Tax Year End Planning - CPD Course

1. Assuming no growth or lifetime allowance issues, which of the following individuals would have the highest return on exit after making a gross £100 relief at source contribution?

a) Tom, who’s basic rate on entry but a non-taxpayer on exit.

b) Sue, who’s basic rate on entry but basic rate on exit.

c) Sal, who’s additional rate on entry but higher rate on exit.

d) Fay, who’s higher rate on entry and higher rate on exit.

2. The effective rate of tax relief on a pension contribution is the same regardless of whether the contribution is made using the relief at source method or net pay method:

a) True

b) False

3. An individual has a Whole of Life policy in trust to which they pay premiums of £200 pm. Which of the following IHT exemptions might apply to the premiums?

a) Small gifts exemption only

b) Small gifts exemption in conjunction with the Annual exemption

c) Normal expenditure out of income exemption only

d) The Normal expenditure out of income and/or the Annual exemption

4. Laura makes gifts of £2,500 to each of her 4 grandchildren and £5,000 to each of her 2 children. The gifts are all made on the same day. Assuming no other exemptions apply how would the Annual exemption be apportioned between these gifts?

a) £500 of each gift would be exempt

b) The gifts to the children would receive half the exemption each because they’re larger gifts

c) The exemption would be split between the gifts to the grandchildren because they are less than the £3,000 limit

d) £375 of the gifts to each of the grandchildren would be exempt and £750 of the gifts to each of the children would be exempt

1. Assuming no growth or lifetime allowance issues, which of the following individuals would have the highest return on exit after making a gross £100 relief at source contribution?

a) Tom, who’s basic rate on entry but a non-taxpayer on exit.

b) Sue, who’s basic rate on entry but basic rate on exit.

c) Sal, who’s additional rate on entry but higher rate on exit.

d) Fay, who’s higher rate on entry and higher rate on exit.

2. The effective rate of tax relief on a pension contribution is the same regardless of whether the contribution is made using the relief at source method or net pay method:

a) True

b) False

3. An individual has a Whole of Life policy in trust to which they pay premiums of £200 pm. Which of the following IHT exemptions might apply to the premiums?

a) Small gifts exemption only

b) Small gifts exemption in conjunction with the Annual exemption

c) Normal expenditure out of income exemption only

d) The Normal expenditure out of income and/or the Annual exemption

4. Laura makes gifts of £2,500 to each of her 4 grandchildren and £5,000 to each of her 2 children. The gifts are all made on the same day. Assuming no other exemptions apply how would the Annual exemption be apportioned between these gifts?

a) £500 of each gift would be exempt

b) The gifts to the children would receive half the exemption each because they’re larger gifts

c) The exemption would be split between the gifts to the grandchildren because they are less than the £3,000 limit

d) £375 of the gifts to each of the grandchildren would be exempt and £750 of the gifts to each of the children would be exempt

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