To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these questions
Answers can be found at: www.moneymarketing.co.uk/technical
If a company invests in a UK investment bond which of the following is true?
A) It is entitled to top-slicing relief if its profits exceed the small profits threshold
B) The gains from the bond are chargeable to CGT
C) The bond will be subject to the loan relationship provisions
D) Indexation allowance is available to companies to set against gains from investment bonds
Paul invests £20,000 in a UK bond on June 20, 2003. In June 2008 he invests a further £10,000 into the same bond. He intends to encash it in July 2012. For how many years can the resulting gain be top-sliced?
A) Nine years
B) Five years
C) Two parts of the gain for nine years and one part for five years
D) 10 years
Richard has encashed an offshore bond which gives rise to a chargeable-event gain of £67,000. Top-slicing relief will give him relief against which of the following rates of income tax?
A) 10%, 20%, 40% and/or 50%
B) 20% and/or 40%
C) 40% only
D) 40% and/or 50%
Questions are set by Technical Connection
Answers: C, A, D