Gilts meaning

R (oao UBS AG) v HMRC and another [2024] UKUT 242 (TCC) As part of JW’s reward package, UBS and JW (then an employee) entered into three options over gilts in 2002. The options were not taken up until 2012, after JW had left the business, and delivery of the gilts did not occur until 2016/17 because of valuation problems. HMRC issued a determination under regulation 80 of the PAYE Regulations requiring the company to account for PAYE. The company disputed that determination, advancing a number of lines of attack, one of which asked HMRC to exercise its discretion under section 684(7A) of the Income Tax (Earnings and Pensions) Act 2003. HMRC responded that it was not appropriate to decide whether to deploy that discretionary power at that juncture, as the ultimate liability had not yet been fixed. UBS sought judicial review of...

In this issue: Property (Digital Assets etc) Act 2025 Lending Aviation finance Shipping finance Real estate property Sustainable finance Derivatives Regulation for derivatives Regulation for banking lawyers New and updated content Useful information Property (Digital Assets etc) Act 2025 Property (Digital Assets etc) Act 2025 comes into force The Act clarifies which things can be recognised as objects of personal property rights, ensuring they are not excluded from such treatment. It took effect on 2 December 2025. Source: Property (Digital Assets etc) Act 2025. Lending LMA publishes note clarifying deed requirements and intercreditor documentation The Loan Market Association (LMA) has assessed the impact of obiter observations in Macdonald Hotels v Bank of Scotland [2025] EWHC 32 (Comm), which raised doubt over whether a particular testimonium clause—akin to those in the LMA’s recommended intercreditor agreements—sufficiently demonstrates, on the face of the document, an intention for it to take effect as...

There has traditionally been a misconception that gilt stewardship is not possible On 27 August 2024, the consultancy noted that LDI managers, as significant investors in UK government debt (often via bonds known as gilts), ought to actively engage with policymakers to address environmental breakdown. These managers deploy hedging techniques designed to protect pension schemes from swings in interest rates and rising or falling inflation. LCP also said that gilts now play an expanding role in defined benefit pension portfolios, and that trustees should press their LDI managers to set out and develop a stronger, more robust approach to engaging with government climate policy...

Sources of funds Practitioners should encourage the personal representatives (PRs) to organise funding for inheritance tax (IHT) without delay so money is available promptly—ideally within six months from the end of the month of death, when interest starts to accrue—or, in any event, by the point the grant application is ready to be submitted. Ways to settle the IHT due on the deceased’s estate include: Assets that do not vest in the PRs, such as insurance pay-outs or pension proceeds (noting that forthcoming changes to IHT on pension scheme death benefits may affect sums due to beneficiaries and may slow access to these funds shortly after death) Assets that do not require a grant Payment from the deceased’s bank or building society account, or other qualifying investment, via the Direct Payment Scheme (DPS) using Form IHT423, or otherwise by agreement with the relevant institution on a case-by-case basis Payment from the deceased’s National Savings & Investments account, also via the DPS using...

Solicitors are generally not involved in deciding precisely where a client should invest and must take care not to provide financial advice unless authorised by the Financial Conduct Authority (FCA). In most circumstances, it is appropriate for clients to obtain professional, independent guidance from a financial adviser. That guidance helps clients to shape their investment objectives by: identifying their actual income requirements weighing those requirements against the need to preserve capital determining a suitable risk profile Nevertheless, a solicitor may assist by explaining the different investment opportunities without endorsing any particular choice. In addition, a solicitor might carry responsibility as an attorney or deputy for administering an individual’s assets or investments. A sound, general grasp of the options available, particularly where they come by way of a third party’s recommendation, is essential so that decisions based on needs and objectives, as well as risk factors, can be examined thoroughly...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...