Friday Five – 9 March – 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. Which of the following is a responsibility of the Competition and Markets Authority?
   1. Investigating mergers
   2. Product terms being expressed in plain English
   3. Enforcement of consumer protection rules
   4. Monitoring those holding licences under the Consumer Credit Act

2. What information would you expect to find within the title of a bond?
   1. Risk rating
   2. Coupon
   3. Interest payment dates
   4. The primary market the bond was issued from

3. James is a non-UK domicile and his wife June is UK domiciled. James is considering making an election to become UK domiciled for IHT purposes. This is most likely because:
   1. he wants to be able to use the full spouse exemption
   2. he wants to avoid IHT on his worldwide property
   3. he wants to backdate the use of the wedding exemption
   4. he wants to ensure both can use their available nil rate bands

4. Who of the following might benefit from Fixed Protection 2016?
   1. Marcus who has previously applied for Primary protection but is concerned as his fund has now exceeded £2m.
   2. Siobhan who has accrued a pension fund of just over £1m but has not applied for primary or enhanced protection.
   3. Cheryl whose defined benefit scheme has exceeded £2.3m and already has enhanced protection in place.
   4. Bill whose fund stands at £800,000 but wishes to make contributions of the annual allowance over the next 5 years.

5. Frances has made a claim on the maturity of a second-hand life assurance policy and made a chargeable gain. Which of the following taxes will she be liable for?
   1. Income tax
   2. Income tax and capital gains tax
   3. Capital gains tax
   4. Income tax or capital gains tax depending on the amount of the gain

Answers

1. A – See R01 Study Text, Chp 4
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 1:1
   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. 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?

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