Friday Five – 4 October – 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.
- What benefits could a building society member expect in the event of demutualisation?
- Lower interest rates on borrowings
- Higher interest rates on savings
- Increased product range
- Cash or shares in the new company
- What effect (if any) would gearing have on a positive portfolio return?
- No effect
- Magnify the positive return
- Reduce the positive return
- Defer the positive return
- Amanda is considering a future transfer of her son’s Child Trust Fund to a Junior ISA. She should be aware that: Tick all that apply.
- the tax position of the fund is the same for both products
- her son can withdraw the proceeds when he reaches 18
- payments are cumulative so can be made up in later years
- income generated of more than £100 will be taxed on her
- Max is a client of yours who has always invested any surplus income in the stock market. He now wishes to set up a pension arrangement where he can continue to do this. Which of the following would be suitable for him?
- A self-invested personal pension.
- A small self-administered scheme.
- A retirement annuity contract.
- A Stakeholder plan or personal pension.
- Arthur, an additional rate taxpayer, has purchased an immediate needs care plan to part-fund his domiciliary care costs. He has arranged for the benefits to be paid directly to him as he uses a number of care providers. How will the benefits be taxed?
- They will be treated as a withdrawal from the bond and there will be no tax if it does not exceed 5% per annum of the amount invested
- They will be liable to tax at the higher rate of 45%
- They will be tax free
- They will be liable to 25% tax
- D – See R01 Study Text, Chp 1
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 5
Grab our taster mock exam paper for CII R02. Click here to download.
- AB – See R03 Study Text, Chp 12
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 5
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R05 Study Text, Chp 5
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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