Basis amount meaning

Preparatory steps Secure the employee’s most recent employment contract, together with any variations, related correspondence forming part of the contract, and any company handbook considered contractual Verify the employee’s continuous service particulars, including the employment start date and the dates of any contract amendments during employment Gather pension details: whether the scheme is defined benefit or defined contribution, and whether all employer contributions are fully up to date Identify the basis for the settlement-e.g., in respect of a Workplace Relations Commission (WRC) claim, a redundancy payment, a personal injury claim, or another legal claim Where multiple claims are being resolved, ensure agreement with the employer on how the overall settlement is apportioned to each claim, and that both parties clearly understand the tax treatment of each amount Ascertain any shares or share option schemes held by the employee, paying close attention to any definitions relating to leaver status that apply...

The FTT decision As noted in a previous Insight, the proprietor of Vista Tower ('Grey') applied for an RCO against the building’s original developer and 95 additional parties who met the definition of ‘associated persons’ due to shared directors during 2017 to 2022. The owner requested an order requiring the respondents to cover both historic and forthcoming costs to rectify fire safety defects, estimated at over £20m. The FTT granted that relief, on a joint and several liability basis, against 75 respondents. The appeal Certain respondents appealed on these grounds: whether the Tribunal can make RCOs rendering multiple respondents jointly and severally liable for the same overall sum, or whether it must make individual orders against each respondent for a specifically identified amount. whether the Tribunal misdirected itself on the “just and equitable” test, given that for many respondents there was no demonstration that they participated in the relevant development or obtained remuneration from it, and that the Tribunal improperly required respondents to...

1st Formations Ltd v Lapp Industries Ltd [2025] EWHC 1526 (TCC) What are the practical implications of this case? This decision underscores that the courts will adopt a common-sense, pragmatic approach to the content of a payee’s notice under the HGCRA 1996 and Part II of the Scheme for Construction Contracts (the Scheme), resisting unduly narrow readings. So long as the notice makes sufficiently clear what sum is sought and the footing for the claim, the court will not seek to interfere or hunt for defects that might render the notice void or ineffectual. Here, the payee’s documents were plainly recognisable as an interim application; they identified the amount asserted as due and the basis upon which that figure had been worked out. The TCC further confirmed that a payment notice is not invalid merely because it asks for a figure below the amount stated as due. If a payment notice includes an incorrect due date, that is an issue for the other party to pick up in...

Alaska Airlines Inc v Virgin Aviation TM Ltd and another company [2025] EWHC 2505 (Comm) What are the practical implications of this case? The principal outcomes of Mr Justice Foxton’s analysis can be stated as follows: Where an unjust enrichment claim founded on failure of basis is invoked to stop payment of a contractual amount, the correct characterisation is that this engages the defence of circuity of action (para [49]). In that scenario, circuity of action does not mean the debt is never due; rather, it supplies a defence to liability. A broadly drafted no set off clause captures such a defence, so summary judgment can be granted (para [52]). To reach those conclusions, Foxton J reviewed a range of authorities in which no set off provisions were relied upon (see especially para [47]), and he also considered and clarified other decisions relevant to the underlying issues of principle. Accordingly, a debtor cannot avoid a summary determination merely by pointing to...

Trustees and personal representatives can, in fact, carry on a trade. For example, where a self-employed trader dies, the personal representative may keep the business running until it is wound down or sold. In the same way, trustees or interest in possession beneficiaries might be trading and could qualify for reliefs such as roll-over relief or business asset disposal relief. The broad tax rules governing trading apply to all traders alike, whether they are individuals, trustees, or personal representatives. This Practice Note sets out those principles below. Is there a trade? The key issue to examine is whether there is a trade. At times this will be clear, for instance when personal representatives step in to continue the deceased’s business; however, in other situations even a solitary transaction can amount to a trade. As an illustration, trustees who buy a property to renovate may, depending on the circumstances, be regarded as operating a property development business. If so, any gain on the later sale would fall within income...

FORTHCOMING CHANGE relating to the future withdrawal of DST : Following OECD-led talks that produced a political accord on a two‑pillar solution in October 2021, the UK reached an understanding with the US, Austria, France, Spain and Italy to move away from DST towards the new global tax regime, using a transitional DST credit system. Under the arrangement, the UK would retain DST receipts until Pillar One became operational and, once in force, companies could credit against future UK corporation tax the difference between DST paid from January 2022 and the amount that would have arisen had Pillar One applied instead. In exchange, the US, which regards digital services taxes as discriminatory towards US companies, agreed to withdraw proposed retaliatory tariffs on certain US imports from the other five countries, and undertook not to pursue additional trade measures against those states because of their digital services taxes until the interim period concluded. This understanding was subsequently extended by all six countries to 30 June 2024, from an original end...

