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The Technical Quiz: 16 October

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

Question one

Kenzie personally owns a commercial property being used by his company. Which of the following statements relating to the tax position is correct?

A) The company will be liable to corporation tax on the gain of the commercial property whenever this is sold

B) Kenzie is entitled to 100 per cent IHT business property relief on the value of the commercial property as it is being used by the company

C) Kenzie will be liable to corporation tax on the gain on the commercial property whenever this is sold

D) Kenzie is entitled to 50 per cent IHT business property relief on the value of the commercial property as it is being used by the company

Question two

Harry travels 13,000 business miles during 2014/15 using his own car. What is the maximum amount the employer can pay to him as mileage allowance without him incurring any tax liability?

A) 13,000 at 45p = £5,850

B) 13,000 at 25p = £3,250

C) 10,000 at 45p and 3,000 at 25p = £5,250

D) None, the mileage allowance paid by the employer is fully taxable

Question three

In 2011/12 Norman had a Sipp which consisted of 20 per cent protected rights fund and 80 per cent non-protected rights. If he moves into phased retirement in 2014/15…

A) He must crystallise all the non-protected rights element first

B) He must crystallise all the protected rights element first

C) There is now no distinction between the rights attaching to different parts of the fund

D) He can choose whatever crystallisation mix between the two elements suits him

Scroll down for answers

Answers

1) D

2) C

3) C

 

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