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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 1

22 March 2018 Due to a change in the CII Study Text, the last paragraph of answer to Q1j has been amended to ‘Gabriella was born with an Italian domicile, as she has been resident in the UK for at least 15 of the last 20 tax years she will be deemed as UK domiciled for all tax purposes.’

New version : AF1Set1010917v2

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

8 March 2018 Pages 7 and 31, Question 9 has been amended to read “He also has a petrol company car with a list price of £20,000 and CO2 emissions of 150g/km, and fuel for private use paid for by his company. ” Page 48, Question 8, answer amended to £21,650.37

New version : AF1CalcWkbk010917v5

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

27 March 2018 Due to a change in the CII Study Text, Page 6 – Tax Mitigation/Tax Evasion – Anti-Avoidance Legislation – additional bullet point added that reads “Penalty for enablers (those who design, manage, market or facilitate) defeated tax avoidance arrangements – penalty is equal to fee paid to enabler for enabling, applies on or after 16 November 2017”; Page 9 – Trading Income – Basis of Assessment – additional bullet added that reads “Trading allowance – if trading income less than £1,000 (before expenses) then it is exempt from tax and does not need to be declared. If greater than £1,000, then can claim the allowance against the income in lieu of deducting actual expenses.” Employment Income – additional bullet added that reads “A new income tax exemption covers the first £500 of pensions’ advice provided by an employer to an employee” Property Income – additional bullet added before “Improvements expenditure not allowed” that reads “Property allowance – if property income less than £1,000 (before expenses) then it is exempt from tax and does not need to be declared. If greater than £1,000, then can claim the allowance against the income in lieu of deducting actual expenses.”

New version : AF1StudyNotes010917v5

23 February 2018 Due to a change in the CII Study Text, Page 56, Domicile – Deemed Domicile, the definition to deemed domicile has been updated to reflect the enactment of the Summer Finance Act: first bullet point amended to “If resident in UK for 15 (formerly 17) out of last 20 tax years”

Two sub-points added after amended bullet point: “If born in UK, with UK domicile of origin, and return to UK and become UK resident having previously become domiciled in another country and been resident in UK at least 1 out of previous 2 tax years then also deemed domicile in UK”; “If deemed domicile, liable to UK tax on all taxes (not just IHT as was the case prior to 2017/18)”

Added before 5th bullet point “UK deemed domicile under 15 / 20 tax year rule kept for 6 tax years after leave UK for both income tax and CGT, 4 tax years for IHT”

Page 57, Liability to Tax of Non-UK Domiciles – Annual Tax Charge, The remittance basis charge pf £90,000 has been removed to reflect the enactment of the Summer Finance Act, so third bullet point has been deleted.

New version : AF1StudyNotes010917v4

30 January 2018 Section 20 – Wills and Intestacy: Page 127, sub-heading “Law of Intestacy in England and Wales” now reads “Law of Intestacy in England and Wales (Inheritance and Trustees’ Powers Act 2014)”. First bullet point amended to “Spouse or civil partner but no issue (e.g. children, grandchildren)”. Bullet point “Spouse or civil partner, no children but parents, or brothers or sisters, or issue thereof” and the following 4 second-level bullet points have been removed. Page 128, sub-heading “Inheritance and Trustees’ Powers Act 2014” and its following 3 bullet points have been removed. Under “Transferring Unused NRB”, 4th bullet point that reads “Currently £325,000, regardless of when first death occurred”, has been removed.

New version : AF1StudyNotes010917v3

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 Study Notes Taster

27 March 2018 Due to a change in the CII Study Text, Page 6 – Tax Mitigation/Tax Evasion – Anti-Avoidance Legislation – additional bullet point added that reads “Penalty for enablers (those who design, manage, market or facilitate) defeated tax avoidance arrangements – penalty is equal to fee paid to enabler for enabling, applies on or after 16 November 2017”

New version : AF1StudyNotesTaster

AF1 Audio Masterclass 1 – Income Tax

27 March 2018 Due to a change in the CII study text, this masterclass will be updated in due course to include details on trading and property allowances as follows: “A trading allowance is now available. Where trading income is less than £1,000 before expenses, it is exempt from tax and does not need to be declared. If it is greater than £1,000, then the allowance can be claimed against the trading income instead of deducting actual expenses.” and “A property allowance is also now available and operates in a similar way to the trading allowance. If property income is less than £1,000 before expenses then it is exempt from tax and does not need to be declared. If it is greater than £1,000, then the allowance can be claimed against the property income instead of deducting actual expenses.” Also included are details regarding pension advice income tax exemption as follows: “A new income tax exemption covers the first £500 of pensions’ advice provided by an employer to an employee.”

