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The Technical Quiz: 27 June

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 ONE: Clara set up a personal pension with a transfer from a retirement annuity contract, which was received by the PPP administrator on 21 January 2013. Regular contributions were made to the plan by her and her employer, with the first contributions being paid respectively on 31 March 2013 and 19 April 2013. Assuming no nomination is made by to amend the first pension input period end date, it ends on:

A) 5 April 2013

B) 20 January 2013

C) 30 March 2014

D) 5 April 2014

QUESTION TWO: Larry set up a Sipp in 2008 and the current PIP end date runs to 21 April each year. If Larry decides to alter the end date of the current PIP on 1 June 2013 the earliest and latest end date that he can nominate is:

A) It will have no impact

B) The PCLS will need to be refunded, although once her pension increases to its original value the PCLS can be taken once again

C) The extent to which the lump sum exceeded 25 per cent of the value of her reduced pension rights will be treated as an unauthorised member payment

D) The extent to which the lump sum exceeded 25 per cent of the value of her reduced pension rights will be treated as an unauthorised member payment; however, there will be no scheme sanction charge

QUESTION THREE: William has established a new Sipp where the first PIP commenced on 3 June 2013. If he wishes to change the default PIP end date. The latest date he can nominate for the end date of the first PIP is:

A) 5 April 2014

B) 2 June 2014

C) 3 June 2014

D) 5 April 2015

QUESTION FOUR: Nancy’s Sipp has a PIP end date due of 31 December 2013.  On 1 May 2013, she wrote to the scheme administrator nominating a revised PIP end date of 20 June 2013. This was received by the Sipp scheme administrator on 3 May 2013, but no action was taken.  On 12 May 2013, the Sipp scheme administrator wrote to Nancy to advise her that it was nominating a PIP end date of 5 April 2014, to coincide with the tax year end. Based upon the above information the 2013/14 PIP will be deemed by HMRC to end on:

A) 12 May 2013

B) 20 June 2013

C) 31 December 2013

D) 5 April 2014

QUESTION FIVE: Under a defined benefit scheme a change to a pension input period end date can be nominated by:

A) The scheme administrator only

B) The member only

C) The scheme administrator or the member only

D) The scheme administrator, the member or the member’s financial adviser only

Questions supplied by Technical Connection

_________

Answers

1 A
2 C
3 B
4 A
5 A

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