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The Technical Quiz: 11 April

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

The Technical Quiz MM 480

QUESTION ONE: Where an unauthorised member payment charge arises, the liability normally falls on:

A) The scheme administrator

B) Primarily the scheme administrator and secondarily the member

C) The member and the scheme administrator jointly and severally

D) The member

QUESTION TWO: The responsibility for reporting an unauthorised member payment to HMRC rests with:

A) The member, under self-assessment by 31 January following the end of the tax-year in which the unauthorised member payment occurred

B) The member, under self-assessment within 3 months of the end of the quarter in which the unauthorised member payment occurred

C) The scheme administrator, using the Event Report, by 31 January following the end of the tax-year in which the unauthorised member payment occurred

D) The scheme administrator, using the Event Report within 3 months of the end of the quarter in which the unauthorised member payment occurred

QUESTION THREE: The rate of tax applicable for an unauthorised payment charge is:

A) 40%

B) 45%

C) 50%

D) 55%

QUESTION FOUR: Keith incurs benefits from an unauthorised payment valued at 30% of the value of the rights in his pension scheme. This is the only unauthorised payment that has occurred. He will be liable to a total tax charge of:

A) 40% of the value of the value of the unauthorised payment

B) 45% of the value of the value of the unauthorised payment

C) 50% of the value of the value of the unauthorised payment

D) 55% of the value of the value of the unauthorised payment

QUESTION FIVE: Which one of the following is not potentially liable for an unauthorised payment charge:

A) The member/former member who received the payment

B) The sponsoring employer who received the payment

C) The scheme administrator who made the payment

D) The person who receives the payment; if the payment was made after the death of the member or former member

Questions supplied by Technical Connection

_________

Answers

1 D
2 C
3 A
4 D
5 C

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