The 7 steps to achieving good tax outcomes

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 to claim your CPD certificate on the link below

1)      A client confirms that for this tax year they expect to receive salary from employment of £45,000, bank interest of £1,000 and dividends from their OEIC portfolio of £2,000. They make pension contributions to their occupational scheme of £2,500 p.a. under net pay. Assuming their assumptions are correct, what will their “total income” be for the tax year?

a)      £32,930

b)     £44,000

c)      £45,500

d)     £50,500

2)      Angela has “total income” of £125,000 in the current tax year but decides to make a relief at source pension contribution of £8,000. What will her personal allowance be for the current tax year?

a)      £0

b)     £70

c)      £4,070

d)     £5,070

3)      There is a statutory order for taking an individual’s taxable income. Which of the following statements is true?

a)      Onshore bond gains are taxed before offshore bond gains

b)     Redundancy payments are taxed before interest

c)      Interest is taxed before earned income

d)     Dividends are taxed before onshore bond gains

4)      Which of the following is NOT a ‘tax reducer’ deducted from an individual’s tax liability at step 6 of the UK income tax computation?

a)      Top Slicing Relief

b)     Personal Allowance

c)      Marriage Allowance

d)     Onshore Bond Tax Credit

1. A client confirms that for this tax year they expect to receive salary from employment of £45,000, bank interest of £1,000 and dividends from their OEIC portfolio of £2,000. They make pension contributions to their occupational scheme of £2,500 p.a. under net pay. Assuming their assumptions are correct, what will their “total income” be for the tax year?

a) £32,930

b) £44,000

c) £45,500

d) £50,500

2. Angela has “total income” of £125,000 in the current tax year but decides to make a relief at source pension contribution of £8,000. What will her personal allowance be for the current tax year?

a) £0

b) £70

c) £4,070

d) £5,070

3. There is a statutory order for taking an individual’s taxable income. Which of the following statements is true?

a) Onshore bond gains are taxed before offshore bond gains

b) Redundancy payments are taxed before interest

c) Interest is taxed before earned income

d) Dividends are taxed before onshore bond gains

4. Which of the following is NOT a ‘tax reducer’ deducted from an individual’s tax liability at step 6 of the UK income tax computation?

a) Top Slicing Relief

b) Personal Allowance

c) Marriage Allowance

d) Onshore Bond Tax Credit

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 contacting us.