Friday Five – 18 September – 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.
IMPORTANT! These questions relate to examinable tax year 2020/21, examinable by the CII until 31 August 2021.
- Unfortunately, your client Jenny has recently been made bankrupt. Under the Enterprise Act 2002, can you remind her how long does bankruptcy normally last?
- 6 months
- 12 months
- 3 years
- 5 years
- Simon is a preference shareholder with Hayden PLC. In the event of Hayden PLC going into liquidation, where would he rank?
- Ahead of ordinary shareholders and other creditors
- After ordinary shareholders but ahead of other creditors
- Ahead of ordinary shareholders but after other creditors
- After ordinary shareholders and other creditors
- Why might Tom, a higher rate taxpayer with an adventurous attitude to risk, want to invest a lump sum in an Enterprise Investment Scheme?
- To have control over the investment
- To gain CGT exemption after a holding period of 3 years
- To receive dividends tax-free
- To receive 50% income tax relief on an investment of £200,000
- With only a few months to live, George’s pension fund is to be commuted for a lump sum. As George is aged 58 and a basic rate taxpayer, the net amount receivable from his £1,768,100 pension fund will be:
- Colin and Evelyn want a life assurance policy to meet the potential inheritance tax bill on their joint estate of £1,150,000 which they own in equal shares and includes the family home. On the first death, they plan to leave their estate to each other and then on the second death to their children. If they were both to die in the current tax year, the most effective policy would be a:
- joint life second death policy for £150,000.
- joint life first death policy for £140,000.
- joint life first death policy for £32,000.
- joint life second death policy for £60,000.
- B – See R01 Study Text, Chp 3
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 2
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 6
Grab our taster mock exam paper for CII R04 Click here to download.
- D – See R05 Study Text, Chp 5
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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