Friday Five Focus on Taxation – 4 August – 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 2022/23, examinable by the CII until 31 August 2023. They do not relate to tax year 2023/24 which is only examinable by the CII from 1 September 2023.
- Alex has recently bought £5,400 worth of shares through an online platform provider. Which of the following is he liable for?
- Stamp duty of £30.
- Stamp duty of £27.
- Stamp duty reserve tax of £30.
- Stamp duty reserve tax of £27.
- James incurs the following expenses on his rental property. Which of the following is an allowable expense against his rental income?
- Plumber’s charge to repair the shower.
- Capital repayments on his mortgage payments.
- An extension to the side of the house.
- An upgraded kitchen and bathroom.
- Sally has a holiday home in Cornwall that she is now considering letting out commercially. To gain certain tax advantages it must qualify as a ‘furnished holiday let’ which means that
- it must be in an acknowledged holiday resort.
- it must be available for commercial let for at least 210 days in total in a tax year.
- it must be actually let for at least 90 days in total in a tax year.
- the tenants occupying the property must be on holiday.
- Bernard made a £14,000 loss on a disposal in this tax year whereas his wife Betty made a substantial gain. Which of the following is he permitted to do?
- Carry the loss forward to use in future years with an adjustment for inflation.
- Carry the loss forward to use against future gains using only enough to reduce future gains to the annual exempt amount.
- Offset his loss against the gain Betty has made in the same tax year.
- Offset the loss up to the annual exempt amount against Betty’s gain and carry forward the surplus to use in future years.
- What do promoters of tax avoidance schemes receive from HMRC in the event of their scheme being registered?
- A reference number.
- A fixed penalty.
- A 6-month timescale to wind up the scheme.
- Sanctions to be used in all promotions.
Answers
- D – See R03 Study Text, Chp 7
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R03 Study Text, Chp 9
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R03 Study Text, Chp 9
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03 Click here to download.
- A – See R03 Study Text, Chp 11
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?
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