Friday Five – 13 July – 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- How do unit trusts and investment trusts differ?
- Regular monthly investment can only be made via a unit trust.
- There is greater fund choice via a unit trust.
- An investment trust is closed ended while a unit trust is open ended.
- Unit trusts are generally used for short- to medium-term investments, whereas investment trusts are used for long-term investments.
- If an investment trust company chooses to use the optional framework to allow them to invest in interest bearing assets in a more tax efficient way, the effect on individual investors is that they:
- still receive a 10% income tax credit on received dividend distributions
- face broadly the same tax treatment as if they had owned them directly
- are not liable to capital gains tax on any disposals of investment company shares
- will be entitled to receive dividend payments more frequently
- Georgia spends from 1 December to 31 March in her house in Spain and returns to the UK for the rest of the time. She is likely to be treated by HMRC for residence purposes:
- as automatically not resident in the UK
- as automatically resident in the UK
- according to the split year rules
- according to the sufficient UK ties test
- Paula, age 56, has just left her employer’s occupational money purchase scheme after three years’ pensionable service as her employment has been terminated, what does this mean for the benefits accrued in the fund to date?
- She can apply for a short service refund of her personal contributions.
- As the scheme is not insured it is likely the nature of charges may change.
- She can convert preserved benefits into retirement benefits in essentially the same way as someone who has remained active.
- The preserved benefits will be based on employee contributions only.
- Which of the following types of care provision never needs to be self-funded?
- Accommodation costs in an NHS hospital
- Domiciliary care
- Respite care
- Residential care in a nursing home
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 6:1
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 5
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 5
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See CF8 Study Text, Chp 1
Grab our taster mock exam paper for CII CF8. 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!)I've just answered this week's Friday Five CII exam questions - can you? #Fri5 Click To Tweet