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

27 March 2018 Due to a change in the CII study text, this masterclass will be updated in due course to include changes to deemed domicile as follows “A person will also currently be deemed to be UK domiciled where they have spent fifteen of the last twenty tax years in the UK.; On top of any tax due, long term UK residents will also be subject to an annual charge of either thirty thousand or sixty thousand pounds; The charge is sixty thousand pounds where they have been UK resident for at least twelve of the last fourteen tax years; Use of the remittance basis for income tax is only likely to be worthwhile financially if the individual has foreign income in excess of eighty thousand pounds. For those subject to the higher charge of sixty thousand pounds, the amount of overseas income required to make it cost effective is much higher.” Also included are details of the penalty for enablers as follows “In November 2017, a new penalty for enablers was introduced. An enabler can be defined as an individual or firm who designs, manages, markets or facilitates a tax avoidance arrangement. Where such an arrangement is defeated in a court or tribunal, the enabler can now be subject to a penalty equal to the fee that they have been paid to enable the arrangement.”

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

27 April 2018 Page 48, Answer to Question 6 – Formula amended to replicate CII manual
Answer: Lifetime allowance charge will be on the excess figure of £79,940
Formula in detailed explanation amended to:
(£1,600,000 – £1,500,000) ÷ £1,500,000 = £100,000 ÷ £1,500,000 = 0.0666 or 6.67%
This primary protection factor is then applied to his underpinned lifetime allowance of £1.8m x 6.67% = £120,060
Next, increase the underpinned lifetime allowance by Jason’s permitted increase: £1,800,000 + £120,060 = £1,920,060
Deduct Jason’s personal lifetime allowance from his fund value to determine any excess: £2,000,000 – £1,920,060 = £79,940;
Page 94, Question 11 Answer figure amended to match detailed explanation of £36,300

New version : AF3CalcWkbk010917v4

13 April 2018 Page 95, Question 12 Figures amended to amount of tax = £8,510.41 and net amount to Julie – £21,489.59

New version : AF3CalcWkbk010917v3

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

23 March 2018 Due to a change in the CII Study Text, Page 5 – Incentives/Disincentives table, second to last bullet point in ‘Incentives’ amended to read “An income tax exemption, to cover the first £500 of pensions advice provided by an employer to an employee, takes retrospective effect from 6 April 2017. ” Page 8 – Answer to Question 2, last bullet point amended to “Income tax exemption covers first £500 of pensions advice provided by an employer to an employee” Page 99 – Class 2 and 4: added additional bullet point “Note that the planned abolition of Class 2 NICs has been delayed a year from 6 April 2018 to 6 April 2019”

New version : AF3StudyNotes010917v4

29 January 2018 Due to a change in the CII Study Text, Section 7 – Pensions Regulation: The answer to Question 5 has been amended to:

  • Creditors can petition for bankruptcy if debtor owes at least £5,000 (or part of a debt totalling £5,000);
  • And it appears that they are unable to pay the debt

Section 9 – Defined Benefit Scheme, Page 60, the following has been added after the sub-section on Valuations:

Employer’s covenant

  • This covers the legal obligation and financial capacity of the scheme sponsoring employer to support the scheme
  • Trustees must understand the covenant from a legal perspective
  • Assessed against scheme’s funding requirements”

New version : AF3StudyNotes010917v3

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 Study Notes Taster

23 March 2018 Due to a change in the CII Study Text, Page 5 – Incentives/Disincentives table, second to last bullet point in ‘Incentives’ amended to read “An income tax exemption, to cover the first £500 of pensions advice provided by an employer to an employee, takes retrospective effect from 6 April 2017. ” Page 8 – Answer to Question 2, last bullet point amended to “Income tax exemption covers first £500 of pensions advice provided by an employer to an employee”

New version : AF3StudyNotesTaster

 

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

AF7 Calculation Workbook

27 April 2018 Page 49, Answer to Question 6 – Formula amended to replicate CII manual
Answer: Lifetime allowance charge will be on the excess figure of £79,940
Formula in detailed explanation amended to:
(£1,600,000 – £1,500,000) ÷ £1,500,000 = £100,000 ÷ £1,500,000 = 0.0666 or 6.67%
This primary protection factor is then applied to his underpinned lifetime allowance of £1.8m x 6.67% = £120,060
Next, increase the underpinned lifetime allowance by Jason’s permitted increase: £1,800,000 + £120,060 = £1,920,060
Deduct Jason’s personal lifetime allowance from his fund value to determine any excess: £2,000,000 – £1,920,060 = £79,940;
Page 42, Question 11 Answer figure amended to match detailed explanation of £36,300

New version : AF7CalcWkbk010917v3

13 April 2018 Page 43, Question 12 Figures amended to amount of tax = £8,510.41 and net amount to Julie – £21,489.59

New version : AF7CalcWkbk010917v2

AF7 Study Notes

23 March 2018 Due to a change in the CII Study Text, Page 96 – Class 2 and 4: added additional bullet point “Note that the planned abolition of Class 2 NICs has been delayed a year from 6 April 2018 to 6 April 2019”

New version : AF7StudyNotes010917v2

CF1 Mock Paper Set 1

24 May 2018 Due to a change in the CII Study Text, Question 94 has been replaced. It now reads “In relation to the General Data Protection Regulation (GDPR), whose role is it to say how and why personal data is processed? A. The data processor; B. The data subject; C. The data controller; D. The Information Commissioner.” The Answer is C. Question 95 has been replaced. It now reads “The General Data Protection Regulation (GDPR) states that personal data must be processed in a way that is: A. lawful; B. efficient; C. expedient; D. vital.” Question 96 has been replaced. It now reads “The General Data Protection Regulation and the Data Protection Act 2018 are concerned with the processing of information about: A. private individuals; B. government bodies; C. public bodies; D. corporations.” Question 97 has been replaced. It now reads “Under the General Data Protection Regulation ‘sensitive personal data’ is now referred to as? A. protected personal data; B. special categories of personal data; C. restricted categories of personal data; D. ring-fenced personal data.”

