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The Technical Quiz – 22 November

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 1: The rate of tax payable in respect of an unauthorised member payment is

A) 20%

B) 25%

C) 40%

D) 55%

Question 2: A scheme administrator is liable for a scheme sanction charge in respect of certain unauthorised payments. The rate of tax payable is

A) 40% discounted by the amount paid by the member/employer in respect of the unauthorised payment, but a minimum of 15% will be payable

B) 55% discounted by the amount paid by the member/employer in respect of the unauthorised payment, but a minimum of 15% will be payable

C) Always 15%

D) Always 55%

Question 3: An unauthorised payment surcharge is payable

A) when the total cumulative unauthorised payments exceed 25% of the value of the pension rights in any surcharge period

B) when the total cumulative unauthorised payments exceed 25% of the value of the pension rights in any 12 month period

C) in all circumstances

D) whenever a scheme sanction charge is not payable by a scheme administrator

Question 4: Under the Registered Pension Schemes (Authorised Payments) Regulations 2009, which one of the following is not a requirement for a pension payment made after an error is discovered to be treated as an authorised payment; where the:

A) scheme administrator of the pension had taken reasonable steps to prevent its being made, or being made in that amount

B) payment has been made while the scheme administrator is considering whether the scheme rules should be amended so that such payments, or payments in such amounts, will be permitted

C) scheme administrator is in the process of amending the scheme rules so that such payments, or payments in such amounts, will be permitted by the rules

D) overpayment is offset against a future payment of pension income falling no later than six-months after the discovery of the error

Question 5: Who has the responsibility to report unauthorised payments to HMRC

A) The scheme administrator

B) The scheme trustee

C) The scheme member

D) The scheme administrator and the scheme member jointly

Questions supplied by Technical Connection

_________

Answers
1 C
2 A
3 A
4 D
5 A

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