Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, 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 self development training goals and exam techniques.
These questions relate to examinable Tax year 23/24, examinable by the CII until 31 August 2024.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
Questions
1. Which business structure would suit D&J Woodcock, a small professional firm that is concerned about the risk of large liability claims?
A. Sole trader.
B. Partnership.
C. Limited liability partnership.
D. Public limited company.
2. A client has invested £5,000 in each of the following equity-based ISA funds
If at the end of two years the three funds are encashed, which investment will be worth the most?
A. Investment A.
B. Investment B.
C. Investment C.
D. They are all worth the same.
3. Gillian has recently invested £20,000 into each of the following investments; UK listed shares, a Corporate Bond and a UK domiciled Exchange Traded Fund. What amount of Stamp Duty Reserve Tax will Gillian pay in total?
A. Nil
B. £100
C. £200
4. A self-employed individual can obtain higher rate tax relief on personal pension contributions by
A. reducing their first payment on account by the amount of tax relief.
B. reducing their second payment on account by the amount of tax relief.
C. reducing their balancing payment by the amount of the tax relief.
D. paying the pension contributions net of higher rate tax.
5. John is paying regular monthly premiums on a life assurance policy to protect a potential inheritance tax liability. Which of the following exemptions from inheritance tax could he claim against the annual premiums totalling £3,200?
A. The annual exemption and/or the normal expenditure out of income.
B. The annual exemption only.
C. The small gifts exemption.
D. The life assurance premium exemption.
6. As a fund manager, you have made a conscious decision to pay no attention to index benchmarks when constructing portfolios. This suggests that the method of portfolio construction you use is
A. passive.
B. index tracking.
C. top-down.
D. bottom-up.
7. The simultaneous and irrevocable exchange of cash and securities is known as
A. book entry transfer.
B. delivery versus payment.
C. clearing and settlement.
D. settlement convention.
8. Under section 14 of the Care Act 2014, minor adaptations costing less than how much must be provided free of charge in England?
A. £250
B. £500
C. £750
D. £1,000
9. Jerome has recently died, aged 103. He took out a lifetime mortgage with rolled up interest many years ago, and his executors have received a demand from the lender for a considerable payment from Jerome’s estate. Why is this likely to be?
A. The property is worth less than the loan outstanding, and there is not a ‘no negative equity’ guarantee in place.
B. The lender has imposed redemption penalties.
C. There is a longevity clause in the contract, which came into force on Jerome living to over 100.
D. To recoup the cost of maintaining the property over the years.
10. When are bridging loans most likely to be needed?
A. During a property boom.
B. When interest rates are low.
C. When the economy moves out of recession.
D. When the property market slackens off.
