Friday Five – 15 February – 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.

Questions

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

1. What is the purpose behind ‘part 1: personal details’ of an adviser’s fact-find?
   1. To gather general information about a client and their circumstances
   2. To allow the adviser to ask straightforward questions to help build rapport
   3. To understand if the client is able to proceed with the meeting
   4. To establish whether the client is suitable for the intermediary

2. James has bought some fixed interest stock and received the full 6 months’ interest, even though the stock was owned by him for less than the entire period. What is this referred to as?
   1. Ex-dividend
   2. Cum dividend
   3. Dirty price
   4. Clean price

3. Madeline died on the 12th December 2016 leaving her entire estate to her husband John. John died on the 23rd November 2018. 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 2018
   2. 23rd November 2020
   3. 5th April 2020
   4. 30th November 2020

4. State Pensions are funded on a ‘pay as you go’ basis. What does this mean?
   1. Revenue from income tax is used to pay for the State pensions of today.
   2. The current working population pay into their future NEST benefits.
   3. NICs of the current working population pay for State pensions of today.
   4. Revenue from all the direct taxes is used to pay for current State pensions.

5. What is seen as a disadvantage of a deferred payment agreement, whereby a Local Authority takes a charge on a property owned by an individual admitted to residential care?
   1. Property value may continue to appreciate
   2. Loan from Local Authority is at a high interest rate
   3. Property can be let to increase individual’s income
   4. Individual is still liable to maintain the property

Answers

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

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

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

4. C – See R04 Study Text, Chp 1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See CF8 Study Text, Chp 3
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.