Friday Five – 8 September – 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 2017/18, examinable until 31 August 2018.

1. Under which of the following would it NOT be required to disclose your status?
   1. E-mail
   2. Fax
   3. Text message
   4. Letter

2. Numerous studies have attempted to determine the validity of the Efficient Market Hypothesis. Within this, which of the following markets is regarded as the most efficient?
   1. Venture capital
   2. Small caps
   3. Large caps
   4. Less well-known stocks

3. Sonya, aged 50, is a self-employed book-keeper and has profits for this tax year of £48,000. Her total liability to National Insurance will be:
   1. £3,403.44
   2. £3,463.44
   3. £3,523.44
   4. £4,628.32

4. Guaranteed Minimum Pension (GMP) benefits between 1978 and April 1988 were:
   1. fully inflation proofed, paid entirely by the State.
   2. fully inflation proofed, with the State paying any RPI in excess of 3%.
   3. fully inflation proofed, paid entirely by the Scheme.
   4. inflation proofed, with the scheme paying up to a maximum of 2.5%.

5. Alex sells a buy-to-let property in this tax year and makes a gain of £35,000. The total costs incurred during both purchase and sale was £16,800. He has not used his annual exempt amount. Alex remains a basic rate taxpayer after the sale. How much CGT is due?
   1. £690
   2. £1,242
   3. £1,380
   4. £1,932

Answers

1. C – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 3
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 2
   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. B – See R07 Study Text, Chp 8
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)