Mocks

When a restricted adviser is providing investment advice to a client, the adviser’s suitability report must

confirm that restricted advice has been provided

For a life assurance policy to be treated as a qualifying policy, premiums must be payable at least

annually

A stand-alone critical illness insurance policyholder has just received a second payment under the policy. This indicates that

his insured condition has progressed in severity

How, if at all, will an employee who is a member of his employer’s group personal accident and sickness policy be taxed on the benefits and premiums

Only on the premiums as a benefit-in-kind

The benefit payable in respect of accidental bodily injury under a personal accident and sickness policy is normally an amount

specified according to the nature and level of injury.

Which type of benefit is only normally available under a comprehensive private medical insurance policy

Parental stay in hospital

How is the income paid from a National Savings & Investments Income Bond

Gross and at a variable rate

An unexpected reduction in the dividend level paid by a company usually leads to a

reduction in the share price

If the share price of an investment trust is 140p and the net asset value per share is 120p, it is trading at a

premium of 16.7%.

The reason that Stamp Duty Reserve Tax would be payable instead of Stamp Duty on a share transaction is because the transaction was

made through CREST

A director of a private limited company draws a basic salary of £30,000 per annum. He is also paid a dividend of £10,000 and has benefits-in-kind of £5,000. What are his relevant UK earnings for pension purposes

£35,000

The overall limit for commuting benefits from a personal pension fund using the triviality rules is

£30,000

An authorised firm is implementing a low-cost marketing strategy which focuses on real-time feedback determining who reads its literature. Which marketing strategy is the firm most likely utilising

E-marketing

Which services are typically provided by a platform

Bank accounts, pensions and stockbroker services

Under a private medical insurance policy, what is the usual position when the policyholder is admitted to a National Health Service (NHS) hospital’s accident and emergency department

Cover is not provided

Under which type(s) of private medical insurance policy is cover usually provided for the use of private ambulances

Comprehensive policies only

Which type of organisation issues Permanent Interest Bearing Shares

A mutual building society

What is the minimum initial payment that can be made into a National Savings & Investments Direct Saver Account

£1

An investor has a holding of £10,000 8% Treasury Gilt 2026 which has a current price of £125. What half-yearly gross income would be received

£400 (half of the interest is paid half-yarly)

With regard to Income Tax, how does a higher-rate taxpayer usually receive the income from a directly-held UK gilt

Gross

A Real Estate Investment Trust received £400,000 in rental income during the 2024/2025 tax year. To avoid paying Corporation Tax, what minimum amount of this income must be distributed to investors

£360,000

How is a transfer of a unit trust from a husband to his wife treated for Capital Gains Tax purposes

No immediate chargeable gain arises and when assessing tax on subsequent disposal, the acquisition date of the husband is used

Who is responsible for the day-to-day management of a unit trust

The manager

Who is ultimately responsible for the safekeeping of the underlying assets in an open-ended investment company

The depositary

Martin is employed and earns a salary of £65,000. Ignoring carry forward, what is the maximum gross amount, if any, that he can pay into a UK-registered pension scheme and obtain tax relief

£60,000

What maximum contribution charge can be applied to new contributions to a National Employment Savings Trust (NEST) account

1.8%

Where an employee meets the eligibility criteria for an employer’s pension scheme under the auto enrolment rules, what rule applies regarding joining the scheme

The employee is automatically enrolled, but only has up to one month to opt out to receive a full refund.

For an individual to take pension benefits under the trivial commutation rules, the total benefits must always be less than

£30,000

The minimum age(s) at which an individual may start a cash ISA and a stocks and shares ISA is

18 years old for both ISAs

Where an individual opens an ISA and wishes to transfer in funds from the previous year’s ISA, what rule applies

Regardless of the proportion of the funds required to be transferred, the ISA manager can refuse to accept them

The first stage in the financial advice process is to

Determine the client’s requirements

In calculating the amount of premium to be paid for a life assurance policy, what is normally added to a loaded premium to cover the heavy initial expenses of setting up the contract

Policy charge

Alan has made a gain of £6,000 on his non-qualifying life assurance policy. This gain could be liable for

Higher or additional rates of Income Tax

Most life offices will pay death claims without a grant of probate where the sum assured and the value of the estate is small, if the proceeds are being paid to

Someone entitled to receive the proceeds

With critical illness cover, the onus on proving the claim is on the

Policyholder

An example of an investment with very high liquidity is a

Treasury bill

Caren is aged 65 and is looking for a safe place to put her savings. She wants to be able to manage her account by post only. Which of the following NS&I products would be most suitable for her needs

Investment Account

Which of the following issues core capital deferred shares

Building Societies

Contributions paid into a pension scheme can be paid net of basic rate tax. What is the name given to this method of claiming tax relief on contributions

Pension relief at source method

If an individual’s total pension input exceeds the annual allowance, what is the tax charge

Their marginal rate of Income Tax