Friday Five – 3 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.
IMPORTANT! These questions relate to examinable tax year 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.
- Marsha holds both index-linked and non-index-linked UK government gilts. You explain to her that her index-linked gilts increase:
- at a fixed rate determined at outset.
- in line with the Retail Prices Index.
- in line with the Consumer Price Index.
- in line with Average Weekly Earnings.
- Which of the following is true regarding an NS&I Guaranteed Income Bond?
- Interest is paid net of basic rate income tax.
- It is not possible to use the personal savings allowance against interest.
- Interest is paid gross but is taxable.
- It is possible to use the dividend allowance against returns.
- Tom is a trustee of the Davies family Interest in Possession trust. What rate of income tax will he be liable for, as trustee, on savings income?
- Joyce is about to retire and take the benefits from her defined benefit pension scheme, which she has been a member of since 2006. In payment, her benefits must increase by a minimum of:
- CPI to a maximum of 5%.
- CPI to a maximum of 2.5%.
- CPI to a maximum of 3%.
- CPI to a maximum of 1%.
- Emma took out an income protection policy in June 2006 and has now been living and working in Thailand for the last 15 months. How is this likely to affect her policy?
- It is likely that benefits would only be paid for a maximum of six months.
- It is likely to be suspended or cancelled.
- It is likely that her premiums will have to be substantially increased.
- It is likely that the term of the policy will be reduced to a maximum of age 50.
- B – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 1:1
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04 Click here to download.
- B – See R05 Study Text, Chp 6
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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