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Learning resource updates

This page details updates made to our learning resources. You should visit this page periodically to ensure you do not miss any updates. Updates can result from a change in exam syllabus, an amendment to the relevant CII study text directly affecting our resources, typographical errors or more complex issues.

Filter updates:

Pensions Exam Update

Please note the following from the CII with regards the Money Purchase Annual Allowance

‘The Government has announced that the second 2017 Finance Bill to be introduced in the autumn will legislate for policies, such as the reduction of the Money Purchase Annual Allowance (MPAA), that have already been announced as applying from the start of the tax year 2017/2018.  The dates of application will be retained and applied as originally announced.  Examinations from the 1 September 2017 onwards will, therefore, test on the basis that the reduced MPAA applies for the 2017/2018 tax year.’

This can be found at

http://www.cii.co.uk/qualifications/diploma-in-regulated-financial-planning-qualification/unit-pensions-and-retirement-planning-(r04)/

AF1 Mock Paper Set 3

11 October 2017 Question 3 – date of second gift changed from June 2015 to August 2014 in question and answer.

New version : AF1Set3010917v2

AF1 Calculation Workbook

14 December 2017 Due to a change in the CII Study Text, Pages 18 and 77, Question 11 amended to reflect new SDLT rules for first-time buyers: “Calculate, showing all your workings, the Stamp Duty Land Tax that Miss Buchan would pay assuming she is: a) A first-time buyer; b) Not a first-time buyer” Answer: a) Tax = £775 b) Tax = £5,775; Detailed Explanation: From the purchase price of £320,000, Miss Buchan can deduct the £4,500 for the cost of the fixtures and fittings. a) As a first-time buyer, Miss Buchan benefits from SDLT relief on the first £300,000 of the purchase price, providing the full purchase price is less than £500,000. The first £300,000 is therefore charged to SDLT at 0%, the remaining £15,500 at 5% (because it falls into the normal 5% band). £300,000 x 0% = Nil; £315,500 – £300,000 = £15,500 @ 5% = £775; b) If Miss Buchan is not a first time buyer, the usual rules apply. The remainder falls partially within the 0% band, partially in the 2% band and partially in the 5% band. She will therefore need to pay: £125,000 x 0% = Nil; £250,000 – £125,000 = £125,000 @ 2% = £2,500; 15,500 – £250,000 = £65,500 @ 5% = £3,275; Total £5,775; Ref: R03 Chapter 7, Section A

New version : AF1CalcWkbk010917v4

18 September 2017 Pages 14 and 60 – Question 7 amended to reflect the fact that the deceased husband’s nil rate band was fully used on his death. “She inherited all of her deceased husband’s estate” changed to “Her husband pre-deceased her, leaving the full value of his nil rate band to their son. The remainder of his estate went to Mrs Humphreys.”

New version : AF1CalcWkbk010917v3

5 September 2017 Page 51, Answer to Question 2 – Estate on death amount changed from £285,000 to £385,000. Sum total changed from £336,000 to £436,000.

New version : AF1CalcWkbk010917v2

AF1 Study Notes

14 December 2017 Due to a change in the CII Study Text, Section 7 – Stamp Duties, page 45, has been amended to add (after the Stamp Duty Land Tax table) “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.” Also as a next-level bullet to the last bullet point that begins with “1 April 2016 – 3% surcharge…” the following has been included “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.

New version : AF1StudyNotes010917v2

 

AF1 Audio Masterclass 5 – Residence, Stamp Duty, VAT and Corporation Tax

14 December 2017 Due to a change in the CII study text, this masterclass will be updated in due course to include: “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.” Regarding the 3% surcharge that applies to purchases of additional residential properties, such as second homes, buy-to-let properties and holiday cottages, worth in excess of £40,000, note the following: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.”

AF1 Audio Masterclass 6 – Taxation of Investments and Pensions

31 August 2017 The Money Purchase Annual Allowance being examined by the CII has been confirmed to be £4,000.  This class stated £10,000.  This has now been amended to £4,000.  The sentence was: “Those who have already accessed their benefits flexibly are also subject to a four-thousand-pound limit, known as the money purchase annual allowance.”

