Friday Five – 4 September – 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 2020/21, examinable by the CII until 31 August 2021.
- Which of the following is an example of a global regulatory body?
- The European Systemic Risk Board
- The Prudential Regulation Authority
- The Financial Action Task Force
- The Bank of England
- Fund A has a return of 12%, a benchmark return of 10%, and a tracking error of 6%. Fund B has a return of 11%, a benchmark return of 10%, and a tracking error of 5%. From this information, you can say that the: Tick all that apply.
- higher the positive information ratio, the higher the value added by the fund manager through active management.
- information ratio for fund A is 0.33.
- information ratio is used to assess risk-adjusted performance.
- fund manager of fund B has added the most value.
- Phil doesn’t receive a tax return but made a significant gain when he sold his portfolio of shares on 7th April 2020. By what date must he tell HMRC, and when must he pay any capital gains tax?
- By 5th April 2021 and paid within 6 months of the gain being made
- Within 6 months of the gain being made and paid by 5th April 2021
- Within 28 days of the gain being made and paid by 5th April 2021
- Within 6 months of the end of tax year 2020/21 and paid by 31st January 2022
- In June 2006, Alan crystallised a Retirement Annuity fund of £750,000 when the lifetime allowance was £1.5m. A further crystallisation event takes place in 2020/21 when he takes a defined benefit scheme pension of £48,000 p.a. and a pension commencement lump sum (PCLS) of £129,050. If any excess over the lifetime allowance is taken as a lump sum, the tax charge will be:
- Systemis Ltd pays the premiums for a group personal accident and sickness insurance for their employees. How is this treated in relation to the company’s taxation?
- There is no tax advantage for the company.
- They receive tax relief at 20% on the premiums paid.
- The cost is deducted from their tax liability.
- It is treated as an allowable business expense.
- C – See R01 Study Text, Chp 1
Grab our taster mock exam paper for CII R01. Click here to download.
- ABC – See R02 Study Text, Chp 11
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2
Grab our taster mock exam paper for CII R04 Click here to download.
- D – See R05 Study Text, Chp 9
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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