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The Technical Quiz: 14 March

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: NEST offers a number of funds other than their default funds, to cater for the different needs of individual members. Which one of the following is not one of these funds? The NEST

A) Ethical fund

B) Higher Risk fund

C) Lifestyling fund

D) Sharia fund

QUESTION TWO: Currently there is a gross annual contribution limit placed upon NEST. The figure for the 2012/13 tax year is

A) £3,400

B) £3,900

C) £4,400

D) £4,900

QUESTION THREE: In respect of members who are not covered by auto enrolment, such as the self-employed, what, if any, is the minimum contribution level to NEST?

A) £5.00

B) £10.00

C) £15.00

D) £20.00

QUESTION FOUR: Which one of the following statements is correct? Lump sum death benefits, if any, from NEST are

A) Automatically paid to the personal representatives of the deceased and as such are included in the estate for IHT purposes.

B) Paid out to the beneficiary nominated by the member and as such are included in the estate for IHT purposes

C) Paid under the discretionary powers of the trustees based upon the expression of wishes of the deceased and should not therefore normally be liable to IHT

D) Paid net of 20% tax without any potential for an IHT liability

QUESTION FIVE: Where an individual has been auto enrolled by two separate employers, and is benefiting from auto enrolment contributions from both, NEST will

A) Open a separate “Pension Account” in respect of each employment

B) Open a single “Pension Account” if the employments started in the same tax year, otherwise a separate “Pension Account” would be opened in respect of each employment

C) A member will always have a separate account in respect of each employment over his lifetime, but under the proposed “pop follows member” proposals from the DWP, these will be consolidated each time the individual changes job

D) A member of NEST will only have a single “Pension Account”

Questions supplied by Technical Connection

_________

Answers

1 C
2 C
3 B
4 B
5 D

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