Friday Five – 19 July – 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

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. Which of the following are acceptable limitations to a firm’s expertise? Tick all that apply.
   1. Reliance on client information
   2. Reliance on others
   3. Limited experience in a particular field
   4. Insufficient information

2. At what age does a child take over the role from their parent as the ‘registered contact’ of their Junior ISA?
   1. 21
   2. 18
   3. 17
   4. 16

3. The trustees of a family trust have recently bought a house with trust funds and will allow the beneficiary to live in it as their main residence. For Capital Gains Tax (CGT) purposes HMRC will only allow them to claim the principal private residence exemption on a later sale of the property if:
   1. the beneficiary has an interest in possession
   2. holdover relief was claimed on the transfer of the property to the trust
   3. the trust is held on a discretionary basis
   4. the beneficiary has an absolute interest

4. A pension in payment from a defined benefit scheme must escalate in line with CPI to a maximum of 2.5% for service:
   1. before 6 April 1978
   2. after 5 April 2005
   3. before 5 April 1997
   4. after 5 April 1997

5. Which of the following statements is TRUE in relation to most private medical insurance policies?
   1. They are designed to cover chronic conditions
   2. They do not allow the insured a choice of hospital in which to receive treatment
   3. They are restricted to UK residents and do not provide cover for treatment abroad
   4. They provide benefits for a maximum of 5 treatments over the term of the policy

Answers

1. ABD – See R01 Study Text, Chp 7
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 6:2
   Grab our taster mock exam paper for CII R02. Click here to download.

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

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

5. C – 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.