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BLP REVISION NOTES FOR EXAM GUARANTEED PASS A+ NEW VERSION
BLP REVISION NOTES FOR EXAM GUARANTEED PASS A+ NEW VERSION
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lOMoAR cPSD| 30308911BLP REVISION NOTES FOR 2023-2024 EXAM GUARANTEED PASS
A+ NEW VERSION
, lOMoAR cPSD| 30308911
CONTENTS
1. INCOME TAX CHECKLIST
2. INCOME TAX CHECKLIST - Continued
3. CAPITAL GAINS TAX CHECKLIST
4. CAPITAL GAINS TAX CHECKLIST – Reliefs for CGT
5. CAPITAL GAINS TAX CHECKLIST – Reliefs for CGT
6. Director’s Duties – Declaration of Interest – s.177 & s.182
7. Director’s BREACH of Duty – *Question structure* Part 1
8. Director’s BREACH of Duty – *Question structure* Part 2
9. Substantial Property Transactions
10. Substantial Property Transaction – Company Procedure – BM1
11. Substantial Property Transaction – Company Procedure – Regular Notice for GM
12. Substantial Property Transaction – Company Procedure – Short Notice for GM
13. Substantial Property Transaction – Company Procedure – BM2
14. Substantial Property Transaction– Written Resolution procedure
15. Substantial Property Transaction – Written Resolution procedure
16. Substantial Property Transaction – Written Resolution procedure
17. Loans to Directors from the Company – SHORT NOTICE NOT AVAILABLE
18. Loans to Directors – Company Procedure - BM1
19. Loans to Directors – Company Procedure - Regular Notice for GM
20. Loans to Directors – Company Procedure - BM2
21. Loans to Directors – Company Procedure BM1
22. Loans to Directors – Company Procedure – Written Resolution
23. Loans to Directors – Company Procedure – BM2
24. Service Contracts to Directors – More than 2 years & ways a Director can leave Office
25. Removal of Director s.168 & s.303
26. Grant of long-term service contracts – BM1
27. Grant of long-term service contracts – Regular Notice for GM
28. Grant of long-term service contracts - BM2
29. Grant of long-term service contracts – BM1
30. Grant of long-term service contracts – Written Resolution
31. Grant of long-term service contracts – BM2
32. Company Finance – allotment of Shares
33. Allot new shares – s.550 – BM1
34. Allot new shares – s.550 – Regular Notice for GM
35. Allot new shares – s.550 – Short Notice for GM
36. Allot new shares – s.550 – BM2
37. Allot new shares – s.550 – WR procedure
38. Allot new shares – s.550 – WR procedure
39. Allot new shares – s.550 – WR procedure
40. Allot new shares – s.551 – BM1
41. Allot new shares – s.551 – Regular Notice for GM
42. Allot new shares – s.551 – Short Notice for GM
43. Allot new shares – s.551 – BM2
44. Allot new shares – s.551 – WR procedure
45. Allot new shares – s.551 – WR procedure
46. Allot new shares – s.551 – WR procedure
47. Allotment of Shares – Board Resolution – no SH approval needed.
48. Company Finance – Equity vs Debt Finance – Shareholders POV
49. Company Finance – Equity vs Debt Finance – Company’s POV
50. Debt Finance & Charges
51. CHARGES MCQ Notes & types of shares
52. LOANS – Overdraft, Term Loan & Revolving Credit Facility (RCF)
53. Share transfer and buy-back
54. Buy-back shares out of PROFITS – Company procedure – BM1
55. Buy-back shares out of PROFITS – Company procedure – GM – REGULAR NOTICE
56. Buy-back shares out of PROFITS – Company procedure – BM2
57. Buy-back shares out of PROFITS – Company procedure – BM1 – Written Resolution
58. Buy-back shares out of PROFITS – Company procedure – WR – Written Resolution
59. Buy-back shares out of PROFITS – Company procedure – BM2 – Written Resolution
, lOMoAR cPSD| 30308911
INCOME TAX – CHECKLIST
PROGRESSIVE TAX – meaning the higher the income, the more tax you pay.
