Friday Five – 19 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.
These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.
- What is regarded as having the most impact on the performance of a portfolio?
- A client’s age
- Fund selection
- Asset allocation
- Fund manager selection
- Aaron is 65 and is looking to reduce his potential Inheritance Tax liability. He has a portfolio of shares which he is considering transferring to members of his family or to a trust but his main concern is losing long term control of the asset. What would be the best thing for him to do in these circumstances?
- Transfer the shares to a bare trust and retain control for as long as he wanted
- Gift the shares to his children but continue to receive the dividends
- Transfer the shares to a discretionary trust and appoint himself as a beneficiary
- Transfer the shares to a discretionary trust and appoint himself as a trustee
- If a defined benefit scheme is contracted out, which of the following will pay reduced National Insurance Contributions?
- Just the employer.
- Both employee and employer.
- Just the Trustees of the scheme.
- Reducing NIC’s has been abolished.
- Lakeside Trading Ltd, provide their employees with sick pay if they are off work through illness or accident. If an employee receives these benefits, which of the following taxes will they be liable for on the money they receive?
- None – the money is free from liability to tax
- National Insurance
- Income Tax
- Income Tax and National Insurance
- What type of pricing structure is commonly used by an OEIC?
- Single pricing
- Dual pricing
- Dual pricing for small and single pricing for larger transactions
- Triple pricing as laid out by the FCA
- C – See R02 Study Text, Chp 7 Section A1E
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 11 Section E2C
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 7 Section C1
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R05 Study Text, Chp 2 Section E2
Grab our taster mock exam paper for CII R05. Click here to download.
- A – See J12 Study Text, Chp 4 Section A2
Grab our taster mock exam paper for CII J12. 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!)