To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these five questions.
Answers can be found at: www.moneymarketing.co.uk/technical
Under which of the following trusts are capital gains taxed on the beneficiary?
A) A bare trust
B) A discretionary trust
C) An accumulation and
D) An interest in possession trust
The perpetuity period of a trust (that is, the maximum amount of time that the trust can be in existence) is set by whom?
A) The settlor
B) The trustees
C) The courts
A discretionary trust may be charged to inheritance tax at the lifetime rate. What is the lifetime rate of IHT?
In which of the following circumstances can the income of a trust be taxed on the settlor?
A) The settlor has emigrated
B) The settlor is non-domiciled
C) The settlor can benefit from the trust fund
D) The settlor is a 50% taxpayer
Patrick, aged 22, is the only beneficiary with an interest in possession under a flexible interest-in-possession trust. What are his rights under the trust?
A) He has a right to all of the trust income
B) He has a right to income and capital
C) He has the right to appoint beneficiaries to succeed him
D) He has the right to appoint and remove the trustees
Questions provided by Technical Connection
Answers: A, D, B, C, A