ACCA F6 : Taxation And Pension Contributions! Trivia Quiz

14 Questions | Total Attempts: 210

SettingsSettingsSettings
ACCA F6 : Taxation And Pension Contributions! Trivia 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

  • 2. 
    _______________ is also known as Money Purchase Scheme.
    • A. 

      Personal Pension

    • B. 

      Occupational Pension

    • C. 

      Defined Benefit

    • D. 

      Defined Contribution

  • 3. 
    An individual can contribute in __________ pension scheme(s) subject to certain limits.
    • A. 

      More than one

    • B. 

      Only One

    • C. 

      Less than one

  • 4. 
    Tax relievable pension contributions can be made by a person under the age of:
    • A. 

      55

    • B. 

      65

    • C. 

      75

    • D. 

      85

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 12. 
    Pension fund can be utilized when a person reaches the age of:
    • A. 

      45

    • B. 

      55

    • C. 

      65

    • D. 

      75

  • 13. 
    Lifetime allowance for 2011/12 is:
    • A. 

      £1,000,000

    • B. 

      £1,400,000

    • C. 

      £1,800,000

    • D. 

      £2,200,000

  • 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%