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What happens with benefits within a pension if the pension holder dies before the age of 75?

*Benefits up to the lifetime allowance can be left as a tax fee lump sum
*Or they can be used to provide tax free income from a non scheme for a nominated person - if a scheme pension then this will be taxed


What happens with benefits within a pension if the pension holder dies after 75?

Any benefits as a lump sum or income will be taxed on the recipient at their marginal rate of tax


Who is eligible to contribute to an ISA?

Anyone that is UK resident
Crown employees ( being paid by the UK government) and their spouses even if not resident


When was CTF available?

To children born between 1st Sept 2002 and 1st January 2011


Who is eligible for a junior ISA?

If born outside of CTF dates (1st Sept 2002 and 1st Jan 2011) and under 18


At what age can the children manage the investments of a CTF and ISA?

From 16


What is the additional permitted subscription allowance?

From 6th April 2015, a spouse can inherit an additional ISA allowance on death of the other half on or after 3rd December 2014.
Value of the APSA is the value of the ISA when the deceased died
Can be used up to 3 years from death or if longer 180 days from the completion of the administration of the estate - this is the permitted period
If death occurred between 3rd December 2014 and 5th April 2015 then the permitted period starts on 6th April 2015.
If payment is in specie the permitted period is 180 days of beneficial ownership passing to the spouse


What is the exception to the no tax on gains or income with ISAs?

Where the parent has funded cash ISA for an individual aged between 16 and 17 and this creates more than £100 interest per tax year


What is the contribution limit for a CTF or JISA?

£4080 per annum


What is a help to buy ISA?

16 or over and intend to be first time buyers
Max £3000
Government will add 25%
Bonus is paid when the property is purchased


Is tax payable on any gains held within an OEIC or a Unit trust?

None within the fund


IS CGT payable on disposal of unit trusts and OEICS

Yes - even where the underlying fund is invested in fixed interest securities (this contrasts to direct investment in gilts or qualifying bonds which are not subject to CGT


How are off shore funds that are invested in equities taxed?

There may be a no UK withholding tax
This cannot be reclaimed
Usually they target growth rather than income


How does tax need to be paid for member states of the EU if there is a tax agreement in place - by accordance with the European Union Savings Directive?



What is a reporting fund and how is it taxed? (5 points)

An investment scheme based outside of the UK eg OEIC
Reports all of its annual income in such a way that the UK investor is taxed on their individual income ( regardless of whether this is distributed or not)
Income tax is therefore paid on accumulated income as well as distributed income
If equity based on dividends, if fixed interest then taxed as interest
Subject to CGT at highest rate of 20%


What is a non - reporting fund and how is this taxed? (4 points)

Subject to income tax at usual rates
Tax is only paid on distributed income so income is usually accumulated so only tax is paid until disposal
Any gain made is calculated on CGT principles but is subject to income tax ( not CGT)
Annual CGT can not be used


Name 4 protected of guaranteed equity products

Insurance bonds
Investment companies
Listed bonds/medium notes
Deposit accounts