Payment in Kind meaning

Federal Republic of Nigeria v VR Global Partners LP and others [2026] EWCA Civ 25 What are the practical implications of this case? For costs practitioners, this judgment offers vital direction on the interplay between detailed assessment and third-party costs applications. First, it confirms there is no legal hierarchy between these processes—contrary to arguments that a judgment creditor enjoys a presumptive right to chase third parties straightaway. The ruling empowers costs judges and Commercial Court judges to stay third-party applications where the sum ultimately payable is genuinely uncertain, particularly where a substantial payment on account has been made and the costs are to be assessed on the standard basis with its proportionality filter. Second, and more significantly, the Court of Appeal issued a stark warning against disproportionate conduct of detailed assessments. The court was dismayed by the prospect of a 50-day assessment hearing involving millions in costs, describing it as the worst kind of satellite litigation that prejudices other court users. Practitioners should note the emphatic approval of...

The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) The Employment (Allocation of Tips) Act 2023 (E(AT)A 2023) imposes a statutory duty on employers in all industries to pass on to workers, without deductions, every tip, gratuity and service charge they receive or over which they hold control or material influence (qualifying tips), and to ensure distribution is fair and transparent. While it leaves untouched the rules on the taxation of tips, gratuities and service charges, its purpose is to guarantee that customer payments of this kind are allocated to workers. The Act is reinforced by a statutory Code of Practice on Fair and Transparent Distribution of Tips, together with non-statutory guidance. For further detail on the legal framework governing the payment and allocation of tips, gratuities and service charges, see Practice Note: Allocating tips, gratuities and service charges to workers. That Practice Note considers the tax treatment of tips and commission, which remains unaffected by E(AT)A 2023. The basic position is that both tips and commission, irrespective of...

STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 (FA 2025), which obtained Royal Assent on 20 March 2025, enacts measures scrapping the remittance basis and introducing a residence-based system, effective from 6 April 2025. FA 2025 also substitutes domicile as the principal criterion for determining exposure to inheritance tax. Additional reforms cover revisions to the rules for excluded property status, the removal of protected settlements status for offshore trusts, and adjustments to overseas workday relief. For details on these updates, refer to: Practice Notes: The abolition of the remittance basis of taxation from 2025–26, A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates (Finance Bill 2025) and Finance Act 2025. This Practice Note examines shadow directors of offshore companies and the degree to which such individuals might incur benefit in kind charges under the benefits code in the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). Note that the notion of a shadow director...

This Practice Note examines the two different statutory definitions of 'redundancy'. This Practice Note explores the two statutory meanings of ‘redundancy’. The first appears in the Employment Rights Act 1996 (ERA 1996). Whether that definition is met determines: if an employee qualifies for a statutory redundancy payment (see Practice Note: Entitlement to statutory redundancy payment) if, in an unfair dismissal claim, redundancy is the reason for dismissal (one of the potentially fair reasons—see Practice Note: Reason for dismissal—redundancy) For further detail on this first definition, see: Redundancy payment entitlement, and fair reason for dismissal, below. The second statutory definition is set out in the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992) and applies to collective redundancy contexts. That definition must be satisfied—together with other requirements—before any duty arises to inform and consult appropriate representatives (see Practice Note: Collective redundancy—the triggers for the statutory consultation obligations). For more on this second definition, see: for collective redundancy consultation, below. ...

The [ assignment OR transfer ] of the Property must contain the following: The Buyer covenants with the Seller that: during the Term the Buyer shall: make payment of: the [ yearly ] rent of £[ amount ]; [ and ] the [ yearly ] service charge of £[ amount ]; which [ is OR are respectively ] included within the [ yearly ] rent of £[ amount ] [ and the [ yearly ] service charge of £[ amount ] ] reserved by the Lease; observe and perform the tenant covenants in the Lease, save for the obligation to pay the whole of the rent and the whole of the...

This Q&A reviews alternative employment for fair dismissal purposes and examines what counts as suitable alternative employment for statutory redundancy payment purposes. It addresses both fair dismissal and statutory redundancy payment considerations. Reason for dismissal The same definition of ‘redundancy’ is applied for the purposes of determining: the entitlement to a statutory redundancy payment whether, in the context of an unfair dismissal claim, the reason for dismissal is redundancy Under that definition, an employee is dismissed by reason of redundancy where the dismissal is wholly or mainly attributable to: the employer ceasing, or intending to cease, carrying on the business for the purpose for which the employee was employed by them the employer ceasing, or intending to cease, carrying on that business in the place where the employee was so employed the requirements of the business for employees to undertake work of a particular kind, either generally or in the place where the employee was employed,...

During the medieval period, the manor’s lord allowed local people to occupy and farm open land on the estate in return for payment (in cash or in kind, for example tithes and corn rents) or services (ie labour or military service). Moreover, the lord of the manor also kept certain rights over the land. Such manorial rights were annexed to the lordship (ie the title ‘lord of the manor’), rather than to the manor land. A full catalogue of these rights appeared in Schedule 12, paragraphs 5 and 6 of the Law of Property Act 1922 (now repealed). That list is, however, conveniently reproduced in HM Land Registry Practice Guide 66—Overriding interests losing automatic protection in 2013, within that guidance document for reference...

Termination payments qualifying for £30,000 exemption As set out in Practice Note: Termination payments qualifying for £30,000 exemption, where a compensation payment for loss of office or employment is made in circumstances where it does not fall to be taxed as: earnings within section 62 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) (see Practice Note: Termination payments taxed as earnings) benefits-in-kind (see Practice Note: How employment income is taxed—non-cash earnings or benefits) benefits from an employer-financed retirement benefits scheme employment-related securities (see: Employment-related securities—overview) disguised remuneration, where termination payments or benefits are provided by a third party (such as an employee benefit trust) rather than the employer (see: Disguised remuneration and EBTs—overview) restrictive undertakings (see Practice Note: Taxation of payments for restrictive covenants or undertakings) and for terminations for loss of office since 6 April 2018...