Checked 27 October 2026. The format facts were read on the CII’s R04 syllabus and examination guide for 2026/27 on 25 October 2026. The three questions use the CII’s tax tables for exams from 1 September 2026 to 31 August 2027 (tax year 2026/27).
R04 practice questions are most useful in the exam’s own shape: 50 questions in one hour, 39 standard and 11 multiple response, on the 2026/27 tax year. Below are three questions worked through, one of them a tapered annual allowance calculation and one a multiple response question, with the explanation behind each answer. They come from our own independent R04 practice test, written to the CII’s 2026/27 syllabus with every allowance and State benefit figure taken from the CII’s 2026/27 exam tax tables. The CII’s own specimen examination is in its R04 examination guide, which you can download from its R04 unit page; use that too. ProSyllabus is an independent study site. It is not affiliated with the Chartered Insurance Institute (CII), and nothing here is official. Every exam fact and tax-table figure below is quoted or summarised from the CII’s own pages and documents, and the pension rules behind the worked questions from GOV.UK, HMRC’s Pensions Tax Manual and the Pensions Act 2014, read on 25 and 27 October 2026.
Three worked R04 questions for 2026/27
Each question is printed exactly as it appears in the ProSyllabus CII R04 practice test, with the explanation the test gives after you answer.
Question 1 · LO2 The HMRC tax regime for pensions
In 2026/27 Helen has threshold income of £220,000 and adjusted income of £300,000. What is her annual allowance?
- £20,000
- £40,000
- £60,000
- £10,000
Answer: B. Both tests are met: threshold income is over £200,000 and adjusted income is over £260,000. The annual allowance is reduced by £1 for every £2 of adjusted income over £260,000 (CII tax tables 2026/27): (£300,000 - £260,000) / 2 = £20,000, so £60,000 - £20,000 = £40,000.
From the ProSyllabus CII R04 practice test: an original question, not a CII specimen or exam question. It is one of that test’s three free questions.
Question 2 · LO7 State schemes
Andy's National Insurance record started after April 2016, and he has 28 qualifying years when he reaches State Pension age. At 2026/27 rates, what weekly new State Pension will he receive?
- £241.30
- £225.21
- £168.91
- £193.04
Answer: D. For a record started after April 2016, each qualifying year earns 1/35 of the full rate, with a minimum of 10 years (GOV.UK, The new State Pension; Pensions Act 2014, section 3): £241.30 (CII tax tables 2026/27) x 28 / 35 = £193.04 a week.
From the ProSyllabus CII R04 practice test: an original question, not a CII specimen or exam question. It is one of that test’s three free questions.
Question 3 · LO6 Drawing pension benefits · multiple response
Which of the following are features of flexi-access drawdown?
- The tax rules set no minimum or maximum amount the member can take in a tax year.
- The income is guaranteed to be paid for the rest of the member's life.
- The pot stays invested, so what is left can go up or down in value.
- The member is liable for Income Tax on each payment of drawdown pension.
More than one statement is correct. Choose the option that lists every correct statement and no other.
- 1, 2 and 3 only
- 1 and 4 only
- 1, 3 and 4 only
- 2, 3 and 4 only
Answer: C. Statements 1, 3 and 4 are correct. With flexi-access drawdown the tax rules set no minimum or maximum amount the member can take in any tax year (subject to the scheme's rules), and the member is liable for Income Tax on any payment of drawdown pension (HMRC PTM062701). The pension pot is invested in a flexi-access drawdown fund, and investments can go up or down (GOV.UK, Personal pensions). Nothing is guaranteed for life: a guaranteed income for life is what a lifetime annuity bought from an insurance company gives (GOV.UK, Personal pensions: how you can take your pension).
From the ProSyllabus CII R04 practice test: an original question, not a CII specimen or exam question. It is one of that test’s three free questions.
| Question | Learning outcome | Answer |
|---|---|---|
| 1 | LO2 The HMRC tax regime for pensions | B: £40,000 |
| 2 | LO7 State schemes | D: £193.04 |
| 3 | LO6 Drawing pension benefits | C: 1, 3 and 4 only |
The table repeats the three answers for readers on a version of this page that does not show the cards.
FreeTests: LO2 The HMRC tax regime for pensions · LO7 State schemes · LO6 Drawing pension benefits
CII R04 Practice Test: free sample
Answer 3 questions against the clock, like the real exam. You then see the right answer, the reason and your time on each. About 4 minutes · free · no sign-in.
