Friday Five – 21 December – 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.
- A firm is required to keep a record of its client’s identity verification for 5 years – what form can this take? Tick all that apply.
- Original documents
- Electronic copies
- Serial number log on ID
- Computerised copies
- Caroline invested £12,000 into a unit trust which was worth £18,020 after 6 years. What compound rate of return has she achieved?
- Edward is a company director and is considering the best way of taking remuneration from his company. What might be a disadvantage for him of taking a low salary and high dividends?
- Dividends are not relevant earnings and so could restrict pension contributions.
- Corporation tax would be payable at a higher rate as the salary is not being withdrawn from company profits.
- A reduced salary would reduce any State pension entitlement in the future.
- The dividend payment would be subject to a higher rate of National Insurance.
- When the administrators of a defined benefit scheme calculate an early leaver transfer value, the process of converting the lump sum value of pension benefits at retirement to a capital value in today’s terms is known as:
- Donald, a UK resident, placed a life assurance policy in trust in July 2008 for his grandchildren and appointed his two sons, also UK residents, as the trustees. A chargeable event occurred on the policy in July 2018 giving rise to a chargeable gain. On whose income, would the gain be chargeable?
- His grandchildren’s
- Both his sons equally
- The gain would not be chargeable as the policy is in trust
- ABCE – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 4
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 11
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See R05 Study Text, Chp 5
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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