New version : CF1Set1010917v4

26 March 2018 Due to a change in the CII Study Text, Question 46 has been rewritten in line with revised deemed domicile rules. It now reads: “46. For what tax(es) can a person be ‘deemed domicile’ in the UK? A. Inheritance Tax only; B. Income Tax, Capital Gains Tax and Inheritance Tax; C. Income Tax and Capital Gains Tax only; D. Capital Gains Tax only”

New version : CF1Set1010917v3

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

New version : CF1Set1010917v2

 

CF1 Mock Paper Set 2

24 May 2018 Due to a change in the CII Study Text, Question 94 has been amended. Option A now reads “A. Data Protection Act 2018” Question 95 has been amended. Option D now reads “D. To oversee regulation of the Data Protection Act and enforce compliance.” Question 96 has been replaced. It now reads “The General Data Protection Regulation introduces a duty of breach notification on? A. All organisations; B. Organisations with more than 20 employees; C. Organisations with a turnover in excess of £500,000; D. Organisations with more than 100 data subjects.” The answer is A.

New version : CF1Set2010917v2

CF1 Mock Paper Set 3

24 May 2018 Due to a change in the CII Study Text, Question 96 has been replaced. It now reads “Under the Data Protection Act 2018, the age from which parental consent is not needed to process data online is? A. 11; B. 13; C. 16; D. 18.” The answer is B. Question 97 has been replaced. It now reads “Under the Data Protection Act 2018, the maximum fine on data controllers and processors for the most serious breaches is £17m or: A. 1% of global turnover; B. 2% of global turnover; C. 3% of global turnover; D. 4% of global turnover.”

New version : CF1Set3010917v2

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

24 May 2018 Due to a change in the CII Study Text, Page 116 the sub-sections entitled Data Protection Act 1988; Data Protection Principles and Personal Data and Individual Rights have been amended to now read:

General Data Protection Regulation (GDPR)

  • GDPR applies to the use of personal data by data controllers and data processors
  • Sensitive data is referred to as ‘special categories of personal data’
  • Includes an accountability principle (firm must demonstrate compliance with data protection principles)
  • There must be a lawful basis for processing personal data
  • Consent to processing must be given freely using a form of positive opt-in
  • Data subjects have the rights to be informed, of access, to rectification, to erasure, to restrict processing, to data portability, to object and in relation to automated decision making and profiling
  • Firms must be accountable and transparent in their dealings with personal data
  • All organisations are obliged to notify the Information Commissioner of serious personal data breaches
  • There are restrictions on the transfer of personal data outside the EU

Data Protection Act 2018

  • Implements GDPR in UK
  • 13 is the age at which parental consent not required for processing data online
  • Gives powers to Information Commissioner to regulate and enforce data protection law
    • Serious data breach fine £17m / 4% global turnover, whichever is the largest
    • Can bring criminal proceedings if data controller / processor alter records following subject access request”

Question 4 in the self-test questions has been changed to “Who is responsible for the regulation and enforcement of data protection law in the UK?” The answer is “The Information Commissioner”

New version : CF1StudyNotes010917v5

13 April 2018 Due to a change in the CII Study Text, Page 86 – last bullet point in the sub-section headed ‘Markets in Financial Instruments Directive (MiFID)’ has been amended to “Revised MiFID II implemented on 3 January 2018” with secondary-level bullet point beneath that reads “Main changes for retail investment firms relate to costs and charges disclosure, governance of products, describing advice services, structured deposits, suitability and ongoing suitability, taping conversations and inducements.”

New version : CF1StudyNotes010917v4

22 March 2018 Due to a change in the CII Study Text, Page 65 – Determining Liability – Domicile: last bullet point amended to “Deemed domicile applies to anyone who has currently been resident in UK for 15 out of last 20 tax years (even if domicile is not UK) – it applies to income tax, capital gains tax and inheritance tax. Additional bullet point added “If born in UK, with UK domicile of origin, and return to UK and become UK resident having previously become domiciled in another country and been resident in UK at least 1 out of previous 2 tax years then also deemed domicile in UK for income tax and capital gains tax”; Taxation of UK Residents – Unearned Income: last bullet point amended to “Remittance charge currently either £30,000 or £60,000”

New version : CF1StudyNotes010917v3

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: CF6 Chapter 7, Section H6. Existing Question 2 for this section has shifted to become Question 3 and so on.

New version : CF6CalcWkbk010917v2

 

CF6 Calculation Workbook Taster

13 April 2018 Due to a change in the CII Study Text, Section 8 – Question 1, the answer has been changed to “As first-time buyers, Rachel and Austin benefit from a SDLT relief. They are charged SDLT at 0% on the first £300,000 of any property purchased with a value of less than £500,000. There is therefore no SDLT to pay in this instance as the purchase price is £280,000.”

