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Tax and Trusts Tax Year End Quiz Webinar

Session: 20 January 2021

Each tax year end our technical team get asked a lot of questions about tax and pensions! This year our technical team hosted three tax year end themed quiz webinars. On this webinar, Graeme Robb, Senior Technical Manager covered the common things to think about when it comes to tax and trusts with a tax year end slant on things.

Learning Outcome

  • Tax and trust issues related to standard tax year end planning opportunities

Presenter – Graeme Robb – Senior Technical Manager

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

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

 

To claim your CPD certificate, click here.

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