Les’ Big Fat Quiz of the Year
Session: 17 December 2020
Our technical team have been reading, writing and presenting on technical matters all year. From top slicing to tapered annual allowances, lifetime allowance to lifetime gifting and special types of trust to scheme pays. The questions have been varied and (sometimes) interesting.
On this webinar, Les Cameron, Head of Technical turned the tables and asked the questions.
- Common technical issues encountered by UK Financial Planners
Presenter – Les Cameron – Head of Technical
Test your knowledge
Now you've listened to this session, test your knowledge with the questions below.
1. Tom and George are trustees of two newly established trusts. As trustees what’s the difference in trustees overall tax liability for dividends received and paid from:
- Tom’s Discretionary Trust, and
- George’s Interest in Possession trust
a. 45% - 7.5% = 37.5%
b. 38.1% - 0% = 38.1%
c. 45% - 0% = 45%
d. 38.1% - 7.5% = 30.6%
2. Pension freedom greatly improved the death benefits under defined contributions plans. With regard to death benefits which of the following is the odd one out?
a. Lump Sum
3. Jimmy is an Edinburgh businessman who usually extracts a £12,999 salary and £87,500 of dividends from his business each year. His cousin George in Essex also runs his own business and also extracts his profits in same manner. How much more income tax will Jimmy pay in 2020/21?
4. Dunning Cycles Ltd own an onshore investment bond. The policy started with £100,000 and is in it’s 6th policy year. Due to the boom in bike sales this year they have just topped up by another £50,000. How much tax deferred allowance is available?
5. Geoff has a £20,000 salary. He also surrendered an insurance bond he inherited from his parents with a £100,000 gain accrured over 10 full years, giving a “top slice” of £10,000. How much of his salary will be taxed?
Now you've completed the questions, click here to reveal the answers and claim your CPD certificate.