To help you keep up with the fundamentals of tax, retirement and financial planning, try answering these questions
Greg has gifted a 20% shareholding in an unquoted trading company, worth £150,000, to his son. What is the effect of claiming holdover relief on this disposal?
a) The gift relief claimed will extinguish the chargeable gain so that no capital gains tax is payable
b) The gift relief will defer the chargeable gain. he son’s base cost of the asset will be reduced by the gain deferred, thus increasing his own gains in the future
c) It is not possible to claim gift relief on the gift of this asset
d) The gift relief will put the gains on hold until such time as the son disposes of the shares. At this time, the gains will then become chargeable on Greg
Frankie bought a painting for £4,000 and sold it to Johnnie several years later for £7,200. What capital gain arises on the sale?
Gabby is a higher rate taxpayer. What rate of tax is she liable to pay on her capital gains for 2014/15?
d) A mixture of 18% and 28%
What is the maximum age at which an individual can receive tax relief on their pension contributions?
a) There is no maximum age
b) Under age 75
c) Under age 65
d) When they cease working entirely
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Questions supplied by CPD Centre