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The Technical Quiz – 25 October

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: Who out of the following is ineligible to take an Isa?

A) A 16 year old who is taking a cash Isa

B) A 20 year old member of HM Forces deployed in Afghanistan

C) A 20 year old individual who is UK resident and ordinarily resident but non-UK domiciled

D) A 20 year old resident of the Isle of Man

Question 2:For tax year 2012/13 what is the maximum amount an individual can subscribe to Isas?

A) £5,640 to a cash ISA and £5,640 to a stocks and shares Isa

B) £11,280 to a cash ISA and £11,280 to a stocks and shares Isa

C) £11,280 in total with up to £5,640 to a stocks and shares Isa and the balance to a cash Isa

D) £11,280 in total with up to £5,640 to a cash Isa and the balance to a stocks and shares Isa 

Question 3: Which statement is correct regarding the death of an Isa holder?

A) The assets in the Isa will form part of the holder’s estate for inheritance tax purposes

B) The ISA manager must sell the assets in a stocks and shares Isa and pay the proceeds to the estate, and cannot transfer them

C) Income and capital gains accruing to the Isa will be free of tax until the end of the tax year in which death occurs

D) The Isa manager must transfer the assets in a stocks and shares Isa to the estate and cannot sell them

Question 4: Which of the following statements is correct?

A) Income generated by a stocks and shares Isa, but not a cash Isa, is taken into account in determining how much age allowance a person is entitled to

B) All income arising from Isas is ignored in determining how much age allowance a person is entitled to

C) All income arising from Isas is taken into account in determining how much age allowance a person is entitled to

D) A person entitled to age allowance is not eligible to take an Isa

Question 5: Philip invested £4,000 in a cash Isa in May 2012 and withdrew £2,000 in November 2012. He plans a further subscription to this Isa before 6 April 2013. What are his options?

A) He can subscribe £1,640

B) He can subscribe £2,000

C) He can subscribe £3,640

D) He can subscribe £7,280

Questions supplied by Technical Connection

_________

Answers
1 D
2 D
3 A
4 B
5 A

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