New version : CF6CalcTaster

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

 

CF8 Mock Paper Set 2

23 May 2018 Due to a change in the CII Study Text, Question 24 has been replaced. It now reads “In relation to the General Data Protection Regulation (GDPR), whose role is it to say how and why personal data is processed? A. The data processor; B. The data subject; C. The data controller; D. The Information Commissioner.”

New version : CF8Set2010917v2

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.

IF1 Mock Paper Set 1

29 May 2018 Due to a change in the CII Study Text, the stem of Question 94 has been amended. It now reads “The General Data Protection Regulation and the Data Protection Act 2018 are concerned with the processing of information about:” Question 95 has been replaced. It now reads “In relation to the General Data Protection Regulation (GDPR), whose role is it to say how and why personal data is processed? A. The data processor; B. The data subject; C. The data controller; D. The Information Commissioner.” The answer is C, with a reference of Chapter 10, Section A. Question 96 has been replaced. It now reads “The General Data Protection Regulation (GDPR) states that personal data must be processed in a way that is: A. lawful; B. efficient; C. expedient; D. vital.” The answer is A, with a reference of Chapter 10, Section A. Question 97 has been replaced. It now reads “Under the Data Protection Act 2018, the maximum fine on data controllers and processors for the most serious breaches is £17m or: A. 1% of global turnover; B. 2% of global turnover; C. 3% of global turnover; D. 4% of global turnover.” The answer is D with a reference of Chapter 10, Section A.

New version : IF1Set1010118v2

IF1 Mock Paper Set 2

29 May 2018 Due to a change in the CII Study Text, Question 92 has been replaced. It now reads “Under the General Data Protection Regulation ‘sensitive personal data’ is now referred to as? A. protected personal data; B. special categories of personal data; C. restricted categories of personal data; D. ring-fenced personal data.” The answer is B, with a reference of Chapter 10, Section A. Question 93 has been replaced. It now reads “Under the General Data Protection Regulation, which of the following is an acceptable means of a data subject’s consent to the processing of personal data? A. A positive opt-in; B. A pre-ticked box; C. Silence; D. Inactivity.” The answer is A, with a reference of Chapter 10, Section A. The stem of Question 94 has been amended to: “94. To whom can an individual apply if they believe their details have been used in contravention of the Data Protection Act 2018?” The answer is C, with a reference of Chapter 10, Section A.

New version : IF1Set2010118v2

IF1 Mock Paper Set 3

29 May 2018 Due to a change in the CII Study Text, Question 88 has been amended. It now reads “The General Data Protection Regulation primarily concerns: A. Computer data only that relates to private individuals; B. Paper records only that relate to private individuals and firms; C. Automated and manual systems where personal data is accessible according to specific criteria; D. The regulation of data transfer in the UK alone.” The answer is C, with a reference of Chapter 10, Section A. Question 89 has been replaced. It now reads “The General Data Protection Regulation applies to? A. Communicators and controllers; B. Analysts and processors; C. Analysts and controllers; D. Controllers and processors.” The answer is D, with a reference of Chapter 10, Section A.
Question 90 has been replaced. It now reads “The General Data Protection Regulation introduces a duty of breach notification on? A. All organisations B. Organisations with more than 20 employees; C. Organisations with a turnover in excess of £500,000; D. Organisations with more than 100 data subjects.” The answer is A, with a reference of Chapter 10, Section A. The reference on the answer table for Question 91 is now Chapter 10, Section A.

New version : IF1Set3010118v4

2 May 2018 Question 47 has been replaced. It now reads “Johan came home from work early due to a Tube strike. While making his tea, his chip pan catches fire. The fire brigade are called and put out the fire. Once the fire is out, Johan’s flatmate complains that there is both smoke and water damage to his bedroom. What is the proximate cause of the damage to Johan’s flatmate’s bedroom? A. The Tube strike; B. The chip pan fire; C. The smoke from the fire; D. The water from the fire brigade

New version : IF1Set3010118v3

6 April 2018 The correct answer to Question 47 is B.

New version : IF1Set3010118v2

IF1 Mock Paper Taster

29 May 2018 Due to a change in the CII Study Text, Question 19 has been amended. It now reads “What is the scope of the General Data Protection Regulation (GDPR)? A. To regulate the use of personal data relating to private individuals; B. To regulate the use of personal data relating to private individuals and businesses; C. To regulate all data held and processed within the EU; D. To regulate data held by private companies in the UK”

New version : IF1MockTaster

IF2 Mock Paper Set 2

28 May 2018 Due to a change in the CII Study Text, Question 88 has been replaced. It now reads “The General Data Protection Regulation (GDPR) states that personal data must be processed in a way that is: A. lawful; B. efficient; C. expedient; D. vital.” The answer is A, with a reference of Chapter 12, Section B/D. Question 89 has been replaced. It now reads “The General Data Protection Regulation introduces a duty of breach notification on? A. All organisations; B. Organisations with more than 20 employees; C. Organisations with a turnover in excess of £500,000; D. Organisations with more than 100 data subjects.” The answer is A, with a reference of Chapter 12, Section B/D.

