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The Technical Quiz: 22 May

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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

David is a non-UK domiciled individual and has UK assets worth £500,000 and overseas assets worth £1m. He has not been UK resident for any tax year but would like to check on his exposure to IHT on his death.

A He will be liable to UK IHT on all of his worldwide assets of £1.5m, less a nil-rate band of £325,000, and charged at 40% IHT

B He will be liable to UK IHT on all of his worldwide assets of £1.5m, with no nil-rate band of £325,000, and charged at 40% IHT

C He will be liable to UK IHT on his UK assets of £500,000 only, less a nil-rate band of £325,000, and charged at 40% IHT

D He will be liable to UK IHT on his UK assets of £500,000 only, with no nil-rate band of £325,000, and charged at 40% IHT

Question two

A client has now moved into the decumulation phase. Which strategy would typically be least appropriate?

A Reducing exposure to emerging markets

B Reducing exposure to alternative assets

C Reducing exposure to global equities

D Reducing exposure to corporate bonds

Question three

Which individuals are liable to capital gains tax on the disposal of a chargeable asset?

A Those who are resident in the UK

B Those who are not resident in the UK

C Those who are resident and domiciled in the UK

D Those who are resident but not domiciled in the UK

Scroll down for the answers

Questions supplied by the CPD Centre. For more help keeping up to date with your technical knowledge go to www.ifacpd.com

Answers

1 C

2 D

3 A

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