Corporate bonds meaning

Beyond the articles reported in full in the Financial Services news feed on 13 March 2024, subscribers may wish to note these further developments: ECB: The single supervisor ten years on: experience and way forward APPG Banking: Building our SME Manifesto: call to action Insurance Europe: Insurers: EU’s Package Travel Directive review must strike the right balance AFME: Buy and sell side unite on joint AFME/IA proposals for a future UK post-trade transparency model for corporate and sovereign bonds OJ: Council Implementing Regulation (EU) 2024/849 of 12 March 2024 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine OJ: Council Decision (CFSP) 2024/847 of 12 March 2024 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and...

In this issue: Key developments and materials Air emissions and climate change Energy efficiency and buildings Energy for environmental lawyers Environmental information Environmental permits and consents Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Nature, biodiversity and habitat conservation Waste Water, flooding and drainage Daily and weekly news alerts New and updated content Key developments and materials Major reforms to environmental regulation to boost growth and protect nature A fresh review, commissioned by Steve Reed and chaired by Dan Corry, reports that today’s environmental regulatory framework is out of date, patchy and overly complicated—failing both nature and economic expansion. It rejects a wholesale ‘bonfire’ of rules. Instead, it sets out 29 proposals to simplify the regime, which the government is actively examining. Under the Plan for Change, it advocates a more agile, streamlined system to spur growth while protecting the natural world. See News Analysis:...

UK developments BoE article explores ways to measure climate-related financial risks using scenario analysis The Bank of England (BoE) has issued an article on how financial institutions can deploy scenario analysis to quantify climate change risks. It explains extending macro-climate scenarios to conduct fine-grained, asset-level risk assessment, with illustrations spanning sovereign bonds, corporate bonds and residential mortgages. See: LNB News 17/04/2024 35. Source: Measuring climate-related financial risks using scenario analysis. FCA greenwashing rules need to be stronger to be effective The Financial Conduct Authority’s (FCA) new anti-greenwashing measures take effect in May 2024. The analysis is written by Jingchen Zhao, professor of law and co-director of the Centre for Business and Insolvency Law at Nottingham Trent University Law School. See News Analysis: FCA greenwashing rules need to be stronger to be effective. HMT publishes responses to consultation on TCFD-aligned disclosures HM Treasury (HMT) has released a summary of responses to its consultation...

The way consideration payable for buying shares is arranged is rarely simple or linear, and can vary considerably. In many situations payment is postponed, deferred, or made conditional on a particular contingency being satisfied. Selling shareholders will look to maximise the overall price for their shares while also seeking to limit, so far as possible, any tax on disposal by: making full and efficient use of available reliefs to cut or remove any charge, and/or delaying the point in time at which any such tax becomes due However, where the consideration is deferred, the seller can become liable to tax immediately on an amount not yet received (a ‘dry’ tax charge). In calculating chargeable gains, no discount is usually allowed in respect of any consideration that is ascertainable at the date of disposal, even where it is: deferred subject to a contingency, or at risk of not being received for any reason Where any deferred...

The capital gains regime allows corporate groups to organise the offset of allowable losses arising in one group company against taxable gains arising in another. The most straightforward route is to elect to move a gain or a loss between companies within the group. That election rests on the premise that group members function, in many ways, as a single economic unit, and that the tax code ought to mirror that reality. The purpose of the provisions is to enable groups to net gains and losses against each other where both the gains and the losses arise within the same group. This treatment is not meant to apply to companies acquired into a group specifically because they already carry losses. The pre-entry loss rules exist to stop groups from cutting their gains by purchasing losses in this fashion. Although intended to counter avoidance, the pre-entry loss rules can bite regardless of whether the parties involved are driven by tax motives, and they apply even where tax considerations are not the...

This Practice Note is about: the anti-avoidance rule in section 137 of the Taxation of Chargeable Gains Act 1992 (TCGA 1992), which: prevents a shareholder from obtaining relief under TCGA 1992, s 135, that is, where the shareholder exchanges shares or loan notes in company A for shares or loan notes issued by company B. For more detail on the relief available under TCGA 1992, s 135, see Practice Note: Share for share exchanges and qualifying corporate bonds (QCBs); and prevents a shareholder from obtaining relief under TCGA 1992, s 136, that is, where, as part of a scheme of reconstruction, the shareholder’s shares in company A are retained, cancelled or extinguished and company B issues shares or loan notes to the shareholder. For more detail on the relief available under TCGA 1992, s 136, see Practice Note: Tax reliefs for schemes of reconstruction; and the anti-avoidance rule in TCGA 1992, s 139, which stops...