Friday Five – 26 June 2015 – 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.
Don’t be too harsh with yourself – remember this is for FUN!
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.
- What are the main features of a defined benefit pension scheme?
- Individual member’s funds can be identified within the scheme
- A fund administered by trustees where the pension is earnings related
- Pensions received in retirement are investment related
- Employers always know what the cost of providing the scheme will be
- What portfolio(s) would you expect from an efficient frontier model?
- An optimal portfolio with the lowest level of risk
- A set of portfolios representing the maximum return for every given level of risk
- An optimal portfolio to produce the highest level of return
- A set of portfolios representing the minimum risk that can be achieved
- 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
- Molly was entitled to a tax free cash sum of £400,000 at A-day, based on her £1m total pension fund. Upon crystallising benefits in 2014/15; enhanced protection of her £2m fund would result in a tax free lump sum of:
- Caroline held an own life with-profits life assurance policy. On her death, the amount payable on the claim will vary depending on which of the following factors?
- The amount of premiums paid over the term
- Her age
- The sum assured
- The exact date of death
- B – See R01 Study Text, Chp 2 Section B8B
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 3 Section A3
Grab out taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 3 Section A
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 2.2 Section F6B
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R05 Study Text, Chp 4 Section G2
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?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)