Onshore…Offshore – you decide!
Check your answers
1. The gain calculation for full surrender of an Insurance Bond is?
a. Surrender value, less premium(s) paid, plus previous excess gains
b. Surrender value, plus previous withdrawals, less premium(s) paid, less previous excess gains
c. Surrender value, plus previous excess gains, less previous withdrawals
d. Surrender value, less premium(s) paid, less previous excess gains
2. Chargeable event gains on UK Bonds are not liable to basic rate tax. This reflects the fact that the funds underlying a UK policy are subject to UK Life fund tax?
a. Those underlying funds will be taxed at 20%
b. Those underlying funds will be taxed at 19%
c. Those underlying funds will be taxed at an effective rate lower than 20%
d. Those underlying funds will be taxed at 25%
3. With regard to the taxation of company owned bonds, the loan relationship rules apply. That means?
a. The tax treatment follows the accounting treatment
b. The accounting treatment follows the tax treatment
c. The company is taxed under the same chargeable event rules that apply to individuals and trustees
d. No tax is payable unless a director has loaned money to fund the bond application
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