Friday Five – 23 October – 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 2015/16, examinable until 31 August 2016.
- What information must be given in a direct offer financial promotion? – tick all that apply
- Must always mention that tax treatments can change
- Confirmation that the firm is regulated or authorised by the FCA
- Full name and address of the person offering the investment
- Details of any charges and expenses
- How do exchange traded funds (ETFs) differ from exchange traded notes (ETNs)?
- ETNs have a maturity date
- ETFs are traded on major stock markets
- ETNs performance track the movement of an index
- ETFs give access to specialist market niches
- Dominic sold his house to an interest in possession trust, with the purchase price outstanding. He then set up a separate trust for his children into which he placed the debt and continued to live in the house. What is the most likely charge that Dominic will face from HMRC?
- Income tax under the pre-owned assets tax (POAT)
- Capital gains tax under CGT legislation
- Stamp duty land tax on a reduced valuation of the debt
- Income tax under the gift with reservation rules
- The Trustees of a defined benefit scheme have developed a Recovery Plan for the scheme. This would indicate that the scheme:
- Is in deficit.
- Is contracted out of S2P.
- Has been taken over by the PPF.
- Is changing the benefit structure.
- Aaron lives in a large house converted into flats. He wishes to buy the freehold. Which of the following will prevent him from doing this?
- The original lease is for 99 years
- Aaron has lived in his flat for 1 year
- Half of the tenants have agreed to buy the freehold
- All of the qualifying tenants have agreed to buy the freehold
- BCD – See R01 Study Text, Chp 7 Section A4C
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 6:2 Section I
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 4 Section D5
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 4.1 Section D4A
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R07 Study Text, Chp 5 Section B1B
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!)