CEMAP 1 - ITFSE&P Flashcards
1
Q
What % of Company’s share capital must be in public hands to have full listing on main London Stock Exchange?
a) 10%.
b) 25%.
c) 33%.
d) 49%.
A
B - 25%
7
2
Q
Buy-to-let property has the advantage of liquidity.
Question 1 options:
a) True
b) False
A
B - False
7
3
Q
Bow Ltd has just issued three free shares for every one share a shareholder owns. This is referred to as a:
Question 2 options:
a)
proportional share issue.
b)
dividend share issue.
c)
scrip issue.
d)
rights issue.
A
C - Scrip Issue
7
4
Q
A share’s price/earnings ratio is:
Question 3 options:
a)
the share’s dividend as a percentage of the share price.
b)
the number of times the dividend is covered by the company’s profits.
c)
the share price divided by the earnings per share.
d)
the company’s net profit divided by the number of shares.
A
C - the share price divided by the earnings per share.
7
5
Q
A preference share:
Question 4 options:
a)
ranks ahead of ordinary shares for repayment if the company is wound up.
b)
receives interest payments rather than dividends.
c)
always carries voting rights.
d)
is guaranteed to receive a dividend every year.
A
A - ranks ahead of ordinary shares for repayment if the company is wound up.
7
6
Q
Market capitalisation is a key factor when analysing shares. It represents the:
a)
annual profit figure shown in the company’s last annual accounts.
b)
value of the company’s assets and reserves.
c)
number of shares the company has issued.
d)
current share value multiplied by the number of shares issued.
A
D - current share value multiplied by the number of shares issued.
7
7
Q
Certificates of deposit:
a)
are bearer securities.
b)
pay interest monthly.
c)
allow penalty-free access at any time.
d)
have a minimum 12-month term.
A
A - are bearer securities
7
8
Q
Today is the ex-dividend date for Acme Ltd shares. The share price is most likely to:
Question 8 options:
a)
remain stable.
b)
increase slightly.
c)
become more volatile.
d)
decrease slightly.
A
D - decrease slightly.
7
9
Q
Karen is a higher-rate taxpayer who owns a buy-to-let flat. What is the position with tax relief on her mortgage? She will:
a)
receive a basic-rate income tax credit.
b)
receive tax relief at her marginal income tax rate.
c)
not qualify for any tax relief.
d)
receive higher-rate tax relief.
A
A - receive a basic-rate income tax credit
10
Q
The FTSE 350 Index includes companies listed on the London Stock Exchange. It comprises:
Question 10 options:
a)
the largest 350 companies by capitalisation.
b)
the largest 350 companies by capitalisation outside the FTSE 100.
c)
the largest 350 companies by capitalisation outside the FTSE 100 and 250 indices.
d)
350 smaller companies who do not meet the AIM criteria.
A
A - the largest 350 companies by capitalisation.
7
11
Q
Which function is responsible for overseeing the operation of an open-ended investment company and safeguarding investor interests?
Question 1 options:
a)
The manager.
b)
The authorised corporate director.
c)
The depositary.
d)
The trustee.
A
c)
The depositary.
8
12
Q
Jason wishes to cash in his unit trust holding. Which unit price will he receive in normal market conditions?
Question 2 options:
a)
Cancellation price.
b)
Creation price.
c)
Offer price.
d)
Bid price.
A
d)
Bid price.
8
13
Q
A friendly society tax-exempt savings plan:
Question 3 options:
a)
is offered by proprietary organisations.
b)
offers similar taxation benefits to endowment policies.
c)
has a term between 10 and 25 years.
d)
has a maximum annual savings limit of £270.
A
d)
has a maximum annual savings limit of £270.
8
14
Q
What percentage of a unit trust’s fund must be in cash or fixed-interest investments for distributions to be treated as interest payments?
Question 4 options:
a)
At least 50%.
b)
Up to 60%.
c)
More than 60%.
d)
At least 75%.
A
c)
More than 60%.
15
Q
The aim of investment diversification is to:
Question 5 options:
a)
increase income from investments.
b)
reduce investment risk.
c)
increase investment performance.
d)
reduce investment administration and documentation.
A
b)
reduce investment risk.
8
16
Q
In relation to investment trusts, which of the following is true?
Question 6 options:
a)
The trust deed outlines the trust’s investment objectives.
b)
The trust can borrow for investment purposes.
c)
The net asset value is the price shares are trading at.
d)
Shares trading at a premium can be bought at below their net asset value.
A
b)
The trust can borrow for investment purposes.
8
17
Q
Which of the following is true in relation to unit trusts?
Question 7 options:
a)
The trustee decides on appropriate investments for the trust.
b)
The manager can create units to meet demand.
c)
The manager is responsible for holding and controlling the fund’s assets.
d)
Distribution unit trusts pay regular capital amounts to investors from profits.
A
b)
The manager can create units to meet demand.
8
18
Q
Alan has an investment that guarantees a specific return over a five-year period, but some of his initial capital could be lost if the FTSE 100 fails to achieve a certain level by the end of the term. His investment is a:
a)
structured capital‑at‑risk product.
b)
structured derivative product.
c)
non-structured capital‑at‑risk product.
d)
structured deposit.
A
a)
structured capital‑at‑risk product.
8
19
Q
Which of the following is false in relation to qualifying life assurance policies?
Question 9 options:
a)
The death benefit must be at least 101% of the bid value of the policy.
b)
Premiums cannot vary beyond specified limits.
c)
Premiums must be payable at least annually.
d)
They must have a minimum term of 10 years.
A
a)
The death benefit must be at least 101% of the bid value of the policy.
8
20
Q
Which of the following is true in relation to real estate investment trusts?
Question 10 options:
a)
At least 80% of the profit must result from property rentals.
b)
At least 90% of profits must be distributed to shareholders.
c)
They cannot be held in an ISA.
d)
Corporation tax is payable on profits from property rentals.
A
b)
At least 90% of profits must be distributed to shareholders.
8
21
Q
Which of the following is untrue regarding ISAs?
Question 1 options:
a)
Subject to the annual contribution limit, it is possible to invest in different ISAs in the same year.
b)
Shares from an all‑employee savings‑related share option scheme can be held in an ISA.
c)
The minimum age for a cash ISA is 18.
d)
It is not possible to have a joint ISA.
A
c)
The minimum age for a cash ISA is 18.
9
22
Q
Jamal is contributing to a Help-to-Buy ISA and is now thinking of starting a Lifetime ISA. Which of the following is true?
