Friday Five – 31 July 2015 – 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.
Here we go…
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.
- Who carries the compliance responsibility for an appointed representative?
- The individual carries their own responsibility
- The FCA
- The firm’s principal
- The introducer
- A corporate bond fund (with more than 60% of its assets in interest bearing securities) pays interest distributions. What tax is applicable on the amount distributed?
- Corporation tax at 20%
- Income tax at 20%
- 10% savings tax
- 10% tax credit
- Elaine is a basic rate taxpayer. She is also a beneficiary under an Accumulation and Maintenance trust and has received net income of £1,650. Which of the following is correct regarding this income?
- Elaine is deemed to have received gross income of £3,000
- The settlor of the trust will reclaim any tax on Elaine’s behalf
- She has no further liability but neither can she reclaim any tax
- She will have a further liability less the amount taxed at source
- Which of the following would be seen as an advantage in drawing benefits through a Phased Retirement plan?
- Full tax-free cash at the outset.
- Funds can be used to provide unlimited withdrawal amounts.
- Potential for higher tax free death benefits.
- Mortality Drag.
- Susan bought £1000 nominal value of Treasury 7% 2014. What interest payment can she normally expect to receive?
- £70 every year
- £5.80 every month
- £35 every 6 months
- £23.33 quarterly
- C – See R01 Study Text, Chp 5:2 Section H3A
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 6:1 Section C8
Grab out taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 1 Section K5B
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 6:2 Section E2
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See J12 Study Text, Chp 2 Section C1A
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?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)