Friday Five – 11 March – 5 Questions in 5 Minutes
Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday
What’s this all about?
It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.
These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.
- Client records must be kept indefinitely for which of the following? – tick all that apply
- Life policies
- Regular pension policies
- Pension transfers
- Free Standing Additional Voluntary Contributions
- Pension opt-outs
- If a bond’s redemption yield is higher than its interest yield, what does this indicate?
- The bond has just made an interest payment
- There will be a capital gain if held till maturity
- The issuer has a strong credit rating
- The bond’s proceeds will be tax-free
- Bernadette gifted a property to her daughter which at the time was valued at £500,000. Bernadette died 3½ years later, at which time the house was valued at £600,000. Bernadette used her annual allowance each year. How much IHT is payable by Bernadette’s daughter in respect of the gift assuming she died in this tax year?
- Sportsman Joe retires in 2015/16 at the age of 35. Joe’s lifetime allowance will be reduced by what percentage for each complete year before normal minimum pension age:
- What effect will an increase in interest rates have on a shared appreciation mortgage?
- Monthly payments will increase
- No effect
- Amount of overall debt will increase
- Lender will require a larger share of appreciation on eventual sale of property
- CDE – See R01 Study Text, Chp 6, Section C1
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 1:1, Section B4B
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 4 Section B2D
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2:2 Section D1B
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See ER1 Study Text, Chp 5 Section G
Grab our taster mock exam paper for CII ER1. Click here to download.
How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)