Friday Five – 18 October – 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 2019/20, examinable until 31 August 2020.

1. Which of the following might prove the MOST difficult in obtaining a mortgage against?
   1. A freehold house
   2. A freehold flat
   3. A leasehold house with 15 years left on the lease after the mortgage would have been paid off
   4. A leasehold house with 40 years left on the lease after the mortgage would have been paid off

2. What is the most important outcome of the fact-finding process?
   1. Completion of a printed questionnaire
   2. A clear understanding of the client’s goals and their expectations
   3. Gaining the client’s trust to allow them to express true facts
   4. Obtaining ‘hard’ information and ‘soft’ facts

3. Julian has an estate worth £3m. He regularly uses his annual exemption for Inheritance Tax but with his son setting up his own business wishes to make an outright gift to him of £500,000. Julian should be aware that:
   1. the transfer will be immediately charged to tax at 20% over the nil rate band
   2. if he survives making the gift by at least 3 years there will be a reduction in the IHT payable
   3. if the gift to his son becomes chargeable, his personal representatives will be liable for the IHT due
   4. he must report the amount of the gift to HMRC within 6 months of making it

4. Under HMRC rules pension advice provided to employees by their employers is not treated as a benefit in kind provided the cost is no more than how much per employee per year?
   1. £50
   2. £75
   3. £150
   4. £500

5. Where a private medical insurance policy is set up with moratorium underwriting, when will the underwriting take place?
   1. Any time within the first 12 months
   2. After the policy has been in place for six months
   3. Before the policy is set up
   4. When a claim is made

Answers

1. C – See R01 Study Text, Chp 3
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 7
   Grab our taster mock exam paper for CII R02. Click here to download.

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

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

5. D – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. 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.