Question 2 options:
a)
He cannot invest in both types of ISA.
b)
He can invest in both types of ISA and receive the government bonus for both.
c)
He can invest in both types of ISA but cannot claim any government bonus.
d)
He can invest in both types of ISA and receive the government bonus from one of them.
A
d)
He can invest in both types of ISA and receive the government bonus from one of them.
9
23
Q
Sashin wishes to invest into a venture capital trust (VCT). Which one of the following statements is false?
Question 3 options:
a)
VCT gains are exempt from capital gains tax.
b)
VCT dividends are tax free.
c)
Income tax relief is available at 30%.
d)
The maximum investment for tax relief is £500,000.
A
d)
The maximum investment for tax relief is £500,000.
-Tax Relief VCT is £250,000
9
24
Q
With an Enterprise Investment Scheme (EIS), which of the following are true?
Question 4 options:
a)
Gains are exempt from capital gains tax if shares are held for five years.
b)
Tax relief is available at the investor’s marginal rate.
c)
Tax relief is available on up to £1m investment per tax year.
d)
Investment is made through a collective investment scheme.
A
c)
Tax relief is available on up to £1m investment per tax year.
9
25
Aisling, aged 32, has a Lifetime ISA fund worth £3,600, having invested £3,000. She is now in some financial difficulties and needs to withdraw the funds. How much would Aisling receive if she did cash in the fund?
Question 5 options:
a)
£2,250.
b)
£2,700.
c)
£3,000.
d)
£3,600.
b)
£2,700.
-there is a 25% penalty applied if funds are withdrawn for reasons other than the purchase of a first home, the holder reaching age 60 or the holder suffering a terminal illness. £3,600 x 25% = £900. £3,600 - £900 = £2,700.
9
26
Which of the following cannot be held in a stocks and shares ISA?
Question 6 options:
a)
UK open ended investment companies.
b)
Gilts.
c)
UK investment trusts.
d)
Residential property.
d)
Residential property.
9
27
Janine is 35 and has a Help-to-Buy ISA. She is now about to buy her first property. In total she has been informed that her ISA will provide £3,600 towards the purchase. This means her current fund, without including the government bonus, is worth:
Question 7 options:
a)
£2,400.
b)
£2,880.
c)
£3,000.
d)
£4,000, because she will not qualify for a bonus due to her age.
b)
£2,880.
-The government bonus is 25% of the fund. £2,880 x 25% = £720. £2,880 + £7,20 = £3,600.
9
28
At what minimum age can funds be taken from a Child Trust Fund?
Question 8 options:
a)
At any age.
b)
16.
c)
18.
d)
21.
c)
18.
9
29
Mansour has a flexible cash ISA, having invested £15,000 of the £20,000 annual limit in July. The following December he withdrew £8,000 in an emergency to replace his car. How much, if anything, could Mansour invest in the ISA before the end of the tax year?
Question 9 options:
a)
He cannot make a further investment in the tax year.
b)
£5,000.
c)
£8,000.
d)
£13,000.
d)
£13,000.
-Mansour can invest £20,000 in the tax year. A FLEXIBLE ISA allows him to withdraw cash and replace it until the end of the tax year. He had £5,000 of his annual allowance left anyway, and could also replace the £8,000, giving a total of £13,000.
9
30
When Adrian died, he had £140,000 invested in a stocks and shares ISA. What is the position with the ISA?
Question 10 options:
a)
Adrian's executor can make a further investment in the ISA on Adrian's behalf to top up the current year's subscription.
b)
The ISA trustees have discretion about how to distribute the fund.
c)
Adrian's ISA must cease and the proceeds become part of his estate.
d)
Adrian's spouse or civil partner can make an additional subscription of up to £140,000.
d)
Adrian's spouse or civil partner can make an additional subscription of up to £140,000.
9
31
Which statement best describes the uncrystallised funds pension lump sum option on a personal pension?
Question 1 options:
a)
Each withdrawal is taxed as income in the owner's hands.
b)
Each withdrawal will be tax free.
c)
The whole fund must be taken, with 25% as a tax-free lump sum.
d)
25% of each withdrawal is tax free, with the balance taxed as income.
d)
25% of each withdrawal is tax free, with the balance taxed as income.
10
32
Caroline is 38 and earns £25,000 a year as a department manager for a large firm. What is the maximum contribution that could be paid into her personal pension to give her maximum tax relief and avoid any tax penalties?
Question 2 options:
a)
£25,000 from Caroline only.
b)
Up to £25,000 between Caroline and her employer.
c)
£25,000 from Caroline and £15,000 from her employer.
d)
£40,000 from Caroline only.
c)
£25,000 from Caroline and £15,000 from her employer.
-Caroline can pay in an amount up to her salary, and her employer can top it up to the annual allowance amount.
10
33
Ali has been a member of his company's 1/50th defined-benefit pension for 20 years and is about to retire. His pensionable salary is £30,000. What will Ali's pension be?
Question 3 options:
a)
£10,000.
b)
£12,000.
c)
£15,000.
d)
£30,000.
b)
£12,000.
-1/50th of £30k x 20years
10
34
Alisha is just in the higher-rate tax band. She has a personal pension plan valued at £40,000 and wants to take all of it as one lump sum on her sixtieth birthday next month. How much of the withdrawal will be tax free?
Question 4 options:
a)
It will all be taxable.
b)
£30,000.
c)
£20,000.
d)
£10,000.
d)
£10,000.
-25% of the pension can be taken as a tax-free lump sum (£40,000 x 25% = £10,000).
35
Which method of providing a personal pension income is free from investment risk?
Question 5 options:
a)
Taking the 25% pension commencement lump sum and leaving the balance in the fund.
b)
Taking regular withdrawals using the uncrystallised funds pension lump sum option.
c)
Flexi-access drawdown.
d)
Purchasing an annuity.
d)
Purchasing an annuity.
10
36
In order to qualify for auto-enrolment, an employee must:
Question 6 options:
a)
earn more than £5,000.
b)
opt-in to the scheme.
c)
be aged at least 22.
d)
be under age 60.
c)
be aged at least 22.
10
37
Which type of pension scheme is most likely to allow an individual to hold a direct investment in commercial property?
a)
A self-invested personal pension.
b)
A defined-contribution occupational pension.
c)
A stakeholder pension.
d)
A personal pension.
a)
A self-invested personal pension.
10
38
The 'direct pay' arrangement is where a personal scheme member pays the contributions directly to the pension provider.
Question 8 options:
a) True
b) False
b) False
-It is where the employer collects the employee's contribution from their pay and passes it on to the pension provider.
10
39
Question 9 (1 point)
Which of the following is true regarding the NEST scheme?
Question 9 options:
a)
It cannot run alongside an existing occupational scheme.
b)
The minimum contribution per employee is 10% of earnings.
c)
Benefits can be taken from age 55.
d)
Contributions can only be made into the default fund.
c)
Benefits can be taken from age 55.
10
40
When does the Money Purchase Annual Allowance apply to pension contributions? If the plan holder:
Question 10 options:
a)
uses the fund to purchase an annuity.
b)
earns more than the income threshold.
c)
takes benefits through the uncrystallised funds pension lump sum option.
d)
takes benefits before the scheme retirement date.
c)
takes benefits through the uncrystallised funds pension lump sum option.
10
41
A single parent wants to provide an income for his two children in the event of his death, payable until the youngest child is 21. What type of life assurance policy would suit his requirements and cost the least?
Question 1 options:
a)
Low-cost endowment.
b)
Family income benefit.
c)
Whole-of-life assurance.
d)
Level term assurance.
b)
Family income benefit.
11
42
Which of the following is true of a unitised with-profits endowment?
Question 2 options:
a)
The full unit value is payable on surrender of the policy.
b)
Unit values cannot fall.
c)
Only terminal bonuses are added.
d)
It cannot be assigned to a lender.
b)
Unit values cannot fall.
11
43
The most appropriate life assurance policy to protect a repayment mortgage would be a form of:
Question 3 options:
a)
decreasing term assurance.
b)
convertible term assurance.
c)
level term assurance.
d)
increasing term assurance.
a)
decreasing term assurance.
11
44
In strong stock market conditions, which type of mortgage-linked endowment is most likely to allow early repayment of the mortgage?
Question 4 options:
a)
Low-cost with profits.
b)
Non-profits.
c)
With-profits.
d)
Unit-linked.
d)
Unit-linked.
11
45
During the lifetime of a full with-profits endowment, the death benefit should:
Question 5 options:
a)
fluctuate.
b)
decrease.
c)
stay level.
d)
increase.
d)
increase.
11
46
Jason has a flexible whole-of-life assurance policy on a maximum cover basis. This means that Jason's:
Question 6 options:
a)
plan will accumulate a higher investment value than a minimum cover policy.
b)
premiums will be higher than those of a balanced cover policy.
c)
premiums are likely to increase after ten years.
d)
sum assured will increase after ten years.
c)
premiums are likely to increase after ten years.
11
47
Jim has a with-profits whole-of-life plan, and Jenny has a low-cost with-profits whole-of-life plan, both offering the same death benefit. The main difference in the two plans is that:
Question 7 options:
a)
The value of units on Jenny's plan will be lower.
b)
The fixed death benefit on Jim's plan will be lower.
c)
Jenny's policy will not benefit from regular bonuses.
d)
Part of the death benefit on Jenny's policy is on a reducing basis.
d)
Part of the death benefit on Jenny's policy is on a reducing basis.
11
48
What is the normal maximum age for exercising the renewal option on a renewable term assurance policy?
Question 8 options:
a)
50.
b)
55.
c)
60.
d)
65.
d)
65.
11
49
Charu and Rajeev have written wills leaving everything to the survivor, and on their death the estate will pass to their children. They wish to provide a lump sum for the children to be able to settle any inheritance tax (IHT) liability on their inheritance. What life assurance arrangement would achieve their objective?
Question 9 options:
a)
A joint-life second-death gift inter vivos policy for the potential IHT liability, in trust.
b)
A joint-life second-death whole-of-life plan for the potential IHT liability, in trust.
c)
Two single whole-of-life plans, in trust, each for 50% of the potential IHT liability.
d)
A joint-life first-death whole-of-life plan for the potential IHT liability, in trust.
b)
A joint-life second-death whole-of-life plan for the potential IHT liability, in trust.
11
50
What add-on benefit will ensure a life assurance policy will continue to provide cover when premiums are suspended due to the policyholder's illness preventing them from working?
Question 10 options:
a)
Temporary disability cover.
b)
Terminal illness benefit.
c)
Income protection benefit.
d)
Waiver of premium benefit.
d)
Waiver of premium benefit.
11
51
Sean has been claiming on his income protection insurance policy for six months and has now been cleared to return to work on a part-time basis on a lower salary. What policy feature would solve his concern about the reduced income?
Question 1 options:
a)
A shorter deferred period.
b)
Suspension of premiums during a claim.
c)
Proportionate (pro-rata) benefit.
d)
Increasing benefit.
c)
Proportionate (pro-rata) benefit.
12
52
Which of the following is the same for both accident, sickness and unemployment insurance and income protection insurance?
Question 2 options:
a)
Length of the policy term.
b)
Deferred period.
c)
Deduction of state benefits from payments.
d)
Taxation of benefits.
d)
Taxation of benefits.
12
53
In relation to insurance for commercial purposes, pecuniary loss is a loss resulting from:
Question 3 options:
a)
criminal damage of vandalism.
b)
a defaulting creditor.
c)
an interruption to a business's operation.
d)
injury, illness or death of an employee.
b)
a defaulting creditor.
12
54
Billie insured her house contents for £30,000 and accepted a £100 excess. Later that year she made a claim for £5,000 as a result of local flooding. The insurer has written to her, stating that the true value of her contents should have been £40,000 and that they are disputing her claim. How much is Billie likely to receive in settlement of her claim?
Question 4 options:
a)
The insurer will reject her claim as she was underinsured.
b)
Billie is likely to receive £3,650.
c)
Billie is likely to receive £3,750.
d)
The insurer is likely to pay the claim in full, as the underinsurance was unintentional.
b)
Billie is likely to receive £3,650.
-30,000 / 40,000 = 0.75 (75%)
(75%) 0.75 x 5,000 = 3750
- 100 excess
12
55
Which of the following statements is true in relation to income protection insurance (IPI)?
Question 5 options:
a)
It is the same as an ASU policy, but without redundancy cover.
b)
A tax-free income benefit will be payable after a specified period of incapacity.
c)
Benefits are paid for a maximum of 12 or 24 months.
d)
IPI provides a surrender value for early surrender.
b)
A tax-free income benefit will be payable after a specified period of incapacity.
12
56
Which of the following is true in relation to long-term care insurance?
