PruAdviser on-line services will be unavailable from 16:00 on Saturday 11 December until 12:30 on Sunday 12 December for website maintenance.
Currently we are not able to show some detailed information for Retirement Account performance for clients. This will be restored on 13 December 2021. We're sorry for any inconvenience this causes.

Tax and Trusts Tax Year End Quiz Webinar

Check your answers

 

1. For Inheritance Tax (IHT) planning purposes, how significant is the tax year end?

a. Extremely significant

b. It’s an important milestone

c. It has zero significance

 

2. In 2006, Donald purchased 10,000 shares @ £2.50 each in an OEIC fund. In 2012, he purchased a further 5,000 shares in the same fund @ £4 each. Current share price is now £5.05 and he sells 6,000 shares from his 15,000 share portfolio. What is the acquisition cost in his CGT calculation?

a. £2.50

b. £3.00

c. £3.25

d. £4.00

 

3. With regard to capital gains and losses, which of one of these statements is false?

a. Current tax year losses must be deducted in full

b. Carried forward losses must be deducted in full

c. Current tax year losses must be used before losses carried forward

d. To be allowable a capital loss must be quantified and claimed

 

4. In 2020/21, Emma who lives in England, has salary of £55,000 and realises a £40,000 gain on a UK Bond gain held for 10 complete years. Tax due after top slicing relief of £1,800 is £15,500 (split £9,500 on salary and £6,000 on the bond gain).

Assuming she pays a net pension contribution of £8,000, please estimate the effective rate of tax relief on her pension contribution.

a. 20%

b. 40%

c. 60%

d. 90%

 

5. Later today, you have a call with Mr & Mrs Brown to discuss IHT planning. They have made no previous gifts.

You discuss the IHT annual exemption. The clients ask you how much IHT could be saved immediately by using the exemption.

a. £600

b. £1,200

c. £2,400

d. £4,800

 

CPD certificate

Before collecting your certificate please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk

Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when making contact with us.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.