Friday Five – 2 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.

Questions

These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.

1. Which of the following might prove the MOST difficult in obtaining a mortgage against?
   1. A freehold house
   2. A freehold flat
   3. A leasehold house with 15 years left on the lease
   4. A leasehold house with 40 years left on the lease

2. Which of the following factors would have the effect of reducing short-term interest rates?
   1. Quantitative easing
   2. Government plans to issue gilts to fund a deficit
   3. Inflation expectations
   4. Strong economic activity

3. Shaun has recently sold his buy-to-let house for £150,000 having paid £93,000 15 years ago. He has incurred the following expenses; estate agent fees of £1,500; legal fees of £800 and £45 for a plumber to repair the shower prior to sale. What is his net gain?
   1. £56,200
   2. £55,500
   3. £54,700
   4. £54,655

4. In quantifying the protection needs of a client on death, which of the following should be considered first?
   1. Capital to make lifestyle changes
   2. Income for dependants in the long-term
   3. Capital to settle liabilities
   4. Income for dependants in the short-term

5. Julie has a buy-to-let property. In the last year, she incurred costs for building insurance of £400, letting agency fees of £1,200 and £500 for accountancy fees. How much of these is she able to claim as allowable expenses?
   1. All of them
   2. Only the building insurance and accountancy fees
   3. Only the letting agency fees
   4. Only the accountancy fees

Answers

1. C – See R01 Study Text, Chp 3, Section E2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R02 Study Text, Chp 5, Section A3A
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 3, Section D3
   Grab our taster mock exam paper for CII R03. Click here to download.

4. C – See R05 Study Text, Chp 10.1, Section C1
   Grab our taster mock exam paper for CII R05. Click here to download.

5. A – See R07 Study Text, Chp 8, Section E2A
   Grab our taster mock exam paper for CII R07. 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!)