Accrued interest meaning

Staveley v Restis [2024] EWHC 670 (Ch) What are the practical implications of this case? This decision offers a timely illustration of the court’s approach to applications to set aside a statutory demand. Although it is enough to establish a dispute on substantial grounds, that does not mean any merely arguable point will do. Rather, as this ruling shows, the evidential material put forward to support the alleged dispute will be tested with care. In the face of contemporaneous records, the court may find that account inherently unlikely. The judgment also underlines that, while arbitration clauses are generally upheld in insolvency proceedings, a respondent may contend that the clause no longer subsists. A later agreement revising lending terms can, where it includes an entire agreement provision, achieve that result. What was the background? The application related to a statutory demand seeking £36,841,287.12, being a £10m loan together with accrued interest. The advance was made in 2008 to the applicant’s companies (the ‘companies’) or, it was alternatively...

In this issue Probate Court of Protection Elderly and vulnerable clients UK taxes for Private Client HMRC Manuals tracker Contentious trusts and estates Scotland, Wales and Northern Ireland International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&As Useful information Probate High Court finds the claimant alive and sets aside the grant of probate (Ashimola v Samuel). In a highly unusual probate matter alleging fraud, forgery and impersonation, the High Court has annulled the grant of Letters of Administration made to Ms Ruth Samuel, said to act as attorney for Mr Bakare Olatoye Lasisi, because the supposed deceased, Ms June Ashimola, is alive. Alternatively, the grant was revoked as it was procured using false, forged or fabricated documents, namely the Marriage Certificate, Death Certificate and...

In this issue Scheme amendment Funding and investment Members and benefits Types of workplace pension schemes Public service pensions schemes and Fair Deal Daily and weekly news alerts Dates for your diary Trackers Scheme amendment Court of Appeal hears BBC’s appeal regarding fetter on amendment power protecting future benefits On 25 June 2024, counsel for the BBC told the Court of Appeal that the High Court’s conclusion—that the BBC cannot change its £19.8bn defined benefit BBC Pension Scheme to reduce future benefits—rests on a mistaken reading of the trust deeds supporting the Scheme. In 2023, the High Court had rejected the BBC’s case that a clause in the Scheme’s trust deed barring changes that harm members’ “interests” applies only to benefits already accrued. Appearing for the BBC, Michael Tennet KC argued the judge adopted a broad, generic sense of “interest” rather than one consistent with how the term is used elsewhere in the Scheme’s deeds,...

Interest Interest is a key concept within UK tax law. In particular, a duty to withhold UK income tax can arise on payments of specified categories of interest; for further detail, see Practice Note: UK withholding tax on yearly interest. Be aware that, from 6 April 2016, the tax deduction scheme for interest (TDSI) no longer applies. Broadly, before 6 April 2016, the TDSI obliged a deposit-taker (ie a bank) to deduct UK income tax from interest paid or credited before 6 April 2016 on a deposit held by a UK resident individual, an individual’s personal representatives or trustees. For interest paid or credited on or after 6 April 2016, alongside the abolition of the TDSI (given effect by removing section 851 of the Income Tax Act 2007 (ITA 2007)), an express exemption confirms there is no requirement to withhold UK income tax under ITA 2007, s 874—ie the rule to deduct UK income tax from yearly interest—where the payment is made by a deposit-taker and the investment is...

This Practice Note sets out the process for applications seeking the release of cash held under the Proceeds of Crime Act 2002 (POCA 2002). It addresses applications by the person from whom the money was taken, applications by third-party owners, the handling of interest accruing on seized funds, compensation for wrongful detention of money and the costs principles that apply in magistrates’ court proceedings. For guidance on how cash is detained, see Practice Note: Cash seizure and detention. Application by the person from whom the cash was seized When cash has been seized and detained under sections 294 and 295 of the Proceeds of Crime Act 2002 (POCA 2002), an officer (ie an immigration officer, HMRC officer, officer of the Serious Fraud Office (SFO), police officer or accredited financial investigator) may, once the magistrates’ court is notified, authorise release of all or part of the cash if satisfied that the conditions for detention under POCA 2002, s 295 no longer apply and continued detention is therefore unjustified...

This Practice Note will consider the following: direct tax issues for UK resident corporate bondholders direct tax issues for UK resident individual bondholders the UK stamp tax and VAT consequences of being a bondholder (whether individual or corporate) Bondholders may likewise wish to note the possible implications for them of the Foreign Account Tax Compliance Act (FATCA) and the EU Financial Transactions Tax (FTT). These are addressed in Practice Note: Tax issues for bond issuers—FATCA and FTT. Direct tax issues for corporate bondholders For UK resident companies acquiring a bond, the principal tax questions to assess are: the loan relationship rules—the bond will almost always be a loan relationship and be taxed on that basis chargeable gains—the bond will almost always be a qualifying corporate bond and exempt from corporation tax on chargeable gains withholding tax—the bondholder will look to rely on an exemption from withholding tax Each of these matters is...

I leave [ free of tax ] to [ full name of beneficiary ] of [ beneficiary’s full address ] my business of [ nature of business ] [ also called [ name of business or trading name where relevant ] ] at [ full address(es) of where business carried on ] together with all assets: all goodwill, machinery, plant, equipment, stock, vehicles and other effects; all debts due and monies credited at any bank or elsewhere, and the benefit of all contracts; any freehold or leasehold premises it uses [ free of charges, to be cleared free of tax from the residue under [ clause 7 ] of this Will, including costs and interest accrued before redemption ] but subject to [ paying any such charges and to ] the beneficiary assuming all business liabilities; where leasehold property is included they must pay rent, comply with the tenant’s covenants and conditions, and keep my estate indemnified against all liability (before or after my...

[ insert name of agreement ]: [ insert client name ] and [ insert counter-party name ] Dear [ insert name of authorised representative of the counter-party ], [ As you are aware, we OR We ] represent [ insert client name ] (our client). Our client and [ insert counter-party name ] ([ insert short name ]) entered into an [ insert agreement name ] on [ insert date ] (the Agreement). We are instructed that [ insert counter-party short name ] is in breach of the Agreement for failing to pay £[ insert amount ] (the Debt) to our client by [ insert due date ] as required by Clause [ insert number ]. This amounts to a breach of [ an essential OR a fundamental ] term, as recognised by Clause [ insert number ]. [ Interest has accrued on the Debt from [ (and including) ] [ insert date ] under Clause [ insert number ] and, as at...