To wrap or not to wrap – that is the question
 

Check your answers

1. From an ongoing tax perspective the key difference between OEICs and bonds is:

a) OEICs produce income, bonds produce gains.

b) OEICs produce capital gains, bonds produce income

c) OEICs produce income, bonds are non income producing

d) both OEICs and bonds are non-income producing

 

2. The rate of capital gains tax suffered within an OEIC is:

a) 10%

b) 0%

c) 20%

d) 15%

 

3. Bob and Bill both invested £10,000 in an onshore and offshore bond wrapper respectively.  They both bought the same OEIC portfolio and suffered the same charges. They received £1,000 of dividends, £0 of interest and their portfolios had £0 capital gains. Whose bond will have the highest value? 

a) it's the same

b) Bob

c) Bill 

d) there won't be any growth

 

4. The 5% tax deferred allowance is available to:a) Individuals only

a) Individuals only

b) Individuals and Trustees only

c)  Individuals, Trustees and Corporates

d)  Individuals and Corporates only

 

CPD certificate

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"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.