Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, Professional Paraplanner’s Development Zone can help.
Every month, in conjunction with Brand Financial Training, we provide a series of questions from across the syllabus which aim to test your knowledge of the financial services market, as part of your overall self development training goals and exam techniques.
The following questions relate to examinable Tax year 24/25, examinable by the CII until 31 August 2025.
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. Which of the following statements are true in relation to the Data Protection Act 2018? (Tick all that apply.)
A. It is limited to the UK GDPR provisions.
B. The Information Commissioner continues to regulate and enforce data protection laws.
C. The Information Commissioner can bring criminal proceedings in certain circumstances.
D. The maximum fine for a serious data breach is £17m or 2% of global turnover.
2. If the value of the pound fell, what effect (if any) would this normally have on the share price of major exporters?
A. They would fall.
B. They would be marked down.
C. There would be no effect.
D. They would rise.
3. Amanda is selling her flat and buying a larger residential property in Manchester for £380,000. She has agreed with the vendor that this includes £5,500 for all of the white goods, carpets, and curtains. How much Stamp Duty Land Tax is payable?
A. £6,225
B. £8,725
C. £9,345
D. £10,500
4. Bob crystallised a defined contribution fund valued at £500,000 in 2015/16 when the lifetime allowance was £1.25m, taking the maximum PCLS. He had no lifetime allowance protection and no scheme specific lump sum protection. He has asked his financial adviser about the remaining lump sums available to him. Bob’s adviser should make him aware that
A. he will have a remaining lump sum allowance of £143,275.
B. he will have a remaining lump sum allowance of £160,965.
C. he should apply for a transitional tax-free amount certificate.
D. his lump sum allowance will increase if he delays taking further benefits.
5. Under total and permanent disability, the strictest definition in terms of when a critical illness cover would pay out, is that the client would be unable to
A. work in a suited occupation ever again.
B. look after themselves ever again.
C. do their own occupation ever again.
D. complete three specified work tasks ever again.
6. A company’s dividend yield is found by dividing the dividend per share by the
A. number of ordinary shares in issue.
B. earnings per share and multiplying by 100.
C. net asset value.
D. current share price and multiplying by 100.
7. An investment manager has purchased £100,000 worth of AIM shares and £100,000 worth of direct shares. Both were paperless transactions. How much Stamp Duty Reserve Tax was she liable to pay?
A. Nil
B. £500
C. £1,000
D. £2.000
8. Which Act established a body to register and to regulate the provision of health care in England?
A. National Assistance Act 1948.
B. Care Standards Act 2000.
C. Care Act 2014.
D. Mental Health Act 1983.
9. Dolores, aged 70, is single and owns a property valued at £400,000. She has a good level of index-linked pension income. If she takes out a lifetime mortgage for £75,000 and gifts the proceeds to her three nephews and nieces, she might avoid
A. Inheritance Tax.
B. Capital Gains Tax.
C. Council Tax.
D. Income Tax.
10. Marian is in the unfortunate position where the mortgage loan she has on her family home is, in fact, greater than its current market value. This is known as
A. negative marketing.
B. market value reducer.
C. negative equity.
D. reducing debt.