ARCHIVED This archived Practice note reviews the clawback of business investment relief (BIR), the remittance relief for investment into UK companies. It covers: extraction of value how to avoid a chargeable remittance after a potentially chargeable event the order in which disposals are treated the interaction with the mixed funds rules the capital gains tax (CGT) position STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime The Finance Act 2025 (FA 2025), which received Royal Assent on 20 March 2025, legislates to abolish the remittance basis of taxation and introduce a residence-based regime from 6 April 2025. FA 2025 also replaces domicile as the key criterion for inheritance tax liability. Additional changes include amendments to the excluded property rules, removal of protected settlements status for offshore trusts, and revisions to overseas workday relief. For details on these reforms, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence-based...

1 General information Reporting period [ Insert the time span covered by this report ] Compiled by [ Insert name of the individual preparing the report ] Report date [ Insert date ] 2 Snapshot of pro bono activity in [ insert the period of time this report covers ] v [ insert previous period ] Metric overview Volume of pro bono cases or initiatives supported Current period: [ Insert the number of cases, clinics or projects supported on a pro bono basis in the current period ] Previous period: [ Insert the number of cases, clinics or projects supported on a pro bono basis in the previous period ] Total time committed to pro bono activity Current period: [ Insert total amount of time spent on pro bono activity in the current period ] Previous period: [ Insert...

1 Interest on late payment If a party does not make payment in accordance with this Agreement, the other party may claim, in addition to any sum that ought properly to have been settled, and recover, [ simple OR compound ] interest on that sum (accruing on a daily basis from the final date for payment until the date payment is in fact made, whether before or after judgment). Such interest will be computed at a rate of [ insert figure ]% per annum above the [ insert name of financial institution eg Bank of England ] base rate then prevailing at the time the amount immediately became overdue under this Agreement. [ The parties agree that the provisions of this clause constitute a substantial remedy for the purposes of section 9(1) of the Late Payment of Commercial Debts (Interest) Act 1998. ]...

1 Amount of interest We will credit a reasonable amount of interest to clients or third parties on any client funds we are holding for them. 2 Circumstances in which interest will not be paid We will not pay interest: 2.1 on funds we are directed to keep outside of a client account in a manner that earns no interest, eg cash held in our safe; 2.2 where the amount of interest, as assessed under this policy, falls below £[ 30 ] [ —on the basis that the costs financially associated with paying that interest are disproportionate to the amount involved overall ] ; 2.3 where we agree an alternative arrangement, in writing, with the client or third party for whom the money is held—when this occurs, we will provide sufficient appropriate information to enable the client or the third party to give informed consent (see ‘Contracting out’ at section 9 below); 2.4 [ on money held for the Legal Aid...

For the purposes of the Gambling Act 2005 (GA 2005) Under GA 2005, s 3, gambling encompasses ‘gaming’, ‘betting’ and taking part in a ‘lottery’. ‘Gaming’ is defined in GA 2005, s 6 as playing a game of chance for a prize under that provision. A game of chance covers the following: a game that contains both an element of chance and an element of skill, a game where the element of chance can be eliminated by superlative skill, and a game presented as involving an element of chance, but it does not include a sport. There must be some element of chance and the prospect of winning a ‘prize’ for the activity to qualify. The Q&A does not indicate the setting in which the mystery box of prizes is being offered to participants. If the prize is to be obtained by taking part in a game of chance as described in GA 2005, s 6, it will fall within the...

As a rule, the seller is entitled to the entire purchase price and, save for limited exceptions, holds an equitable lien over the property until the sum is settled in full. This remains the case even where a receipt has been issued. See Practice Note: Unpaid vendor’s lien. In some situations, the buyer may contend that the seller is estopped from pursuing the outstanding balance, which will usually depend on whether they relied on the completion statement to their detriment... See also Commentary: Vendor’s lien: Halsbury’s Laws of England [960] Declaration and enforcement of lien: Atkin’s Court Forms [119]

Money Claim Online is available for issuing claims for a defined monetary amount below £100,000, excluding interest and costs. The approach to costs mirrors that applied to any other claim brought under CPR Part 7. The fixed costs regime A claim falls within the fixed costs regime where no acknowledgement of service or defence is lodged, or where the defendant admits the claim. In that situation, the claimant may seek judgment through Money Claim Online by submitting the online request form. Once judgment is entered, the claimant’s legal representative is entitled to the fixed costs under CPR 45.4, as listed in Table 2 of CPR 45, which, for a claim over £5,000, range from £30 to £70 depending on the circumstances in which judgment is obtained...