問題一覧
1
Who is responsible for the control of the interest rates in the UK economy
the Bank of England
2
which index does the government use to assess the inflation rate
consumer prices index
3
which if the following describes the function of the Bank of England
acting as banker to the government
4
which of the following factors distinguishes building societies from banks
they are mutual institutions owned by their members
5
under what circumstance if any can a nation state opt out of a regulation laid down by the European Council and Council of Ministers
only if a specific dispensation has been granted
6
on which of the following is the payment of capital gains most likely to arise?
the sale of a holiday home
7
Damien has gifted some authorised unit trusts to his brother, on which a capital gain of £8,000 has been made. At what rate will he be required to pay capital gains tax
0%
8
which if the following would not normally be assessable for income tax?
casual gambling proceeds
9
which of the filling is NOT a way of establishing domicile?
by deed poll
10
on which one of the following would a child be subject to income tax
any earned income that exceeds his personal allowance
11
how much tax do higher rate tax payers pay
33.75%
12
how much tax do basic tax payers pay
8.75%
13
how much tax do additional rate tax payers pay
39.35%
14
Diane has been told that she must pay a class of national insurance on a twice yearly basis. this confirms that she is
self employed
15
the rate of inheritance tax is on a chargeable lifetime transfer when it is made is
20%
16
capital gains tax is best described as a tax
payable from the gain arising from the disposal of a chargeable asset
17
bill sold some investments in March 2016 on which he made a taxable capital gain. when would this tax have become due for payment
January 2017
18
gilts with 66 years to run before their redemption date are known as
long dated
19
Fiona a higher rate tax payer has an ordinary building society savings account. what is the maximum amount of annual interest she can receive before she is liable for tax
£500
20
over the longer term, what risk is normally associated with deposit based investments?
the real value of capital may be eroded due to the effects of inflation
21
in may 2022, Alison, 45, wants an investment vehicle to save towards a deposit for her first house. she wants £30,000 immediately, followed by 220 pounds per month over the following year. Which one of the following is the most suitable product for her objectives ?
High interest building society account.
22
Index-linked gilts are gilts where the interest payments..
on the capital value move in line with the retail price index
23
Yvonne is a non taxpayer and holds a building society deposit account. her interest will be paid
gross
24
national savings premium bonds are MORE advantageous for
higher rate and basic rate taxpayers than for non taxpayers
25
Terry has the coupon on his gilts paid gross. as a higher rate tax payer he will pay
40% income tax on income received
26
Alee enterprises intends to raise additional finance by issuing more shares. they are therefore obliged to
make a rights issue
27
what effect does the anticipation or actual increase in interest rates have on the price and income from gilt edged securities
it depends on the coupon and redemption date of the guilt
28
under a unit trust, what does the cancellation price represent
the minimum price at which investors may cash in their units
29
an investor trust:
is a public limited company
30
bill wants an investment where he does not have to pay capital gains tax. He is interested in unit trusts, investment trusts and open ended investment companies. which one of these would achieve his investing aims?
none of these investments would be suitable
31
when used to repay a mortgage for a client with a low - medium risk profile, which type of endowment policy is MOST likely to produce a surplus on the maturity date
Full with profit
32
the amount of ‘deferred’ interest under a deferred interest mortgage is:
added to the loan outstanding
33
William and Kate have a standard variable rate mortgage which is due to be repaid by an equity based ISA. Which factor would most immediately adversely affect their monthly budgeting?
a rise in the interest rates
34
irrespective of the type of endowment policy he chooses, jack has been correctly advised that his policy will:
guarantee to repay the mortgage on death before the maturity date
35
which one of the following is the MOST appropriate type of life policy to support an ISA mortgage
level term assurance
36
accident sickness and unemployment policies provide benefits on which of the following bases?
regular income payable for a deferred maximum period
37
which is the INCORRECT statement regarding free standing additional voluntary contributions plans (FSAVCs)
employers must contribute to an employees FSAVC plan
38
Mike is retiring from his company after 25 years. He is planning to take a 25% lump sum of £30,000 and £15,000 income per annum for his personal pension plan. what will the tax liability be on these benefits?
the lump sum will be tax free but he will pay an income tax liability on the pension
39
which of the following statements in respect of income support is correct?
it is means tested on both income and savings
40
which basis would be MOST suitable for a husband and a wife seeking to use whole if life assurance to cover a likely inheritance tax liability?
joint life payable on the second death
41
which one of the following types of life policy is TYPICALLY used in connection with key person assurance?
term assurance
42
which of these is the LEAST tax efficient method of providing ‘partnerships protection’ in meeting the needs of the partners, families and the partnership itself?
buy and sell method
43
which one of the following factors that you cover during a fact find will affect your ability to improve your client’s situation on an ongoing basis?
the clients willingness to review objectives if personal circumstances change
44
what is the danger for clients with a young family, where mortgage protection is the only life insurance they currently have in place
the dependents would be unprotected should anything happen to either client
45
when giving advice on a particular financial services product, what will the customer probably be most interested in about the product itself?
the benefits it can give to them
46
in order to process a death claim for a life policy not written under trust but where there is a valid will, an insurer will need to see the:
grant of probate
47
who is considered to be the legal owner of a life policy placed under trust?
trustees
48
which one of the following would NOT be a benefit of writing a will?
it can help reduce capital gains tax
49
when an individual dies intestate, leaving a spouse, children and an estate valued at £310,000 which one of the following applies?
the first £270,000 passes to the surging spouse absolutely, along with a further £20,000 with the other £20,000 passing to the children equally
50
under the consumer insurance disclosure act 2012 the principle ‘utmost good faith’ is BEST described as the obligation to truthfully disclose:
only three facts which are requested on the application form
51
Steve has recently died having made a valid will. how can a potential beneficiary of the will determine the identity of Steve’s personal representatives?
obtaining a copy of the grant of probate
52
Martin has set up a trust fund for the benefit of his three grandchildren and has appointed two trustees with discretion to excercise their powers. In these circumstances, which of the following is correct?
both trustees must agree before exercising their discretionary powers
53
Bernard received a share dividend cheque for £4,500 in may 2022. If he was a higher rate taxpayer, how much income tax must he pay
£843.75