CISI INVESTMENT RISK TAXATION UPDATED
EXAMS COMPREHENSIVE QUESTIONS AND
ANSWERS SURE A+
✔✔Class 3 contributions can be made how many years after? - ✔✔6 years
✔✔Income from an offshore reporting fund is taxed: - ✔✔taxed as it is earned
regardless of whether it is remitted
✔✔Are repair costs deductible from CGT? - ✔✔No
✔✔Broad money - ✔✔M4 - notes and coins in circulation
and instant access and time deposits
of UK residents in UK banks and building societies
✔✔Discretionary trusts and A&M trusts - tax treatment - ✔✔Trustees are responsible for
sorting tax payments. What they do is:
First 1k at basic rates (20% and 8.75%
Remaining at 'trust rate' Essentially as additional rate taxpayer (45% and 39.35%)
*if the settlor has more than 1 trust, the £1k is split, up to 5 splits
Then this money is paid to the beneficiaries. As they are only liable for their marginal
rate, non or basic tax rate payers can reclaim tax.
, ✔✔Legal structure of an OEIC - ✔✔Company
(incorporated under FSMA)
✔✔Lifetime ISA must be opened before age _____ - ✔✔40
✔✔For IHT purposes, taper relief reduces the _____ on a PET between years _____ -
✔✔reduces TAX between years 3 and 7
✔✔Electoral cycle - what economic situation is usually generated before elections? -
✔✔Boom
✔✔Stock control method used by unit trust managers - ✔✔Box management
✔✔IHT Annual allowance
vs
Small gifts allowance - ✔✔Annual allowance - 3000
Small gifts - 250
Only larger can be used (not combined)
✔✔For an investment product, customer must be provided with either _____ or ______
- ✔✔Key Features Document
or
Key Investor Information Document
✔✔Who ensures OEIC assets are safeguarded? - ✔✔the depositary
✔✔Interest yield on a bond - formula - ✔✔Coupon / Clean Price * 100
✔✔3 stages of top-down portfolio management - ✔✔1. Asset allocation
2. Sector selection
3. Individual stock selection
✔✔Person who puts assets into trust - ✔✔Settlor
✔✔Name for share under a split capital investment trust with no dividend but higher
redemption value - ✔✔Zero
✔✔Is IHT paid by self-assessment? - ✔✔No
✔✔Systematic risks for bonds - ✔✔GRIPE
EXAMS COMPREHENSIVE QUESTIONS AND
ANSWERS SURE A+
✔✔Class 3 contributions can be made how many years after? - ✔✔6 years
✔✔Income from an offshore reporting fund is taxed: - ✔✔taxed as it is earned
regardless of whether it is remitted
✔✔Are repair costs deductible from CGT? - ✔✔No
✔✔Broad money - ✔✔M4 - notes and coins in circulation
and instant access and time deposits
of UK residents in UK banks and building societies
✔✔Discretionary trusts and A&M trusts - tax treatment - ✔✔Trustees are responsible for
sorting tax payments. What they do is:
First 1k at basic rates (20% and 8.75%
Remaining at 'trust rate' Essentially as additional rate taxpayer (45% and 39.35%)
*if the settlor has more than 1 trust, the £1k is split, up to 5 splits
Then this money is paid to the beneficiaries. As they are only liable for their marginal
rate, non or basic tax rate payers can reclaim tax.
, ✔✔Legal structure of an OEIC - ✔✔Company
(incorporated under FSMA)
✔✔Lifetime ISA must be opened before age _____ - ✔✔40
✔✔For IHT purposes, taper relief reduces the _____ on a PET between years _____ -
✔✔reduces TAX between years 3 and 7
✔✔Electoral cycle - what economic situation is usually generated before elections? -
✔✔Boom
✔✔Stock control method used by unit trust managers - ✔✔Box management
✔✔IHT Annual allowance
vs
Small gifts allowance - ✔✔Annual allowance - 3000
Small gifts - 250
Only larger can be used (not combined)
✔✔For an investment product, customer must be provided with either _____ or ______
- ✔✔Key Features Document
or
Key Investor Information Document
✔✔Who ensures OEIC assets are safeguarded? - ✔✔the depositary
✔✔Interest yield on a bond - formula - ✔✔Coupon / Clean Price * 100
✔✔3 stages of top-down portfolio management - ✔✔1. Asset allocation
2. Sector selection
3. Individual stock selection
✔✔Person who puts assets into trust - ✔✔Settlor
✔✔Name for share under a split capital investment trust with no dividend but higher
redemption value - ✔✔Zero
✔✔Is IHT paid by self-assessment? - ✔✔No
✔✔Systematic risks for bonds - ✔✔GRIPE
