Friday Five – 30 November – 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

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

1. Under which of the following circumstances must the FCA notify a person who is subject to an investigation?
   1. Possible insider dealing investigation
   2. Market abuse investigation
   3. Falsely describing themselves as authorised
   4. A misleading statement investigation

2. An investor buys shares in a FTSE 100 company electronically through the CREST system at a cost of £900. Which of the following is true regarding their liability to stamp duty reserve tax?
   1. As the transaction is below £1,000, they will not be liable.
   2. They will be liable to SDRT of £4.50.
   3. As they are buying shares rather than selling them, they will not be liable.
   4. They will be liable to SDRT of £5.

3. John is employed full time in a local school but in his spare time makes children’s toys. His earnings for this are £100 per week. Which of the following National Insurance Contributions must John pay on these self-employed earnings?
   1. Class 2 only
   2. Class 3 only
   3. Class 4 only
   4. He is not obliged to make any contribution.

4. In considering ISAs as a means of building up funds for retirement, your client should be aware that: Tick all that apply.
   1. Tax relief is available at basic rate.
   2. Equity ISA funds have the same tax treatment as a pension fund.
   3. ISAs may not provide the maximum savings input that a high earner may desire.
   4. There is no need to purchase an annuity or secure an income.

5. When a claim is made for the payment of a critical illness benefit, on which of the following is the onus to prove the validity?
   1. The life office’s chief medical officer
   2. The life office
   3. The policyholder
   4. The medical establishment which made the diagnosis

Answers

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

2. B – See R02 Study Text, Chp 8/1:2
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. BCD – See R04 Study Text, Chp 8
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See R05 Study Text, Chp 7
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.