View more on these topics

The Technical Quiz: 6 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: Bonds are taxed under what regime?

A) The relevant property regime

B) The chargeable gains regime

C) The chargeable event regime

D) The loan relationship regime

QUESTION TWO: How much capital can be withdrawn from an investment bond on an annual basis without triggering a tax charge?

A) 4%

B) 5%

C) 7%

D) 7.5%

QUESTION THREE: Pauline sets up a discretionary trust. The asset of the trust comprises a life insurance policy. Who is assessable on any chargeable event gains?

A) Pauline as the settlor

B) The trustees

C) The beneficiaries

D) Pauline and the trustees collectively

QUESTION FOUR: How is a bond gain calculated?

A) Amount invested plus capital withdrawals less surrender value

B) Surrender value plus any previous chargeable event gains less amount investe

C) Surrender value plus capital withdrawals less amount invested and any previous chargeable event gains

D) Amount invested plus any previous chargeable event gains less surrender value


QUESTION FIVE: Where someone has been non-UK resident for part of the period in which they owned a life insurance bond, what relief would be available on encashment?

A) Deficiency relief

B) Time apportionment relief

C) Top-slicing relief

D) Final policy year relief

Questions supplied by Technical Connection



1 C
2 B
3 A
4 C
5 B


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm