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. If Flossie and Efren buy a house together in unequal shares, it might be best if they hold the legal ownership as
A. joint tenants because neither can sell without the other agreeing.
B. tenants in common as each owner holds their share separately and there’s no requirement for the shares to be equal.
C. shared ownership which recognises each individual’s interest in the property.
D. a tenancy agreement to reflect the corresponding differences in the mortgage payments.
2.Madeline is investing £25,000 in futures. This means that Madeline is expecting the price of the underlying asset to
A. remain the same.
B. fall.
C. double.
D. rise.
3. Two clients hold the following investments:
Assuming no withdrawals have been made from either investment, you can advise Mabel and Rachel that on encashment both
A. Mabel and Rachel will be subject to Capital Gains Tax.
B. Mabel can withdraw £15,000 without triggering a chargeable event.
C. Rachel can withdraw £15,000 without triggering a chargeable event.
D. only Mabel can benefit from top slicing.
4. Sophie is self-employed and a higher rate taxpayer. Her income tax bill for tax year 2023/24 was £12,000 and for 2024/25 it was £19,000. In July 2024, she made a relief at source pension contribution of £6,000 gross. For the 2024/25 tax year, Sophie will make
A. two payments on account of £9,500.
B. a balancing payment of £5,800 on 31 January 2026.
C. a balancing payment of £7,000 on 31 January 2026.
D. one payment on account of £12,000 on 31 January 2025.
5. Julie has decided to pay the premiums on her life assurance policy by monthly instalments. This means that the premium she pays will have a
A. handling fee.
B. frequency loading.
C. net premium adjustment.
D. natural premium reduction.
6. The house style employed by an investment management firm is based on finding companies with long term sustainable advantage. This approach to investment management is known as
A. value based.
B. momentum.
C. contrarianism.
D. growth at a reasonable price.
7. A company with a share price of 100p has paid a dividend of 10p per share. Under a scrip option they would offer shareholders one new share for every
A. 2 they hold.
B. 5 they hold.
C. 10 they hold.
D. 100 they hold.
8. Which economic factor is most likely to impact on the long-term affordability of ongoing care?
A. Interest rates.
B. Taxation.
C. Inflation.
D. Investment performance.
9. Enid has taken out a lifetime mortgage in order to purchase an annuity to fund care in her own home. If she needs to enter permanent residential care, it is likely that
A. her property will revert to the provider, and the annuity payments will continue.
B. the annuity will be redirected to the residential care provider, and she will regain full ownership of the property.
C. the annuity payments will stop but she will receive a capital sum from the sale of the property.
D. the annuity will continue to be paid, and her property sold to repay the lifetime mortgage.
10. Sonia is in the process of buying her council house on the outskirts of Birmingham under the Government’s Right to Buy scheme. This is possible for Sonia because she has
A. lived in the same council house for 4 years.
B. lived in the same council house for 2 years.
C. lived in a council house for a year as a public sector tenant.
D. had a secure tenancy since 2007.
