Question 1
Which of the following measures is used in the government's target for inflation?
A. CPI
B. CPIH
C. PMI
D. RPI
Question 2
Which is the most important element to establish during due diligence?
A. Disaster recovery
B. Security
C. System stability
D. User technology requirements
Question 3
Cryptocurrencies are well suited to money laundering and tax evasion because?
A. They are backed by government
B. They are only partially regulated
C. Transactions are anonymous
D.Transactions are only carried out in person
Question 4
How long must new enterprise investment scheme) shares be held to qualify for inheritance tax business relief?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 5
When did defined benefit contracting-out start and when did it end?
A.1978 to 2012
B. 1978 to 2016
C. 1988 to 2012
D. 1988 to 2016
Question 6
When could a settlor be chargeable to income tax in respect of trust income?
A. When the beneficiary is a charity
B. When the beneficiary is the settlor's minor unmarried child
C. When the settlor is a non-UK resident
D. When the settlor is a trustee
Question 7
Who are the legal owners of the assets held within a discretionary trust?
A. The beneficiaries
B. The settlor and the beneficiaries
C. The settlor
D. The trustees
Question 8
What are the benefits of making a will for expatriates?
A. It can avoid family disputes and make specific provision for specific beneficiaries
B. It can avoid forced heirship rules in their country of residence
C. It can be enforced in various jurisdictions to take ownership of assets
D. It can set out which country has the right to levy inheritance tax on the estate
Question 9
Which of the following is true about charitable trusts?
A. A charitable trust must be run solely for charitable purposes
B. Charitable trusts normally pay income tax on their investment income
C. Charitable trusts normally pay some capital gains tax on profits on property disposals
D. Gifts to charitable trusts are generally subject to inheritance tax
Question 10
How are income distributions from a gilt-based unit trust taxed?
A. They are only subject to capital gains tax
B. They are subject to income tax but paid gross
C. They are subject to the basic rate of income tax of 20% deducted at source
D. They are taxed as dividends
Answers
1A The consumer prices index (CPI) is the inflation measure used in the government's target for inflation.
2D Selecting a due diligence platform is effectively entering into an outsourced technology arrangement. This makes it vital to understand technology requirements for users.
3C Because cryptocurrency is anonymous, it is well suited to money laundering and tax evasion.
4A Two years.
5b DB contracting-out was available from 1978 to 2016, while defined contribution (DC) was only from 1988 to 2012.
6B The settlor is chargeable to income tax on a trust for their minor unmarried child if the gross income exceeds £100 a year.
7D The trustees are the legal owners of the trust’s assets, and are responsible for running the trust for the benefit of the beneficiaries.
8A Having assets in various jurisdictions can also result in additional time, cost and delay in the distribution of the estate, particularly if the individual dies intestate.
9A Broadly speaking, a charitable trust is a trust established for the public benefit. Its purposes must be wholly charitable.
10B A gilt-based unit trust would hold more than 60% of its assets in fixed interest securities. Its distributions would be paid gross and taxed as savings income.
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