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The Technical Quiz: 11 September

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Question one

Derek has pension income of £26,000. If he takes an immediate needs long-term care policy, which would be the most tax-efficient method of having benefits paid?

A) Benefits paid to his spouse, who has pension income of £10,000 a year.

B) Benefits paid to Joe, who has power of attorney over Derek.

C) Benefits paid directly to the registered care provider, a large corporation which pays corporation tax at 21 per cent on its profits.

D) Benefits paid directly to Derek, who then uses the money to pay the care fees.

Question two

Alan owns a restaurant. Which of the following is not plant and machinery for the purposes of claiming capital allowances?

A) Computers and computer software used in the business.

B) Moveable partitions in the restaurant.

C) An extension to the kitchens.

D) Lighting, to provide an atmosphere.

Question three

Rollover relief is available on the disposal of a qualifying business asset, provided reinvestment is made in a replacement business asset. What is the time period for the reinvestment for rollover relief to be due?

A) Reinvestment needs to be within 12 months before the disposal of the original asset and 36 months after.

B) Reinvestment needs to be within 36 months before the disposal of the original asset and 12 months after.

C) Reinvestment needs to be within 36 months before the disposal of the original asset and 36 months after.

D) Reinvestment needs to be within 12 months before the disposal of the original asset and 12 months after.

 

Questions supplied by CPD Centre. Scroll down for answers

Answers

1) C

2) C

3) A 

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