Friday Five – 30 March – 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 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.
- The rules around the selling and marketing of general insurance and pure protection life policies are contained within which of the following?
- Sue is a basic rate taxpayer and David is a higher rate taxpayer. They have recently invested in the following investments:
From this information, you can advise Sue and David that:
Name Type Investment Current Value Sue Venture Capital Trust £50,000 £60,000 David Enterprise Investment Scheme £50,000 £29,000
- Sue received more tax relief on her investment than David
- only the dividends on David’s investment are tax free up to £200,000
- only David could have deferred capital gains by reinvesting in EIS shares
- Sue must retain her shares for 5 years to enjoy CGT exemption
- The Trustees of a defined benefit scheme have developed a Recovery Plan for the scheme. This would indicate that the scheme:
- is in deficit.
- was contracted out of S2P.
- has been taken over by the PPF.
- is changing the benefit structure.
- Doreen has savings and investments of £20,000. How much tariff income will her local authority deem her to have?
- £11.50 per week
- £15.00 per week
- £23.00 per week
- £80.00 per week
- Company X announces a 1:2 rights issue at £4.00. The shares are currently trading at £5.50. What is the theoretical ex-rights price of the shares?
- A – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See R05 Study Text, Chp 8
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See J12 Study Text, Chp 7
Grab our taster mock exam paper for CII J12. 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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