QUESTION: 17

Philip took out a qualifying onshore endowment policy for 20 years which he made paid- up in year 9. This means that he may become personally liable to tax on the policy proceeds:

At maturity
If he makes a partial surrender
If he assigns the policy to his wife
On settlement of a critical illness claim

Answer(s): A,B

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Bill, a single man, having made full use of his annual gift allowances, made a potentially exempt transfer of £100, 000 four and a half years before his death. He has made no other gifts. His residual estate is now valued at £500, 000. The Inheritance Tax liability at death is:

£30, 000
£46, 000
£94, 000
£110, 000

Answer(s): D

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QUESTION: 19

On Brian's death, his estate was valued at £820, 000. He bequeathed £40, 000 to a registered charity and split the balance equally between his registered civil partner and his brother. Assuming he made no lifetime transfers, what will the Inheritance Tax liability be?

£22, 750
£26, 000
£29, 750
£34, 000

Answer(s): B

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QUESTION: 20

Trevor is a member of a defined benefit company pension scheme. Which factor relating to his circumstances confirms that he will avoid incurring a special annual allowance charge in the current tax year?

He is a member of an Employer Financed Retirement Benefit Scheme (EFRBS)
He is aged 61
His total annual earnings have never exceeded £110, 000
His benefits include the maximum level of death benefit

Answer(s): C

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Free CTFA Exam Braindumps (page: 6)

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QUESTION: 20

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