AF3 Mock Paper Set 1

10 October 2017 Due to a change in the CII Study Text, changed Case Study 3 question (c) Explain to Shelagh how a Career Average Scheme works and how it might affect her if the proposal goes ahead. Answer: Pension accrual is based on revalued earnings; For each year of pensionable service/each year is treated separately; Rather than total pension accrual being based on salary at retirement; Earnings may be revalued using CPI or earnings inflation; Accrual rate may be increased for future accrual eg 1/60th to 1/56th; Shelagh can be reassured that it only affects future accrual in the scheme; Any change cannot adversely affect her rights earned to the date of the change. Ref: R04 Chapter 4, Section A1C

New version : AF3Set1010917v2

AF3 Mock Paper Set 2

10 October 2017 Due to a change in the CII Study Text, changed Case study 1 – added (b) (iii) Describe in detail how a CETV would be calculated for James. And deleted (e) The following questions for this case study have been renumbered. If you wish to have an updated copy of this paper, please contacts us at enquiries@brandft.co.uk

New version : AF3Set2010917v2

AF3 Calculation Workbook

17 October 2017 Pages 19 and 78 – Section 6 – Defined Contribution Schemes, Question 6 – date changed from August 2014 to August 2015; also, document updated throughout to include references to the AF7 study text in addition to R04 study text references. Please contact us at enquiries@brandft.co.uk for an updated copy.

New version : AF3CalcWkbk010917v2

AF3 Calculation Workbook Taster

17 October 2017 Document updated throughout to include references to the AF7 study text in addition to R04 study text references.

New version : AF3CalcTaster

AF3 Study Notes

29 November 2017 Due to a change in the CII Study Text, Page 46, Workplace Pensions : employee postponement amended to 3 calendar months and 1 day

New version : AF3StudyNotes010917v2

AF3 Audio Masterclass 8 – State Pensions

28 September 2017 Due to a change in the CII study text, this masterclass has been updated to reflect confirmation of increase of SPA to 68 between 2037 and 2039.

AF3 Audio Masterclass 9 – Workplace Pensions

29 November 2017 Due to a change in the CII study text, this masterclass will be updated in due course to reflect employee postponement being amended to 3 calendar months and 1 day.

AF4 Study Notes

15 December 2017 Due to a change in the CII Study Text, Page 27 has been amended to add, in the list with the sub-heading Stamp Duty Land Tax, after the bullet point that begins with “There is a 3% surcharge “, as a next-level bullet: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.” Also after the table in that same sub-section “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.”

New version : AF4StudyNotes010917v2

AF4 Audio Masterclass 1 – Asset Classes

15 December 2017 Due to a change in the CII study text, this masterclass will be updated in due course to include: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.”

AF7 Mock Paper Set 1

6 October 2017 Amended the marks in second case study to total 66 in both case study 1 and 2.

New version : AF7Set1010917v3

An error was found in the CII AF7 study text Page 5/25 Section C3C.  The study text had incorrectly put the minimum age to take a PPF trivial commutation lump sum as 60, when it should have read 55.  The CII will be providing an update to the study text to reflect this.  We have now updated our mock papers to reflect the corrected age of 55.

In September 2017, the CII unexpectedly released an information sheet containing some pensions data that will be provided in the exam.  This data has not been provided for pensions exams until now.  We therefore updated our mock papers to reflect this.

21 September 2017 Deleted Question 8 and added new Question 12 to reflect statutory information now given out in exam so not likely to be tested.

New version : AF7Set1010917v2

AF7 Mock Paper Set 2

6 October 2017 Question 11: Changed the reference to ‘question 11’ to ‘question 10’.

New version : AF7Set2010917v3

An error was found in the CII AF7 study text Page 5/25 Section C3C.  The study text had incorrectly put the minimum age to take a PPF trivial commutation lump sum as 60, when it should have read 55.  The CII will be providing an update to the study text to reflect this.  We have now updated our mock papers to reflect the corrected age of 55.

