Friday Five – 24 August – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:20 am
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.
- What is the purpose behind the Upper Tribunal (Tax and Chancery Chamber)?
- Where the FCA enforcement officers present their findings from an investigation
- It is the appeal body for those objecting to FCA disciplinary decisions
- Where the more serious criminal prosecutions decisions are heard
- To allow suspicious activity to be reported
- When would a Capital Gains Tax (CGT) chargeable disposal be deemed to have taken place in the following scenarios?
- Sian, a beneficiary under a trust becomes absolutely entitled to the trust assets
- James makes a gain of £120,000 on selling his main residence
- A married couple change ownership of their investment bond when one becomes a basic rate taxpayer
- Peter dies and his antique car is passed to his son in accordance with his wishes
- Following the death of her husband, Mary has been advised that she may commute the survivor’s pension from his defined benefit scheme for a lump sum. Mary however is considering forsaking it in favour of her niece. The rules relating to this specify that:
- there is a lump sum limit of £30,000 which is the maximum lump sum allowed from this scheme.
- there is a lump sum limit of £30,000 which is the maximum lump sum commutable across all of her late husband’s schemes.
- the lump sum payable is a UFPLS.
- the lump sum can be paid to Mary’s niece should she wish as there are no restrictions on who can receive it.
- Where policies are written on a life of another basis in relation to share protection insurance, the main advantage is that:
- the policies will be cheaper
- there is no need for trusts
- there will be tax relief available on the premiums
- there is no underwriting involved
- Modern portfolio theory (MPT) categorises risk as being one of two types. Between 1973 – 1974 the UK experienced the great bear market. Which of MPT’s two types of risk would this event be categorised as?
- Beta risk
- Non-systematic risk
- Systematic risk
- Investment-specific risk
- B – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 6:1
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R05 Study Text, Chp 10.2
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See J10 Study Text, Chp 7
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?
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