View more on these topics

The Technical Connection Quiz: 6 February 2014

QUESTION ONE

Which of the following is most suitable where someone wishes to retain a right to receive ‘income’ under the terms of a trust?
a)     Gift trust 
b)    Loan trust
c)     Excluded property trust
d)    Discounted gift and income trust

QUESTION TWO

Melinda creates a bare trust for her grandson, Sam. The trust asset comprises an onshore bond. Who will be taxable on any chargeable event gains?

a)     Sam

b)    Melinda as the settlor

c)     Melinda and the trustees

d)    The trustees

QUESTION THREE

Under which type of trust do the trustees have the most flexibility in terms of deciding who should benefit and when?

a)     Bare trust

b)    Interest in possession trust

c)     Discretionary trust

d)    Discounted gift trust

QUESTION FOUR

What rate of tax do trustees of a discretionary trust pay on capital gains?

a)     10%

b)    18%

c)     28%

d)    45%

QUESTION FIVE

Which of the following cannot be a trustee?

a)     The settlor

b)    Any beneficiary

c) Anyone under age 18

d) Anyone not of sound mind

Questions supplied by Technical Connection 

Access full CPD, technical updates and business generation ideas throughTechlink 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 A

3 C

4 C

5 D

Recommended

Paul-McMillan-MM-Peach-700.jpg
10

Tyrie may be harder for FCA to brush aside than angry IFAs

It was pretty incredible to hear the FCA chairman say he was not even aware that the adviser fee block had been “overcharged” by £118m over the past five years when quizzed by MPs this morning (we’ll ensure he’s added to the MM comp list). I’ve put overcharged in quotations as it’s a term FCA […]

Pension-pot-700.jpg
2

FCA urged to overhaul pension shopping around rules

The FCA is facing calls to overhaul its conduct of business rules to encourage more people to shop around at retirement. FCA rules currently require providers to send wake-up packs four to six months before a client’s intended retirement date. Hargreaves Lansdown head of pensions research Tom McPhail says: “The current rules are not good […]

Lloyds-Banking-Group-640.jpg
1

Lloyds ups PPI provision by £1.8bn as it looks to restart dividends

Lloyds Banking Group says it is setting aside an extra £1.8bn to cover its PPI liabilities as it reveals it hopes to start paying a dividend again later this year.  In a statement to the stockmarket this morning, ahead of its results next Thursday, the bank says its projected complaint volumes will not fall away as […]

Globe-Global-World-Map-700x450.jpg

Moving abroad: Why assets are migrating to global equities

The move towards international equities has been steady and significant throughout recent years but what are the specific reasons for the popularity of global asset allocation? Statistics from the Wealth Management Association show major moves to international shares within portfolios over recent years, which has seen the percentage of UK assets in international equities increase by […]

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com