R06 | Exam Debrief | September 2021

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R06 | Exam Debrief | September Sitting

Reflecting on the September 2021 R06 Exam Paper

The results from the September R06 sitting were released this morning, a little over five weeks after the exam sitting. While many of our candidates are cracking open the champagne in celebration of a pass, the team at BTS are not resting on our laurels.

Reflecting on our analysis of the case studies and the questions that appeared on the paper on the day is a key part of how we keep our support as relevant and exam-standard as possible. So, after all the analysing BTS carried out, what was the exam paper like on the day?

The paper was the usual mix of questions and areas we had predicted and built into our analysis, plus a few curved balls questions. Let’s take another look at the September case studies, the technical areas predicted within them, and the questions asked on the R06 exam paper.

Case Study 1 - John and Karen

Key factors identified from the case study:

Younger couple with dependent kids
Imminently moving house with the help of a mortgage
John is weighing up self-employment versus an employer offer from his current sole client
John has a deferred DB and a PPP invested in a lifestyle fund
Karen has a small PPP
John is looking to retire at 60
Concerns about tax efficiency of their current income and assets

Possible technical areas BTS recommended candidates revised:

House buying expenses
Capital repayment and interest only mortgage mechanics, benefits and drawbacks
Level term assurance – features, factors and benefits
IR35 and how this could affect John
Deferred DB scheme – PPF protection
Cautious lifestyle fund mechanics, pros and cons
And loads more….

Questions that came up for CS1 John and Karen included:

Explain why LISAs could help with their long term savings needs.
Why could John have some tax problems if he remains self-employed.
Benefits/drawbacks of John accepting the employed position on offer.
Pension Protection Fund (PPF) coverage for John’s DB scheme.
Benefits and drawbacks if the couple switch their current level term assurance policy for decreasing term assurance.
Disadvantages of using a computer based risk profiler.
Advantages of using a financial adviser to carry out a financial review.

Case Study 2 - Steve and Trish

Key factors identified from the case study:

They have a son, Harry, who has serious learning difficulties
Looking to semi-retire shortly with two personal pensions and a workplace pension scheme between them
Mix of higher and basic rate tax payer
Taxable investments all in the name of the higher rate taxpayer (Steve)
Interested in retirement planning, passing their estate tax efficiently and tax efficient financial arrangements.

Possible technical areas BTS recommended candidates revised:

Possible DWP benefits – PIP / ESA and Carer’s allowance
Stocks and shares ISAs
UFPLS versus FAD
Mechanics / benefits and drawbacks of phasing retirement
IHT calculation
Benefits of having a will / the process
Bed / ISA-ing collective investments

And loads more…

Questions that came up for CS2 Steve and Trish included:

Marriage tax allowance 10 marks!!! (nasty)
Additional information required to give investment advice – 8 marks
Recommend and justify to immediate reduce their IHT liability – 8 marks
Benefits/drawbacks of Steve deferring his state pension – 6 marks
Factors to consider before advising Steve about consolidating his personal pensions
Reasons why Steve’s current pensions may not meet his objectives
Explanation of why the couple need a will

BTS R06 Study Toolkit

An R06 pass requires three things:

Good base knowledge from R01 through to R05.
The right question answering techniques honed to perfection.
A thorough analysis of the two exam case studies.

If one of these elements goes awry, then a candidate is likely to have to resit the R06 exam. To help you to build your R06 study plan, again we have put together a range of study and training options in our BTS R06 Study Toolkit.

WHERE CAN I FIND OUT MORE?

View Our R06 Exam overview/toolkit to purchase any R06 Study support including Study Guides, e-Learning modules, online workshops and study buddy.

Find out more in depth help and advise to structure your R06 studies by viewing our R06 Study Plan.

Chat with other R06 candidates in the dedicated BTS R06 online forum room to help keep up to date , find out any new information and gain help and advise from others.

Read another insightful article ‘R06 – How to Prepare & Pass’ to find out more information about the R06 exams.