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The Technical Quiz: 30 October

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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

When do partners in a business partnership have to pay their tax liabilities for the 2014/15 tax year?

A) On 31 January 2014 and 31 July 2014. Any balance of tax payable for 2014/15 is due on 31 January 2015

B) On 31 January 2015 and 31 July 2015. Any balance of tax payable for 2014/15 is due on 31 January 2016

C) On 31 January 2015

D) On 31 January 2016

Question two

Shares obtained by way of an approved share option scheme are taxed as follows:

A) There is no liability to tax on the exercise or sale of shares acquired from an approved share option scheme

B) There is a liability to tax and NIC on the acquisition of the shares at the exercise date and there is a capital gains tax event on the sale of the shares

C) There is no liability to tax and NIC on the acquisition of the shares at the exercise date but there is a capital gains tax event on the sale of the shares

D) The sale of the shares acquired from an approved share option scheme always qualifies for entrepreneur’s relief, which reduces the capital gains tax rate to 10 per cent

Question three

Brendan wants to be able to retire from the limited company of which he owns half the shares should he suffer a critical illness, but he does not want his co-shareholders to be able to force him to sell. How can he ensure that happens?

A) Write the critical illness cover in trust

B) Use a buy and sell agreement

C) Have a single option agreement, giving him the option to sell

D) Use a cross option agreement

Scroll down for answers

 

 

 

 

 

 

 

 

 

 

Answers

1) B

2) C

3) C

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