Friday Five – 9 August – 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

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. Who would be deemed as having a restricted capacity to contract?
   

   i)	Someone under the age of 18
   ii)	Someone with a mental health condition
   iii)	Someone deemed to have limited experience
   iv)	Someone who is drunk

   1. i only
   2. i and ii only
   3. i and iii only
   4. i, ii and iv only

2. Which of the main overseas equity indices are value-weighted? Tick all that apply.
   1. Dow Jones Industrial
   2. S & P 500
   3. Nikkei 225
   4. DAX 30
   5. Hang Seng Index

3. Pauline died on 1st October 2018. Who will be responsible for the payment of any Inheritance Tax due on her estate, and when is it payable?
   1. Pauline’s legal personal representatives must pay any tax due by the 30th April 2019
   2. Pauline’s next of kin must pay any tax due by the 5th April 2019
   3. Pauline’s beneficiaries must pay any tax due by the 5th April 2019
   4. Pauline’s trustees must pay any tax due by the 1st October 2019

4. Which type of pension arrangement will ALWAYS provide benefits via a Scheme Pension?
   1. Retirement Annuity
   2. Occupational Defined Benefit
   3. Small Self-Administered Scheme
   4. Occupational Money Purchase

5. John assigns a qualifying endowment policy set up in 2011 with premiums of £500 per month to his 21-year-old son on 6th April 2018. His son must complete and return a written statement to the provider to determine whether it is non-qualifying or a restricted relief qualifying policy by the:
   1. 6th May 2018
   2. 6th July 2018
   3. 31st July 2018
   4. 30th October 2018

Answers

1. D – See R01 Study Text, Chp 3
   Grab our taster mock exam paper for CII R01. Click here to download.

2. BDE – See R02 Study Text, Chp 1:2
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. B – See R04 Study Text, Chp 2:2
   Grab our taster mock exam paper for CII R04. Click here to download.

5. B – 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.