transferring UK government bonds back and forth to the British Virgin Islands, creating an unwarranted tax deduction. The scheme had already been ruled […]


25 roles cut from team administering Aegon’s protection business

Financial services outsourcer Serco is set to scrap 25 roles from the department which administers Aegon’s protection business, Money Marketing can reveal. The staff, which handle the insurer’s underwriting and claims, have been placed under consultation. Serco has processed Aegon’s underwriting and claims since November 2012 after the firms signed a £170m 10-year deal. The […]


Govt to announce £25 a week state pension boost

The Government is set to confirm details of a scheme to allow existing pensioners to boost their state pension entitlement by up to £25 a week. Under the plan, outlined as part of the Autumn Statement in December, anyone who has reached state pension age or will do so by April 2016 will be able […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm