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.
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.
Questions
1. In relation to the Electronic Identity Verification (eIDV) of clients, which of the following statements are correct? (Tick all that apply.)
A. It is no longer being used to identify clients.
B. It is limited to publicly available databases.
C. It can flag-up early if there are inconsistencies.
D. The outcome could be a match, a non-match, or a partial match.
2. If domestic goods have become more expensive relative to foreign goods, this indicates that
A. the real exchange rate has risen.
B. exchange rates have been fixed between the two countries.
C. the real exchange rate has fallen.
D. the countries operate a floating exchange rate regime.
3. Maureen, a higher-rate taxpayer, bought a limited-edition print in May 2010 for £2,500. She sold it in June 2024 for £6,250. In September 2024, she subsequently sold a second print for £14,000. This had been purchased in July 2011 for £5,000. What is Maureen’s Capital Gains Tax liability in 2024/25?
A. £83.66
B. £641.66
C. £1,283.33
D. £1,883.33
4. Defined benefit pension schemes represent an open-ended liability for employers, but which factor does NOT directly contribute to their potential liability?
A. Age and marital status of the members.
B. Number of deaths prior to retirement.
C. Returns of the underlying investments.
D. Company profits.
5. With a claim under a critical illness policy, the onus of proof is on the
A. life office.
B. policyholder.
C. policyholder or their spouse.
D. personal representatives of the policyholder.
6. Interest rate risk is particularly important for fixed income or floating/variable rate securities. Which of the following factors would tend to have the effect of reducing short-term interest rates?
A. Quantitative easing.
B. Government plans to issue gilts to fund a deficit.
C. Expectations of rising inflation.
D. Strong economic activity.
7. Which of the following tax benefits do non-domiciled investors specifically gain from investing offshore?
A. The offshore funds are not liable to UK Inheritance Tax.
B. No Capital Gains Tax on sales of reporting funds.
C. No Income Tax on income that is not distributed on a reporting fund.
D. No Income Tax on income that is distributed on a reporting fund.
8. Which Act makes local authorities responsible for promoting individual wellbeing?
A. Health and Social Care Act 2001.
B. Care Standards Act 2000.
C. Mental Health Act 2007.
D. Care Act 2014.
9. Lana took out a lifetime mortgage with interest payments but has fallen into arrears. Each of the following is a requirement under MCOB regulations for the lender to follow in these circumstances except
A. refer Lana to Citizen’s Advice within the appropriate timescale.
B. provide Lana with a copy of the FCA’s fact sheet on mortgage arrears.
C. keep records of all dealings with Lana.
D. adopt a reasonable approach to the timescale for any shortfall in the payments to be redressed.
10. For a contract to be valid in contract law, money (or its equivalent) must change hands. This is known as
A. good faith.
B. insurable interest.
C. legal capacity.
D. consideration.
“Need help with your CII exams? For resources including mock exam papers and e-mocks, calculation workbooks, revision notes, audio masterclasses and video tutorials do visit Brand Financial Training at https://brandft.co.uk and don’t forget to download your free taster versions!”
