Friday Five – 14 August 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 2014/15, examinable until 31 August 2015.
- If Pauline incurred a chargeable gain on 4th May 2013, when would the CGT liability have to be paid?
- 31st January 2015
- 31st January 2014
- 30th October 2014
- 30th October 2013
- What effect should principles based regulation have on the overall regulatory cost?
- As there is more grey area it is anticipated firms will require more guidance so costs will increase
- Higher costs initially as the new processes are rolled out to firms
- Personal responsibility within a value-led culture should lead to a reduction in regulatory burden and cost
- Less regulation will mean a hands-off approach from a regulatory point of view and so costs should decrease
- Trading down property is another option for an elderly homeowner who wishes to release equity from their home. In what set of circumstances is an equity release mortgage going to be preferable to trading down?
- In a climate of falling house prices and rising interest rates
- In no circumstances
- If the homeowner wishes to stay in their current property
- If the homeowner is aged below 65
- How does the pragmatic approach to asset allocation differ from Modern Portfolio Theory?
- Modern portfolio theory uses diversification to reduce risk
- Modern portfolio theory is concerned with the interaction of different asset classes
- Pragmatists use forward-looking judgements of likely returns and volatility to determine portfolio weightings
- Pragmatists use asset allocation as a defensive strategy to preserve capital
- If HMRC withdraws registration of a registered pension scheme, then a de-registration income tax charge will be levied. This amounts to:
- 40% of the prohibited assets which caused the scheme to be de-registered.
- 15% of the fund value held immediately before de-registration.
- 25% of the fund value held immediately before de-registration.
- 40% of the total value of funds held immediately before de-registration.
- A – See R03 Study Text, Chp 12 Section B2E
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R01 Study Text, Chp 10 Section B4F
Grab out taster mock exam paper for CII R01. Click here to download.
- C – See ER1 Study Text, Chp 6 Section A1
Grab our taster mock exam paper for CII ER1. Click here to download.
- C – See R02 Study Text, Chp 8 Section A2
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R04 Study Text, Chp 2.2 Section H4
Grab our taster mock exam paper for CII R04. 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!)