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Friday Five – 19 June – 5 Questions in 5 Minutes

Friday Five – 19 June – 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 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.

  1. Which of the following are regulated activities as defined under the FSMA 2000 (Regulated Activities) Order 2001? Tick all that apply.
    1. Introducing
    2. Advising on home finance activities
    3. Assisting in the administration and performance of contract of insurance
    4. Safeguarding and administering investments
  1. Why has residential property investment been a popular investment over the past 20 years? Tick all that apply.
    1. Falling yields on other asset classes made rental yields attractive
    2. Prospect for capital growth
    3. Introduction of deferred CGT for landlords
    4. Abolition of stamp duty on buy-to let properties
  1. Phil and Marnie are a married couple with an Inheritance Tax (IHT) liability. They are taking out a joint life 2nd death life policy and writing it under a discretionary trust. Which of the following should they be aware of? Tick all that apply.
    1. If premiums are classed as transfers of value, the proceeds will not be free of IHT
    2. Inheritance tax works on the ‘loss to the estate’ principle.
    3. Discretionary trusts can suffer exit charges and periodic charges
    4. Premiums will be classed as transfers of value but can usually be claimed as exempt under the ‘normal expenditure’ exemption
  1. As a new member of a private sector defined benefit scheme, the accrual of Mary’s pension commencement lump sum (PCLS)at retirement will be:
    1. determined by the scheme rules.
    2. 3/80 x salary x years of service.
    3. 3/80 x fund x years of service.
    4. 25% x fund value.
  1. Which of the following documents gives the executors of a deceased’s estate proof of title to a life assurance policy?
    1. Grant of probate
    2. Policy document
    3. Death certificate
    4. A solicitor’s letter

 

Answers

  1. BCD – See R01 Study Text, Chp 6
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. AB – See R02 Study Text, Chp 1:2
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. BCD – See R03 Study Text, Chp 10
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. A – See R04 Study Text, Chp 1
    Grab our taster mock exam paper for CII R04 Click here to download.
  1. A – See R05 Study Text, Chp 4
    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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