Friday Five – 8 November – 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 2019/20, examinable until 31 August 2020.
- How does the Insurance Conduct of Business Sourcebook (ICOBS) categorise insurance products?
- According to commission basis, i.e. nil, upfront or trail
- Term assurance, whole of life and income replacement
- Life and critical illness, general insurance and income protection
- General insurance, pure protection and payment protection insurance
- What are the principal factors affecting investment strategy that you expect to find documented within an Investor Policy Statement? Tick all that apply.
- Client circumstances
- Past performance
- Cash flow requirements
- Legal constraints
- Nature of liabilities
- Desmond, a UK domicile, is the settlor of an offshore trust where the trustees have made a £25,000 capital gain in this tax year. Which of the following statements regarding liability for any CGT are correct? Tick all that apply.
- Desmond is liable but only if he has an interest in the trust
- Desmond is liable if he is UK resident this tax year and has an interest in the trust
- Desmond would not be liable if the trust was created after 06/04/99
- Where gains are not taxed on Desmond, UK resident beneficiaries will be liable on the distribution of any chargeable gains
- Helen retired some years ago and now permanently lives overseas. Her State pension is NOT increased each April which would suggest she:
- has an insufficient NIC record.
- has a Category B pension.
- lives in a country with no reciprocal social security agreement with the UK.
- commuted the increases for a tax-free lump sum.
- Matthew has surrendered an offshore life assurance policy. What rate, or rates, of income tax will he be potentially liable for on any chargeable gain?
- Higher or additional rates only
- Basic rate only
- Basic rate, higher rate or additional rate
- Any gain will be free of income tax
- D – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- CDE – See R02 Study Text, Chp 8
Grab our taster mock exam paper for CII R02. Click here to download.
- BD – 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 7
Grab our taster mock exam paper for CII R04. Click here to download.
- C – 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?
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