Friday Five Focus on Taxation – 1 March – 5 Questions in 5 Minutes

Friday Five Focus on Taxation – 5 Questions in 5 Minutes Every Friday

What’s this all about?

Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Taxation; this is useful as you prepare for the CII’s R03 or AF1 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 2023/24, examinable by the CII until 31 August 2024.

1. Thomas is an additional-rate taxpayer and makes a gift aid payment of £5,000 to a charity. How much can the charity reclaim from HM Revenue & Customs?
   1. £500
   2. £1,000
   3. £1,250
   4. £2,250

2. Tim has recently started a job with a company car which has been adapted for his limited mobility. Which of the following would be taken into account when calculating the taxable benefit?
   1. Any discount offered by the car dealer.
   2. Provision of a car phone.
   3. The car’s level of C0₂ emissions.
   4. The cost of the adaptations for Tim.

3. Sylvia is hoping to make up a gap in her National Insurance contributions record by paying Class 3 contributions. Which of the following must she be aware of?
   1. She must satisfy a residence condition.
   2. They do not increase entitlement to State pension.
   3. The contributions are collected weekly by demand.
   4. She can make Class 3 contributions after she reaches State pension age.

4. Pippa died in the tax year 2002/2003 using 50% of the then Inheritance Tax nil-rate band of £250,000. If her husband David dies in this tax year, his executors could apply for the standard nil rate band to be extended to:
   1. £650,000.
   2. £487,500.
   3. £450,000.
   4. £325,000.

5. Natalie is a company director and is paid a flat fee of £20,000. Her National Insurance contributions will be calculated by
   1. averaging her earnings over the last three years and applying the appropriate rates on a monthly basis.
   2. considering her total earnings from the start of the tax year and using the annual limits.
   3. applying the annual National Insurance limits to each fee she receives.
   4. deferring the National Insurance calculation until the end of the tax year.

Answers

1. C – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

2. C – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

3. A – See R03 Study Text, Chp 2
   Grab our taster mock exam paper for CII R03. Click here to download.

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

5. B – See R03 Study Text, Chp 2
   Grab our taster mock exam paper for CII R03. 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.