LPC Law Notes Business Law and Practice Notes
A collection of the best LPC BLP notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short these are what we believe to be the strongest set of Business Law and Practice notes available in the UK this year. This collection of notes is fully updat...
The following is a more accessible plain text extract of the PDF sample above, taken from our Business Law and Practice Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Income Tax
Step 1 Calculate grossed up total of all income | Salary Savings Interest (Net Interest x 100/80) Dividends (Net Interest x 100/90) Benefits in Kind Total Income |
---|---|
Step 2 Work out net income | Total Income (Pension Contributions) (Charges on Income) Net Income |
Step 3 Work out taxable income: Person allowance = 10,600 Reduced allowance for income over 100,000 = 10,600 - (Net Income - 100,000) 2 | Net Income (Personal Allowance) Net Income |
Step 4 Apply tax rates to n0n-savings, savings and dividends using the tax rates provided. Use the tax jug, taxing each part on top of the other. | |
Step 5 Add all taxes together to create the Total Tax Liability | Non-Savings Income Tax Savings Income Tax Dividend Income Tax Total Tax Liability |
Step 6 Find the difference between the net and gross savings and deduct for the tax at source | Total Tax Liability (Tax Deducted at Source) Total Tax Payable to HMRC |
Capital Gains Tax
Step 1 Consideration and Expenditure | Consideration/Proceeds of Sale (Initial Expenditure) (Subsequent Expenditure) (Disposal Costs) Chargeable Gain |
---|---|
Step 2 Capital losses | Chargeable Gain (Capital Losses Total Gains |
Step 3 Annual Exemption | Total Gains (11,1,00) Net Income |
Step 4 Apply tax rates: Entrepreneurs relief can be used for shares in a trading company where the seller owns 5% of the voting rights and are an officer/employee of the company. Where ER applies the tax rate is 10%. If ER does not apply then apply the taxable income as follows:
|
Corporation Tax
Roll Over Relief
This can be used when a company disposes of a business assets and purchases a replacement asset. It allows the gain to be carried forward and rolled onto the acquisition cost of the replacement asset. This relief can be used for: land/buildings, goodwill, plant/machinery, ships, aircrafts, quotas, space stations/satellites. Both assets must fall into the above categories but do not have to be the same. The replacement must be purchased 12 months before or 3 years after the sale of the asset. | Sale of Old Asset = X Chargeable Gain = Y Cost of New Asset = Z New Deemed Base Cost = Z - Y |
---|
Capital Allowances
Year | Allowance | Written Down Value |
---|---|---|
1 | Allowance = 500,000 Cost of Machinery - 500,000 = A 18% of A = B | A - B = WDV1 |
2 | 18% of WDV1 = C | WDV1 - C = WDV2 |
3 | 18% of WDV2 = D | WDV2 - D = WDV3 |
This allows the spread of cost over a period of time, even though it is capital expenditure it should be treated as income. It applies to qualifying expenditure: plant/machinery, energy saving and water technologies.
Companies can deduct 18% of the value of the plant/machinery from their income each year on a reducing balance basis. The capital allowance is 500,000 which allows a company to deduct this amount (plus 18 % in the first year) and an additional 18% for all other years.
Calculating TTP & Tax Liability
Step 1 | Calculate the Income Profits:
|
---|
Buy the full version of these notes or essay plans and more in our Business Law and Practice Notes.
A collection of the best LPC BLP notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short these are what we believe to be the strongest set of Business Law and Practice notes available in the UK this year. This collection of notes is fully updat...
Ask questions 🙋 Get answers 📔 It's simple 👁️👄👁️
Our AI is educated by the highest scoring students across all subjects and schools. Join hundreds of your peers today.
Get Started