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 and help prepare you for upcoming exams.
Whether you are taking 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. Which of the following is NOT one of the Financial Conduct Authority’s Principles for Businesses?
A. Integrity.
B. Honesty.
C. Customers’ interests.
D. Clients’ assets.
2. Yellowstone’s accounts show that dividends paid to ordinary shareholders over the last 12 months was £315,000 whilst dividends paid to preference shareholders was £175,000. Their profit after taxation was £1,114,000. What is their dividend cover?
A. 3.54 times.
B. 2.98 times.
C. 1.98 times.
D. 6.37 times.
3. Tom is a higher-rate taxpayer with an adventurous attitude to risk. He may want to invest in an Enterprise Investment Scheme in order to
A. gain exemption from Inheritance Tax after one year.
B. gain exemption from Capital Gains Tax after three years.
C. receive dividends without any liability to Income Tax.
D. receive 50% Income Tax relief on an investment of £200,000.
4. Joyce is a member of an occupational pension scheme, which is receiving employer national insurance savings. This is an indication that
A. her scheme is a defined benefit one.
B. it contains an element of guaranteed minimum pension (GMP).
C. she is making her contributions via the net pay method.
D. she is using a salary sacrifice arrangement.
5. Matthew has surrendered an offshore life assurance policy. What rate, or rates, of income tax will he be potentially liable for on any chargeable gain?
A. Higher and/or additional rates only.
B. Basic rate only.
C. Basic rate, higher rate and/or additional rate.
D. Any gain will be free of income tax.
6. Clark will be providing discretionary management services to two new clients. Under FCA regulations, Clark’s firm must retain the couple’s client agreement
A. for three years if this is longer than the relationship with the client.
B. for five years if this is longer than the relationship with the client.
C. for at least the duration of the relationship with the client.
D. indefinitely.
7. A bond has a modified duration of 2.5%. Therefore, for a 1% rise in yield, the price should
A. rise by 2.5%.
B. stay the same.
C. fall by 2.5%.
D. increase by 12.5%.
8. Which organisation introduced specific Training and Competence (T&C) requirements for those advising on long term care?
A. Prudential Regulation Authority.
B. Financial Conduct Authority.
C. Association of British Insurers.
D. Personal Finance Society.
9. What level of savings is completely disregarded when establishing eligibility to State pension guarantee credits?
A. £5,000
B. £10,000
C. £16,000
D. £23,250
10. The formal term for a contract in Scotland is
A. offer.
B. treaty.
C. tender.
D. missives.
“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 and don’t forget to download your free taster versions!”
