Whether you are preparing for your exams, or simply want to test your knowledge,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 training goals and exam techniques.
The following questions relate to examinable Tax year 22/23, examinable by the CII until 31 August 2023.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
QUESTIONS
1. How often does the FCA expect firms to reconcile client monies?
A. Daily.
B. Weekly.
C. Monthly.
D. Annually.
2. Simone is considering a buy-to-let investment. What are the key factors that she should consider when choosing a residential investment property? (Tick all that apply)
A. Availability of tenants.
B. Location.
C. Age of property.
D. Void periods.
3. Assuming all of the following individuals are UK-resident but non-UK domiciled, which of them could claim the remittance basis without having to pay the annual tax charge? Tick all that apply.
A. Sarah who is aged 20.
B. Claire who has been resident in the UK for 5 out of the last 9 years.
C. Alex who is aged 16.
D. Leo who has unremitted overseas income for the year of £3,000.
E. Duncan who has unremitted overseas income for the year of £1,800.
4. Which of the following is only payable from a scheme pension arising from a defined benefit pension scheme?
A. A defined benefits lump-sum death benefit.
B. A pension protection lump-sum death benefit.
C. An annuity protection lump-sum death benefit.
D. An uncrystallised funds pension lump sum.
5. To qualify for a full new State pension an individual must have a total of how many years’ National Insurance contributions or credits?
A. 26
B. 30
C. 35
D. 39
6. If a client is a charity and wishes a firm to act on their instructions and execute trades on their behalf, they will need to obtain a
A. legal entity identifier code.
B. charity identifier statement.
C. tax exemption identifier code.
D. legal structure statement.
7. Where a trade is executed outside of the trade reporting period, it must be submitted by
A. 8pm that evening.
B. 10pm that evening.
C. 7.30am in the next trade reporting period.
D. 7.45am in the next trade reporting period.
8. Dorothy took out a Long Term Care Bond in 2021 and moved into a residential care home in 2021 at which time she made a claim on her policy. How are the benefits taxed for income tax purposes if paid to the care provider?
A. The benefits will be treated as withdrawals from the bond and there will be no immediate tax if they do not exceed 5% per annum of the amount invested
B. Any benefits will be liable to tax at Dorothy’s marginal rate
C. The benefits will be tax free
D. All capital elements will be tax free and the income element taxable
9. Karen and James are weighing up the pros and cons of entering into a lifetime mortgage with a view to debt consolidation. Which of the following is seen as a disadvantage of using a lifetime mortgage in this respect?
A. There is no emotional strain associated with selling the property.
B. The rate of interest is usually higher than conventional residential mortgages.
C. Ownership of the property is retained.
D. The product can potentially be set up without repayments.
10. When is gazumping more likely to take place?
A. In a depressed market
B. In a buoyant market
C. When interest rates are low
D. When inflation is high
