ACCA F6 : Taxation And Pension Contributions! Trivia Quiz

Approved & Edited by ProProfs Editorial Team

The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.

Learn about Our Editorial Process

| By LFTC2011

LFTC2011

Community Contributor

Quizzes Created: 7 | Total Attempts: 2,239

Questions: 14 | Attempts: 285 | Updated: Mar 21, 2023

Questions

Settings

Create your own Quiz

Share on Facebook Share on Twitter Share on Whatsapp Share on Pinterest Share on Email Copy to Clipboard Embed on your website

ACCA F6 : Taxation And Pension Contributions! Trivia Quiz - Quiz

MCQ quiz of Chapter 5 of ACCA F6 Taxation (Pension)

Questions and Answers

1.

Two types of pension are Personal Pension and __________ Pension.
- A.
  
  Job
- B.
  
  Work
- C.
  
  Occupational
- D.
  
  Professional
Correct Answer
C. Occupational

Explanation
Explanation: Pension purchased privately by an individual, whether employed, self-employed or else, is called Personal Pension Scheme. Pension arrangement created by the employer is known as Occupational Pension.

Rate this question:
2.

_______________ is also known as Money Purchase Scheme.
- A.
  
  Personal Pension
- B.
  
  Occupational Pension
- C.
  
  Defined Benefit
- D.
  
  Defined Contribution
Correct Answer
D. Defined Contribution

Explanation
Explanation: Occupational Pension Scheme could be Defined Benefit or Defined Contribution scheme (Money Purchase Scheme). Defined benefit (also known as final salary scheme) is a scheme where employee contributes a part of his earnings and the benefits are based on the final salary being drawn by an employee. Money purchase/ defined contribution scheme builds the contributions over years and these are returned to the pensioner based on the performance of investment and total contribution.

Rate this question:
3.

An individual can contribute in __________ pension scheme(s) subject to certain limits.
- A.
  
  More than one
- B.
  
  Only One
- C.
  
  Less than one
Correct Answer
A. More than one

Explanation
Explanation: An individual can actually contribute towards more than one pension schemes.

Rate this question:
4.

Tax relievable pension contributions can be made by a person under the age of:
- A.
  
  55
- B.
  
  65
- C.
  
  75
- D.
  
  85
Correct Answer
C. 75

Explanation
Explanation: Pension contributions can be made by a person aged less than 75 years of age.

Rate this question:
5.

The minimum amount of pension contributions that can be made by anyone (less than 75) is:
- A.
  
  £1,000
- B.
  
  £2,500
- C.
  
  £3,600
- D.
  
  £10,000
Correct Answer
C. £3,600

Explanation
Explanation: Anyone can make pension contributions up to £3,600.

Rate this question:
6.

Relevant earnings, in respect of an individual for pension contributions, is broadly:
- A.
  
  Employment Income, Trading Income and Furnished Holiday Lettings
- B.
  
  Employment Income, Trading Income and Rental Income
- C.
  
  Employment Income, Trading Income and Patent & Royalties
- D.
  
  Employment Income, Trading Income and Dividends
Correct Answer
A. Employment Income, Trading Income and Furnished Holiday Lettings

Explanation
Explanation: Relevant earnings broadly comprise of Employment & Trading Income and Income from Furnished Holiday Lettings.

Rate this question:
7.

Romeo earned £10,000 from his employment, £5,000 from self-employment, £2,000 gross from dividends and £3,000 net from Building Society Interest. The maximum contribution that attracts tax relief is:
- A.
  
  £3,600
- B.
  
  £10,000
- C.
  
  £15,000
- D.
  
  £20,000
Correct Answer
C. £15,000

Explanation
Explanation: Maximum pension contributions attracting tax relief is greater of £3,600 or relevant earnings which are income from employment, self-employment and furnished holiday lettings. In this case, it is 10,000 + 5,000 = £15,000.

Rate this question:
8.

If a person with relevant earnings of £15,000 pays £10,000 to an HMRC approved pension scheme (personal); his pension fund will increase by:
- A.
  
  £3,600
- B.
  
  £10,000
- C.
  
  £12,500
- D.
  
  £15,000
Correct Answer
C. £12,500

Explanation
Explanation: Payment up to the higher of relevant earnings or £3,600 is deemed to be made net of 20%. Hence, in this case, the person pays £10,000 and will be considered to be paying net off basic rate tax. Hence his fund will increase by £12,500 that is 10,000 X 100/80.

Rate this question:
9.

