Friday Five – 7 April – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:32 am
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 2016/17, examinable by the CII until 31 August 2017. They do not relate to tax year 2017/18 which is only examinable by the CII from 1 September 2017.
- What must a firm establish before it can appoint someone as an appointed representative (AR)? Tick all that apply.
- The appointment won’t prevent the firm from satisfying the threshold conditions
- The firm has adequate controls over the person’s regulated activity
- The AR is already, and will continue to be, an authorised person
- The AR will act solely by making introductions and distributing advertisements
- The AR is solvent
- As an adviser, you have been asked to explain the Capital Gains Tax (CGT) implications for the trustees of a bare trust. You explain that: Tick all that apply.
- the trustees will be liable to CGT at a rate of 10%
- any chargeable gains are usually treated as the beneficiary’s
- the trustees will have a standard rate band of £1,000 to offset against gainss
- the beneficiary is liable for any CGT and can use the full annual exempt amount
- Molly was entitled to a tax-free cash sum of £400,000 at A-day, based on her £1m total pension fund. Upon crystallising benefits in 2016/17; enhanced protection of her £2m fund would result in a tax free lump sum of:
- How are the dividends from preference shares taxed?
- They are ineligible for inclusion in the dividend allowance, but other than that are taxed in the same was as other dividends
- They are eligible for inclusion in the dividend allowance and are taxed in the same way as other dividends
- They are treated as payments of interest and taxed as such
- They are treated as payments of interest but are not taxable on the investor
- Amy has telephoned her bank for mortgage advice. How may the initial disclosure requirement be met?
- In writing
- By post
- ABE – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- BD – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 2.2
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See J12 Study Text, Chp 1
Grab our taster mock exam paper for CII J12. Click here to download.
- C – See R07 Study Text, Chp 2
Grab our taster mock exam paper for CII R07. 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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