Step 1: - Aggregate all chargeable sources of income – no statutory definition of income
Calculat - Money received will be income if there is an element of recurrence e.g. salary, profits from a
e the business or interest paid on bank account
Total - Trading income, Property income, employment income (gross), savings and investment income.
Income
Step 2: 1. Gross-up any income received net of tax.
Gross-up 2. Where you are told a PAYE deduction is made on salary, make a note of the amount deducted for
Income use at Step 6.
Step 3: Deduct any allowable reliefs e.g. interest on a qualifying loan. Qualifying loans include:
Calculat - Loans to buy share in/contribute capital to a partnership
e Net - Loan to invest in a “close” trading company
Income - Loans to PRs so that they can pay inheritance tax. Allowable relief cap of £50,000 or 25% of
income.
Step 4: Deduct personal allowance from net income
Calculat Income Personal Allowance
e up to and including £100,000 per annum £11,500
Taxable Over £100,000 but under £123,000 Net income - £100,000 = reduced allowance
Income 2
£11,500 - reduced personal allowance = the
personal allowance for this individual.
£123,000 or more No personal allowance
This then gives a figure for TOTAL TAXABLE INCOME
Points to NOTE
- If the taxpayer is blind they benefit from an extra PA of £2,230
- Marriage – if one spouse does not use full allowance they can pass £1,100 to other spouse.
Step 5: 1. NOTE THE TOTAL TAXABLE INCOME FIGURE OBTAINED IN STEP 4
Apply 2. Separate out taxable income into:
Rates of - NSNDI (non-savings, non-dividend income);
Tax - Savings income; and
- Dividend income
3. Calculate available Personal Savings Allowance (PSA) using the total taxable income figure
Tax Rate Income Band (taxable income) Allowance
Basic rate taxpayer £0 - £33,500 £1,000
Higher rate taxpayer £33,501 - £150,000 £500
additional rate taxpayer £150,001 and above No allowance
4. Add the PSA allowance, and Dividend Allowance (DA) £5000 to total taxable IESD.
- If the IESD plus allowance is less than 35k, all will be taxed at basis rate. Any additional would be
taxed at higher rate. ETC.
5. Apply applicable rate of tax:
IESD: - basic rate – 20% - £0 - £33,500
- Higher rate- 40% - £33,501 - £150,000
- Additional rate – 45% - over £150,001
Savings income - deducted appropriate allowance as worked out at para 3 then apply rate of tax
worked out in para 4.
a) Starting rate: 0% - £0 - £5k
b) Basic rate: 20% - £5,001 - £33.5k
c) Higher rate: 40% - £33,501 - £150k
d) Additional rate: 45% - over £150k
Dividend income – deduct dividend allowance from dividend income. Then apply rate of tax as
calculated at para 4.
a) Ordinary rate: 7.5% - £0 – £33.5k
b) Upper rate: 32.5% - £33,501 - £150k
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, lOMoAR cPSD| 30308911
c) Additional rate: 38.1% - over £150k
Step 6: 1) Aggregate all individual taxes from Step 4
Calculat 2) Deduct the amounts you made a note of at step 2 as they have already been paid to HMRC.
e Overall 3) Has the client overpaid? If so, can claim a rebate
Liability 4) Tax is payable on account by instalments on 1 Jan of current tax year, 31 July following the end
of the tax year and 31 January following the end of the tax year (balancing payment or refund)
ANNUAL INVESTMENT ALLOWANCE
Gives you a reduction in the tax of assets.
So has there been any capital allowances bought? Exempt up to £200,000
Example: you buy £6000 worth of cash registers – all tax exempt therefore fully deductible.
Pool of assets
If you have a pool of plant and machinery, for example, of £57,500 – apply 18% rate of tax
So £57,500 x 18% = £10,350
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