Cash equivalent meaning

Statutory right to cash equivalent Individuals in defined benefit workplace pension schemes have a legal entitlement to transfer the cash equivalent of their scheme benefits to certain other pension arrangements. From 30 November 2021, using this right requires meeting one of two conditions set out in the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, SI 2021/1237, designed to protect members from fraudulent schemes. The stated cash equivalent is guaranteed for a three‑month period. This statutory entitlement takes precedence over any conflicting terms in the scheme’s trust deed and rules. The right applies where a member’s pensionable service has ended at least one year before normal pension age and the member has accrued rights under the scheme. Members who continue in service after pensionable service ends only acquire a...

In this issue: Employment taxes Individuals National Insurance contributions (NICs) Stamp duty land tax (SDLT) Tax compliance Value added tax (VAT) Wales Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Employment taxes Parliament makes Regulations to increase the official rate of interest on beneficial loans On 5 March 2025, Parliament approved the Taxes (Interest Rate) (Amendment) Regulations 2025 (SI 2025/270). The Regulations raise the 'official rate of interest' on beneficial loans (see ITEPA 2003, Pt 7, Ch 3) from 2.25% to 3.75% a year with effect from 6 April 2025. For tax purposes, the cash equivalent of the advantage from such loans—calculated as the gap between interest at the official rate and the amount actually paid—is generally treated as earnings. These changes follow the government's Autumn Budget 2024 announcement that HMRC's late payment interest on unpaid tax liabilities would rise by 1.5 percentage...

Masters v HMRC [2025] UKFTT 967 (TC) Employed in the UK by Tesco, Mr Masters had joined Tesco PLC’s defined benefit Pension Scheme back in 1983. In April 2016, he arranged for the cash equivalent value of his defined benefit rights—just shy of £6m—to be transferred into a UK SIPP vehicle. He relocated to Portugal in March 2019 and, from the 2019–20 tax year onwards, was treated as non‑UK tax resident. While living in Portugal he was taxed under the Non‑Habitual Resident regime, benefitting from exemptions on foreign‑source income, which encompassed withdrawals of £3.5m from his SIPP. Nevertheless, those withdrawals were taxed at source in the UK, resulting in £1.5m of tax being paid. HMRC then operated a PAYE tax code on the SIPP pension; Mr Masters sought instead the issue of an NT (no tax) code. In July 2020, he filed his UK self‑assessment income tax return for 2019–20, claiming a repayment of the tax deducted from the SIPP withdrawals, on the footing that the income was not...

Background and approach Market Standards has undertaken analysis to assess prevailing patterns in UK public M&A. The findings draw on the Market Standards transaction data analysis tool, which enables users to access, analyse and compare key attributes across a wide range of corporate deals. This publication updates our Market Standards Trend Report—Trends in UK public M&A in H1 2025, where we reviewed firm and possible offers announced during the first half of 2025. For this instalment, we examined activity from 1 July 2025 to 30 September 2025 (Q3 2025). We have also set the results alongside those from the immediately prior quarter in 2025 (1 April 2025 to 30 June 2025, ie Q2 2025) and the equivalent window in 2024 (1 July 2024 to 30 September 2024, ie Q3 2024). However, firm conclusions will only be drawn once the full‑year 2025 trend report is complete. In total, we assessed 20 transactions within the scope of the Takeover Code (the Code): 11 firm offers (eight concerning...

What is repo? A repo, the market shorthand for a 'repurchase transaction', is an arrangement whereby one party (the seller) sells an asset to another (the buyer) with a simultaneous contractual undertaking that the seller will repurchase the asset from the buyer on a future date for a specified price agreed between both parties in advance. Any asset capable of being transferred from one person to another may, in principle, be the subject of a repo transaction. The assets most commonly used in repos are debt securities (bonds), equity securities (shares) and other financial assets, including loans and commodities. However, commodity repos can raise distinctive documentary, structural and legal issues, which are not addressed in this Practice Note. For guidance on commodity repos, see Practice Note: Commodity repo transactions and true sale considerations...

THIS PRACTICE NOTE APPLIES IN RELATION TO DEFINED BENEFIT LIABILITIES How defined benefit (DB) liabilities ought to be assessed depends on a number of factors, in particular: the valuation approach to be adopted. Common exercises undertaken comprise the following: scheme-specific funding valuations as required under Part 3 of the Pensions Act 2004 (PeA 2004) solvency (or buy-out) valuations as required by the Occupational Pension Scheme (Scheme Funding) Regulations 2005, SI 2005/337, reg 7 valuations required by the PeA 2004, ss 143 and 179 (often described respectively as s 143 valuations and s 179 valuations) neutral estimates to meet the requirements of Technical Actuarial Standard 300 (Pensions) cash equivalent transfer values (CETV) as specified under the Occupational Pension Schemes (Transfer Values) Regulations 1996, SI 1996/1847 IAS19 and UK GAAP valuations whether the liabilities under review concern past service or future service, as distinct categories This Practice Note sets...

STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 (FA 2025), which obtained Royal Assent on 20 March 2025, enacts measures scrapping the remittance basis and introducing a residence-based system, effective from 6 April 2025. FA 2025 also substitutes domicile as the principal criterion for determining exposure to inheritance tax. Additional reforms cover revisions to the rules for excluded property status, the removal of protected settlements status for offshore trusts, and adjustments to overseas workday relief. For details on these updates, refer to: Practice Notes: The abolition of the remittance basis of taxation from 2025–26, A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates (Finance Bill 2025) and Finance Act 2025. This Practice Note examines shadow directors of offshore companies and the degree to which such individuals might incur benefit in kind charges under the benefits code in the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). Note that the notion of a shadow director...

PART ONE—GENERAL PROVISIONS 1 Definitions and interpretations This Rule sets out the glossary for the Plan and how those terms should be read. Defined expressions cover, among others: Awards and outcomes: Contingent Awards, Restricted Awards, Matched Awards, Options and Cash Awards, together with Date of Grant, Option Price, Exercise Price, Market Value, Dividend Equivalent and the concept of Vesting; People and entities: the Company (acting through the Board or a duly authorised committee, which may include the Remuneration Committee), Eligible Employees, Participants (and their personal representatives), the Group and its Subsidiaries, Associated Companies, the Grantor, the Nominee, the Trustee and Trust, and HMRC; Timeframes and dealing: Financial Year, Dealing Day, Closed Period, Grant Period, Holding Period, Relevant Period and the Plan Period; Shares and schemes: Shares, Employees’ Share Scheme and Company Share Scheme, Invested Shares and Invested Share Amount, and Matched Awards linked to such co‑investment; Legal and tax concepts: Control (as in ITA 2007, s995), ITEPA, Tax liabilities and any...

Use this decision tree for gifts to determine if you should give or receive a corporate gift. If you are unsure, please reach out directly to [ insert name ] Notes Note 1—Secret gifts All gifts, whether offered or accepted, must be handled transparently, never in secret. Note 2—Gifts to individuals We consider gifts made or taken in an individual’s name, rather than the organisation’s, to be improper. Note 3—Cash Gifts of cash, cash equivalent (eg American Express or Visa gift cards), or securities are prohibited...

1 Legacy of House I leave to [ insert full name ], of [ insert full address ], my share and interest in the dwelling at [ insert main residence address ], or in any substitute that serves as my principal home, the determination of which shall rest solely with my trustees, free from heritable liabilities and costs of conveyance, along with contents, embracing all my items for personal, domestic, household, garage, garden or leisure use, ornament or consumption, save for those separately left by me elsewhere. Should I not own the subject of this bequest at the time of my death, I leave to the said [ insert legatee details ], a pecuniary legacy in a sum equal to the net sale proceeds for which I will have disposed of my said interest, the amount of such sum being determined exclusively by my trustees accordingly...

This Q&A assumes that the trust corporation is a company incorporated and registered in the UK under the Companies Act 2006 (CA 2006) CA 2006 sets the framework for how a company formed under that Act allots and issues its shares. The exact process varies by the nature of the company proposing the allotment and factors such as whether it has a single share class or several classes already in issue. For further detail, see the sub-topic: Allotment, issue and pre-emption—overview, with particular reference to the Practice Note: Allotment and issue of shares—introductory points. For guidance on the consequences of breaching the CA 2006 provisions on allotting and issuing shares, consult Practice Note: Allotment and issue of shares—penalties...