Friday Five – 27 July – 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 2017/18, examinable by the CII until 31 August 2018.  They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.

1. Which EU led requirements were incorporated into COBS?
   1. Conduct of Business
   2. MIFID
   3. Principle based requirements
   4. Banking conduct of business

2. Which of the following actions would HMRC most likely take into account when assessing if someone has acquired a new domicile status? Tick all that apply.
   1. Sally sells her Kensington flat to buy a new home for her and her family in Madrid
   2. Evan is travelling around America for 12 months and will then return to the UK
   3. Ross let out his property as he is spending an increasing amount of time in Sweden with his new girlfriend
   4. Poppy’s Australian business is flourishing so she has sold her UK home and bought an apartment in Sydney and told everyone she is emigrating

3. A self- employed individual gets higher rate tax relief on any personal pension contribution by:
   1. reducing their first payment on account by the amount of tax relief.
   2. reducing their second payment on account by the amount of tax relief.
   3. reducing their balancing payment by the amount of the tax relief.
   4. paying the pension contributions net of higher rate tax.

4. Frances has made a claim on the maturity of a second-hand life assurance policy and made a chargeable gain. Which of the following taxes will she be liable for?
   1. Income tax
   2. Income tax and capital gains tax
   3. Capital gains tax
   4. Income tax or capital gains tax depending on the amount of the gain

5. Clark will be providing discretionary management services to his new clients Beverly and Jim. Under FCA regulations, for how long must Clark’s firm retain the couple’s client agreement?
   1. For 3 years
   2. For 5 years
   3. For the duration of the relationship
   4. Indefinitely

Answers

1. B – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. AD – See R03 Study Text, Chp 5
   Grab our taster mock exam paper for CII R03. Click here to download.

3. C – See R04 Study Text, Chp 2:1
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See R05 Study Text, Chp 5
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See J10 Study Text, Chp 4
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)