Friday Five – 26 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.
IMPORTANT! These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019. They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.
- What does Part 4A permission as set out by the FSMA refer to?
- Where a partnership is allowed to remain authorised in the event of one partner’s death
- A firm wishing to change its legal status e.g. from a partnership to a limited company
- The public record of all the successful FCA authorisation applications in the past year
- Applying to the FCA for direct authorisation to allow the firm to carry out the regulated activities they have applied for
- 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
- Lenny owns an 80% share in the family company and on his daughter Freya’s 21st birthday gives her a 20% shareholding. Instead of paying Capital Gains Tax (CGT) on the gain of £50,000 he has made, Lenny instead claims holdover relief. What is the impact of this course of action?
- There is no impact on Freya but if she disposes of the shares Lenny will then have to pay the outstanding CGT
- Holdover relief extinguishes Lenny’s CGT liability and Freya acquires the shares at the value at the time they are transferred to her
- There is no impact on Freya but if she disposes of the shares Lenny will then have to pay the CGT but at the reduced holdover rate of 10%
- Freya acquires the shares at Lenny’s acquisition cost and if she disposes of the shares her gain will include Lenny’s gain of £50,000
- Cyril had pension benefits already in payment at ‘A’ day. As he has further benefits to crystallise, the earlier pension will be valued by a factor of:
- An assignment might be a chargeable event if it is:
- for a consideration
- a gift
- to a trust
- via a will
- D – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2:1
Grab our taster mock exam paper for CII R04. Click here to download.
- A – 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?
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