Nearly 1 million free-resource-downloads and-counting
Winner, Best Training Resources for Paraplanners 2019
Friday Five – 26 April – 5 Questions in 5 Minutes

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.

Questions

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.

  1. What does Part 4A permission as set out by the FSMA refer to?
    1. Where a partnership is allowed to remain authorised in the event of one partner’s death
    2. A firm wishing to change its legal status e.g. from a partnership to a limited company
    3. The public record of all the successful FCA authorisation applications in the past year
    4. Applying to the FCA for direct authorisation to allow the firm to carry out the regulated activities they have applied for
  1. How do exchange traded funds (ETFs) differ from exchange traded notes (ETNs)?
    1. ETNs have a maturity date
    2. ETFs are traded on major stock markets
    3. ETNs performance track the movement of an index
    4. ETFs give access to specialist market niches
  1. 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?
    1. There is no impact on Freya but if she disposes of the shares Lenny will then have to pay the outstanding CGT
    2. Holdover relief extinguishes Lenny’s CGT liability and Freya acquires the shares at the value at the time they are transferred to her
    3. 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%
    4. 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
  1. 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:
    1. 10:1.
    2. 20:1.
    3. 25:1.
    4. Zero.
  1. An assignment might be a chargeable event if it is:
    1. for a consideration
    2. a gift
    3. to a trust
    4. via a will

 

Answers

  1. D – See R01 Study Text, Chp 6
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. A – See R02 Study Text, Chp 6:2
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. D – See R03 Study Text, Chp 3
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. C – See R04 Study Text, Chp 2:1
    Grab our taster mock exam paper for CII R04. Click here to download.
  1. 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?

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

I've just answered this week's Friday Five CII exam questions - can you? #Fri5 Click To Tweet

 

Don't want to miss the Friday Five? Click here to sign up for email notification of new posts.