Friday Five – 23 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.

Questions

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

1. Who would be regarded as an ‘eligible complainant’ under FCA rules? Tick all that apply.
   1. A local authority
   2. A consumer
   3. A charity with a £2m annual income
   4. A trustee on behalf of a small family trust

2. If the efficient market hypothesis (EMH) is correct, which investment strategy makes most sense?
   1. Market timing
   2. Investing in tracker funds
   3. Utilising company financial statements for investment research
   4. Diversified stock selection

3. Madeline died on the 12th December 2016 leaving her entire estate to her husband John. John died on the 23rd November 2018. Their three children are acting as personal representatives and they want to know how long they have to make a claim for the transfer of Madeline’s unused nil rate band. You tell them they have/had until the:
   1. 12th December 2018
   2. 23rd November 2020
   3. 5th April 2020
   4. 30th November 2020

4. Joyce is about to retire and take the benefits from her defined benefit arrangement, which she has been a member of since 2006. In payment, her benefits must increase by a minimum of:
   1. CPI to a maximum of 5%.
   2. CPI to a maximum of 2.5%.
   3. CPI to a maximum of 3%.
   4. CPI to a maximum of 1%.

5. Frances has made a claim on the maturity of a second-hand life assurance policy and made a chargeable gain. Which of the following taxes will she be liable for?
   1. Income tax
   2. Income tax and capital gains taxx
   3. Capital gains tax
   4. Income tax or capital gains tax depending on the amount of the gain

Answers

1. BD – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 3
   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. B – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04. Click here to download.

5. 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.