Question 6 options:
a)
Inability to carry out four or more activities of daily living is required for a successful claim.
b)
Long-term care benefits are only payable when the insured is in a care home.
c)
Any annuity payments from a long-term care plan are tax free.
d)
Inability to move between rooms would be an activity of daily living for a claim.
d)
Inability to move between rooms would be an activity of daily living for a claim.
12
57
Payment protection insurance:
Question 7 options:
a)
provides benefits in the event of death, accident, sickness or unemployment.
b)
is not covered by the Financial Services Compensation Scheme.
c)
can cover the applicant's combined borrowing.
d)
pay outs are typically limited to 12 months.
d)
pay outs are typically limited to 12 months.
12
58
The Road Traffic Act 1988 requires all vehicles to have at least:
Question 8 options:
a)
third-party, fire and theft insurance.
b)
third-party insurance.
c)
comprehensive insurance.
d)
Road Traffic Act insurance.
b)
third-party insurance.
12
59
Which of the following would be least likely to be covered on a critical illness assurance policy?
Question 9 options:
a)
Angina.
b)
Heart attack.
c)
Kidney failure.
d)
Breast cancer.
a)
Angina.
12
60
Andrea has private medical insurance, paid for by her employer as part of her employment package. Which of the following would not apply?
Question 10 options:
a)
Insurance premium tax on the premiums.
b)
An income tax liability for Andrea on payments made in the event of a claim.
c)
Premiums qualify as business expenses for her employer.
d)
An income tax liability for Andrea on the value of the premiums.
b)
An income tax liability for Andrea on payments made in the event of a claim.
12
61
Equity release is regulated by:
Question 1 options:
a)
the Financial Conduct Authority only.
b)
the Equity Release Council only.
c)
the Prudential Regulation Authority only.
d)
the Financial Conduct Authority and the Equity Release Council.
a)
the Financial Conduct Authority only.
13
62
Question 2 (1 point)
Which of the following is incorrect for a discounted-rate mortgage?
Question 2 options:
a)
The monthly mortgage payment can vary.
b)
The payable rate is directly linked to the Bank of England base rate.
c)
The discount is from the lender's standard variable rate.
d)
There is usually a penalty if the loan is repaid before a specified date.
b)
The payable rate is directly linked to the Bank of England base rate.
13
63
What type of mortgage product interest rate can vary, but cannot rise above a pre-set limit?
Question 3 options:
a)
Capped rate.
b)
Fixed rate.
c)
Discounted rate.
d)
Base-rate tracker.
a)
Capped rate.
13
64
Barbara, aged 70, has heard she can use her property to provide some extra cash as and when she needs it. She would like to leave as much of the property's value to her two children as possible. Which arrangement would best satisfy her needs?
Question 4 options:
a)
A drawdown lifetime mortgage.
b)
A home income plan.
c)
A home reversion plan.
d)
A lifetime mortgage.
a)
A drawdown lifetime mortgage.
-She does not need a lump sum (home reversion plan would provide lump sum).
-A Home reversion plan would also mean selling part of her property to lender.
13
65
Jeff and Alison have just bought a flat with a mortgage, but will also be required to pay rent to a housing association. This arrangement is referred to as:
Question 5 options:
a)
equity share.
b)
shared ownership.
c)
home reversion.
d)
equity release.
b)
shared ownership.
13
66
Which of the following is true in relation to credit cards?
Question 6 options:
a)
Credit card interest rates are higher than most other forms of borrowing.
b)
The whole balance must be repaid each month, usually within 25 days of a statement.
c)
Credit card companies make a small payment to the retailer for each transaction.
d)
No additional charges apply to overseas credit card transactions.
a)
Credit card interest rates are higher than most other forms of borrowing.
13
67
Secured lending can only be arranged on land or property.
Question 7 options:
a) True
b) False
b) False
-Although property is the most common asset used, borrowing can be secured on a range of assets.
13
68
In relation to bridging finance:
Question 8 options:
a)
open bridging is arranged on a long-term basis.
b)
open bridging is less risky for the lender than closed bridging.
c)
closed bridging has a feasible repayment strategy.
d)
closed bridging interest rates are higher than for open bridging.
c)
closed bridging has a feasible repayment strategy.
-Both Bridging loan (Open & Closed) are short term, closed bridging just has a exit plan/ end date.
Open Bridging will have an open-end date.
13
69
Second charge loans:
Question 9 options:
a)
are charged at a higher rate than first charge loans.
b)
are regulated under the Consumer Credit Act 2006.
c)
do not require equity in the property.
d)
become part of the existing mortgage.
a)
are charged at a higher rate than first charge loans.
13
70
Brendon's lender charged him a fee for an insurance policy because his new mortgage was more than a specified percentage of the property value. It is incorrect to say that:
Question 10 options:
a)
In the event of Brendon defaulting, the policy only protects the lender.
b)
Brendon's mortgage will be more than 75-80% of the property value.
c)
Brendon will have no further liability if a claim is made on the policy.
d)
The fee could be added to Brendon's mortgage.
c)
Brendon will have no further liability if a claim is made on the policy.
13
71
There is a well‑established pattern to the way in which most savers and investors build up and hold their assets. Which of the following is usually the last part of that pattern?
Question 1 options:
a)
Equity-based products.
b)
Fixed-term bonds.
c)
Short-notice deposits.
d)
Current account.
a)
Equity-based products.
14
72
When advising a self-employed customer, it is important to establish their:
Question 2 options:
a)
regular overtime.
b)
net profits.
c)
basic salary.
d)
commission earnings.
b)
net profits.
14
73
Which of the following best describes a customer's capacity for loss?
Question 3 options:
a)
Their feelings about taking investment risks.
b)
How much they have in emergency funds.
c)
How well they could cope financially with investment losses.
d)
How they would cope with unemployment.
c)
How well they could cope financially with investment losses.
14
74
Which of the following is not a soft fact?
Question 4 options:
a)
The customer's thoughts on their current arrangements.
b)
The customer's objectives.
c)
The customer's current employment and salary.
d)
Potential changes in the customer's circumstances.
c)
The customer's current employment and salary.
14
75
For which product must a firm keep records of the advice given indefinitely?
Question 5 options:
a)
Investments.
b)
Pension opt-outs.
c)
Life policies.
d)
Personal pensions.
b)
Pension opt-outs.
14
76
What should an adviser treat as the first priority when addressing a customer's financial situation?
