Taxation for Business and Individuals LO2: Assessing the impact of taxes | IFA Direct

Learning Outcome 2 of Taxation for Business and Individuals (R/650/9654), Level 7 Unit 4 of the ATHE Level 7 Extended Diploma in Accounting and Finance, taught by UK Versity for learners on the IFA Direct programme. LO2: Can assess the impact of relevant taxes in given situations. This learning outcome shows you how to judge what tax does to real decisions. You will identify the taxes a situation triggers, compare alternative routes with full 2026/27 computations, and use reliefs such as group relief, loss relief, R&D credits, capital allowances and incorporation relief. You will also evaluate the penalties and wider risks when a business fails to meet its tax obligations. Assessment criteria covered: 2.1: Analyse ways to optimise tax expenditure for a specific organisation 2.2: Evaluate the potential penalties and risks associated with non-compliance by a specific organisation with statutory obligations with regard to taxation 2M1: Discuss the effect on taxation of specific financial decisions made by individuals and businesses 2D1: Assess how different tax treatments could affect a potential transaction for organisations and individuals Chapters 0:00 LO2 overview, aim and assessment criteria 0:43 Session roadmap 1:21 From event to tax: a first screening grid 2:28 The key advice a client needs 3:03 Unincorporated or incorporated: how tax differs 4:08 Worked comparison: £80,000 profit, sole trader or company 4:57 Worked example: share sale or asset sale (seller, 2026/27) 5:40 Share sale or asset sale: both sides of the deal 6:19 Worked example: incorporation relief (TCGA 1992 s162) 7:07 Decisions where tax changes the answer for individuals 8:11 Worked example: a pension contribution in the £100,000 band 8:58 Worked example: sharing a gain with a spouse (2026/27) 9:43 Example: should a landlord move a portfolio into a company? 10:33 Who is in a group relief group? 11:35 Worked example: where should a loss go? (FY2026) 12:19 Worked example: capital allowances timing (FY2026) 13:05 R&D relief: the merged scheme and ERIS 13:37 Worked example: bonus or dividend for £10,000 of profit (2026/27) 14:27 Optimisation options: advantages and disadvantages 15:13 The main UK penalty regimes 16:24 Worked example: an inaccuracy penalty and interest 17:15 Example: legal planning, public reaction 17:57 Example: non-compliance risks in a set scenario 18:47 Key terms: assessing the impact of tax 19:10 Activity: advise on a business sale 19:44 Check your understanding 20:28 What Pass, Merit and Distinction look like 21:04 Key takeaways 21:43 Plenary: further reading and resources 22:21 Plenary Watch the full IFA Direct playlist on the UK Versity channel:    / @ukversity   Study accounting online with UK Versity: https://www.ukversity.co.uk Course enquiries: admin@ukversity.co.uk #IFADirect #ATHE #Accounting #UKVersity #TaxationforBusinessAndIndividuals #AccountingStudents UK Versity disclaimer: This video is UK Versity teaching material for learners on the ATHE Level 7 Extended Diploma in Accounting and Finance, studied with UK Versity on the IFA Direct programme. UK Versity is an ATHE approved centre; the video is produced by UK Versity and is not issued or endorsed by ATHE or the Institute of Financial Accountants. It is for study only and is not legal, tax, financial or professional advice. Organisation names are used for educational comment only. Figures and rules are correct at the time of recording; always check current guidance and your assignment brief. © UK Versity Online Limited. All rights reserved. COPYRIGHT NOTICE: All content in this video is the exclusive intellectual property of UK Versity Online. This video, in whole or in part, may not be copied, reproduced, distributed, uploaded to any third-party platform, embedded, or integrated into any website, application, or learning management system without the prior written permission of UK Versity Online and the payment of applicable royalties. Unauthorised use, reproduction, or distribution of this content constitutes an infringement of UK Versity's intellectual property rights and will be subject to legal action under applicable UK and international copyright law. For licensing or permissions enquiries, contact: info@ukversity.co.uk