Friday Five – 5 February – 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 2015/16, examinable until 31 August 2016.
- What is an approved person?
- Someone who carries out a controlled function
- Someone who is authorised by the FCA
- Someone holding a position in senior management
- The principal of a firm who ultimately bears responsibility for compliance
- Which are the main indices used when assessing US stocks? Tick all that apply.
- The Dow Jones Industrial Average
- Standard & Poor’s (S&P) Composite
- The NASDAQ Composite
- DAX 30
- Martin and Suzanne are the trustees of a discretionary trust where the investment portfolio is made up mainly of equities. They are concerned with the capital gains tax (CGT) implications of any future disposals they make. Which of the following statements are correct? Tick all that apply
- Trust gains are taxed at the threshold rates of 18% and 28%
- Gains are calculated on the difference between the acquisition cost and the market value
- Trustees can elect holdover relief on any disposal
- If the settlor subsequently acquires an interest any holdover relief claimed when the trust was set up will be clawed back
- A savings account has a quoted rate of interest of 8%; the interest is payable half yearly. What is the effective annual rate of interest?
- Peter died in May 2015 at the age of 71. When he died he had an uncrystallised self-invested personal pension fund valued at £450,000 and his wife Mary was his nominated beneficiary. In August 2015 Mary uses the pension fund to buy a lifetime annuity of £24,000 per annum. What amount, if any, will be tested against Peter’s remaining lifetime allowance?
- A – See R01 Study Text, Chp 9 Section C1
Grab our taster mock exam paper for CII R01. Click here to download.
- ACD – See R02 Study Text, Chp 1:2 Section C6D
Grab our taster mock exam paper for CII R02. Click here to download.
- BCD – See R03 Study Text, Chp 3 Section I1
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See J12 Study Text, Chp 3 Section A3D
Grab our taster mock exam paper for CII J12. Click here to download.
- B – See R08 Study Text, Chp 5 Section D38
Grab our taster mock exam paper for CII R08. 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!)