New version : IF2Set2010118v2

IF2 Mock Paper Set 3

28 May 2018 Due to a change in the CII Study Text, Question 88 has been replaced. It now reads “Under the General Data Protection Regulation ‘sensitive personal data’ is now referred to as? A. protected personal data; B. special categories of personal data; C. restricted categories of personal data; D. ring-fenced personal data.” The answer is B, with a reference of Chapter 12, Section B/D. Question 89 has been replaced. It now reads “Under the Data Protection Act 2018, the age from which parental consent is not needed to process data online is? A. 11; B. 13; C. 16; D. 18.” The answer is B, with a reference of Chapter 12, Section B/D.

New version : IF2Set3010118v2

IF3 Mock Paper Set 2

29 May 2018 Due to a change in the CII Study Text, Question 56 has been replaced. It now reads “The General Data Protection Regulation introduces a duty of breach notification on? A. All organisations; B. Organisations with more than 20 employees; C. Organisations with a turnover in excess of £500,000; D. Organisations with more than 100 data subjects.” The answer is A, with a reference of Chapter 8, Section E.

New version : IF3Set2010118v2

IF3 Mock Paper Set 3

29 May 2018 Due to a change in the CII Study Text, Question 56 has been replaced. It now reads “Under the General Data Protection Regulation ‘sensitive personal data’ is now referred to as? A. protected personal data; B. special categories of personal data; C. restricted categories of personal data; D. ring-fenced personal data.” The answer is B, with a reference of Chapter 8, Section E.

New version : IF3Set3010118v2

IF3 Mock Paper Taster

29 May 2018 Due to a change in the CII Study Text, Question 12 has been replaced. It now reads “The General Data Protection Regulation (GDPR) states that personal data must be processed in a way that is: A. lawful; B. efficient; C. expedient; D. vital.”

New version : IF3MockTaster

J02 Study Notes

30 January 2018 Section 5 – Wills and Intestacy: Page 25, sub-heading “Law of Intestacy in England and Wales” now reads “Law of Intestacy in England and Wales (Inheritance and Trustees’ Powers Act 2014)”. First bullet point amended to “Spouse or civil partner but no issue (e.g. children, grandchildren)”. Bullet point “Spouse or civil partner, no children but parents, or brothers or sisters, or issue thereof” and the following 4 second-level bullet points have been removed. Page 26, sub-heading “Inheritance and Trustees’ Powers Act 2014” and its following 3 bullet points have been removed. Under “Transferring Unused NRB”, 4th bullet point that reads “Currently £325,000, regardless of when first death occurred”, has been removed.

New version : J02StudyNotes010917v2

 

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 Calculation Workbook

27 April 2018 Page 21, Answer to Question 4 – Formula amended to replicate CII manual
Answer: Lifetime allowance charge will be on the excess figure of £79,940
Formula in detailed explanation amended to:
(£1,600,000 – £1,500,000) ÷ £1,500,000 = £100,000 ÷ £1,500,000 = 0.0666 or 6.67%
This primary protection factor is then applied to his underpinned lifetime allowance of £1.8m x 6.67% = £120,060
Next, increase the underpinned lifetime allowance by Jason’s permitted increase: £1,800,000 + £120,060 = £1,920,060
Deduct Jason’s personal lifetime allowance from his fund value to determine any excess: £2,000,000 – £1,920,060 = £79,940;
Page 32, Question 2 Answer figure amended to match detailed explanation of £36,300

New version : J05CalcWkbk010917v3

13 April 2018 Page 33, Question 12 Figures amended to amount of tax = £8,510.41 and net amount to Julie – £21,489.59

New version : J05CalcWkbk010917v2

J05 Study Notes

23 March 2018 Due to a change in the CII Study Text, Page 69 – Class 2 and 4: added additional bullet point “Note that the planned abolition of Class 2 NICs has been delayed a year from 6 April 2018 to 6 April 2019”

New version : J05StudyNotes010917v4

29 January 2018 Due to a change in the CII Study Text, Section 11 – Pensions Regulation: The answer to Question 5 has been amended to:

  • Creditors can petition for bankruptcy if debtor owes at least £5,000 (or part of a debt totalling £5,000);
  • And it appears that they are unable to pay the debt

New version : J05StudyNotes010917v3

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

J12 Mock Paper Set 1

6 February 2018 A number of changes have been made to this resource, if you wish to have an updated copy of this paper, please contact us at enquiries@brandft.co.uk

New version : J12Set1010917v2

J12 Mock Paper Set 2

6 February 2018 A number of changes have been made to this resource, if you wish to have an updated copy of this paper, please contact us at enquiries@brandft.co.uk

New version : J12Set2010917v2

J12 Mock Paper Set 3

6 February 2018 A number of changes have been made to this resource, if you wish to have an updated copy of this paper, please contact us at enquiries@brandft.co.uk

New version : J12Set3010917v2

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

R01 Mock Paper Set 1

13 April 2018 Due to a change in the CII Study Text, the stem of Q30 has been amended to – ‘Would an IFA firm be subject to the first Markets in Financial Instruments Directive (MiFID)?’

