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QUESTION TWO: How much capital can be withdrawn from an investment bond on an annual basis without triggering a tax charge?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


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