Friday Five – 7 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 2018/19, examinable until 31 August 2019.

1. The essence of outcomes-based regulation is about the regulator:
   1. having rules to cover every specific situation
   2. providing tangible standards for firms to achieve
   3. setting out general terms for the types of behaviour they expect to see
   4. making judgments on what might happen in the future

2. If the Bank of England tightened Monetary Policy and increased short-term interest rates, what effect might this have? Tick all that apply.
   1. Increased consumer demand
   2. Longer-term interest rates raised
   3. Consumers reducing expenditure as they would be less willing to take on credit
   4. Lower longer-term interest rates

3. Which of the following is most likely to be classed as a gift with reservation for IHT purposes by HMRC?
   1. Simon gives away his holiday home to his sister but continues to stay there paying full market rent
   2. Elaine gives away her antique jewellery to her daughter but cleans it annually
   3. Edmond gives his son his share portfolio but retains the right to dividends from it
   4. Andrea gives her antique chairs to her brother but always sits on them when she visits

4. In 2018/19, Paul receives a salary of £116,000. He has savings interest of £1,000 and dividend income of £40,000. Paul is a member of his employer’s occupational defined contribution pension scheme and contributions are paid via the net pay arrangement. In 2018/19 Paul pays £20,000 gross to the scheme and his employer pays £10,000.

   Calculate Paul’s tapered annual allowance.

   1. £31,500
   2. £30,000.
   3. £28,000.
   4. £25,000.

5. Which of the following is one of the typical exclusions under a personal accident and sickness insurance policy?
   1. Loss of a leg
   2. Permanent disablement
   3. Death
   4. Normal pregnancy

Answers

1. D – See R01 Study Text, Chp 9
   Grab our taster mock exam paper for CII R01. Click here to download.

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

3. C – See R03 Study Text, Chp 4
   Grab our taster mock exam paper for CII R03. Click here to download.

4. A – See R04 Study Text, Chp 2.1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. 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?

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