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Friday Five – 11 September 2015 – 5 Questions in 5 Minutes

Friday Five – 11 September 2015 – 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.

  1. Why might an adviser ask a client about their views and hopes for the future?
    1. To understand the client’s likelihood of proceeding with the adviser’s recommendations
    2. To indicate to the adviser where to concentrate their recommendations and areas for future consideration
    3. To allow the adviser to determine the level of fee to charge the client
    4. To determine whether to offer upfront or on-going advice
  1. What effect (if any) would gearing have on a positive portfolio return?
    1. No effect
    2. Magnify the positive return
    3. Reduce the positive return
    4. Defer the positive return
  1. Madeline died on the 12th December 2013 leaving her entire estate to her husband John. John died on the 23rd November 2015. Their three children are acting as personal representatives and they want to know how long they have to make a claim for the transfer of Madeline’s unused nil rate band. You tell them they have/had until the:
    1. 12th December 2015
    2. 23rd November 2017
    3. 5th April 2017
    4. 30th November 2017
  1. Ian, who is single and aged 65, has just retired with a relatively low level of pension income. He owns a property valued at £450,000, which of the following courses of action would you recommend he considers first?
    1. Home Reversion Plan
    2. Lifetime mortgage with interest roll up
    3. Trading down to a lower value property
    4. Drawdown mortgage
  1. Emily, a higher rate taxpayer, has received the benefits from her critical illness policy after making a valid claim. Which of the following taxes will she be liable for?
    1. Income Tax at 40%
    2. Capital Gains Tax at 28%
    3. Income Tax at 20%
    4. There is no tax liability



  1. B – See R01 Study Text, Chp 8 Section B1C
    Grab our taster mock exam paper for CII R01. Click here to download.


  1. B – See R02 Study Text, Chp 5 Section C
    Grab our taster mock exam paper for CII R02. Click here to download.


  1. D – See R03 Study Text, Chp 4 Section B4F
    Grab our taster mock exam paper for CII R03. Click here to download.


  1. C – See ER1 Study Text, Chp 6 Section A1
    Grab our taster mock exam paper for CII ER1. Click here to download.


  1. D – See R05 Study Text, Chp 7 Section H
    Grab our taster mock exam paper for CII J12. 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!)


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