For the 2024 exam season, Professional Paraplanner has teamed up once again with Brand Financial Training to answer your questions on the exams ahead. In this article, the Brand team answer paraplanner questions specific to the J02 and AF1 exams.
J02
Q: Please can you help me gain a better understanding as to how trusts work for my J02 exam?
J02 is a very technical exam, you will need to know and understand the J02 syllabus. You will see from the examiners’ comments that lack of technical knowledge is the main reason for candidates losing marks.
The J02 study text is a great place to start with your technical revision but if you did not want to purchase the book then this government guide is particularly useful:
Trusts and taxes: Overview – GOV.UK (www.gov.uk)
Even if you do buy the study text, you may find this website useful in explaining some of the more complex areas of the syllabus.
Usually, the J02 paper has a mixture of questions that have been asked many times before, along with more challenging technical areas (for example back-to-backs or discretionary trust IHT charges). So, using the CII past exam guides and a range of mocks papers will also help with your understanding of the technical subjects likely to come up in your exam. Our advice would be to not sit the exam until you are ready.
Q: How should I approach exam technique for the J02 exam?
J02 will ask open-ended questions designed to assess your knowledge and understanding. It is a ‘short answer’ paper, so bullet points are suggested. You’ll also need to ensure that you provide enough detail to demonstrate your understanding and relate your answers to the client in scenario-based questions.
For any answers that involve a calculation, will need to show all your workings and make sure you include each step; even if your final answer is wrong, you could still pick up the majority of the marks if your workings are correct.
Focus on the questions you are comfortable in answering. You are sure to find some questions easier than others, so focus on these rather than spending endless time on the harder questions, where you are less likely to pick up marks. You can come back to any incomplete questions at the end.
Have a go – your initial thought may be that you don’t know the answer, but if you’ve done your prep then once you start trying to answer a question it might trigger a memory which may enable you to get some of the marks. There is no negative marking, so you won’t lose marks for incorrect answers.
Finally, of course, thorough preparation and use of past exam papers and mock papers will always stand you in good stead for your exam.
AF1
Q: Are there any new areas/changes that you expect to be tested in the February AF1 exam this year?
Any changes could always potentially be tested in the following year’s AF1 exams but the firm favourites that always come up are where your main focus should be, such as the main tax calculations, powers of attorney and residence rules.
The February exam will be tested based on 2023/24 tax rates but with any AF exam it’s important you are up to speed with relevant industry news, taxation and legislation updates. Subjects such as the plans to remove the £1,000 standard rate band for trusts, NIC changes, CGT AEA and dividend allowance reductions may not be specifically tested but demonstrating your knowledge of forthcoming changes may pick you up some marks along the way.
Note the CII have confirmed that the National Insurance Contributions changes that came into force on 6 Jan 2024 will not be tested until the end of Feb – so the old rates will be tested for February’s AF1 exam.
Q: What are your top tips for exam success on the day of the AF1 exam?
As with J02, use bullet points, they’ll save you time and they make it easier for you to check your answers. They’re also great for your examiner as bullets make marks easier to spot.
A recurring theme in examiners comments for AF1 is that candidates do not relate their answers to the clients. So, when answering an AF1 question, be sure to make your answer relevant to the circumstances of the client. For example, don’t give an estate a residence nil rate band when there aren’t any direct descendants.
Don’t forget to state the obvious – most marks will be for more technical points, and no doubt some very niche technical points (it is an AF exam after all), but there will be some basic marks on offer too. So, for example, if a retired person can only contribute £3,600 to a pension, we know it’s because they have no relevant UK earnings but write it down – sounds easy when you spell it out, but keep it in mind!
Answer the question being asked. Think about what the examiner is looking for before committing to answer the question. When you check through your questions at the end read the question again and ask yourself if you’re answering the specific question being asked. For example, in the February 2022 paper, candidates were asked to ‘Explain the responsibilities of the executors, Ariana and Christos, in respect of the reporting and payment of the IHT liability on Cora’s estate.’ Unfortunately, many candidates answered the question as if it had said ‘Explain the responsibilities of the executors Ariana and Christos.’ This is quite a different question and candidates would only have been awarded marks if any of their points related to the reporting and payment of the IHT liability. Read and re-read the question
In terms of the day itself, make the exam your priority. Get a good night’s sleep the night before, have a healthy, protein rich breakfast, and make sure you’re not rushing to get to your exam on time. Reducing the stress of things like being late can help you to feel much more relaxed and focused.
About Brand Financial Training
Brand Financial Training provides a variety of immediately accessible free and paid learning resources to help candidates pass their CII exams. Their resource range ensures there is something that suits every style of learning including mock papers, calculation workbooks, videos, audio masterclasses, study notes and more. Visit Brand Financial Training at https://brandft.co.uk
Main image: joanna-kosinska-1_CMoFsPfso-unsplash