In September 2017, the CII unexpectedly released an information sheet containing some pensions data that will be provided in the exam.  This data has not been provided for pensions exams until now.  We therefore updated our mock papers to reflect this.

21 September 2017 Deleted Question 8 and added new Question 12 to reflect statutory information now given out in exam so not likely to be tested.

New version : AF7Set2010917v2

AF7 Mock Paper Set 3

6 October 2017 Case Study 2 – amended critical yields in table to show Mansion House 8% and LGPS as 6%

New version : AF7Set3010917v3

An error was found in the CII AF7 study text Page 5/25 Section C3C.  The study text had incorrectly put the minimum age to take a PPF trivial commutation lump sum as 60, when it should have read 55.  The CII will be providing an update to the study text to reflect this.  We have now updated our mock papers to reflect the corrected age of 55.

In September 2017, the CII unexpectedly released an information sheet containing some pensions data that will be provided in the exam.  This data has not been provided for pensions exams until now.  We therefore updated our mock papers to reflect this.

21 September 2017 New Question 9 to reflect statutory information now given out in exam so not likely to be tested.

New version : AF7Set3010917v2

AF7 Mock Paper Taster

An error was found in the CII AF7 study text Page 5/25 Section C3C.  The study text had incorrectly put the minimum age to take a PPF trivial commutation lump sum as 60, when it should have read 55.  The CII will be providing an update to the study text to reflect this.  We have now updated our mock papers to reflect the corrected age of 55.

In September 2017, the CII unexpectedly released an information sheet containing some pensions data that will be provided in the exam.  This data has not been provided for pensions exams until now.  We therefore updated our mock papers to reflect this.

21 September 2017 Question 6 changed to reflect statutory information now given out in exam so not likely to be tested

New version : AF7MockTaster

CF1 Mock Paper Set 1

15 December 2017 Answer to Question 56 amended on answer grid to C.

New version : CF1Set1010917v2

 

CF1 Calculation Workbook

13 December 2017 Pages 14 and 39 – Q1 amended: answer is now A Nil; Detailed explanation changed to: “As first-time buyers, Graham and Audrey are entitled to SDLT relief, meaning they pay SDLT at 0% on the first £300,000 of the purchase price on a property up to the value of £500,000.As the property price is well under this limit, they have no SDLT to pay. ” New Q2 added to reflect new SDLT rules for first-time buyers: “Jo and Alex are purchasing their first home for £376,950. Calculate how much stamp duty land tax they will need to pay. Answer: B £3,847.50 Detailed explanation: As first-time buyers, the first £300,000 is chargeable at 0%. The remainder falls in the 5% band. They will therefore need to pay: £76,950 x 5% = £3,847.50 Ref: CF1 Chapter 7, Section E1. Existing Question 2 for this section has shifted to become Question 3 and so on.

New version : CF1CalcWkbk010917v3

6 October 2017 Page 20, in the detailed explanation for Section 2, Question 1, reference to OEIC has been removed. “Interest on an interest distributing OEIC is taxed at 20%. This is deducted at source” has been changed to “Where an interest payment is received net, the interest has already been taxed at 20% at source”.

New version : CF1CalcWkbk010917v2

CF1 Calculation Workbook Taster

14 December 2017 Due to a change in the CII Study Text, Section 9 – Stamp Duty Land Tax – Q1 amended: answer is now A Nil; Detailed explanation changed to: “As first-time buyers, Graham and Audrey are entitled to SDLT relief, meaning they pay SDLT at 0% on the first £300,000 of the purchase price on a property up to the value of £500,000. As the property price is well under this limit, they have no SDLT to pay. ”

New version : CF1CalcTaster

6 October 2017 In the detailed explanation for Section 2, Question 1, reference to OEIC has been removed. “Interest on an interest distributing OEIC is taxed at 20%. This is deducted at source” has been changed to “Where an interest payment is received net, the interest has already been taxed at 20% at source”.

New version : CF1CalcTaster

CF1 Study Notes

13 December 2017 Page 73 – added in new SDLT relief for first-time buyers “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.” and new exemptions from 3% surcharge “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.”

