Liability-driven investing meaning

Boulting v HMRC Commissioners [2025] UKFTT 1272 (TC) What was the background? Case background Mr Boulting appealed a closure notice issued on 9 October 2019 that revised his 2014/15 tax return to reclassify the consideration for PSC Training and Development Group Ltd’s (PSC) purchase of his shares as a distribution rather than a capital gain, thereby increasing his tax liability by £1,008,621.39. He was PSC’s managing director and majority shareholder—initially holding 55%, later 50 B shares—at a training business he helped acquire through a management buyout in 1993. Board-level tensions developed between older directors (including Mr Boulting) and younger directors (including his son, Mark) over investing in fixed assets to upgrade premises and IT systems, and over the manner in which key management decisions should be taken. The disagreements were damaging the business: one STG director had resigned and a senior manager was considering resigning, believing the older directors’ stance impeded effective management. In November 2013, Mr Boulting agreed to consider retirement, and the accountants suggested a company...

David McClean and others v Andrew Thornhill KC [2023] EWCA Civ 466 The appellants belonged to limited liability partnerships (LLPs) established specifically to obtain and exploit distribution rights in films. Prospective investors were pitched the Scheme by the promoter, as presented on the footing that, as members of an LLP, they would qualify for tax relief on trading losses the LLP was expected to incur, which they could set off against their own personal income or capital gains, thereby reducing their tax liabilities. The Scheme’s promoter retained Mr Thornhill to produce a series of opinions addressing the tax consequences of the arrangements. HMRC disputed the supposed purported fiscal advantages of investing in or participating in the Scheme, contending the LLPs were not conducting trade on a commercial footing with an intention to make a profit. In 2017 the investors concluded a settlement with HMRC. They then pursued a claim in the tort of negligence against Mr Thornhill, asserting that the advice he provided to the promoter, and which was...

Turbulence across equity and bond markets, stirred by Donald Trump’s tariff fight, has cast doubt on the long-run prospects for retirement plan funding levels. Channelling growth via fresh equity exposure on the investment side appears distinctly riskier than it did merely two months back, at least for schemes and employers alike at present. No fixed date exists for rolling out the government’s proposed investment reforms, and regulatory lawyers and pensions analysts are now wondering if ministers will postpone or pare them down in the coming months. “The turbulence sparked by Trump’s changing tariffs is affecting equities and bonds alike — the twin pillars of pension scheme assets,” said Beth Rivera, chief executive of Best Financial Planners. “Many schemes are seeing valuation lurches that may temporarily puff up surplus positions. Lacking stability, employers could tap surpluses that are not genuinely secure.” UK equities The Labour government initiated a wide-ranging review soon after taking office in July 2024, focused on how the UK pensions sector’s financial heft could be directed...

Trend towards environmental, social governance or sustainability reporting The phrases sustainable business, corporate responsibility (CR), corporate social responsibility (CSR) and environmental, social, governance (ESG) are used across business and legal settings. Broadly, they describe organisations embedding responsible conduct into everyday operations. CSR has traditionally focused on accountability, yet its outcomes were difficult to quantify. That is shifting under the ESG lens, where impacts are increasingly measurable—and therefore simpler to disclose—with CSR often viewed as a forerunner to ESG. Growing numbers of companies recognise that mere legal compliance may no longer suffice to guard against legal, regulatory or reputational exposure; aligning with voluntary standards and reporting frameworks can help mitigate these risks. The drive for transparency and accountability through corporate governance and sustainability disclosures has reignited attention on the ‘triple bottom line’—environmental, social and economic effects. Although sustainability, CR and CSR lack a single, settled definition, voluntary reports are frequently structured around three core pillars—ESG. In essence, ESG reporting assesses a company’s sustainability and ethical performance...

Examples of claims against trustees for breach of investment duties include: delay—where the trustee is slow to deploy trust capital poor investment choices—e.g. reckless exposure to high-risk, undiversified holdings unauthorised investments—such as disregarding a mandate to invest only in specified assets not investing the trust fund as required Trustees' powers of investment Trustees should confine themselves to authorised investments. They must consider both the statutory general power of investment and any extra powers, exclusions, or limits set out in the trust instrument. The “general power of investment” permits trustees to make any kind of investment they could make if absolutely entitled to the trust assets. An exception applies to “investments in land other than in loans secured on land”, which are governed by a separate provision (see “Investments in land” below). This general power sits alongside powers conferred other than under the Trustee Act 2000 (TrA 2000), for instance by a trust deed, and remains subject to any...

Updated December 2025 Introduction The United Arab Emirates (UAE) sits at a pivotal juncture between leading Western and Eastern markets. Formed as a constitutional union of seven Emirates, each maintains its own local authority, while overarching governance rests with the Supreme Council and the Council of Ministers. As part of the Gulf Cooperation Council (GCC), the UAE participates in the Middle East’s sole multi-national common market, aimed at deepening cross-border economic and fiscal cohesion. Investing and trading in the UAE offers a broad spectrum of prospects for investors. This Practice Note highlights principal considerations for overseas organisations entering the UAE and the essential actions to commence operations. It concentrates on establishing in Mainland UAE, the Abu Dhabi Global Market (ADGM), and the Dubai International Financial Centre (DIFC). Although these jurisdictions are covered in depth, investors can also assess many alternatives within the UAE’s wide array of free zones, each with unique advantages and regulatory regimes. The material is provided for general guidance only and should not be acted...