SQE Study

The principles of vicarious liability, which holds an employer responsible for the torts an employee commits due to their working relationship, even if the employer did not personally commit the wrongful act. The source clarifies that for vicarious liability to be established, the tortfeasor must be an employee, acting in the course of their employment, and the action must not be expressly prohibited. The document distinguishes between employees and non-employees, such as independent contractors and partners, noting that the modern judicial approach, exemplified in Various Claimants v Catholic Child Welfare Society, expands liability to relationships "akin to employment." Furthermore, the text explores the "close connection" test from the Lister Principle to determine employer liability, especially in cases of intentional wrongful acts, contrasting these with "frolic" cases where the employee acts outside the scope of employment. Finally, the text touches on the employer’s right to seek indemnity from the employee after paying damages and outlines the overall public policy purpose of vicarious liability, including ensuring victim compensation and encouraging employer safeguards.

A comprehensive overview of legal defences in tort law, primarily focusing on how a defendant can reduce or eliminate liability for harm caused. Volenti Non Fit Injuria is explained as a complete defence, applying when a person knowingly and willingly accepts a risk, with case examples demonstrating the required elements of knowledge and voluntary consent, particularly noting exceptions for employees and rescuers. The text also details Contributory Negligence, which functions as a partial defence where the claimant's failure to take reasonable care contributes to their own injuries, resulting in a proportional reduction of damages, as illustrated by the Law Reform (Contributory Negligence) Act 1945 and relevant case law on seatbelts and intoxicated drivers. Finally, the complete defence of Illegality (Ex Turpi Causa Non Oritur Actio) is covered, preventing a claimant from recovering damages when the injury is closely linked to their own criminal conduct, although courts sometimes limit its application based on public policy.

A comprehensive look at the tort of negligence, particularly focusing on the establishment of a duty of care and the calculation of damages in personal injury and death claims. Multiple case summaries illustrate when a duty of care exists, such as an employer's non-delegable duty to provide a safe work environment, contrasting with situations where public bodies, like the police, generally do not owe a duty to individual citizens. The materials also explore the concept of remoteness of damage, applying the reasonable foreseeability test and the Egg-Shell Skull Rule to determine the extent of liability. Finally, the texts detail the principles of remedies, differentiating between pecuniary and non-pecuniary losses and explaining how courts calculate compensation for financial losses and dependency claims, particularly when applying the once and for all rule with exceptions like provisional and periodic payments. The principles regarding the non-recoverability of pure economic loss arising from negligent acts, contrasted with exceptions for negligent misstatements in a special relationship, are also clarified.

The application of legislation across Wales and England, focusing on the distinct law-making powers of the Senedd Cymru (Welsh Parliament) and the UK Parliament (Westminster). Laws passed by the Senedd Cymru have jurisdiction only within Wales and cover "devolved matters" such as education and health. Conversely, Westminster's laws apply to both England and Wales, addressing "reserved matters" like defense and immigration, with England being solely governed by Westminster legislation across all domestic policies since it lacks a devolved parliament. This legal framework, particularly the reserved powers model, highlights Wales' legislative autonomy in certain areas while remaining subject to UK-wide laws on matters of national importance. The document concludes with a brief, unrelated promotional note regarding a referral program for an academy and a copyright warning.

A comprehensive overview of statutory interpretation—the methods courts use to determine and apply the meaning of written law when the text is unclear or leads to problematic results. Initially, the Literal Rule mandates adhering strictly to the plain meaning of words, despite potential absurd outcomes, while the Golden Rule offers a remedy by allowing modification of the literal meaning to avoid such absurdity. The Mischief Rule encourages judges to consider the underlying problem the legislation was created to address, focusing on the law's original intent, which is a key component of the broader Purposive Approach. Additionally, the texts detail essential Aids to Statutory Interpretation, divided into intrinsic (from within the statute) and extrinsic (external resources like parliamentary records), alongside various legal presumptions that guide interpretation, such as the presumption against altering common law or binding the Crown. Finally, the sources acknowledge specific considerations for legislation made by Senedd Cymru, where interpretation must account for devolved powers and the equal legal standing of the Welsh language.

The structure and components of statutes, which are laws formally enacted by legislative bodies like the UK Parliament or the Senedd Cymru. Acts of Parliament serve as a primary source of law in the UK, existing alongside and taking precedence over common law. The sources meticulously describe the structural elements of an Act, including the short title, citation, long title, preamble, Royal Assent, and the main body’s organization into sections and subsections. Furthermore, the text distinguishes between a UK Act of Parliament and an Act of Senedd Cymru, highlighting differences in their jurisdiction, enacting formulas, and the bilingual requirement for Welsh legislation. Finally, the materials provide guidance on the correct method for citing these legislative acts, using the short title and year of passage.

