Free CTFA Exam Braindumps (page: 6)

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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:

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

Answer(s): A,B



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:

  1. £30, 000
  2. £46, 000
  3. £94, 000
  4. £110, 000

Answer(s): D



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?

  1. £22, 750
  2. £26, 000
  3. £29, 750
  4. £34, 000

Answer(s): B



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?

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

Answer(s): C






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