Friday Five – 2 November – 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 2018/19, examinable until 31 August 2019.
- If a person applies to the regulator for direct authorisation, this is called applying for:
- part 3 permission
- part 4A permission
- part 6A permission
- part 2 permission
- Hydra’s year-end accounts contained the following information
Gross Profit £15,625
Tax on ordinary activities £2,325
Preference dividends £800 (2,000 preference shares in issue)
Ordinary dividends £1,400 (3,000 ordinary shares in issue)What is their earnings per share?
- Kevin is a cautious investor but would like to benefit from the potential returns from property. Which of the following might mean he prefers to do this through an insurance company property fund rather than through a Real Estate Investment Trust (REIT)?
- The insurance fund should be a lower risk as they cannot utilise gearing
- He would rather be in a pooled investment with other investors
- He wants to avoid the 6-month potential deferral period on encashment
- He wants to use his Capital Gains Tax annual exempt amount on encashment
- Which of the following lump-sum death benefits is only payable from a scheme pension (ie crystallised funds) that arises from a defined benefit scheme?
- A defined benefits lump-sum death benefit.
- A pension protection lump sum death benefit.
- An annuity protection lump sum.
- An uncrystallised lump sum.
- James makes a lifetime gift into a trust which isn’t an absolute/bare or disabled trust. How much tax is due immediately? Assume no annual exemptions are available.
- 20% on the amount gifted into trust
- 20% on the amount gifted into trust that exceeds the available nil rate band
- 40% on the amount gifted into trust that exceeds the available nil rate band
- 40% on the amount gifted into trust
- B – See R01 Study Text, Chp 5:1
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 6.1
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R05 Study Text, Chp 2
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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