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March TDQ Answers

5 March 2018

In our new series, Professional Paraplanner TDQ (Training, Development and Qualifications), we have teamed up with key support providers, such as Brand Financial Training, to provide our readers with the very best in training, development and exam support.

We will be providing you with valuable advice and guidance materials to help you achieve your training goals, perfect your exam techniques and test your knowledge of the financial services market.

The following 10 questions are provided by Brand Financial Training and relate to the examinable Tax year 17/18, examinable by the CII until 31 August 2018.

“Need help with your CII exams? For resources including mock exam papers, calculation workbooks, study notes, audio masterclasses and e-learning videos do visit Brand Financial Training at and don’t forget to download your free taster versions!”

These questions relate to examinable Tax year 17/18, examinable by the CII until 31 August 2018


1. Which of the following has a separate legal identity from its owner(s)?
A. Limited company
B. Sole trader
C. Partnership
D. A self-employed person

2. Hydra’s year end accounts contained the following information

Gross Profit £15,625
Tax on ordinary activities £2,325
Preference dividends £800 (2,000 preference shares in issue)
Ordinary dividends £1,400 (3,000 ordinary shares in issue)

What is their earnings per share?
A. 4.17p
B. 4.43p
C. 2.5p
D. 3.7p

3. Alex has recently bought £5,400 worth of shares through an online platform provider. Which of the following is he liable for?
A. Stamp duty of £30
B. Stamp duty of £27
C. Stamp duty reserve tax of £30
D. Stamp duty reserve tax of £27

4. Amanda is considering a future transfer of her son’s Child Trust Fund to a Junior ISA. She should be aware that: Tick all that apply.
A. the tax position of the fund is the same for both products
B. her son can withdraw the proceeds when he reaches 18
C. payments are cumulative so can be made up in later years
D. income generated of more than £100 will be taxed on her

5. Alan opted for enhanced protection as, at A-day, his tax-free cash sum was £490,000 from a total fund of £1.4m. Assuming crystallisation in 2017/18 and an increase in the fund to £2m, calculate Alan’s tax-free cash.
A. £1,400,000.
B. £500,000.
C. £700,000.
D. £540,000.

6. A group accident, sickness and unemployment policy has which advantage over an individual policy?
A. Unrestricted cover for accidents
B. Enhanced benefit amounts
C. No deferred periods
D. Preferential premiums and underwriting

7. A portfolio was worth £15,000 at the start of the year and £18,000 at the end of the year. £2,500 was invested at the end of June and £1,750 was withdrawn at the end of September. What is the Money Weighted rate of return?
A. 23.72%
B. 14.23%
C. 19.48%
D. 11.69%

8. Wendy is aged 56 and has substantial savings and pension income. She has her care costs met in full; this is likely to be because?
A. She lives in Northern Ireland
B. She has a dependent husband living in the marital home
C. She is incapacitated as a result of injuries caused by active military service
D. Her primary need has been identified as continuous healthcare

9. With a lifetime mortgage with interest roll up, when is the interest on the loan normally repaid?
A. On an annual basis
B. When the total loan outstanding reaches 50% of the property value
C. On the death of the borrower or when the property is sold
D. By the local authority when the borrower moves onto residential care

10. What is the LATEST date by which Roger must notify the scheme administrator of the stakeholder pension that he has received a scheme administrator’s flexible access notification and the date of the relevant event?
A. 15 July 2017.
B. 31 July 2017.
C. 25 August 2017.
D. 29 September 2017.

Answers and Cross-References

1. A CII R01 Study Text Chapter 3
2. A CII R02 Study Text Chapter 1:2
3. D CII R03 Study Text Chapter 7
4. AB CII R03 Study Text Chapter 12
5. C CII R04 Study Text Chapter 2.2
6. D CII R05 Study Text Chapter 9
7. B CII J10 Study Text Chapter 9
8. D CII CF8 Study Text Chapter 2
9. C CII ER1 Study Text Chapter 5
10. D CII R08 Study Text Chapter 2

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