Friday Five – 22 March – 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 2018/19, examinable until 31 August 2019.

1. Which of the following is one of the “three certainties” required for a trust to be valid?
   1. Perpetuity period
   2. Name of trustees
   3. Subject matter
   4. Accumulation period

2. A corporate bond fund pays interest distributions:
   1. net of 20% income tax
   2. net of 10% income tax
   3. net of 10% savings tax
   4. without a tax deduction

3. Geraldine died in the 2004/2005 tax year using 40% of the then standard nil rate band for IHT of £263,000. If her husband dies in this tax year, how much standard nil rate band can be applied for by his personal representatives?
   1. £325,000
   2. £430,200
   3. £482,800
   4. £520,000

4. Annuity rates have fallen in recent years due to the fact that people are living for longer and also because of:
   1. falling gilt yields.
   2. rising equity prices.
   3. lower charges.
   4. higher inflation.

5. Caroline held an own life with-profits life assurance policy. On her death, the amount payable on the claim will vary depending on which of the following factors?
   1. The amount of premiums paid over the term
   2. Her age
   3. The sum assured
   4. The exact date of death

Answers

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

2. D – See R02 Study Text, Chp 6:1
   Grab our taster mock exam paper for CII R02. Click here to download.

3. D – See R03 Study Text, Chp 4
   Grab our taster mock exam paper for CII R03. Click here to download.

4. A – See R04 Study Text, Chp 1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – 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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