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. Gregor is a member of his firm’s defined benefit scheme. He should be aware that a main feature of this type of scheme is that
A. individual member’s funds can be identified within the scheme.
B. it is overseen by trustees where the pension payable is earnings-related.
C. pensions received in retirement are investment related.
D. employers always know what the cost of providing the scheme will be.
2. Jerome has recently been advised to invest in an index-tracking fund. The most likely reason his adviser has recommended this is to
A. provide Jerome with a fixed regular income.
B. achieve potential outperformance of the market.
C. avoid exposure to socially irresponsible companies.
D. mirror an index with no extra risk pursuing outperformance.
3. Pauline died on 1 October 2025. Regarding payment of any Inheritance Tax on Pauline’s estate, it is correct to say that her
A. legal personal representatives must pay any tax due by 30 April 2026.
B. next of kin must pay any tax due by 5 April 2026.
C. beneficiaries must pay any tax due by 5 April 2026.
D. trustees must pay any tax due by 1 October 2026.
4. Susan is considering purchasing a lifetime annuity. HM Revenue & Customs (HMRC) requires that the annuity must be
A. payable for the member’s life.
B. purchased from a list of HMRC approved annuity providers.
C. paid at least once a year in advance.
D. capable of assignment and surrender in any circumstances.
5. Which type of policy offers a lump sum or income benefits if the insured suffers an accident or is unable to work due to redundancy?
A. Private Medical Insurance.
B. Health Cash Plans.
C. Accident, sickness and unemployment.
D. Long term care insurance.
6. With regard to the use of tactical allocation models in managing investment portfolios, it is important to be aware that
A. they are more often applied by advisory managers than discretionary fund managers.
B. where markets are buoyant, this could involve adding exposure to emerging markets.
C. if the investment manager’s view is bullish, they could buy put options or go short by buying stock futures.
D. if the investment manager’s view is bearish, this could involve more exposure to longer duration bonds.
7. A client has instructed their broker to sell 2,000 shares in ABC Company at the best price available. Market makers are quoting the following
A. W.
B. X.
C. Y.
D. Z.
8. Which of the following is a requirement for a deed of variation to be effective for Inheritance Tax purposes?
A. Must be executed within three years of death.
B. Can only apply where a will has been executed.
C. There can be consideration for money or money’s worth.
D. Must be signed by all those who would otherwise have benefitted.
9. Dave and Bernice are both in their late 60s; they live in a house valued at £550,000. Although they have a good level of income from pensions, they wish to be able to release capital from their house now and again to fund holidays, what would be the most suitable product to enable them to do this?
A. A home income plan.
B. The rent a room scheme.
C. A home reversion plan.
D. A drawdown lifetime mortgage.
10. Julian is buying his dream cottage by the sea. He requested, and has since received, a RICS Condition Report which notes defects that need repairing but are NOT deemed serious or urgent. This is likely to be indicated by which colour of the traffic light system?
A. Red.
B. Amber.
C. Yellow.
D. Green.
