Friday Five Focus on Taxation – 10 June – 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 2021/22, examinable by the CII until 31 August 2022. They do not relate to tax year 2022/23 which is only examinable by the CII from 1 September 2022.

1. Martin is considering investing in gilt-edged securities. He should be aware that: Tick all that apply.
   1. interest is usually paid twice a year.
   2. interest is taxed on a current year basis as earned income.
   3. he can sell them at any point on the stock exchange.
   4. he can claim any losses against future capital gains.

2. Assuming all of the following individuals are UK-resident but non-UK domiciled, which of them could claim the remittance basis without having to pay the annual tax charge? Tick all that apply.
   1. Sarah who is aged 20
   2. Claire who has been resident in the UK for 5 out of the last 9 years
   3. Alex who is aged 16
   4. Leo who has unremitted overseas income for the year of £3,000
   5. Duncan who has unremitted overseas income for the year of £1,800

3. Gillian has recently invested £20,000 into each of the following investments: UK listed shares, a Corporate Bond and a UK domiciled Exchange Traded Fund. What amount of Stamp Duty Reserve Tax will Gillian pay in total?
   1. Nil
   2. £100
   3. £200
   4. £300

4. Which of the following is a taxable benefit for all employees?
   1. Liability insurance
   2. Group income protection
   3. Private medical insurance
   4. A mobile phone

5. Steven has rental properties in the UK, Spain, the Maldives, and the USA. Which of them could qualify as furnished holiday lets?
   1. All of the properties
   2. The UK and the USA properties
   3. The UK and Maldives properties
   4. The UK and Spain properties

Answers

1. AC – See R03 Study Text, Chp 9
   Grab our taster mock exam paper for CII R03. Click here to download.

2. BCE – See R03 Study Text, Chp 12
   Grab our taster mock exam paper for CII R03. Click here to download.

3. B – See R03 Study Text, Chp 7
   Grab our taster mock exam paper for CII R03. Click here to download.

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

5. D – See R03 Study Text, Chp 9
   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.