Current liabilities meaning

This checklist outlines the principal points to review and address when a member leaves a limited liability partnership (LLP). It covers the associated legal, regulatory and practical matters that arise. Identity of retiring member Confirm the retiring member’s full name and current correspondence address? LLP agreement and other documentation What specific provisions in the LLP agreement govern a member’s retirement process? Which post-retirement restrictions currently bind the departing member in practice? Are those restraints proportionate and appropriate? Do they require any further additions or revisions? Must the former member provide assistance to the LLP after departure, if any? Are the current confidentiality duties on the retiring member sufficient and adequate? What releases from agreements or covenants (e.g. finance documents) does the retiring member need? Retirement details What is the member’s final date of service? Are special LLP accounts required to determine the retiring member’s entitlements and liabilities?......

Identity of retiring partner What are the retiring partner’s full name and address? Business details Will the partnership’s business continue unchanged once the partner retires? Is a change to the partnership’s name planned after the partner’s retirement? Will the location or premises of the business alter? If the partnership is VAT-registered, who will notify HMRC of a change in partners for VAT purposes? If the partnership operates PAYE and pays employer’s NICs, who will advise HMRC of partner changes for these obligations? Will any incoming partner need to register for employee’s NICs? Partnership agreement and other documentation What does the partnership agreement stipulate regarding a partner’s retirement? Are the defined terms in the partnership agreement aligned with those in the proposed deed of retirement? What post-retirement restrictions apply to the departing partner? Are those restrictions reasonable, and should any be strengthened? Should further restrictions be added?...

In this issue Budget and Finance Bills Individuals and income tax Anti-avoidance Taxes management and litigation Employment taxes Key developments Environmental taxes Daily and weekly news alerts Dates for your diary New and updated content Trackers Useful information Budget and Finance Bills Scottish Parliament approves the Scottish Budget The Scottish Parliament has passed the 2024–25 Scottish Budget Bill, confirming changes to Scottish income tax, with fresh 45% and 48% rates for higher earners. See: LNB News 28/02/2024 20. Spring Budget As flagged in Tax weekly highlights—22 February 2024, the Chancellor, Jeremy Hunt, will present the Spring Budget on Wednesday, 6 March 2024. As usual, we will produce overnight analysis of the tax measures, ready on the morning of Thursday, 7 March. Our recent fiscal event coverage is available under the subtopic: 2023–24—Fiscal events including Budget. Individuals and income tax New Regulations reform Making Tax Digital for Income...

In this issue: Key developments and horizon scanning Transferring property Leasing property Property management Residential property Environment, energy and buildings Easements, rights and covenants Property development Property taxes Property in Wales Property in Scotland LexTalk®Property: a Lexis®Nexis community Additional property updates this week Daily and weekly news alerts New and updated content Trackers New Q&As Key developments and horizon scanning BPF and Law Commission comment on draft Commonhold and Leasehold Reform Bill The British Property Federation (BPF) has issued its views on the draft Commonhold and Leasehold Reform Bill, warning that proposed caps on ground rents could undermine investments held by pension funds and institutional investors. It said investors who acted in good faith to meet pension liabilities should be compensated, and noted that government announcements do not address this point. While it supports parts of the commonhold package, including adjustments to funding for major works,...

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...

Scope of this Practice Note This Practice Note sets out the main types of radioactive waste and examines disposal against the EU-defined waste hierarchy. It places contemporary management of radioactive waste within the historical development of the nuclear industry from a planning standpoint. Principal policy documents are reviewed to chart the evolution of government thinking over time. Geological disposal of Higher Activity Waste (HAW) under the Planning Act 2008 (PA 2008) is compared with alternative disposal routes under the Town and Country Planning Act 1990 (TCPA 1990) and the Planning (Wales) Act 2015. Consultation duties, application processes and required consents are identified for both regimes. Notable planning appeals and judicial review cases are highlighted before looking at international approaches to radioactive waste. What is radioactive waste? In the UK, radioactive waste arises—and will arise—from past, current and future programmes for electricity generation from nuclear fission, the reprocessing of nuclear fuel, the development of nuclear weapons, the nuclear submarine fleet and wastes from radioactive materials used for civil...

