Every month Professional Paraplanner teams up with Brand Financial Training to provide a series of questions from across the CII syllabus to test your knowledge.
Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, Professional Paraplanner’s Development Zone can help.
These questions relate to examinable Tax year 25/26, examinable by the CII until 31 August 2026.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
We hope you find our Q&A useful in achieving your qualifications.
QUESTIONS
1. What are the main provisions under the E-commerce directive rules? (Tick all that apply.)
A. FCA status disclosure and Financial Services Register number must be given.
B. Orders must be accepted.
C. Customers must be told clearly how to place an order.
D. Orders must be acknowledged within 24 hours of receipt.
2. An investment has a high standard deviation around the expected return. This tells us that the investment
A. would be classed as low risk.
B. has low correlation with other asset classes.
C. is producing returns broadly in line with expectations.
D. would be considered volatile and risky.
3. Jamie is considering selling his business but is concerned about the potential Capital Gains Tax liability. You explain to him that he can claim business asset disposal relief as long as
A. he has owned the business for at least two years prior to selling.
B. as shareholder, he holds at least 10% of the voting rights.
C. he has made taxable profits in excess of £500,000 for three consecutive tax years.
D. he hasn’t exceeded the lifetime limit of £5m of gains that qualify.
4. The minimum employer contribution for auto-enrolment purposes since 6 April 2019 is
A. 3% of total earnings.
B. 3% of qualifying earnings.
C. 8% of qualifying earnings.
D. 8% of total earnings.
5. The rates for premiums on income protection policies are not impacted by
A. deferred period.
B. age.
C. marital status.
D. occupation.
6. Jamie is considering the investment approach to take for his clients Wendy and Dan. They both have a medium attitude to risk and are looking to invest around £80,000. Jamie might decide to use a tracker fund for their core holdings to
A. meet short-term tactical objectives.
B. maintain the risk and return in line with market average.
C. achieve superior performance through active selection.
D. beat the benchmark index.
7. An investor buys £2,000 worth of 6% Treasury Stock 2030 priced at £106.16. What is the flat yield?
A. 17.6%
B. 7.6%
C. 5.66%
D. 5.65%
8. What is the current weekly level of the personal expense allowance in England that individuals needing care are allowed to keep for items such as newspapers and toiletries?
A. £14.90
B. £31.80
C. £34.90
D. £44.90
9. The customer most likely to be affected by an increase in the Bank of England’s base rate is
A. Eloise, who has a partial home reversion plan.
B. Kenneth, who has an interest-only mortgage.
C. Clara, who has a full home reversion plan.
D. Graham, who has a shared appreciation mortgage.
10. Belinda is a full-time carer to her increasingly frail mother who has come to live with her. As she is unable to work, Belinda rents out one of the otherwise unused rooms in her family home to a local student. She should be aware that under the rent-a-room scheme
A. only one room can be rented at any one time.
B. the room must be unfurnished.
C. the student should deduct basic-rate tax from the rent before giving to Belinda.
D. the rent of £4,000 per year will not be subject to Income Tax.