Annual allowance (maximum amount that can be contributed each year) for £2011/12 is:
- A.
  
  £25,000
- B.
  
  £50,000
- C.
  
  £75,000
- D.
  
  £ 80,000
Correct Answer
B. £50,000

Explanation
Explanation: Maximum pension contributions in a tax year are £50,000 for tax year 2011/12. Unused limit can be carried forward to 3 years.

Rate this question:
10.

George contributed £30,000, £40,000, £50,000 and £60,000 gross personal pension contributions in the tax years 2007/08, 2008/09, 2009/10 and 2010/11. What is the maximum contribution the person can make in 2011/12 attracting tax relief?
- A.
  
  £40,000
- B.
  
  £50,000
- C.
  
  £60,000
- D.
  
  £70,000
Correct Answer
C. £60,000

Explanation
Explanation: Annual allowance can be carried forward to a maximum of three years. Unused allowance for 2007/08 can be carried forward to 2008/09, 2009/10 and 2010/11. The excess of £2010/11 will be covered by the unused allowance of £2007/08. For 2011/12, the unused allowance for 2008/09 can be used which is £10,000. Hence the total is 50,000 + 10,000 = £60,000.

Rate this question:
11.

Trow made £5,000 contributions in excess of the annual allowance who is additional rate taxpayer. The treatment of the excess of contribution over the annual allowance is:
- A.
  
  £5,000 will be considered as non-savings income and he will pay tax on the same
- B.
  
  There will be no additional tax payable
- C.
  
  £5,000 will be reduced from the non-savings income
- D.
  
  £5,000 will be deducted from the annual allowance of next year
Correct Answer
A. £5,000 will be considered as non-savings income and he will pay tax on the same

Explanation
Explanation: Excess contributions are added in non-savings income and are taxed accordingly.

Rate this question:

1
0
12.

Pension fund can be utilized when a person reaches the age of:
- A.
  
  45
- B.
  
  55
- C.
  
  65
- D.
  
  75
Correct Answer
B. 55

Explanation
Explanation: Pension funds can be used when the person reaches the age of 55.

Rate this question:
13.

Lifetime allowance for 2011/12 is:
- A.
  
  £1,000,000
- B.
  
  £1,400,000
- C.
  
  £1,800,000
- D.
  
  £2,200,000
Correct Answer
C. £1,800,000

Explanation
Explanation: Lifetime allowance is £1,800,000.

Rate this question:
14.

If the pension fund exceeds annual allowance at the time benefit is started (vested), the excess over £1,800,000 will give rise to:
- A.
  
  Excess being penalized at 10%
- B.
  
  55% taxed if excess value withdrawn
- C.
  
  25% taxed if excess value withdrawn
- D.
  
  All taxed at 10%
Correct Answer
B. 55% taxed if excess value withdrawn

Explanation
Explanation: If the pension fund exceeds £1,800,000 when “vested”, the excess is charged at 55% if funds are withdrawn and 25% if funds are left in scheme to provide annuity.

Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Feb 28, 2012

Quiz Created by
LFTC2011

ACCA F6 : Taxation And Pension Contributions! Trivia Quiz

Two types of pension are Personal Pension and __________ Pension.

_______________ is also known as Money Purchase Scheme.

An individual can contribute in __________ pension scheme(s) subject to certain limits.

Tax relievable pension contributions can be made by a person under the age of:

The minimum amount of pension contributions that can be made by anyone (less than 75) is:

Relevant earnings, in respect of an individual for pension contributions, is broadly:

Romeo earned £10,000 from his employment, £5,000 from self-employment, £2,000 gross from dividends and £3,000 net from Building Society Interest. The maximum contribution that attracts tax relief is:

If a person with relevant earnings of £15,000 pays £10,000 to an HMRC approved pension scheme (personal); his pension fund will increase by:

Annual allowance (maximum amount that can be contributed each year) for £2011/12 is:

George contributed £30,000, £40,000, £50,000 and £60,000 gross personal pension contributions in the tax years 2007/08, 2008/09, 2009/10 and 2010/11. What is the maximum contribution the person can make in 2011/12 attracting tax relief?

Trow made £5,000 contributions in excess of the annual allowance who is additional rate taxpayer. The treatment of the excess of contribution over the annual allowance is:

Pension fund can be utilized when a person reaches the age of:

Lifetime allowance for 2011/12 is:

If the pension fund exceeds annual allowance at the time benefit is started (vested), the excess over £1,800,000 will give rise to: