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TDQ: Test Your Knowledge – Questions

25 April 2019

For Professional Paraplanner’s TDQ (Training, Development and Qualifications) series, 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.

This series aims to provide 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, which can also be found in our September 2018 issue, relate to examinable Tax year 18/19, examinable by the CII until 31 August 2019.


1. Who did The Pensions Regulator take over from?
A. The Financial Services Authority (FSA)
B. HM Revenue and Customs (HMRC)
C. The Occupational Pensions Registry (OPR)
D. The Occupational Pensions Regulatory Authority (OPRA)

2. Which of the following factors would have the effect of reducing short-term interest rates?
A. Quantitative easing
B. Government plans to issue gilts to fund a deficit
C. Inflation expectations
D. Strong economic activity

3. Caroline is one of 4 trustees for the Elliott family trust. She lives in Spain although all the other trustees are UK resident. What is her liability regarding any tax liability arising from the trust?
A. As she is not the nominated person to deal with HMRC she has no accountability
B. Caroline would be liable for one quarter of any trust liabilities
C. Caroline is jointly liable for the full amount of any tax that is due
D. As Caroline lives in Spain the trust is not liable to UK tax

4. Caroline died aged 66 with uncrystallised funds valued at £1,600,000. What is the lifetime allowance charge (if any) if benefits over the lifetime allowance are paid as a dependant’s lifetime annuity within two years of her death?
A. No charge.
B. £313,500.
C. £142,500.
D. £57,000.

5. The life fund of a UK insurer is liable for tax on capital gains at which of the following rates?
A. 17%
B. 18%
C. 19%
D. 20%

6. Philip and Janie are both basic rate taxpayers and have an investment in a Real estate investment trust (REIT). When advising them on the tax position, you can tell them that:
A. any gains they make will be free of capital gains tax
B. any dividends they receive will be free of income tax
C. any gains they make are subject to a special rate of CGT at 19%
D. dividends are taxed at 7.5% after any available dividend allowance

7. A company has been paid 100,000 euros for goods and wants to convert this to sterling. If the GBP:EUR quote is 1.2503/8 what amount would the company receive?
A. £79,980.80
B. £79,968.01
C. £79,948.83
D. £79,929.66

8. Which Act gives local authorities a responsibility to prevent or reduce the need for care and support?
A. Health and Social Care Act 2001
B. Care Act 2014
C. Care Standards Act 2000
D. National Assistance Act 1948

9. Olivia has taken out a mortgage secured against her property. It has been set up so she does not need to make any capital repayments and when the property is eventually sold, the loan will be repaid together with a payment based on the percentage increase in the property value. What type of plan does Olivia have?
A. Equity Share Mortgage
B. Home Reversion Plan
C. Shared Appreciation Mortgage
D. Home Income Plan

10. A lender is providing Ben with mortgage advice and buildings insurance. Which of the following is TRUE regarding the initial disclosure information the lender must provide?
A. The initial disclosure must be given face-to-face
B. The level of initial disclosure can be tailored
C. Initial disclosure is only required for vulnerable customers
D. Initial disclosure must be provided within 48 hours of the initial

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