Contracted-out deduction meaning

In this issue Road traffic accidents Highway accidents Costs Regulation of healthcare professionals Coroner’s inquests Other PI and clinical negligence updates New content LexTalk® PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts LexisNexis® Webinars Useful information Road traffic accidents Non-party costs orders in credit hire claims In a pivotal judgment, Tescher v Direct Accident Management Ltd; AXA Insurance UK Plc v Spectra Drive Ltd [2025] EWCA Civ 733, the Court of Appeal set out clear guidance on when credit hire providers can face adverse costs despite the usual shelter of Qualified One‑Way Costs Shifting (QOCS) in unsuccessful personal injury claims. The court concluded that, where proceedings are issued in the claimant’s name but chiefly to advance the financial interests of a credit hire company, and litigation was a foreseeable outworking of the hire agreement, non‑party costs orders (NPCOs) will often be justified. It stressed that liability...

PwC, in its feedback to a consultation run by the Irish Department of Finance, said that in the absence of an exemption regime for foreign dividends and income, Ireland has stood out as an outlier against other European nations. Alongside backing the mooted exemptions, PwC noted that Ireland could further refine its tax code by altering interest deduction rules and possibly revisiting the 25% tax rate on nontrading income. Deloitte said in its response to the consultation...

Finanzamt T v S Case C‑184/23 What are the practical implications of the case? In earlier CJEU rulings, it had been implied that intra‑group supplies of services within a VAT group might attract VAT. This judgment clarifies that approach is mistaken, as members of a VAT group are treated as a single taxable person for VAT purposes. Consequently, VAT‑chargeable services cannot be made to participants within the same VAT group. Accordingly, internal charges within the group fall outside the scope of VAT. The CJEU’s clarification dispels the ambiguity created by its prior case law on this specific point. The ruling is expected to serve as a significant line of argument for tax administrations and impacted businesses across EU Member States. It should also be observed that the Court of Justice’s conclusion aligns with the recent Opinion of A‑G Rantons. What was the background? The applicant is a foundation responsible for a university faculty of medicine and, in that role, renders taxable patient care services. It also...

Qualifying R&D expenditure (pre-1 April 2024) This Practice Note sets out the scope of qualifying expenditure for two R&D relief schemes, each subject to detailed commencement and transitional provisions: the research and development relief for small or medium-sized enterprises (SMEs) for accounting periods beginning before 1 April 2024—see Practice Notes: SME R&D relief—additional deduction (pre-1 April 2024) and SME R&D relief—tax credit (pre-1 April 2024); and the R&D expenditure credit scheme applying to accounting periods beginning before 1 April 2024—see Practice Note: R&D expenditure credit (pre-1 April 2024). Together, this Practice Note refers to these as the pre-1 April 2024 schemes. For information about the reliefs generally applying to accounting periods beginning on or after 1 April 2024, see Practice Notes: The merged R&D expenditure credit (post-1 April 2024) and Enhanced relief for R&D-intensive loss-making SMEs (post-1 April 2024). For details on what counts as qualifying R&D expenditure for those two post-1 April 2024 schemes, see Practice Note: Qualifying R&D expenditure...

SME R&D relief—additional deduction (pre-1 April 2024) This Practice Note addresses the principal research and development (R&D) relief for small or medium-sized enterprises (SMEs) for accounting periods beginning before 1 April 2024, subject to transitional provisions. For further detail, see Practice Note: SME R&D relief—tax credit (pre-1 April 2024). For the R&D expenditure credit that applies to periods beginning before 1 April 2024, see Practice Note: R&D expenditure credit (pre-1 April 2024). In this Practice Note, these two are collectively described as the pre-1 April 2024 schemes. For guidance on the schemes of relief for R&D generally applying to accounting periods beginning on or after 1 April 2024, see Practice Notes: The merged R&D expenditure credit (post-1 April 2024) and Enhanced relief for R&D-intensive loss-making SMEs (post-1 April 2024). SME R&D relief—additional deduction Where the relevant conditions are satisfied, an SME company may claim an additional deduction equal to 186% of its qualifying research and development (R&D) expenditure when computing profits chargeable to corporation tax...

Since 1 January 2017, the UK’s regime tackling hybrid and other mismatches (called the hybrid rules in this Practice Note) has been in force, designed to neutralise tax asymmetries caused by the tax treatment of a hybrid instrument or hybrid entity. While the hybrid rules are generally aimed at cross‑border dealings spanning two or more jurisdictions, they may equally bite on arrangements that are entirely domestic to the UK. In particular, the rules focus on: deduction/non‑inclusion mismatches (D/NI mismatches), ie where an amount under a hybrid mismatch arrangement is deductible for tax in the payer’s territory but is not brought into the taxable income of a payee or a related party investor, and double deduction scenarios (DD cases), ie where an amount under a hybrid mismatch arrangement results in more than one tax deduction Separate chapters address the various kinds of D/NI mismatches and DD cases, set out in distinct chapters of the rules themselves for each category concerned. In each instance,...

3 Agreement to surrender Summary of the Agreement between the Landlord, Tenant [and Guarantor] dated [date] for the Lease of the [Property or Surrendered Property]. It adopts the Standard Commercial Property Conditions (Third Edition—2018 Revision) with modifications. Key defined terms include Actual Completion Date, Surrender Date, Premium, Rent, Interest and VAT. On the Surrender Date, the Tenant surrenders its interest with [full or limited] title guarantee by executing the Deed of Surrender or Transfer, settling Rent to date, and yielding possession [and keys]. The Landlord accepts by executing the counterpart, taking possession [and paying any agreed Premium/Chattels Price]. Deposits, apportionments and any Rent Deposit follow the Agreement and Standard Conditions. Subject to stated carve-outs, mutual releases apply from the Actual Completion Date; any outstanding Insurance Rent and Service Charge are payable on demand. Completion mechanics, Interest on delay, and any Guarantor’s consent are as set out. Costs, Landlord and Tenant Act 1954 matters, entire agreement, severance, continuation for any Remainder, governing...

Insert in para 6.1 of response form ET3: The Respondent rejects any assertion that it has contravened the Working Time Regulations 1998 [ , or made an unlawful deduction from wages in respect of holiday pay ] [ , or acted in breach of contract ], whether as pleaded or at all. [ It is further denied that the employment tribunal has jurisdiction to hear the claim because [ insert details, eg ‘the claim has been presented out of time’ or ‘the Claimant is not a worker so has no entitlement to paid holiday’ ]. ] The parties and the background facts [ It is [ accepted OR not accepted OR denied ] that the Claimant has worked for the Respondent as a [ insert job title ] since [ insert start date of employment ]. OR It is [ accepted OR not accepted OR denied ] that the Claimant was employed by the Respondent as a [ insert job...