The Technical Quiz: 16 April

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


Question one

Thea gave her niece, Eliza, a holiday home. Which of the following would make this a gift with reservation of benefit for inheritance tax purposes? 

A) Thea makes occasional short visits

B) Thea occupies the property rent-free

C) Eliza has agreed to Thea occupying the property for a few weeks a year, rent-free

D) Thea occupies the property and pays a market rent for the use of the property


Question two

Joan refuses to sell the ABC shares she has inherited from her late husband, even though she has received advice to do so from several different sources. What is the behavioural finance description of Joan’s attitude? 

A) Aversion to loss

B) Endowment bias

C) Regret

D) Familiarity bias


Question three

Which of the following is a common domicile for exchange traded funds aimed at UK investors? 

A) Channel Islands

B) Isle of Man

C) Ireland

D) Cayman Islands


Question four

William’s self invested personal pension is valued at £1.95m when he reaches retirement in July 2015. He has no transitional or fixed protection. If he draws the excess over his lifetime allowance as a lump sum, what tax will he suffer? 

A) £100,000

B) £175,000

C) £220,000

D) £385,000


Scroll down for answers…















1) B

2) B

3) C

4) D


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