Question 6 options:
a)
Financial protection for dependants in the event of their death.
b)
Providing an income for them in retirement.
c)
Tax efficiency of their savings and investments.
d)
Build up investments to increase their value.
a)
Financial protection for dependants in the event of their death.
14
77
It is important to ensure that the customer agrees with the adviser's assessment of their priorities.
Question 7 options:
a) True
b) False
b) False
-Deciding a plan of action and agreeing its priority order is the customer's decision, assisted by input from the adviser.
14
78
Short-term accessible savings accounts are the most likely choice for which of the following?
Question 8 options:
a)
Young, employed adults.
b)
Mature households.
c)
Established families.
d)
Retired people.
a)
Young, employed adults.
14
79
The FCA prescribes the format of the factfind and the information required.
Question 9 options:
a) True
b) False
b) False
14
80
Which of the following is least likely to cause a firm to treat a customer as 'vulnerable'?
Question 10 options:
a)
Marital status.
b)
Bereavement.
c)
Disability.
d)
Health.
a)
Marital status.
14
81
Bland Plc has taken out a key employee assurance policy on Jim, the sales director. In order to qualify as a business expense for corporation tax purposes, the policy would need to be:
Question 1 options:
a)
a term assurance policy with a term of five years or less.
b)
a whole-of-life policy.
c)
a non-qualifying life assurance policy.
d)
a term assurance policy with a term of at least ten years.
a)
a term assurance policy with a term of five years or less.
15
82
Which of the following statements is incorrect in relation to the effect of a breadwinner's death on their family?
Question 2 options:
a)
The surviving partner may need to work to maintain the family.
b)
There may be a need for the survivor to fund childcare.
c)
The survivor may struggle to maintain mortgage payments.
d)
State benefits are designed to ensure a good standard of living for the surviving family.
d)
State benefits are designed to ensure a good standard of living for the surviving family.
15
83
Which calculation is used to determine the 'real' rate of return on a savings account?
Question 3 options:
a)
Nominal interest rate divided by the rate of inflation.
b)
Rate of inflation plus the nominal interest rate.
c)
Nominal interest rate minus the rate of inflation.
d)
Rate of inflation divided by the nominal interest rate.
c)
Nominal interest rate minus the rate of inflation.
15
84
There are no negative aspects to consolidating a credit card debt into a mortgage.
Question 4 options:
a) True
b) False
b) False
-The debt will be secured as part of an increased mortgage, which means there is more chance of repossession if the borrower defaults on the mortgage.
15
85
What is the purpose of stress testing?
Question 5 options:
a)
To assess the strength and service standards of the lender.
b)
To ensure the mortgage will be affordable if interest rates increase.
c)
To ensure the mortgage is suitable in view of the borrower's circumstances.
d)
To confirm the borrower's income and expenditure.
b)
To ensure the mortgage will be affordable if interest rates increase.
15
86
Which of the following is not a usual method of setting up a partnership agreement?
Question 6 options:
a)
Automatic aggregation agreement.
b)
Cross-option agreement.
c)
Automatic accrual.
d)
Buy-and-sell agreement.
a)
Automatic aggregation agreement.
15
87
Shareholder protection is appropriate for:
Question 7 options:
a)
private limited companies.
b)
public limited companies and large corporations.
c)
limited liability partnerships.
d)
private limited companies and large corporations.
a)
private limited companies.
15
88
What percentage of national average earnings is the state pension intended to provide?
Question 8 options:
a)
20%.
b)
25%.
c)
40%.
d)
50%.
b)
25%
15
89
Which of the following would be of least concern in later life planning?
Question 9 options:
a)
Long‑term care insurance.
b)
Estate planning.
c)
Income protection.
d)
Power of attorney.
c)
Income protection.
15
90
An investment product's tax treatment is the most important factor when deciding suitability.
Question 10 options:
a) True
b) False
b) False
-Tax is just one factor in assessing suitability – risk, accessibility, product type, minimum contributions and investment term are just some of the other factors to be considered.
15
91
Which of the following is a reason a contract could be deemed invalid?
Question 1 options:
a)
The buyer promised to pay the full purchase price.
b)
It was a contract for land performed by deed.
c)
The buyer was aged 18.
d)
The contract was to buy 200 litres of smuggled rum.
d)
The contract was to buy 200 litres of smuggled rum.
16
92
A property owned on a joint-tenancy basis will allow each owner to leave their share to their chosen beneficiaries.
Question 2 options:
a) True
b) False
b) False
-A joint tenancy means both owners technically own 100% of the property, and on one death legal ownership of the property automatically passes to the survivor, regardless of any will or the laws of intestacy.
16
93
Under agency law, ratification is where:
Question 3 options:
a)
The contract is deemed to be valid by a court.
b)
The principal did or said something that could be seen as giving the agent powers outside the agency agreement.
c)
The other party to a contract agrees that it should remain in place, despite the agent acting outside their authority.
d)
Although the agent acted outside the terms of the agency agreement, the principal agreed to the actions after the event.
d)
Although the agent acted outside the terms of the agency agreement, the principal agreed to the actions after the event.
16
94
Graham is a 2% shareholder in a small limited company. What is his liability if the company becomes insolvent?
Question 4 options:
a)
He is fully liable for 2% of the company's UK debts.
b)
His liability is limited to the amount he has invested in the company.
c)
He is jointly and severally liable for all of the company's debt with other shareholders.
d)
He is fully liable for 2% of the company's worldwide debts.
b)
His liability is limited to the amount he has invested in the company.
16
95
Which one of the following is not a legal requirement for a will to valid but is recommended?
Question 5 options:
a)
The will must be properly executed.
b)
The testator must be aged 18 or over.
c)
The will must be in writing.
d)
The will must be dated.
d)
The will must be dated.
16
96
To register a lasting power of attorney, application should be made to the:
Question 6 options:
a)
County Court.
b)
Office of the Public Guardian.
c)
County Registrar.
d)
Court of Protection.
b)
Office of the Public Guardian.
16
97
Gary is a 50% partner in a limited liability partnership with his friend Mike. Gary has invested £30,000 and has provided a personal guarantee on a £50,000 bank loan the partnership took out. The business has become insolvent with debt of £1,000,000 and Mike cannot be found. What is Gary's liability?
Question 7 options:
a)
50% of the partnership's debts.
b)
The £30,000 he initially invested.
c)
The £30,000 he initially invested and the £50,000 bank loan.
d)
All the debts of the partnership.
c)
The £30,000 he initially invested and the £50,000 bank loan.