New version : R01Set1010917v2

R01 Mock Paper Set 2

28 May 2018 Due to a change in the CII Study Text, Question 92 has been replaced. It now reads “Which of the following statements are true in relation to the Data Protection Act 2018? Tick all that apply. A. It implements GDPR standards across all general data processing; B. The age from which parental consent is not needed to process data online is 15; C. The Information Commissioner continues to regulate and enforce data protection laws; D. The Information Commissioner can bring criminal proceedings in certain circumstances; E. The maximum fine for a serious data breach is £17m or 2% of global turnover. The answer is A C D.

New version : R01Set2010917v2

R01 Mock Paper Set 3

28 May 2018 Due to a change in the CII Study Text, Question 32, Option D has been amended. It now reads “D. To oversee the regulation of the Data Protection Act and enforce compliance.”

New version : R01Set3010917v2

R01 Study Notes

24 May 2018 Due to a change in the CII Study Text, Page 83 the sub-sections entitled Data Protection Act 1988; Data Protection Principles and
Personal Data and Individual Rights have been amended to now read:

General Data Protection Regulation (GDPR)

  • GDPR applies to the use of personal data by data controllers and data processors
  • Sensitive data is referred to as ‘special categories of personal data’
  • Includes an accountability principle (firm must demonstrate compliance with data protection principles)
  • There must be a lawful basis for processing personal data
  • Consent to processing must be given freely using a form of positive opt-in
  • Data subjects have the rights to be informed, of access, to rectification, to erasure, to restrict processing, to data portability, to object and in relation to automated decision making and profiling
  • Firms must be accountable and transparent in their dealings with personal data
  • All organisations are obliged to notify the Information Commissioner of serious personal data breaches
  • There are restrictions on the transfer of personal data outside the EU

Data Protection Act 2018

  • Implements GDPR in UK
  • 13 is the age at which parental consent not required for processing data online
  • Gives powers to Information Commissioner to regulate and enforce data protection law
    • Serious data breach fine £17m / 4% global turnover, whichever is the largest
    • Can bring criminal proceedings if data controller / processor alter records following subject access request”

Question 4 in the self-test questions has been changed to “Who is responsible for the regulation and enforcement of data protection law in the UK?” The answer is “The Information Commissioner”

New version : R01StudyNotes010917v3

13 April 2018 Due to a change in the CII Study Text, Page 61 – last bullet point in the sub-section headed ‘Markets in Financial Instruments Directive (MiFID)’ has been amended to “Revised MiFID II implemented on 3 January 2018” with secondary-level bullet point beneath that reads “Main changes for retail investment firms relate to costs and charges disclosure, governance of products, describing advice services, structured deposits, suitability and ongoing suitability, taping conversations and inducements.”

New version : R01StudyNotes010917v2

 

R01 E-Learning Module 3

13 April 2018 Due to a change in the CII study text, this e-learning module will be updated in due course to include details regarding the MiFID II Directive as follows: “A revised MiFID II Directive has been developed and was implemented on the third of January 2018. Its main impacts on retail investment firms relate to cost and charges disclosure, the governance of products, describing advice services, structured deposits, suitability and ongoing suitability, taping conversations and inducements.”

R01 E-Learning Module 5

28 May 2018 Due to a change in the CII study text, this e-learning module will be updated in due course to remove reference to Data Protection Act 1998 and include details regarding the General Data Protection Regulation (GDPR).

R01 E-Learning Workbook

28 May 2018 Due to a change in the CII study text, Page 45 – Data protection principles replaced with data protection subject rights.

R01 Audio Masterclass 3 – Regulation Overview

13 April 2018 Due to a change in the CII study text, this masterclass will be updated in due course to include details regarding the MiFID II Directive as follows: “A revised MiFID II Directive was implemented on the third of January 2018. Its main impacts on retail investment firms relate to cost and charges disclosure, the governance of products, describing advice services, structured deposits, suitability and ongoing suitability, taping conversations and inducements.”

R01 Audio Masterclass 5 – The Regulatory Framework

28 May 2018 Due to a change in the CII study text, the Data Protection portion of this audio masterclass will be updated in due course to remove reference to Data Protection Act 1998 and include details regarding the General Data Protection Regulation (GDPR).

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

19 June 2018 Question 54 changed to: When making an initial financial future trade, a client has ongoing rights or obligations to the market. What is this known as? A. Open position; B. Marking to market; C. Initial margin; D. Variation margin

New version : R02Set3010917v3

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

8 March 2018 Pages 7 and 31, Question 9 has been amended to read “He also has a petrol company car with a list price of £20,000 and CO2 emissions of 150g/km, and fuel for private use paid for by his company. ” Page 48, Question 8, answer amended to £21,650.37

