Friday Five – 24 April – 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

IMPORTANT!  These questions relate to examinable tax year 2019/20, examinable by the CII until 31 August 2020.  They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.

1. What criminal offences were created in the Proceeds of Crime Act 2002 as part of the UK’s fight against money laundering? Tick all that apply.
   1. Disguising criminal property
   2. Removing criminal property from the UK
   3. Allowing policyholders to surrender investment bonds within 30 days
   4. Failing to disclose suspected cases of money laundering in the regulated sector
   5. Allowing individuals to transfer their pension fund proceeds to an overseas bank

2. When would a Capital Gains Tax (CGT) chargeable disposal be deemed to have taken place in the following scenarios?
   1. Sian, a beneficiary under a trust becomes absolutely entitled to the trust assets.
   2. James makes a gain of £120,000 on selling his main residence.
   3. A married couple changes ownership of their investment bond when one becomes a basic rate taxpayer.
   4. Peter dies, and his antique car is passed to his son in accordance with his wishes.

3. Why might an employer decide to provide death in service benefits through a separate insured scheme as opposed to through a defined benefit scheme?
   1. To maintain death in service benefits without draining the fund
   2. To treat the death in service benefits as an allowable expense
   3. If the employees were all below 45
   4. As the defined benefit scheme is fairly large

4. Where policies are written on a life of another basis in relation to share protection insurance, the main advantage is that:
   1. the policies will be cheaper.
   2. there is no need for trusts.
   3. there will be tax relief available on the premiums.
   4. there is no underwriting involved.

5. The main use of a company’s income statement is to show:
   1. the performance of the company over an accounting period.
   2. how the company’s cash has been generated.
   3. the statement of changes in equity.
   4. the financial position for a group of companies.

Answers

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

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

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

4. B – See R05 Study Text, Chp 10.2
   Grab our taster mock exam paper for CII R05 Click here to download.

5. A – See J10 Study Text, Chp 12
   Grab our taster mock exam paper for CII J10. 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.