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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

b) Individuals and Trustees only

c)  Individuals, Trustees and Corporates

d)  Individuals and Corporates only


CPD certificate

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