Agricultural Holdings Act 1986 Where a tenancy is regulated by the Agricultural Holdings Act 1986 (AHA 1986), the respective responsibilities of landlord and tenant for the repair, maintenance and insurance of ‘fixed equipment’ (which includes buildings) are determined as follows: in line with the express provisions of the tenancy agreement; or if and to the extent the agreement is silent, by reference to the statutory ‘model clauses’ contained in: with effect from 1 October 2015 for property in England, the Agriculture (Model Clauses for Fixed Equipment) (England) Regulations 2015, SI 2015/950 (AMCFEER 2015) with effect from 1 November 2019 for property in Wales, the Agriculture (Model Clauses for Fixed Equipment) (Wales) Regulations 2019, SI 2019/1279 (AMCFEWR 2019) In each jurisdiction, those instruments replaced, from their respective commencement dates, the Agriculture (Maintenance, Repair and Insurance of Fixed Equipment) Regulations 1973, SI 1973/1473 (AMRIFER 1973). In practice, written tenancy agreements commonly and expressly adopt the...

This Practice Note sets out how far EU law continued to influence the UK’s tax framework (both direct taxes and VAT) immediately after the Brexit implementation period ended at 11pm on 31 December 2020. It describes the categories of retained EU law (REUL) relevant to tax-EU legislation, decisions of the EU Court of Justice, the general principles of EU law and the EU fundamental freedoms-and explains their application in a tax context. It purposefully excludes later changes, notably the Retained EU Law (Revocation and Reform) Act 2023 (REUL(RR)A 2023), which substantially reshaped REUL and, from the end of 2023, rebranded it as assimilated law. For more detail, see Practice Note: Assimilated law and Assimilated law and tax. This Practice Note does not address the EU’s State aid framework; for that, see Practice Note: State aid law and corporate taxation. Separate VAT rules govern the movement of goods into and out of Northern Ireland and are likewise outside the scope here; for those rules, see: Cross-border VAT-Overview-Goods-Northern Ireland. Background ...

Current ratio Date of calculations: [ insert date of calculations ] Formula: Current assets ÷ Current liabilities Calculation: Result: Result from previous month/year: % movement: If the ratio slips under 1.0, the firm lacks sufficient current assets to meet its current liabilities as they become due. Compare this outcome to the previous current ratio result. If the current ratio is declining and nearing 1.0, calculate the other ratios to gain a clearer view of why the firm is running out of money...

Definitions This Deed, between Lender and Borrower, defines key expressions used. Costs: all expenses on a full indemnity basis, including legal and professional fees. Event of Default: events in clauses 4.1.1–4.1.9. Financial Indebtedness: borrowing, bonds, finance leases, receivables financing, counter‑indemnities, and related guarantees. Insurance Policy: any current or future insurance benefiting the Borrower regarding the Real Property. Interest Rate: the stated annual rate or a closely comparable replacement if required. Legislation: UK laws and subordinate instruments, as amended, including approved codes of practice. Real Property: the assets in Schedule 1 together with buildings, fixtures and fixed plant. Receiver: any receiver (including a receiver and/or manager) appointed under this Deed or by law. Secured Obligations: all present and future liabilities to the Lender, including Costs and interest. Security Interest: any mortgage, charge, pledge, lien or similar arrangement conferring security. Security Period, VAT, Working Day: from today until full discharge; value added tax; any day except Saturday, Sunday...

Cash and profitability ratio calculations Current ratio Formula: Current assets ÷ Current liabilities Calculation: 764,400 ÷ 534,200 Result: 1.43 Result from previous month/year: 1.39 % movement: 2.88% Should the ratio dip below 1.0, the business does not hold sufficient current assets to meet its current liabilities as they fall due. Set this figure against the earlier current ratio. If the current ratio is weakening and edging near 1.0, work out the other ratios to gain clearer insight into why the business is running out of money...