16
98
Bartholomew has debts he cannot service and has applied for an individual voluntary arrangement (IVA). He owes £15,000 to his credit card company, £2,000 to a local builder, £1,500 to his bank and £1,500 to a local furniture shop. Which of the following is true?
Question 8 options:
a)
William can insist on the IVA being approved.
b)
All four creditors must agree for the IVA application to be approved.
c)
The IVA application can be approved if the builder, bank and furniture shop agree.
d)
The credit card company can veto the IVA application.
d)
The credit card company can veto the IVA application.
16
99
On receipt of a policy claim, an insurer suspects inaccurate information was provided on the original application form. Under the Consumer Insurance (Disclosure and Representations) Act 2012, the insurer:
Question 9 options:
a)
can refuse the claim if there was deliberate misrepresentation when completing the application form.
b)
can apply a compensatory remedy if the applicant took reasonable care and any misrepresentation was honest and reasonable.
c)
must pay the full claim if the consumer had just been careless when completing the application form.
d)
cannot refuse the claim in any circumstance.
a)
can refuse the claim if there was deliberate misrepresentation when completing the application form.
16
100
Novak died without a valid will, leaving an estate of £500,000. He had not made a will because he assumed that his estate would automatically pass to his civil partner, and then to their two adult children. How will Novak's estate be distributed?
Question 10 options:
a)
The courts will decide on a fair distribution of the estate.
b)
His wife will inherit £385,000 and the children will inherit £57,500 each.
c)
His wife will inherit £270,000 and the children will inherit £115,000 each.
d)
His wife will receive £500,000, and on her death the children will inherit whatever is left.
b)
His wife will inherit £385,000 and the children will inherit £57,500 each.
16
101
Which of the following is not a function of the Bank of England?
Question 1 options:
a)
Issuing bank notes.
b)
Supervising financial markets.
c)
Banker to the UK government.
d)
Prudential regulation.
d)
Prudential regulation.
1
102
The benchmark for financial businesses and institutions to calculate the interest paid on swap transactions and sterling floating rate notes is the:
Question 2 options:
a)
Monetary Policy Committee rate.
b)
Bank of England base rate.
c)
London interbank offered rate.
d)
sterling overnight index average.
d)
sterling overnight index average.
1
103
Which one of the following is not an example of a mutual organisation?
Question 3 options:
a)
Bolton Building Society.
b)
Eastern Bank.
c)
Savers Credit Union.
d)
Foresters Friendly Society.
b)
Eastern Bank.
1
104
Where lenders and borrowers interact directly, it is known as:
Question 4 options:
a)
intermediation placement.
b)
indirect intermediation.
c)
disintermediation.
d)
intermediation.
c)
disintermediation.
1
105
Which organisation is responsible for managing new issues of UK gilts?
Question 5 options:
a)
The UK government.
b)
The London Stock Exchange.
c)
The Bank of England.
d)
The Debt Management Office.
d)
The Debt Management Office.
1
106
The Workers Credit Union has reserves of £60,000, which equals 6% of its assets. This means it:
Question 6 options:
a)
can pay dividends or interest to savers.
b)
can only pay dividends to savers.
c)
cannot pay dividends or interest to savers.
d)
can only pay interest to savers
a)
can pay dividends or interest to savers.
1
107
In order to be acceptable as a medium of exchange, money must have certain properties. Which of the following is not one of the properties?
Question 7 options:
a)
Portability.
b)
Available in high value denominations.
c)
Divisible into smaller units.
d)
Sufficient quantity.
b)
Available in high value denominations.
1
108
Which of the following is not one of the four elements of intermediation?
Question 8 options:
a)
Maturity transformation.
b)
Risk transformation.
c)
Equalisation.
d)
Aggregation.
c)
Equalisation.
1
109
Finance houses raise most of their funds through:
Question 9 options:
a)
wholesale markets.
b)
customer deposits.
c)
retail markets.
d)
private equity markets.
a)
wholesale markets.
1
110
What is the maximum borrowing a building society can raise on the wholesale market?
Question 10 options:
a)
25% of their assets.
b)
50% of their liabilities.
c)
60% of their liabilities.
d)
75% of their assets.
b)
50% of their liabilities.
1
111
During the recovery and expansion phase of the economic cycle, share prices are most likely to:
Question 1 options:
a)
neither increase nor fall.
b)
increase.
c)
fall slightly.
d)
collapse.
b)
increase.
2
112
The government takes more in taxation than it spends on public services. This is most likely to result in the economy:
Question 2 options:
a)
contracting.
b)
expanding.
c)
remaining stable.
d)
balancing.
a)
contracting.
2
113
Allowing for the maximum permitted divergence, the Monetary Policy Committee inflation target is:
Question 3 options:
a)
1–2%.
b)
1–3%.
c)
2–3%.
d)
3–4%.
b)
1–3%.
2
114
Which of the following best describes EU Directives?
They:
Question 4 options:
a)
are automatically binding and member states must implement them exactly as stated in the directive.
b)
must be implemented within 12 months of publication.
c)
apply only to member states without similar legislation already in place.
d)
describe the required outcome but leave member states to decide how they are achieved.
d)
describe the required outcome but leave member states to decide how they are achieved.
2
115
The increase in the Consumer Prices Index has fallen from 4% to 2.5% in the past 12 months. This is an example of:
Question 5 options:
a)
disinflation.
b)
deflation.
c)
stagflation.
d)
negative inflation.
a)
disinflation.
-Disinflation = Decreased inflation
-Deflation = Negative inflation
2
116
In normal circumstances, what is the maximum number of times the Bank of England base rate could change in a 12-month period?
Question 6 options:
a)
3.
b)
5.
c)
8.
d)
12.
c)
8.
2
117
Which of the following is not a government macroeconomic objective?
Question 7 options:
a)
Balance of payments equilibrium.
b)
Price stability.
c)
Maximum employment levels.
d)
Economic growth.
c)
Maximum employment levels.
2
118
A recession is defined as:
Question 8 options:
a)
two quarters of static GDP growth.
b)
two quarters of negative GDP growth.
c)
three quarters of rising inflation.
d)
three quarters of negative GDP growth.
b)
two quarters of negative GDP growth.
2
119
Which of the following is not a European Supervisory Authority (ESA)?
Question 9 options:
a)
European Banking Authority.
b)
European Systemic Risk Board.
c)
European Insurance and Occupational Pensions Authority.
d)
European Securities and Markets Agency.
b)
European Systemic Risk Board.
