Friday Five – 15 April – 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.
- Mrs Evans died in March 2008 when the NRB was £300,000 leaving £50,000 to her daughter with the remainder of the estate passing directly to her husband. On Mr Evans’ death in April 2015 the total estate was worth £600,000. What is the IHT due on Mr Evans’ estate?
- No IHT due
- If the net present value (NPV) of rent payable under a lease is calculated as £120,000 for a residential property, what rate of stamp duty land tax is payable?
- Adrian transferred assets worth £150,000 into a trust, in which he has no interest. If he had sold the assets he would have made a gain of £40,000. If holdover relief was claimed what effect would it have on the trust?
- Holdover relief is not available as the value of the gift is below the nil rate band
- There is no CGT at the time of the transfer but the acquisition cost of the trust is reduced to £110,000
- Adrian has no immediate CGT liability but he would be liable to CGT on the trust’s periodic review
- The gain is liable to CGT by the trust at acquisition and not on Adrian at disposal
- James, age 29, has been nominated by his uncle as the beneficiary of his occupational money purchase scheme following his death. Which of the following death benefit options will NOT be available to him?
- Scheme pension.
- Lifetime annuity.
- Flexi-access drawdown.
- Lump sum.
- Eric executed an Enduring Powers of Attorney in 2005 and has now lost mental capacity without drawing up a Lasting Powers of Attorney. Which of the following is his attorney unable to do?
- Sign documents on behalf of Eric
- Sign cheques on behalf of Eric
- Make decisions about Eric’s personal care and welfare
- Dispose of Eric’s property
- C – See R01 Study Text, Chp 2, Section B9A
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 1:2, Section D3B
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 3, Section F2
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 2.2, Section E1
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See CF8 Study Text, Chp 9, Section C3A
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!)