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.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- Which of the following might prove the MOST difficult in obtaining a mortgage against?
- A freehold house
- A freehold flat
- A leasehold house with 15 years left on the lease after the mortgage would have been paid off
- A leasehold house with 40 years left on the lease after the mortgage would have been paid off
- What is the most important outcome of the fact-finding process?
- Completion of a printed questionnaire
- A clear understanding of the client’s goals and their expectations
- Gaining the client’s trust to allow them to express true facts
- Obtaining ‘hard’ information and ‘soft’ facts
- 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:
- the transfer will be immediately charged to tax at 20% over the nil rate band
- if he survives making the gift by at least 3 years there will be a reduction in the IHT payable
- if the gift to his son becomes chargeable, his personal representatives will be liable for the IHT due
- he must report the amount of the gift to HMRC within 6 months of making it
- 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?
- Where a private medical insurance policy is set up with moratorium underwriting, when will the underwriting take place?
- Any time within the first 12 months
- After the policy has been in place for six months
- Before the policy is set up
- When a claim is made
- C – See R01 Study Text, Chp 3
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 7
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 4
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R04 Study Text, Chp 1
Grab our taster mock exam paper for CII R04. Click here to download.
- 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?
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