A comprehensive overview of the UK common law system, focusing primarily on the Doctrine of Precedent, also known as stare decisis. It explains that common law relies on judicial decisions and case law, distinguishing it from code-based civil law systems. A key element discussed is the binding nature of precedent, detailing the concepts of vertical binding effect (higher courts bind lower courts) and horizontal binding effect (courts binding themselves). The text clarifies that only the ratio decidendi, or the legal reasoning essential to the judgment, is binding, while obiter dictum remains persuasive. Finally, the source addresses how judges can manage or avoid precedents through techniques like distinguishing cases based on differing facts, overruling a prior incorrect principle, or reversing a lower court's decision on appeal.

A comprehensive overview of the UK's legal system, primarily focusing on England and Wales, outlining its foundational components and operational structure. The texts begin by identifying the diverse sources of law, including legislation, common law (case law and equity), assimilated European Union law, international treaties, the Royal Prerogative, and constitutional conventions. They detail the historical development and structure of the judiciary, highlighting the crucial constitutional reforms that separated the powers of the government branches and established judicial independence, notably through changes to the role of the Lord Chancellor. Furthermore, the documents clearly map the hierarchical civil and criminal court structure, defining the jurisdiction of courts like the County Court, High Court, Magistrates' Court, Crown Court, and the Supreme Court. Finally, the texts explain the various appeal routes within this hierarchy and briefly address the "right of audience," distinguishing between the advocacy privileges of barristers and solicitors.

The scope and function of anti-avoidance provisions within tax law, differentiating between generally legal tax avoidance and illegal tax evasion. Central to these provisions is the General Anti-Abuse Rule (GAAR), which is a broad tool empowering tax authorities to counteract schemes that are considered abusive or undermine the spirit of the law, regardless of their technical legality. The document details the Double Reasonableness Test used to determine if an arrangement is abusive, requiring both objective and subjective assessments of the action's reasonableness. Significantly, the text emphasizes taxpayer safeguards under GAAR, including placing the burden of proof on tax authorities and requiring an opinion from an Independent Advisory Panel before applying the rule. Ultimately, if an arrangement is deemed abusive, tax liability is adjusted to reflect the true economic substance of the transaction, and the taxpayer may face penalties.

A detailed overview of Stamp Duty Land Tax (SDLT) in England and the distinct Land Transaction Tax (LTT) in Wales, which replaced SDLT in that region on April 1, 2018. The sources explain that both are taxes imposed on property transactions, with SDLT replacing the older Stamp Duty, which taxed documents instead of transactions. The explanation covers the applicability of SDLT and LTT to residential and non-residential properties, detailing the various tax rates, thresholds, and calculation examples for each type. Furthermore, the documents outline specific reliefs and exemptions available under SDLT, such as for first-time buyers, noting that LTT in Wales does not offer this particular relief. Finally, the text addresses the administrative processes, noting that SDLT is managed by HMRC while LTT is handled by the Welsh Revenue Authority, and includes information on deadlines and late penalties for non-compliance.

A comprehensive overview of Inheritance Tax (IHT) in the UK, detailing the process for calculating liabilities both upon death and for lifetime transfers. The texts explain key concepts such as the Nil Rate Band (NRB) and the Residence Nil Rate Band (RNRB), which allow for a substantial portion of an estate to be tax-free, and outline the general IHT rate of 40%. Furthermore, the documents clarify crucial exemptions and reliefs, including those for transfers to spouses/civil partners and gifts to charities, as well as specialized reliefs like Business Property Relief (BPR) and Agricultural Property Relief (APR). A significant portion of the material differentiates between Potentially Exempt Transfers (PETs), which become chargeable if the donor dies within seven years (subject to Taper Relief), and immediately Chargeable Lifetime Transfers (CLTs), which are often gifts to trusts. Finally, the sources address the valuation of the estate, methods for funding IHT payments (such as the Direct Payment Scheme and annual installments), and the distinction between the incidence (legal liability) and burden (economic cost) of the tax.

An extensive overview of the Value Added Tax (VAT) system, defining it as a consumption tax levied on goods and services, collected by businesses for the government. It thoroughly explains the core concepts of Output VAT (tax charged on sales) and Input VAT (tax paid on purchases), detailing how businesses calculate the net amount payable or reclaimable from HM Revenue and Customs (HMRC). The text also outlines the mandatory VAT registration threshold, differentiates between standard-rated, reduced-rate, zero-rated, and exempt supplies, and examines the complexities of VAT in property transactions, especially regarding the strategic use of the Option to Tax on commercial properties. Finally, it emphasizes the importance of accurate record-keeping and tax invoices for compliance.

A comprehensive guide to Corporation Tax in the UK, detailing its application to company profits, including trading income, investments, and capital gains. It explains the current progressive tax structure introduced post-April 2023, which includes a Small Profit Rate (19%), a Main Rate (25%), and a Marginal Relief mechanism to smooth the transition between the two rates. The text outlines the three-step process for calculating tax liability: determining Total Profits (Trading Profits plus Capital Gains), applying available Reliefs such as Rollover Relief, and calculating the final tax due. Furthermore, the source addresses the tax treatment of Capital Gains and highlights that, unlike income tax, companies receive No "Personal Allowance" before concluding with information on Payment Deadlines and the taxation of Distributions to shareholders, such as dividends and deemed distributions.

