Friday Five – 6 December – 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 2019/20, examinable until 31 August 2020.

1. Which of the following statements are true in relation to the Data Protection Act 2018? Tick all that apply.
   1. It implements GDPR standards across all general data processing.
   2. It is limited to the UK GDPR provisions.
   3. The Information Commissioner continues to regulate and enforce data protection laws.
   4. The Information Commissioner can bring criminal proceedings in certain circumstances.
   5. The maximum fine for a serious data breach is £17m or 2% of global turnover.

2. If the economy is booming, what effect (if any) is it likely to have on the price of fixed interest securities?
   1. No effect
   2. Prices will rise
   3. Prices will need to be pushed up
   4. Prices will fall

3. Elaine is a basic rate taxpayer. She is also a beneficiary under a discretionary trust and has received net income of £1,650. Which of the following is correct regarding this income?
   1. Elaine is deemed to have received gross income of £3,000.
   2. The settlor of the trust will reclaim any tax on Elaine’s behalf.
   3. She has no further liability, but neither can she reclaim any tax.
   4. She will have a further liability less the amount taxed at source.

4. Which factor is of least concern to a member of an occupational defined benefit scheme?
   1. Future and current annuity rates
   2. Accrual rate
   3. Definition of pensionable remuneration
   4. Length of service

5. Marie has an onshore life assurance policy, and Claire has an offshore life assurance policy. The difference in the tax treatment of their funds is:
   1. Marie’s fund will be taxed at roughly the basic rate of income tax, while Claire’s fund will have gross roll-up.
   2. Marie’s fund will be taxed, but the tax is reclaimable while Claire’s fund will have a gross roll-up.
   3. Claire’s fund will be taxed at roughly the basic rate of income tax, while Marie’s fund will benefit from gross roll-up.
   4. Marie’s fund will be taxed and the tax is non-reclaimable, while Claire’s fund will be taxed but the tax is reclaimable.

Answers

1. A C D – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. A – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

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

5. A – 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?

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