New version : CF1StudyNotes010917v2

CF6 Mock Paper Set 1

14 December 2017 Due to a change in the CII Study Text, Questions 22 and 47 amended to reflect new SDLT rules for first-time buyers “22. Mr Long sells his flat and purchases a two bedroom semi-detached property for £203,000. What rate(s) of Stamp Duty Land Tax is (are) payable?” and “47. Eleanor is buying a property on her own and a buy-to-let property. The flat she is buying as her main residence costs £250,000. The buy-to-let costs £100,000. Eleanor is not a first-time buyer. How much Stamp Duty Land Tax will Eleanor owe in total?”

New version : CF6Set1010917v2

 

CF6 Mock Paper Set 2

14 December 2017 Due to a change to the CII Study Text, Question 23 amended to reflect new SDLT rules for first-time buyers. Options are now: “A. 0% B. 1% on the full purchase price C. Nil on the amount up to £125,000 and 1% on the amount over £125,000 D. Nil on the amount up to £125,000 and 2% on the amount over £125,000” Answer is now A.

New version : CF6Set2010917v2

 

CF6 Mock Paper Set 3

14 December 2017 Due to a change in the CII Study Text, Question 23 amended to reflect new SDLT rules for first-time buyers. Answer is now A.

New version : CF6Set3010917v2

 

CF6 Mock Paper Taster

14 December 2017 Due to a change in the CII Study Text, Question 10 amended to reflect new SDLT rules for first-time buyers. Options changed to: A. 0% of the amount up to £300,000 and 5% on the amount over £300,000 B. 2% on the amount between £125,001 and £250,000 and 5% on the amount over £250,000 C. 2% on the amount up to £250,000 and 5% on the amount over £250,000 D. 5% on the full amount

New version : CF6MockTaster

 

CF6 Calculation Workbook

14 December 2017 Pages 14 and 42 – Q1 amended: answer is now A Nil; Detailed explanation changed to: “As first-time buyers, Graham and Audrey are entitled to SDLT relief, meaning they pay SDLT at 0% on the first £300,000 of the purchase price on a property up to the value of £500,000.As the property price is well under this limit, they have no SDLT to pay. ” New Q2 added to reflect new SDLT rules for first-time buyers: “Jo and Alex are purchasing their first home for £376,950. Calculate how much stamp duty land tax they will need to pay. Answer: B £3,847.50 Detailed explanation: As first-time buyers, the first £300,000 is chargeable at 0%. The remainder falls in the 5% band. They will therefore need to pay: £76,950 x 5% = £3,847.50 Ref: CF1 Chapter 7, Section E1. Existing Question 2 for this section has shifted to become Question 3 and so on.

New version : CF6CalcWkbk010917v2

 

CF6 Calculation Workbook Taster

14 December 2017 Due to a change in the CII Study Text, Section 6 – Stamp Duty Land Tax – Q1 amended: answer is now A Nil; Detailed explanation changed to: “As first-time buyers, Graham and Audrey are entitled to SDLT relief, meaning they pay SDLT at 0% on the first £300,000 of the purchase price on a property up to the value of £500,000. As the property price is well under this limit, they have no SDLT to pay. ”

New version : CF6CalcTaster

 

ER1 Mock Paper Set 2

11 January 2018 Section B first case study amended to change Claire from daughter to niece.

New version : ER1Set2010917v3

27 October 2017 Q26 replaced with “Each of the following statements regarding a hybrid lifetime mortgage is true with the exception of which one? A. The borrower must ensure that the new arrangement is suitable for their needs B. There is no need to check affordability, as repayments will no longer be made C. There must be sufficient equity remaining in the property D. Roll up will start from the date the mortgage is converted” Answer is A, Ref: Chapter 5, Section D1.

New version : ER1Set2010917v2

ER1 Mock Paper Set 3

27 October 2017 Page 14 – interest rate amended from 8% to 5%. Question 63 – interest rate amended to 7% over 10 years (from 8% over 15 years)

New version : ER1Set3010917v2

IF1, IF2, IF3, IF4 and IF5 Exam Resources

Mock papers for IF1, IF2, IF3, IF4 and IF5 have been updated in accordance with the new syllabus examinable from 1 January 2018.  If you purchased the 2016/17 versions, contact us to receive the updated versions free of charge.