2
120
Which of the following is an example of an indirect tax?
Question 10 options:
a)
Capital gains tax.
b)
Income tax.
c)
Fuel duty.
d)
National Insurance.
c)
Fuel duty.
2
121
For how many days in a tax year must a person be present in the UK to be considered a UK tax resident?
Question 1 options:
a)
60.
b)
90.
c)
183.
d)
365.
c)
183.
3
122
Imran is self-employed. In order to be able to deduct his business expenses from his gross income, they would need to be:
Question 2 options:
a)
allowable by HMRC.
b)
wholly and exclusively incurred for the purpose of his trade.
c)
exclusively incurred for his trade.
d)
wholly, exclusively and necessarily incurred for his trade.
b)
wholly and exclusively incurred for the purpose of his trade.
3
123
Greg is self-employed, with annual profits over the minimum threshold. Which of the following classes of National Insurance contributions will he have to pay?
Question 3 options:
a)
1 and 2.
b)
2 and 3.
c)
2 and 4.
d)
3 and 4.
c)
2 and 4.
3
124
Which of the following sources of income is not subject to income tax?
Question 4 options:
a)
State pensions.
b)
Share dividends.
c)
Redundancy payment in lieu of notice.
d)
War widow's pension.
d)
War widow's pension.
3
125
Paula is a higher-rate taxpayer who makes a charitable donation through Gift Aid. This means:
Question 5 options:
a)
the charity can recover basic- and higher-rate tax Paula paid on the gifted amount.
b)
Paula's basic-rate income-tax threshold will be extended by the gross amount of the gift.
c)
Paula will receive immediate basic- and higher-rate tax relief on the gift.
d)
Paula will receive immediate basic-rate tax relief on the gift.
b)
Paula's basic-rate income-tax threshold will be extended by the gross amount of the gift.
3
126
Juan comes from a long line of Argentinians, but now lives in the UK. For how many years must he have been a UK tax resident to be deemed domicile?
Question 6 options:
a)
A total of 15 years.
b)
15 of the last 20 years.
c)
17 of the last 20 years.
d)
A total of 20 years.
b)
15 of the last 20 years.
3
127
The personal savings allowance is:
Question 7 options:
a)
available to all taxpayers.
b)
only available to basic-rate taxpayers.
c)
not available to additional-rate taxpayers.
d)
available only to non-taxpayers.
c)
not available to additional-rate taxpayers.
3
128
HMRC sets out a strict order in which income tax on different types of income is applied. Which of the following is third in that order?
Question 8 options:
a)
Earned income.
b)
Chargeable gains from life assurance policies.
c)
Interest.
d)
Dividends.
d)
Dividends.
3
129
Jayne left her job in January and is about to start another. Her previous employer will have given her a:
Question 9 options:
a)
P30.
b)
P45.
c)
P60.
d)
P75.
b)
P45.
3
130
The starting rate of income tax applies to:
Question 10 options:
a)
all income for low earners.
b)
pension income.
c)
interest from savings.
d)
dividends.
c)
interest from savings.
3
131
By when must capital gains tax normally be paid on disposal of an asset?
Question 1 options:
a)
In two instalments on 31 January and 31 July following the end of the tax year in which the gain is made.
b)
By the end of the tax year in which the gain is made.
c)
On 31 January following the end of the tax year in which the gain is made.
d)
On 31 July following the end of the tax year in which the gain is made.
c)
On 31 January following the end of the tax year in which the gain is made.
4
132
Which of the following would not be exempt or zero-rated for VAT?
Question 2 options:
a)
Children's clothes.
b)
Books.
c)
Domestic water.
d)
Financial advice.
d)
Financial advice.
4
133
Dan left £93,000 to his son on his death, leaving the balance of his estate to his wife Joan. At the time of his death the IHT nil-rate band was £310,000. When Joan died, she left her entire estate of £800,000 to their son, having not made any other gifts previously. On Joan's death the IHT nil-rate band was £325,000. How much of Joan's estate would be subject to IHT?
Question 3 options:
a)
£150,000.
b)
£247,500.
c)
£475,000.
d)
£542,000.
b)
£247,500.
-Dan used 30% of his NRB, so Joan inherits 70%, uprated to the NRB at the time of her death. £325,000 x 170% = £552,500. £800,000 - £552,500 leaves £247,500 of her estate liable to IHT.
4
134
Karen made a loss of £5,000 when she sold some shares, but did not make any other gains in the tax year. Assuming the capital gains tax exemption was £12,300 for that tax year, what is the total amount she could carry forward to use against gains in the following tax year?
Question 4 options:
a)
£2,500.
b)
£5,000.
c)
£12,300.
d)
£17,300.
b)
£5,000.
4
135
Alan owns shares in a small company that has share capital of £200,000, and now wants to sell them. In order to be able to claim business asset disposal relief, Alan's shareholding must be worth at least:
Question 5 options:
a)
£5,000.
b)
£10,000.
c)
£50,000.
d)
£100,000.
b)
£10,000.
-Alan must own at least 5% of the firm's share capital to be able to claim business asset disposal relief.
4
136
Which of the following is true in relation to the residence nil-rate band (RNRB)?
Question 6 options:
a)
It applies to property left to the spouse or direct descendants of the deceased.
b)
It is available even if the deceased never lived in the property.
c)
The RNRB is reduced if the value of the estate exceeds £1m.
d)
Any unused RNRB cannot be transferred to a spouse on death.
a)
It applies to property left to the spouse or direct descendants of the deceased.
4
137
Gains from which of the following would be exempt from capital gains tax?
Question 7 options:
a)
Holiday home.
b)
Unit trusts.
c)
Corporate bonds.
d)
Shares.
c)
Corporate bonds.
-4
138
Which of the following would not be subject to corporation tax?
Question 8 options:
a)
Limited liability partnership.
b)
A small limited company.
c)
A football club.
d)
A housing association.
a)
Limited liability partnership.
4
139
Clare and Clive are getting married. Their parents and grandparents have agreed to give them money as a wedding gift. How much could they receive without causing any tax problems for themselves or anyone else?
Question 9 options:
a)
£10,000.
b)
£20,000.
c)
£40,000.
d)
£80,000.
c)
£40,000.
-Each has 2 parents x £5,000 = £10,000, plus 4 grandparents x £2,500 = £10,000, so Clare and Clive can receive a total of £20,000 each as wedding gifts from their parents and grandparents.
