10 Questions
What is the minimum amount that a PCLS must exceed when added to other PCLS drawn in the previous twelve-month period for it to be treated as an unauthorised payment?
£7,500
What is the percentage increase in pension contributions that is considered 'significant' by HMRC?
more than 30% of the contributions that might otherwise have been expected
What is the tax implication for an employer who makes a pension contribution on behalf of an employee?
The employer is eligible for tax relief in full
What is the maximum number of schemes an employer can set up?
No restriction
What is the purpose of the tax simplification rules, according to the Government?
To simplify the tax system
What is the term used by HMRC to describe a PCLS that meets certain conditions?
Unauthorised payment
What is the threshold for the cumulative sum of extra contributions for a PCLS to be treated as an unauthorised payment?
30% of the PCLS
Who can make additional contributions to a pension scheme?
The individual or someone else, such as an employer
What is the requirement for the employer's contribution to be eligible for tax relief?
The employer's contribution is paid gross and is allowable as a business expense
What is the consequence of recycling a PCLS, according to the Government?
The Government sees it as abuse of the tax simplification rules
Test your knowledge on pensions and retirement planning with this quiz based on the R04 study text. Covering essential topics, this quiz will help you assess your understanding of the subject and prepare for the exam. Accessible until August 2024, this quiz is perfect for those looking to improve their chances of exam success.
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