The CII Financial Assess training package tests your knowledge of key financial topics
What is the purpose of a disclosure of tax avoidance schemes registration number?
A. HM Revenue and Customs (HMRC) needs to know exactly how many tax avoidance schemes are being marketed
B. Individuals or businesses using the scheme must give the number on their tax returns
C. It means that HMRC has approved that particular planning idea
D. The firm who conceived the idea must use it in all correspondence with HMRC
What is the maximum number of trustees for a trust of land?
Which of the following is an example of a closed-ended fund?
A. Exchange-traded fund (ETF)
B. Investment trust
C. Open-ended investment company (OEIC)
D. Unit trust
A ‘negative real return’ is where:
A. Inflation has been negative for three consecutive quarters
B. Inflation is higher than the investment return
C. Investment in equities are returning less than cash deposits
D. The return on the investment is higher than inflation
What distinguishes NEST from every other pension scheme?
A. It cannot accept transfers from other pension schemes
B. It is an occupational scheme but uses the relief at source method of tax relief
C. It is run by the government
D. It must accept every employer who wants to use it, regardless of size
When did mortgages first become regulated?
A. 1 January 2002
B. 14 January 2005
C. 31 October 2004
D. 6 April 2007
What rate of income tax relief is allowed on mortgage interest payments for landlords?
In relation to pension death benefits, a charity cannot be nominated by:
A. A dependant
B. A nominee
C. A successor
D. The scheme administrator
Unless there is an agreement to the contrary, the death or bankruptcy of a partner will result in:
A. A redistribution of tax liabilities
B. A rescheduling of partnerships debts
C. The automatic appointment of a replacement partner
D. The dissolution of the partnership
What facility is available under a small self-administered scheme (SSAS) but not a self-invested personal pension (SIPP)?
A. Borrowing to fund property purchase
B. Investment in residential property
C. Investment of more than 5% of assets in a sponsoring employer
D. Lending to a sponsoring employer
1B. Individuals or businesses using the scheme must give the number on their tax returns.
2C. The maximum number of trustees for a trust of land is 4.
3B. An investment trust is an example of a closed-ended fund.
4B. A negative real return is where inflation is higher than the investment return, reducing the value of the investment.
6C. Mortgages became the subject of statutory regulation on 31 October 2004.
7B. Tax relief is allowed on mortgage interest payments for landlords at the basic rate of 20%.
8D. A nomination can be made by the member, a nominee, a successor or a dependant. The scheme administrator cannot nominate a charity to receive the fund.
9D. The Partnership Act requires that a partnership is dissolved on the death or bankruptcy of a partner, unless there is an agreement to the contrary.
10D. The one major advantage remaining for a SSAS is that it can make loans to a sponsoring employer, which a SIPP cannot.
7-8 Very good
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