3 questions to answer▶ Start nowThis one is free · no sign-in neededYour result shows how long each question took you.How multiple response questions are scored
In the real exam a multiple response question has between four and six options, and the examination guide says: “For each question more than one option is correct. Candidates must select all the correct options to gain the mark.” In our practice test the player takes one answer per question, so each of our multiple response questions lists numbered statements and you choose the one option that names every correct statement and no other, as in the multiple response question above; you score only if you pick that option.
The syllabus’s guide puts the 11 multiple response questions in three learning outcomes: 2 in outcome 5 (defined contribution schemes), 4 in outcome 6 (drawing pension benefits) and 5 in outcome 8 (the aims and objectives of retirement planning), where every question is multiple response. These are indicative: the syllabus says the number testing each outcome “will generally be within the range plus or minus 2 of the number indicated.” Outcome 8 builds, in the indicative content’s words, “on the content outlined in the Investment Principles and Risk core unit”, so knowledge from that unit is assumed.
Using a timed mock well
| Step | What to do (our suggestion) |
|---|---|
| Time it | Sit 50 questions in one hour in one go: 72 seconds a question on average (our arithmetic). Calculations and multiple response questions take longer, so do not linger on a wording question you cannot settle. |
| Use the tables | Practise with the CII’s published 2026/27 tax tables open rather than from memory or an older year’s figures: the annual allowance, the money purchase annual allowance, the lump sum allowances and the State Pension and Pension Credit rates are all printed there. |
| Score by learning outcome | The CII’s own feedback reports the percentage you answered correctly on each learning outcome. Do the same with a mock, and compare your total with the 65% standard pass mark: 33 of 50 is the first whole score at or above it. |
| Rework every calculation you missed | Follow the explanation step by step: check whether both taper tests are met and which allowance a lump sum is tested against. |
The format facts are from the CII’s R04 syllabus and examination guide for 2026/27. The R04 format guide sets out every learning outcome, its number of questions and the 2026/27 pension and State benefit figures from the tax tables.
Reading your mock score
| Correct answers out of 50 | Against the 65% standard pass mark | What we would do next (our suggestion) |
|---|---|---|
| 36 or more | Comfortably above | Keep one timed mock for the week of the exam; rework every calculation you missed. |
| 33 to 35 | At or just above | Too close to rely on. Work on your weakest learning outcome, then sit another timed mock. |
| 30 to 32 | Just below | Go back to the study text for the outcomes where you dropped most marks, and redo the calculations step by step. |
| 29 or fewer | Well below | Finish the study text before another timed mock; use a mock to find gaps, not to learn the material. |
The same comparison without the tool. The 65% standard pass mark is from the CII’s R04 unit page; the bands and suggestions are ours. The CII adjusts marks where necessary for the difficulty of each exam version.
FreeTests: LO2 The HMRC tax regime for pensions · LO7 State schemes · LO6 Drawing pension benefits
CII R04 Practice Test: free sample
Answer 3 questions against the clock, like the real exam. You then see the right answer, the reason and your time on each. About 4 minutes · free · no sign-in.
3 questions to answer▶ Start nowThis one is free · no sign-in neededYour result shows how long each question took you.Traps to watch for in R04 questions
| Trap | What happens | What to do (our suggestion) |
|---|---|---|
| Lifetime allowance thinking | The lifetime allowance was abolished from 6 April 2024. Pension commencement lump sums, UFPLS and stand-alone lump sums are now tested against the lump sum allowance, and, on death before 75, most lump sum death benefits against the lump sum and death benefit allowance (trivial commutation lump sums are taxed at any age) (HMRC PTM171000; GOV.UK, Tax on a private pension you inherit). The standard amounts are £268,275 and £1,073,100, higher with some protections, and they may be reduced where pension benefits were crystallised before 6 April 2024 (CII tax tables 2026/27). | Ask which allowance the payment is tested against before you calculate anything. |
| Only one taper test | The annual allowance is tapered only if threshold income is over £200,000 and adjusted income is over £260,000; it falls by £1 for every £2 of adjusted income over £260,000, to a minimum of £10,000 (CII tax tables 2026/27). | Check threshold income first: if it is £200,000 or less, the taper cannot apply, whatever the adjusted income. |
| What triggers the MPAA | HMRC’s trigger events include the first payment from a member’s own flexi-access drawdown fund created by designating funds on or after 6 April 2015, unless the whole fund is attributable to a disqualifying pension credit (the trigger occurs immediately before that payment), and the first UFPLS; payment of a pension commencement lump sum, or of a small lump sum, does not trigger it. | Look for whether taxable income has actually been taken from a money purchase pot. |
| Rules that start after 2026/27 | Most unused pension funds and death benefits come into Inheritance Tax from 6 April 2027, and normal minimum pension age rises to 57 from 6 April 2028; the 2026/27 syllabus examines English law and practice in the tax year 2026/2027. | Answer on the rules in force in 2026/27 unless the question says otherwise. |
| Negative wording | The examination guide says negative words are emphasised in capitals, for example NOT and CANNOT. | Read the stem twice when it contains a capitalised word. |
| Multiple response needs every correct option | The guide says: “Candidates must select all the correct options to gain the mark.” | Judge each statement on its own as true or false before you look at how many you have chosen. |
The traps are drawn from the CII’s R04 syllabus, examination guide and 2026/27 tax tables, HMRC’s Pensions Tax Manual and HMRC’s policy paper on Inheritance Tax and unused pension funds; the suggestions are ours.
