ISAs And Pensions

Question 1

For how long, as a minimum, must an individual hold shares through Enterprise Investment Scheme (EIS) in order to receive IHT business relief?

A. 1 year
B. 2 years
C. 3 years

Answer 1

2 years

Question 2

Which of the following is generally an advantage of a personal pension when compared to an ISA?

A. Tax-free income on retirement
B. No tax on gains within the fund
C. No inheritance tax on the fund on death

Answer 2

No inheritance tax on the fund on death

Question 3

Mark the following statements regarding a private medical insurance (PMU) policy as True or False.

A. There may be a policy excess
B. They are designed to meet chronic conditions
C. They never provide an income benefit
D. They are designed to cover acute conditions

Answer 3

True
False
False
True

Question 4

What is the maximum binding award that can be made by the Financial Ombudsman Service (FOS)?

A. £120,000 only
B. £150,000 only
C. £150,000 plus costs and interest

Answer 4

£150,000 plus costs and interest

Question 5

From which of the following May income be taxable?

A. A benefit from an immediate needs annuity paid to an individual
B. A benefit from an immediate needs annuity paid to a care provider
C. A benefit from a prefunded long-term care policy

Answer 5

A benefit from an immediate needs annuity paid to an individual

Question 6

If an individual wishes to see a medical report before it is sent to an insurer, for how long must a doctor hold the report before sending it?

A. 14 days
B. 21 days
C. 28 days

Answer 6

21 days