J05 Mock Paper Set 1

5 October 2017 Question 10 (b) Amended Question to read: State how income tax will be applied if she uses this method – and amended the answer to include: 1/12 of the personal allowance will be applied; Then 1/12 of the tax thresholds

New version : J05Set1010917v2

J05 Mock Paper Taster

5 October 2017 Model answer to Question 4 updated to reflect rounding down rather than rounding up of Lifetime Allowance factors. In the table, rows 3, 5 and 7 have been amended to: Row 3: The % of Lifetime Allowance used = £56.66; Row 5: 43.34% of this remains. This is: £433,400; Row 7: The maximum PCLS is 25% x £433,400 = £108,350

New version : J05MockTaster

J05 Study Notes

29 November 2017 Due to a change in the CII Study Text, Page 63, Workplace Pensions : employee postponement amended to 3 calendar months and 1 day

New version : J05StudyNotes010917v2

J10 Study Notes

15 December 2017 Due to a change in the CII Study Text, Page 26 has been amended to add, in the list with the sub-heading Stamp Duty Land Tax, after the bullet point that begins with “There is a 3% surcharge “, as a next-level bullet: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.” Also after the table in that same sub-section “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.”

New version : J10StudyNotes010917v2

LP2 Mock Paper Set 3

14 December 2017 Due to a change in the CII Study Text, Question 47 stem amended to add the word “usually” to reflect new exemptions from 3% surcharge “What rate of stamp duty land tax would an individual usually pay if they were purchasing a second property for £100,000?”

New version : LP2Set3010917v3

6 November 2017 Question 28 – distractor C amended to ‘Personal accident insurance’.

New version : LP2Set3010917v2

R02 Mock Paper Set 1

15 December 2017 Due to a change in the CII Study Text, Question 16 amended to reflect new SDLT rules for first-time buyers: “First-time buyers Sarah and Ian are purchasing their new home at £240,000, what rate of stamp duty land tax is payable?” Answer is now A.

New version : R02Set1010917v2

R02 Mock Paper Set 3

15 December 2017 Due to a change in the CII Study Text, Question 17 has been amended to reflect new SDLT rules for first-time buyers. In the table, the purchase price for Yvonne, first-time buyer, has been amended from £275,000 to £375,000.

New version : R02Set3010917v2

R02 Study Notes

15 December 2017 Due to a change in the CII Study Text, Page 18, has been amended to add, in the list with the sub-heading Stamp Duty Land Tax, after the bullet point that begins with “There is a 3% surcharge “, as a next-level bullet: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.” Also after the table in that same sub-section “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.”

New version : R02StudyNotes010917v2

 

R02 E-Learning Module 2

15 December 2017 Due to a change in the CII study text, this e-learning module will be updated in due course to include: “You should note that with effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.”

R02 E-Learning Workbook

15 December 2017 Due to a change in the CII Study Text, Page 15 has been amended to reflect new SDLT rules for first-time buyers. “Note that with effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.” has been added after the Stamp Duty Land Tax table.

New version : R02E-LearningWorkbook

 

R02 Audio Masterclass 1 – Asset Classes

15 December 2017 Due to a change in the CII study text, this masterclass will be updated in due course to include: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.”

R03 Mock Paper Set 1

14 December 2017 Due to a change in the CII Study Text, Question 20 stem amended to reflect new SDLT rules for first-time buyers “Amanda is selling her flat and buying a larger residential property for £255,000. She has agreed with the vendor that this includes £5,500 for all of the white goods, carpets and curtains. How much Stamp Duty Land Tax is payable?”

