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The Technical Quiz: 4 September

Quiz

Question one

Bill’s designated funds for capped drawdown vest on 5 June 2011. What is the theoretical maximum income he can withdraw in October 2014/15 without tax penalties?

A) 100% of the basis amount

B) 108.33% of the basis amount

C) 120% of the basis amount

D) 150% of the basis amount

Question two

In 2011/12, Norman had a Sipp which consisted of a 20 per cent protected rights fund and 80 per cent non-protected rights. If he moves into phased retirement in 2014/15…

A) He must crystallise all the non-protected rights element first

B) He must crystallise all the protected rights element first

C) There is now no distinction between the rights attaching to different parts of the fund 

D) He can choose whatever crystallisation mix between the two elements suits him

Question three

Bob is domiciled in Spain when he dies. His UK life policy, which is not under trust, becomes a claim with a sum assured of £250,000. You tell Bob’s executors:

A) The UK life company does not need to see a UK grant of representation, provided it receives proof Bob was non-UK domiciled and that any IHT due on the £250,000 will be, or has been, met

B) There can be no IHT as Bob was domiciled outside the UK

C) There is no IHT because the sum assured is below the nil rate band

D) The UK life company will pay out once it receives a valid death certificate

Questions supplied by CPD Centre. Scroll down for answers

 

 

 

 

 

Answers

1) D

2) C

3) A

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