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The Technical Quiz: 11 December

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Question one

Gillian will shortly start receiving her basic state pension. What advice would you give her if she decides to live abroad?

A) She will lose the pension if she moves abroad

B) She will not receive annual increases in any circumstances

C) She will receive increases if she moves to an EU country

D) She will not receive increases if she moves to an EU country

Question two

Three partners in a business (Andrew, Bill and Charlie) all retire in 2014/15 at the same time with the same size pension fund of £2,000,000. They have no transitional or fixed protection. Andrew, who is an additional rate taxpayer, takes the excess over the lifetime allowance as a lump sum; Bill, also an additional rate taxpayer, takes his excess as income; Charlie, a higher rate taxpayer, takes his excess as income as well. Which of them will pay the highest rate of tax on their excess over the LTA?

A) They will all pay the same amount of tax

B) Andrew

C) Bill

D) Charlie

Question three

Which Class of NICs are irrelevant in calculating state pension entitlements?

A) Class 1

B) Class 2

C) Class 3

D) Class 4

Question four

Which one of the following defined benefit schemes will be the most likely to have the option to purchase added years? 

 

A) Existing members of private sector DB schemes

 

B) New members of private sector DB schemes

 

C) Existing members of public sector DB schemes

 

D) New members of public sector DB schemes

 

 

Scroll down for answers…

 

Answers

1) C

2) C

3) D

4) C

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