4
140
Ashok made a potentially exempt transfer in January 2020, but died in November 2024. What percentage of the IHT on the gift would be payable?
Question 10 options:
a)
20%.
b)
40%.
c)
60%.
d)
100%.
c)
60%.
-He died between 4 and 5 years from the gift, therefore there is a 40% reduction of IHT.
-0-3years = 100% IHT
-3-4 = 80%
-4-5 60% etc
4
141
According to government statistics, in the previous 12 months average earnings increased by 4.3% and inflation increased by 3.2%. This means that both the basic state pension and the new state pension will increase by:
Question 1 options:
a)
2.5%.
b)
3.2%.
c)
4.3%.
d)
5%.
c)
4.3%.
5
142
Statutory Maternity Pay is payable a for a maximum of:
Question 2 options:
a)
12 weeks.
b)
26 weeks.
c)
39 weeks.
d)
52 weeks.
c)
39 weeks.
5
143
Les is receiving Working Tax Credits and has four children, Lia, aged 14, Leo, aged 18 and in the early stages of an apprenticeship, Livvy, aged 19 and in her first year at university, and Lenny, aged 20 and in his second year at university. For how many of his children can Leo claim Child Tax Credit?
Question 3 options:
a)
One.
b)
Two.
c)
Three.
d)
Four.
c)
Three.
-Only Lenny would not be eligible, as he is aged 20. Lia is under 16, and Leo and Livvy are under 20 and in education or training.
5
144
Kyle has just started work at the age of 18. Which of the following is true in relation to his state retirement benefits? He must be credited with:
Question 4 options:
a)
35 years' National Insurance contributions to receive the full new state pension.
b)
30 years' National Insurance contributions to receive the full basic state pension.
c)
at least 15 years' National Insurance contributions to receive any new state pension.
d)
at least 1 years' National Insurance contributions to receive any new state pension.
a)
35 years' National Insurance contributions to receive the full new state pension.
5
145
Which of the following state benefits is tax free?
Question 5 options:
a)
Statutory Sick Pay.
b)
Carer's Allowance.
c)
Contribution-based Employment and Support Allowance.
d)
Disability Living Allowance.
d)
Disability Living Allowance.
5
146
Which of the following state benefits has not been replaced by Universal Credit?
Question 6 options:
a)
Statutory Sick Pay.
b)
Housing Benefit.
c)
Income Support.
d)
Income‑related Employment and Support Allowance.
a)
Statutory Sick Pay.
5
147
George is 75 and, having been self-employed all his working life, retired at the age of 66. He could potentially be in receipt of which state retirement benefits?
Question 7 options:
a)
Basic state pension, pension credit, savings credit and an additional state pension.
b)
Basic state pension only.
c)
Basic state pension, pension credit and savings credit only.
d)
Basic state pension and pension credit only.
c)
Basic state pension, pension credit and savings credit only.
5
148
Lilian is 75 and in poor health. Her daughter Alison looks after her for several hours each day. Subject to meeting the eligibility criteria, Alison will receive:
Question 8 options:
a)
Carer's Allowance.
b)
Personal Independence Payment.
c)
Disability Living Allowance.
d)
Attendance Allowance.
a)
Carer's Allowance.
5
149
Contribution-based Job Seeker's Allowance:
Question 9 options:
a)
is a tax-free benefit.
b)
is payable for a maximum of six months.
c)
is paid at a variable rate, depending on contributions made.
d)
may be reduced if the applicant has significant savings.
b)
is payable for a maximum of six months.
5
150
In relation to Support for Mortgage Interest (SMI), the loan:
Question 10 options:
a)
payments cover capital and interest on the mortgage.
b)
is secured by a first charge on the property.
c)
payments are made direct to the lender.
d)
must be repaid within 24 months from the end of a claim.
c)
payments are made direct to the lender.
5
151
Jerry has a corporate bond secured on the company's assets. This is referred to as:
Question 1 options:
a)
a perpetual subordinated bond.
b)
a debenture.
c)
loan stock.
d)
an investment bond.
b)
a debenture.
6
152
Which of the following is true? Peer-to-peer lending is:
Question 2 options:
a)
a direct contract between one lender and one borrower.
b)
co-ordinated by banks and building societies.
c)
regulated by the Prudential Regulation Authority.
d)
not protected by the Financial Services Compensation Scheme.
d)
not protected by the Financial Services Compensation Scheme.
6
153
Kimberley's paid £105 for a 4% Treasury gilt with a par value of £100. What is the running yield of the gilt?
Question 3 options:
a)
2.5%.
b)
3.8%.
c)
4%.
d)
5%.
b)
3.8%.
-100 / 105 * 4 = 3.8%
6
154
Sally has a National Savings and Investment (NS&I) product, but her friend Sarah cannot open a similar account because new issues of the product are no longer available. This means Sally has an NS&I:
Question 4 options:
a)
income bond.
b)
premium bond.
c)
guaranteed growth bond.
d)
investment account.
c)
guaranteed growth bond.
6
155
Amanda has a permanent income-bearing shareholding. This means:
Question 5 options:
a)
she has a corporate bond holding.
b)
the investment is lower risk than a deposit account.
c)
she has no guarantee that her original investment will be repaid.
d)
the issuing organisation is now a bank.
c)
she has no guarantee that her original investment will be repaid.
6
156
Income from an offshore deposit account is tax free for a UK resident.
Question 6 options:
a) True
b) False
b) False
6
157
A structured deposit account:
Question 7 options:
a)
provides a guaranteed fixed return.
b)
places the original capital at risk.
c)
runs for a fixed term.
d)
matches the return from an associated stock market index.
c)
runs for a fixed term.
6
158
An investor has bought a gilt 'cum dividend'. This means they:
Question 8 options:
a)
will not receive any of the next due income payment.
b)
and the seller will each receive 50% of the next due income payment.
c)
will receive 100% of the next due income payment.
d)
will be entitled to a bonus dividend on the next due income date.
c)
will receive 100% of the next due income payment.
6
159
Income from a Eurobond received by a higher-rate taxpayer qualifies for:
Question 9 options:
a)
personal savings allowance.
b)
tax-free status.
c)
the annual dividend allowance.
d)
capital gains tax exemption.
a)
personal savings allowance.
6
160
Joanne has a basic bank account. Which feature is her account unlikely to offer?
Question 10 options:
a)
Direct debits.
b)
Overdraft facility
c)
ATM card.
d)
Cash withdrawals from a Post Office.
b)
Overdraft facility
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