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The Technical Quiz: 29 August

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

The following questions all relate to investments.

QUESTION 1: In which circumstances can the 10% dividend tax credit be reclaimed?

A) If the client is a non-taxpayer
B) Where funds are held in an Isa
C) Where funds are held in a pension
D) It is not reclaimable

QUESTION 2: Bob has interest income of £2,000. If he were to receive rental income of £25,000, at what rate would it be taxed?

A) 10% and 20%
B) 20%
C) 20% and 40%
D) 40%

 

QUESTION 3: What is the maximum amount of capital which can be withdrawn from an investment bond on an annual basis without triggering an immediate tax charge?

A) 4%
B) 5%
C) 7%
D) 7.5%

QUESTION 4: How much can be contributed to a junior Isa?

A) £3,600 in the 2013/14 tax year
B) £3,600 from the date of the child’s birthday to the day before their next birthday
C) £3,720 in the 2013/14 tax year
D) £3,720 from the date of the child’s birthday to the day before their next birthday

QUESTION 5: Which of the following national savings products is taxable?

A) Income bonds
B) Children’s bonds
C) Premium bonds
D) Fixed interest savings certificates

Questions supplied by Technical Connection

_________

Answers

1 D
2 B
3 B
4 C
5 A

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