A comprehensive guide to understanding and calculating trading profits and applying trading loss reliefs for businesses in a tax context. The first source details the calculation of trading profits, distinguishing them from income and capital profits, and explaining the formula which involves chargeable receipts, deductible expenditure, and capital allowances such as the Annual Investment Allowance (AIA) and Writing Down Allowance (WDA). The second source outlines various methods for an unincorporated business to offset a trading loss, including Startup Relief for early-stage losses, Carry-Across/One-Year Carry-Back Relief against total income, and Carry-Forward Relief against future profits. Additionally, the second source explains specific relief options for incorporated companies, noting key differences like the use of total profits and different claim deadlines for loss carry-backs, including relief for terminal trading losses when a business ceases operation.

A comprehensive overview of Capital Gains Tax (CGT), covering its fundamental components, calculations, and various reliefs. The first source defines CGT as a tax on the "gain" made by a "chargeable person" from the "disposal" of a chargeable asset, detailing who is liable, such as individuals, sole traders, and partners. The second source outlines key exemptions and reliefs, including Private Residence Relief (PPRR) for a main home, exemptions for wasting assets and non-wasting assets sold below £6,000, and business-focused reliefs like Business Asset Disposal Relief (BADR) and Roll-Over Relief which often defer or reduce the tax rate. Finally, the third source explains the four-step calculation process for CGT, which involves determining the Gross Gain by subtracting allowable expenditures (including initial, subsequent, and disposal costs), applying losses and reliefs, utilizing the Annual Exempt Amount, and then applying the correct tax rates based on the asset type and the taxpayer's income band.

A comprehensive overview of UK Income Tax rules and calculation methods, primarily aimed at legal candidates preparing for the Solicitors Qualifying Examination (SQE). The documents explain the basis of charge for various entities, such as sole traders and partners, detailing how different income types, including non-savings non-dividend (NSND), savings, and dividends, are categorized and taxed. Central to the process is the calculation of taxable income through a multi-step approach involving the deduction of allowable reliefs and the Personal Allowance, which is applied in a specific order. Furthermore, the texts contrast the tax collection methods of Pay As You Earn (PAYE) and Self-Assessment, and confirm that while Wales has partial tax-setting powers for NSND income, the overall tax rates for Welsh taxpayers currently align with those in England and Northern Ireland.

The essential requirements for law firms concerning the management and reconciliation of client accounts. Specifically, law firms must obtain bank statements for all client and business accounts from financial institutions at least every five weeks to ensure they have current financial information. Furthermore, firms are mandated to perform a reconciliation of all client accounts every five weeks, comparing bank statements against internal cash books and client ledgers to verify accuracy. Following reconciliation, a Compliance Officer for Finance and Administration (COFA) or a manager must review and sign off on the process to provide necessary oversight. Finally, if any discrepancies are identified during this financial check, firms must investigate and resolve them promptly to maintain the integrity of client funds.

An extensive overview of Value Added Tax (VAT) regulations for law firms, focusing specifically on billing clients for professional charges and disbursements. The documents establish that solicitors must separately itemise professional fees, disbursements, and VAT on invoices and that any bill reductions require proportional VAT recalculations. Crucially, the sources differentiate between taxable legal services (which require VAT) and qualifying disbursements, which are costs incurred by the solicitor acting purely as an agent for the client and are therefore excluded from the firm's VAT supply. Finally, the texts explain the two primary methods for handling disbursements—the Agency Method (where the invoice is addressed to the client and no VAT is charged by the firm) and the Principal Method (where the invoice is addressed to the firm, and VAT must be charged to the client)—noting a special concession for handling counsel’s fees under the Agency Method.

An outline of the stringent requirements for solicitors regarding the management of client money, focusing heavily on transparency and accountability through the SRA Accounts Rules. A central requirement is the mandatory obtaining and delivery of an accountant’s report within six months of the accounting period's end, serving as independent verification that client funds have been safeguarded and managed in compliance with rules, particularly regarding client accounts, withdrawals, and internal controls. Accountants must be qualified, and if they find serious issues, they issue a "qualified" report, triggering SRA scrutiny, though minor, quickly corrected breaches may not warrant qualification. Furthermore, firms must retain comprehensive accounting records for a minimum of six years to ensure traceability and auditability, and they are obligated to promptly correct any discovered breaches of the rules, documenting the nature of the breach and the remedial action taken immediately to mitigate risk and maintain client trust.

An extensive overview of Third-Party Managed Accounts (TPMAs), which solicitors can use to hold client funds via an independent, authorized provider, acting similarly to an escrow service. The text explains that because the solicitor does not directly hold the money, TPMA funds are exempt from standard SRA Accounts Rules but require solicitors to fulfill specific due diligence and client communication obligations. While TPMAs offer significant benefits like cost savings and enhanced security by transferring risk to a regulated third party, drawbacks include potential additional costs for clients and the solicitor's loss of direct control over disbursements. Solicitors must inform clients that TPMAs are regulated by the Financial Conduct Authority (FCA), not the Solicitors Regulation Authority (SRA), and must notify the SRA upon adopting this arrangement.