Friday Five – 28 February – 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.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- Premiums for payment protection insurance contracts must be:
- paid by monthly contribution added to the loan
- paid by lump sum contribution added to the loan
- paid monthly
- paid weekly
- If a savings account accrues 10% interest payable on a quarterly basis, what would the interest accumulation factor be?
- 2.5% compounded quarterly
- 10% compounded quarterly
- 1.25 to the power of 4
- Simon is considering using a discretionary trust to make provision for his children and future grandchildren as well as to mitigate his own Inheritance Tax (IHT) position. He should be aware that: Tick all that apply.
- the transfer in is a chargeable lifetime transfer
- capital distributions to a beneficiary may trigger an exit charge
- the beneficiaries are entitled to an equal amount of income and capital
- if a beneficiary dies, there is no charge to IHT on the beneficiary’s estate
- Andrew, aged 66, was in capped drawdown prior to 5 April 2015. The following information is available relating to Andrew.
Fund, after PCLS, is £300,000 GAD rate is £56 per £1,000 Gilt yield on 15th of previous month = 2.37%
Which of the following rules will apply to him? Tick all that apply.
- The gilt yield used when calculating maximum withdrawal rate will be 2.25%.
- Maximum income available is £25,200.
- Minimum income is zero.
- Income reviews must be annual.
- Basic Personal Care is means-tested in every country in the United Kingdom except?
- Northern Ireland
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 4
Grab our taster mock exam paper for CII R02. Click here to download.
- ABD – See R03 Study Text, Chp 4
Grab our taster mock exam paper for CII R03. Click here to download.
- ABC – See R04 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R04 Click here to download.
- D – See CF8 Study Text, Chp 3
Grab our taster mock exam paper for CII CF8. 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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