Official practice from the CII
The CII’s R04 examination guide for exams from 1 September 2026 to 31 August 2027 can be downloaded from its R04 unit page. It contains a specimen examination with specimen tax tables, the answers and the learning outcome each question covers. The CII’s Knowledge Checker is a set of multiple-choice questions on the study text, and Revision Extra, sold separately, includes practice questions.
Frequently asked questions
Where can I find CII R04 practice questions?
The CII’s R04 examination guide, on its R04 unit page, contains a specimen examination with answers. Its Knowledge Checker and Revision Extra add practice questions. Independently, the ProSyllabus CII R04 practice test has two full 50-question exams for the 2026/27 tax year, three questions of which are free and worked through on this page.
Are the questions on this page real R04 exam questions?
No. They are original questions written to the learning outcomes of the CII’s 2026/27 R04 syllabus. They are not CII specimen or exam questions and the CII has not written or endorsed them.
Which tax year do these questions use?
The 2026/27 tax year, with every allowance and State benefit figure from the CII’s tax tables for exams from 1 September 2026 to 31 August 2027.
How long should an R04 mock take?
One hour for 50 questions, the time the real exam allows.
How are R04 multiple response questions marked?
The examination guide says candidates must select all the correct options to gain the mark.
More in this series
Sources
- official — CII: R04 examination guide for exams from 1 September 2026 to 31 August 2027 (published June 2026), with a specimen examination
- official — CII: R04 Pensions and retirement planning, examination syllabus, examined from 1 September 2026 to 31 August 2027 (published June 2026)
- official — CII: R04 Pensions and retirement planning 2026/2027, assessment criteria and indicative content
- official — CII: tax tables 2026-2027 (the supporting exam documents page lists them for R04 exams from 1 September 2026 to 31 August 2027)
- official — CII: Pensions and retirement planning (R04), unit page with the assessment, testing position and exam guide updates (read 25 Oct 2026)
- official — CII: Understanding your exam result (how marks are moderated)
- official — HMRC: Pensions Tax Manual PTM057100, tapered annual allowance
- official — HMRC: Pensions Tax Manual PTM056520, money purchase annual allowance trigger events
- official — HMRC: Pensions Tax Manual PTM056530, events that do not trigger the money purchase annual allowance
- official — HMRC: Pensions Tax Manual PTM062701, drawdown pension rules from 6 April 2015
- official — GOV.UK: Personal pensions, how you can take your pension
- official — HMRC: Pensions Tax Manual PTM171000, lump sum allowance
- official — GOV.UK: Tax on a private pension you inherit
- official — GOV.UK: The new State Pension
- official — Pensions Act 2014, section 3: full and reduced rates of state pension
- official — HMRC: Inheritance Tax: unused pension funds and death benefits
- official — HMRC: Pensions Tax Manual PTM062215, protected pension age and the rise in normal minimum pension age to 57
official = a document published by the conducting body. reported = a news or coaching site we could not check against an original. Where sources disagree this page says so rather than picking one.
FreeTests: LO2 The HMRC tax regime for pensions · LO7 State schemes · LO6 Drawing pension benefits
CII R04 Practice Test: free sample
Answer 3 questions against the clock, like the real exam. You then see the right answer, the reason and your time on each. About 4 minutes · free · no sign-in.
3 questions to answer▶ Start nowThis one is free · no sign-in neededYour result shows how long each question took you.
