Professional Paraplanner has teamed up with Brand Financial Training to provide a monthly 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.
We hope you find our Q&A useful in achieving your qualifications or simply brushing up your knowledge.
Questions
1. Which of the following would you expect to find in the revised Remuneration Code within the Financial Conduct Authority Handbook?
A. The reduction of short-term bonuses and basing bonuses on longer term performance.
B. Reward risk-taking and outperformance to secure good quality staff.
C. Ban overtime payments for staff who have a ‘material impact’.
D. Avoid over-reliance on high salaries, instead promote performance related pay.
2. Manuel is investing in a structured product offering a return of 110% of the FTSE 100 or full return of capital if this is higher at redemption. Manuel should be made aware that all structured products
A. are lower risk than other products.
B. offer a high level of liquidity.
C. involve counterparty risk.
D. have an investment term of 12 months.
3. On Aaron’s death he left an estate valued at £900,000. This included a main residence worth £550,000. In his will, Aaron left £60,000 to the Dogs Trust. The remainder of his estate was divided equally between his two sons. Aaron was divorced at the time of his death and had made no lifetime gifts. What is the amount of Inheritance Tax payable on Aaron’s estate?
A. £120,240
B. £122,400
C. £136,000
D. £144,000
4. Why might an employer decide to provide death in service benefits through a separate insured scheme as opposed to through a defined benefit scheme?
A. To maintain death in service benefits without draining the fund.
B. To treat the death in service benefits as an allowable expense.
C. If the employees were all below 45.
D. As the defined benefit scheme is fairly large.
5. Critical illness underwriting is based on
A. marital status.
B. mortality risk.
C. gender.
D. morbidity risk.
6. Jeremy, a basic-rate taxpayer, invested in an onshore investment bond 10 years ago and over that time it has made a gain of £80,000. If he were to encash it now Jeremy should be aware that
A. the whole gain will be added to his income and taxed at 40%.
B. the whole gain will be taxed at his marginal rate of 20%.
C. the fund has paid tax, so investors are not liable to further tax on encashment.
D. top-slicing is available if the gain pushes him into a higher rate of tax.
7. An investor holds index-linked gilts. They should be aware that the inflation measure used currently is the
A. CPI.
B. RPI.
C. CPIX.
D. CPIH.
8. Section 117 of the Mental Health Act 1983 requires local authorities in England to
A. supply secure accommodation to patients who have been detained under the Act.
B. provide continuing support to people who have previously been detained under the Act.
C. give care in the community subject to a reasonable charge.
D. appoint a welfare attorney for the patient.
9. David took out a Home Reversion Plan some years ago, under which he is a tenant in his home. The home is now owned by the plan provider. He has not maintained the property, and it is now in a serious state of disrepair. What action could the plan provider take?
A. Sell the property with David as a sitting tenant.
B. Force entry to the property to carry out the repairs.
C. Regard David’s neglect as a qualifying termination event and end the lease.
D. No action possible as David has rights as occupier.
10. Julia has fallen in love with a rather dilapidated property on the edge of the Cotswolds. Although she thinks she can see everything that needs fixing, she has decided to go ahead and instruct a full structural survey on the property just to be on the safe side. In terms of budget, this is likely to cost her upwards of
A. £200.
B. £400.
C. £600.
D. £800.
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!