New version : R03Set1010917v2

R03 Mock Paper Set 2

14 December 2017 Due to a change in the CII Study Text, Question 22 amended to reflect new SDLT rules for first-time buyers “Phil is buying a residential property for £275,000 and has agreed with the seller that this includes £5,000 for carpets and curtains. How much Stamp Duty Land Tax is payable by Phil, who is a first-time buyer? A. £0; B. £3,500; C. £3,750; D. £8,100”

New version : R03Set2010917v2

R03 Mock Paper Taster

14 December 2017 Due to a change in the CII Study Text, Question 8 amended to reflect new SDLT rules for first-time buyers “A first-time buyer buys a flat for £127,950 on 12 December 2017. What Stamp Duty Land Tax (SDLT) will be payable?” Answer is now A.

New version : R03MockTaster

R03 Calculation Workbook

14 December 2017 Due to a change in the CII Study Text, Pages 18 and 77, Question 11 amended to reflect new SDLT rules for first-time buyers: “Calculate, showing all your workings, the Stamp Duty Land Tax that Miss Buchan would pay assuming she is: a) A first-time buyer; b) Not a first-time buyer” Answer: a) Tax = £775 b) Tax = £5,775; Detailed Explanation: From the purchase price of £320,000, Miss Buchan can deduct the £4,500 for the cost of the fixtures and fittings. a) As a first-time buyer, Miss Buchan benefits from SDLT relief on the first £300,000 of the purchase price, providing the full purchase price is less than £500,000. The first £300,000 is therefore charged to SDLT at 0%, the remaining £15,500 at 5% (because it falls into the normal 5% band). £300,000 x 0% = Nil; £315,500 – £300,000 = £15,500 @ 5% = £775; b) If Miss Buchan is not a first time buyer, the usual rules apply. The remainder falls partially within the 0% band, partially in the 2% band and partially in the 5% band. She will therefore need to pay: £125,000 x 0% = Nil; £250,000 – £125,000 = £125,000 @ 2% = £2,500; 15,500 – £250,000 = £65,500 @ 5% = £3,275; Total £5,775; Ref: R03 Chapter 7, Section A

New version : R03CalcWkbk010917v4

18 September 2017 Pages 14 and 60 – Question 7 amended to reflect the fact that the deceased husband’s nil rate band was fully used on his death. “She inherited all of her deceased husband’s estate” changed to “Her husband pre-deceased her, leaving the full value of his nil rate band to their son. The remainder of his estate went to Mrs Humphreys.”

New version : R03CalcWkbk010917v3

5 September 2017 Page 51, Answer to Question 2 – Estate on death amount changed from £285,000 to £385,000. Sum total changed from £336,000 to £436,000.

New version : R03CalcWkbk010917v2

R03 Study Notes

14 December 2017 Due to a change in the CII Study Text, Section 7 – Stamp Duties, page 47, has been amended to add (after the Stamp Duty Land Tax table) “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.” Also as a next-level bullet to the last bullet point that begins with “1 April 2016 – 3% surcharge…” the following has been included “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.

New version : R03StudyNotes010917v2

 

R03 Audio Masterclass 5 – Residence, Stamp Duty, VAT and Corporation Tax

14 December 2017 Due to a change in the CII study text, this masterclass will be updated in due course to include: “With effect from 22 November 2017, a new relief from SDLT is available for first-time buyers. No SDLT is payable on the first £300,000 of the property’s purchase price, providing the total purchase price is less than £500,000. No relief is available where the property’s purchase price exceeds £500,000.” Regarding the 3% surcharge that applies to purchases of additional residential properties, such as second homes, buy-to-let properties and holiday cottages, worth in excess of £40,000, note the following: “With effect from 22 November 2017, exemptions to this surcharge are available to those increasing their share in their own home, families affected by a court order for divorce, a spouse buying a property from their spouse and cases where a property is held in trust for children who are subject to a Court of Protection order.”

R03 Audio Masterclass 6 – Taxation of Investments and Pensions

31 August 2017 The Money Purchase Annual Allowance being examined by the CII has been confirmed to be £4,000.  This class stated £10,000.  This has now been amended to £4,000.  The sentence was: “Those who have already accessed their benefits flexibly are also subject to a four-thousand-pound limit, known as the money purchase annual allowance.”

