Professional Paraplanner has teamed up with Brand Financial Training to provide a series of questions from across the CII syllabus to Test your Knowledge, for whether you are preparing for your exams, or simply want to keep your knowledge up-to-date.
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.
You can find past Test your Knowledge questions in the development Zone, plus a host of great articles to help with your exams, career and self-development, among others.
Questions
1. The purpose of the cooling-off period under consumer credit legislation is to allow the
A. borrower sufficient time to change their mind and withdraw from a loan agreement if required.
B. lender sufficient time to consider all material facts before making an offer to the borrower.
C. intermediary sufficient time to complete their research before presenting their recommendations to the client.
D. borrower to gather all requested documentation and to complete all required paperwork.
2. As an alternative to investing directly in property, investors can access this asset class
A. by purchasing a buy-to-let property. (Tick all that apply.)
B. through investment in a property unit trust.
C. by buying shares in a listed property company.
D. through purchasing a holiday home.
3. Kerry, age 47, is a full-time employee. In the current tax year, she receives a weekly salary of £1,100. How much are her employer’s weekly National Insurance contributions in respect of Kerry in 2024/25?
A. £127.65
B. £139.21
C. £151.80
D. £165.55
4. Zaynab wishes to use trivial commutation. She should be aware that (Tick all that apply.)
A. she will not be able to unless she is aged at least 60.
B. there is a 12-month commutation period.
C. the commutation limit is £30,000 across all schemes.
D. all of the resulting proceeds will be tax-free.
5. The aggregate demand for mortality protection would not be driven by
A. movements in the housing market.
B. whether or not the client has any dependents.
C. income per head.
D. the employment history of the applicant.
6. When considering the use of stochastic modelling to help explain investment risk to a client, a financial adviser should be aware that the purpose of stochastic modelling is to
A. use probabilistic methods to estimate future returns.
B. establish the returns a client feels are required.
C. establish the level of risk a client can tolerate.
D. understand the client’s capacity for risk.
7. One major difference between Depositary Receipts (DRs) and other equities is that
A. DRs are not liable to Stamp Duty Reserve Tax (SDRT).
B. DR’s are not traded or settled in the same way as other equities.
C. holders of DR’s cannot vote in shareholder meetings.
D. DR’s have no ownership rights associated with the underlying shares.
8. Betty, a higher rate taxpayer, has purchased an immediate needs care plan to part-fund her domiciliary care costs. She has arranged for the benefits to be paid directly to her as she uses a number of care providers. How will the benefits be taxed assuming she has no personal savings allowance remaining?
A. Her capital element is free of income tax and the interest element will be taxed at source at 20%, Betty will not be liable to any further tax.
B. Any benefits will be liable for basic rate tax.
C. All of her benefits will be liable for higher rate tax.
D. The capital element is free of income tax and the interest element will be taxed at source at 20%, with Betty liable for a further 20% via self-assessment.
9. What happens to the maximum loan to value (LTV) that a lender will consider offering under a lifetime mortgage as a borrower gets older? The LTV
A. increases.
B. reduces.
C. stays the same.
D. has no correlation to the client’s age.
10. James is a mortgage adviser running a firm which has permission to hold client money. In dealing with such money, he should be aware that
A. any interest earned belongs to the firm.
B. client cash can be held in the same bank account as the firm.
C. money must be banked within 1 day of receiving it.
D. money must be reconciled at least monthly.
“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 at https://brandft.co.uk and don’t forget to download your free taster versions!”
