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. When conducting a fact-find with a new client, employment details are important to understand in order to
A. establish if they are able to pay a fee for the advice.
B. understand any benefits provided by the employer e.g., sick pay, pension and to determine the client’s earned income.
C. allow the adviser to consider whether or not the employer’s group scheme might be affected by NEST.
D. determine if the client might be at risk of redundancy.
2. The following investors have each earned £1,000 in building society interest.
What is the total amount of interest that will actually be paid to them?
A. £3,000
B. £2,700
C. £2,400
D. £1,900
3. Nathan has recently invested in the following:
From the information given you can inform Nathan that
A. Income Tax relief on both investments is at the same rate.
B. investment can only be carried back to a previous tax year with the EIS.
C. both products invest in companies that are listed on the FTSE-100.
D. only gains reinvested in the SEIS qualify for a 50% Capital Gains Tax exemption.
4. Shakil has crystallised funds in a flexi-access drawdown (FAD) pension. In relation to potential death benefits, he should be aware that (Tick all that apply).
A. someone who isn’t a dependant can continue in FAD.
B. the fund can be returned tax-free where Shakil dies after age 75.
C. if there are no dependants the beneficiary can leave the fund on their death to charity.
D. the beneficiary can leave the FAD fund on their death to a successor.
5. Stephen, a financial adviser is reviewing his client’s protection needs. One of Stephen’s main concerns when looking at his client’s current assets vs their need for protection should be
A. are the client’s current assets liquid, as this will alter his protection recommendations.
B. what the client is willing to spend on their insurance policy over the term of the policy.
C. how the client’s current assets might impact on their eligibility for the personal independence payment.
D. the client’s existing debt to income ratio and how that will impact on his recommendation.
6. Joan has a tax bill of £10,000 which is due to be paid in three months’ time. Based on this, which of the following is likely to be the most important consideration for the lump sum?
A. Preserving the value of the capital.
B. Producing returns in excess of inflation.
C. The ability to maximise returns quickly.
D. Diversification across all asset classes.
7. When considering trading venues, the type of trading that typically occurs in dark pools is
A. large value, lower trading volume.
B. small value, lower trading volume.
C. large value, higher trading volume.
D. small value, higher trading volume.
8. Who should be able to claim carer’s allowance?
A. Jenna, who is aged 15 and a school student, who spends approximately 40 hours per week caring for her disabled mother.
B. Brian, aged 40, who has a part-time job earning £90 per week, who spends 20 hours a week caring for his elderly mother.
C. Karen, aged 55, who is unemployed and spends approximately 42 hours per week caring for her disabled son who is in receipt of disability living allowance.
D. Fred, aged 80, who receives State Pension of £137.60 per week, and is the full-time carer of his wife Doris who he lives with in the family home.
9. Who is liable for any Stamp Duty Land Tax (SDLT) on a home reversion plan?
A. The customer.
B. The home reversion provider.
C. The solicitor.
D. There is no SDLT in these circumstances.
10. Lifetime mortgages are typically only available to homeowners who are at least aged
A. 55
B. 60
C. 65
D. 75