New version : R03CalcWkbk010917v5

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

27 March 2018 Due to a change in the CII Study Text, Page 4 – Trading Income – Basis of Assessment – additional bullet added that reads “Trading allowance – if trading income less than £1,000 (before expenses) then it is exempt from tax and does not need to be declared. If greater than £1,000, then can claim the allowance against the income in lieu of deducting actual expenses.” Employment Income – additional bullet added that reads “A new income tax exemption covers the first £500 of pensions’ advice provided by an employer to an employee” Property Income – additional bullet added before “Improvements expenditure not allowed” that reads “Property allowance – if property income less than £1,000 (before expenses) then it is exempt from tax and does not need to be declared. If greater than £1,000, then can claim the allowance against the income in lieu of deducting actual expenses.” Page 44 – Tax Mitigation/Tax Evasion – Anti-Avoidance Legislation – additional bullet point added that reads “Penalty for enablers (those who design, manage, market or facilitate) defeated tax avoidance arrangements – penalty is equal to fee paid to enabler for enabling, applies on or after 16 November 2017”

New version : R03StudyNotes010917v4

23 February 2018 Due to a change in the CII Study Text, Page 37, Domicile – Deemed Domicile, the definition to deemed domicile has been updated to reflect the enactment of the Summer Finance Act: first bullet point amended to “If resident in UK for 15 (formerly 17) out of last 20 tax years”

Two sub-points added after amended bullet point: “If born in UK, with UK domicile of origin, and return to UK and become UK resident having previously become domiciled in another country and been resident in UK at least 1 out of previous 2 tax years then also deemed domicile in UK”; “If deemed domicile, liable to UK tax on all taxes (not just IHT as was the case prior to 2017/18)”

Added before 5th bullet point: “UK deemed domicile under 15 / 20 tax year rule kept for 6 tax years after leave UK for both income tax and CGT, 4 tax years for IHT”

Page 38, Liability to Tax of Non-UK Domiciles – Annual Tax Charge, The remittance basis charge pf £90,000 has been removed to reflect the enactment of the Summer Finance Act, so third bullet point has been deleted.

New version : R03StudyNotes010917v3

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 Study Notes Taster

27 March 2018 Due to a change in the CII Study Text, Page 4 – Trading Income – Basis of Assessment – additional bullet added that reads “Trading allowance – if trading income less than £1,000 (before expenses) then it is exempt from tax and does not need to be declared. If greater than £1,000, then can claim the allowance against the income in lieu of deducting actual expenses.” Employment Income – additional bullet added that reads “A new income tax exemption covers the first £500 of pensions’ advice provided by an employer to an employee” Property Income – additional bullet added before “Improvements expenditure not allowed” that reads “Property allowance – if property income less than £1,000 (before expenses) then it is exempt from tax and does not need to be declared. If greater than £1,000, then can claim the allowance against the income in lieu of deducting actual expenses.”

New version : R03StudyNotesTaster

R03 Audio Masterclass 1 – Income Tax

27 March 2018 Due to a change in the CII study text, this masterclass will be updated in due course to include details on trading and property allowances as follows: “A trading allowance is now available. Where trading income is less than £1,000 before expenses, it is exempt from tax and does not need to be declared. If it is greater than £1,000, then the allowance can be claimed against the trading income instead of deducting actual expenses.” and “A property allowance is also now available and operates in a similar way to the trading allowance. If property income is less than £1,000 before expenses then it is exempt from tax and does not need to be declared. If it is greater than £1,000, then the allowance can be claimed against the property income instead of deducting actual expenses.” Also included are details regarding pension advice income tax exemption as follows: “A new income tax exemption covers the first £500 of pensions’ advice provided by an employer to an employee.”

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

27 March 2018 Due to a change in the CII study text, this masterclass will be updated in due course to include changes to deemed domicile as follows “A person will also currently be deemed to be UK domiciled where they have spent fifteen of the last twenty tax years in the UK.; On top of any tax due, long term UK residents will also be subject to an annual charge of either thirty thousand or sixty thousand pounds; The charge is sixty thousand pounds where they have been UK resident for at least twelve of the last fourteen tax years; Use of the remittance basis for income tax is only likely to be worthwhile financially if the individual has foreign income in excess of eighty thousand pounds. For those subject to the higher charge of sixty thousand pounds, the amount of overseas income required to make it cost effective is much higher.” Also included are details of the penalty for enablers as follows “In November 2017, a new penalty for enablers was introduced. An enabler can be defined as an individual or firm who designs, manages, markets or facilitates a tax avoidance arrangement. Where such an arrangement is defeated in a court or tribunal, the enabler can now be subject to a penalty equal to the fee that they have been paid to enable the arrangement.”

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

29 May 2018 Due to a change in the CII Study Text, Q1 answer amended to D.

New version : R04Set2010917v3

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

New version : R04Set2010917v2

R04 Calculation Workbook

27 April 2018 Page 48, Answer to Question 6 – Formula amended to replicate CII manual
Answer: Lifetime allowance charge will be on the excess figure of £79,940
Formula in detailed explanation amended to:
(£1,600,000 – £1,500,000) ÷ £1,500,000 = £100,000 ÷ £1,500,000 = 0.0666 or 6.67%
This primary protection factor is then applied to his underpinned lifetime allowance of £1.8m x 6.67% = £120,060
Next, increase the underpinned lifetime allowance by Jason’s permitted increase: £1,800,000 + £120,060 = £1,920,060
Deduct Jason’s personal lifetime allowance from his fund value to determine any excess: £2,000,000 – £1,920,060 = £79,940
Page 87, Question 9 Answer figure amended to match detailed explanation of £36,300