R04 Mock Paper Set 2

18 September 2017 Q17 answer now B, reference 3A1. Q18 answer now D, reference 3C4A.

New version : R04Set2010917v2

R04 Calculation Workbook

17 October 2017 Pages 19 and 74 – Section 6 – Defined Contribution Schemes, Question 6 – date changed from August 2014 to August 2015

New version : R04CalcWkbk010917v2

R04 Study Notes

29 November 2017 Due to a change in the CII Study Text, Page 46, Workplace Pensions : employee postponement amended to 3 calendar months and 1 day

New version : R04StudyNotes010917v2

R04 Audio Masterclass 8 – State Pensions

28 September 2017 Due to a change in the CII study text, this masterclass has been updated to reflect confirmation of increase of SPA to 68 between 2037 and 2039.

R04 Audio Masterclass 9 – Workplace Pensions

29 November 2017 Due to a change in the CII study text, this masterclass will be updated in due course to reflect employee postponement being amended to 3 calendar months and 1 day.

R05 Mock Paper Set 2

5 October 2017 Question 17 answer amended to B.

New version : R05Set2010917v3

18 September 2017 Due to a change in the CII Study Text, the answer to Question 22 has been amended to D.

New version : R05Set2010917v2

R05 Study Notes

18 September 2017 Due to a change in the CII Study Text, Page 15, State Pensions Section has been amended to include two additional bullet points: “Increase from 67 to 68 will take place between 2037 and 2039” and “Next review 2023”

New version : R05StudyNotes010917v2

R06 Calculation Workbook

14 December 2017 Due to a change in the CII Study Text, Pages 17 and 88, Question 11 amended to reflect new SDLT rules for first-time buyers: “Calculate, showing all your workings, the Stamp Duty Land Tax that Miss Buchan would pay assuming she is: a) A first-time buyer; b) Not a first-time buyer” Answer: a) Tax = £775 b) Tax = £5,775; Detailed Explanation: From the purchase price of £320,000, Miss Buchan can deduct the £4,500 for the cost of the fixtures and fittings. a) As a first-time buyer, Miss Buchan benefits from SDLT relief on the first £300,000 of the purchase price, providing the full purchase price is less than £500,000. The first £300,000 is therefore charged to SDLT at 0%, the remaining £15,500 at 5% (because it falls into the normal 5% band). £300,000 x 0% = Nil; £315,500 – £300,000 = £15,500 @ 5% = £775; b) If Miss Buchan is not a first time buyer, the usual rules apply. The remainder falls partially within the 0% band, partially in the 2% band and partially in the 5% band. She will therefore need to pay: £125,000 x 0% = Nil; £250,000 – £125,000 = £125,000 @ 2% = £2,500; 15,500 – £250,000 = £65,500 @ 5% = £3,275; Total £5,775; Ref: R03 Chapter 7, Section A

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19 October 2017 Pages 30 and 130 – Section 10 – Defined Contribution Schemes, Question 6 – date changed from August 2014 to August 2015

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18 September 2017 Pages 14 and 74 – Question 7 amended to reflect the fact that the deceased husband’s nil rate band was fully used on his death. “She inherited all of her deceased husband’s estate” changed to “Her husband pre-deceased her, leaving the full value of his nil rate band to their son. The remainder of his estate went to Mrs Humphreys.”

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5 September 2017 Page 65, Answer to Question 2 – Estate on death amount changed from £285,000 to £385,000. Sum total changed from £336,000 to £436,000.

New version : R06CalcWkbk010917v2

R06 Study Notes

18 September 2017 Due to a change in the CII Study Text, Pages 18 and 46 – MPAA changed from £10,000 to £4,000.

New version : R06StudyNotes010917v2

R07 Mock Paper Set 2

14 December 2017 Due to a change in the CII Study Text, Question 19 amended to reflect new SDLT rules for first-time buyers “Sandy is buying a property for £120,000 and Barney is buying a house for £150,000. What rates of stamp duty land tax will both pay assuming these are the only properties the two of them will own and neither of them is a first-time buyer?”

New version : R07Set2010917v2