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The Technical Quiz: 8 May


To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions.

Question one

Agatha wants to make a pension contribution for her granddaughter. Will this receive tax relief?

No, contributions made by third parties do not receive tax relief

Yes, she will be able to make an unlimited contribution and obtain tax relief on the pension payments

Yes, the contribution will be treated as if paid by the member herself and is subject to the usual tax relief rules

No, the third party contribution is treated as a chargeable lifetime transfer


Question two

Peter has £150,000 to invest in either EIS shares or VCT shares. He is risk cautious. How would you advise him?

Invest in either EIS or VCT shares, as they are both low risk investments

It would be better to invest in EIS shares, as these are unquoted trading company shares and less risky than VCT shares

It would be better to invest in VCT shares, as these are quoted company shares and less risky than EIS shares

Invest in the EIS shares so long as Uijo has control of the company

Question three

Anne and Charlie are married. Anne is a higher rate taxpayer and Charlie has no income. They have £30,000 to invest and want some advice on how this can be structured to minimise income tax?

Invest the full amount in Charlie’s name so that any interest generated from the funds will be either covered by Charlie’s personal allowances or assessed at 20 per cent

Invest in joint names so they are assessed on half the interest each

Invest the full amount in Charlie’s name so that he can receive relief for the capital invested

Invest in the names of their minor children


Scroll down for the answers


Questions supplied by the CPD Centre. For more help keeping up to date with your technical knowledge go to 


1 C

2 C

3 A



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