New version : R04CalcWkbk010917v4

13 April 2018 Page 88, Question 12 Figures amended to amount of tax = £8,510.41 and net amount to Julie – £21,489.59

New version : R04CalcWkbk010917v3

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

26 March 2018 Due to a change in the CII Study Text, Page 5 – Incentives/Disincentives table, second to last bullet point in ‘Incentives’ amended to read “An income tax exemption, to cover the first £500 of pensions advice provided by an employer to an employee, takes retrospective effect from 6 April 2017. ” Page 8 – Answer to Question 2, last bullet point amended to “Income tax exemption covers first £500 of pensions advice provided by an employer to an employee” Page 99 – Class 2 and 4: added additional bullet point “Note that the planned abolition of Class 2 NICs has been delayed a year from 6 April 2018 to 6 April 2019”

New version : R04StudyNotes010917v4

29 January 2018 Due to a change in the CII Study Text, Section 7 – Pensions Regulation: The answer to Question 5 has been amended to:

  • Creditors can petition for bankruptcy if debtor owes at least £5,000 (or part of a debt totalling £5,000);
  • And it appears that they are unable to pay the debt

Section 9 – Defined Benefit Scheme, Page 60, the following has been added after the sub-section on Valuations:

Employer’s covenant

  • This covers the legal obligation and financial capacity of the scheme sponsoring employer to support the scheme
  • Trustees must understand the covenant from a legal perspective
  • Assessed against scheme’s funding requirements”

New version : R04StudyNotes010917v3

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 Study Notes Taster

26 March 2018 Due to a change in the CII Study Text, Page 5 – Incentives/Disincentives table, second to last bullet point in ‘Incentives’ amended to read “An income tax exemption, to cover the first £500 of pensions advice provided by an employer to an employee, takes retrospective effect from 6 April 2017. ” Page 8 – Answer to Question 2, last bullet point amended to “Income tax exemption covers first £500 of pensions advice provided by an employer to an employee”

New version : R04StudyNotesTaster

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

8 March 2018 Pages 6 and 45, Question 9 has been amended to read “He also has a petrol company car with a list price of £20,000 and CO2 emissions of 150g/km, and fuel for private use paid for by his company. ” Page 62, Question 8, answer amended to £21,650.37

New version : R06CalcWkbk010917v6

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

New version : R06CalcWkbk010917v5

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

New version : R06CalcWkbk010917v4

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.”

New version : R06CalcWkbk010917v3

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

23 March 2018 Due to a change in the CII Study Text, Page 17 – Self-Employed and Controlling Directors: last bullet point amended to “Self-employed pay Class 2/4 NICs but plans to abolish Class 2 and reform Class 4 by 2018 have now been delayed to 6 April 2019” Page 18 – Pensions – Accumulating: last bullet point is now “The plan to introduce a new income tax exemption to cover the first £500 of pension advice provided by an employer to an employee was re-introduced in Finance (No.2) Act 2017 and takes retrospective effect from 6 April 2017. The exemption replaces a previous, more restrictive exemption, which was limited to £150. ” Page 48 – Planning for Events and Circumstances – Marriage/Civil Partnership: 6th bullet point now reads “Domicile – spouse can elect to be treated as UK domicile and qualify for spouse exemption (new rules for deemed domicile reinstated retrospectively from 6 April 2017 – a non-domiciled individual resident in the UK for at least 15 or the previous 20 tax years is treated as UK domiciled for the purposes of income tax, capital gains tax and inheritance tax).”

New version : R06StudyNotes010917v3

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 1

8 February 2018 Changes have been made to the answer table for Questions 56 to 75; if you wish to have an updated copy of this paper, please contact us at enquiries@brandft.co.uk

New version : R07Set1010917v2

 

R07 Mock Paper Set 2

8 February 2018 Changes have been made to the answer table for Questions 56 to 75; if you wish to have an updated copy of this paper, please contact us at enquiries@brandft.co.uk

New version : R07Set2010917v3

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

R07 Mock Paper Set 3

8 February 2018 Changes have been made to the answer table for Questions 56 to 75; if you wish to have an updated copy of this paper, please contact us at enquiries@brandft.co.uk

New version : R07Set3010917v2

R07 Mock Paper Taster

8 February 2018 Changes have been made to the answer table for Questions 11 to 15; if you wish to have an updated copy of this paper, please re-download the most recent taster document here.

New version : R07MockTaster

R08 Mock Paper Set 2

23 April 2018 Question 23 changed to: From 2028 individuals will not be able to withdraw their private pension savings without a tax penalty until the age of: A. 56. B. 57. C.58 D. 59. The answer is now B.

New version : R08Set2010917v2

R08 Mock Paper Set 3

23 April 2018 Question 20 changed to: From 2028 the normal minimum pension age will increase in line with the State pension age (SPA) so that it is always how many years earlier than SPA? A 2 years B. 5 years. C. 10 years D. 12 years.

New version : R08Set3010917v2