Why might a basic-rate taxpaying pensioner hold a UK equity income fund via a Nisa rather than directly?
A) To avoid inheritance tax
B) To increase the dividend income
C) To prevent loss of age allowance
D) To minimise costs
Ben is an additional-rate taxpayer who realises a £30,000 gain in a non-reporting offshore gilt fund. His annual capital gains tax exemption has been used elsewhere. How much tax does he pay?
Having built up an entitlement to a full basic state pension, Joe retired to live permanently in the south of France. How will this affect his entitlement to receive annual increases to his basic state pension?
A) It will be limited to a maximum increase of 2.5 per cent per annum
B) It would be based on CPI in the UK to the previous September
C) It would be based on the greater of inflation, the increase in average earnings or 2.5 per cent
D) His entitlement to receive the annual increase is not affected – he will receive the annual increase but through the French social security system
Questions supplied by CPD Centre. Answers at: www.moneymarketing.co.uk/technical
Scroll down for answers