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Protected settlement meaning

What does Protected settlement mean?
In UK tax practice, a protected settlement is a settlor‑interested trust set up by a non‑UK domiciled individual before they became deemed domiciled under the 15/20 year rule. From 6 April 2017, legislation (introduced by the Finance (No. 2) Act 2017 into ITTOIA 2005 and TCGA 1992; HMRC also refers to “protected foreign trusts”) broadly prevents the trust’s foreign income and chargeable gains from being assessed on the settlor as they arise. Instead, UK tax is generally triggered when UK‑resident beneficiaries (including, where relevant, the settlor) receive distributions or benefits under the trust distribution/matching rules. Protection is lost (“tainted”) if, on or after 6 April 2017, property or value is added to the trust, loans to or from the trust are made or varied other than on arm’s length terms, or other specified transactions occur. The protections are not available where the settlor is domiciled in the UK under general law or is a “formerly domiciled resident”. If protection is lost, the usual settlor‑charge provisions for settlor‑interested trusts can apply. Usage and effect are consistent across England & Wales, Scotland and Northern Ireland. There is no equivalent statutory regime in Ireland, where “protected settlement” is not a defined tax term.
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NEWS
UK and EU competition update: CMA’s first Google SMS probe (DMCCA 2024); CMA annual plan; CAT cartel settlements; NI Protocol review; Lufthansa interim measures; AG opinion on exclusive distribution

In this issue: UK digital markets UK competition policy UK private actions EU antitrust Daily and weekly news alerts Caselex UK digital markets CMA opens first ‘SMS investigation’ under the DMCCA 2024 into Google’s general search and search advertising The CMA has begun an ‘initial SMS investigation’ under Part 1 of the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024). This is the authority’s first SMS designation probe under the new DMCCA digital markets framework. The CMA’s power to designate undertakings with SMS, and potentially impose conduct requirements, took effect on 1 January 2025. The Investigation Notice states that Alphabet Inc, Google LLC, Google Ireland Limited and Google UK Limited (Google) provide general worldwide web search and information return (general search), and advertising to users of general search (search advertising). The CMA considers these meet the definition of a digital activity and can be treated as one activity. The Notice excludes specialised search service interfaces, such...

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NEWS
Employment law weekly briefing—15 February 2024: tribunals, discrimination, platform work, taxable settlements, GDPR, minimum service levels, AI guidance, right to work checks, key dates

In this issue: Employment Tribunals Status and worker categories Tax Protected characteristics Data protection and employee information Industrial action ESG and sustainability: employment issues Financial services and banking: employment issues Immigration Daily and weekly news alerts Dates for your diary Trackers New Q&As Employment Tribunals What enquiries should be made by a tribunal before it makes a deposit order? In Carryl v Governing Body of Manford Primary School [2023] EAT 167, the Employment Appeal Tribunal held that, when determining the level of a deposit order, an employment judge should establish the payer’s income and expenditure to understand their disposable income over the relevant timeframe. The judge should make targeted enquiries about the person’s actual weekly or monthly net pay, factoring in deductions such as tax, National Insurance, pensions and other regular outgoings. With that information, the tribunal can set a deposit at a figure that carries enough weight to prompt...

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NEWS
Employment Appeal Tribunal: victimisation appeal fails; bad-faith racial slur allegation not protected under s.27(3) Equality Act 2010; 'blackmail' finding upheld (Toure v Ken Wilkins Print Ltd)

Employment Appeal Tribunal Judge Murray Shanks stated the tribunal was justified in concluding that Nicolas Toure’s allegation that a colleague used a racial epithet was 'fictional', and that his readiness to forget it in return for promotion was 'tantamount to blackmail', although the tribunal’s rationale for dismissing his victimisation complaint was 'plainly wrong'. He noted the tribunal had been mistaken in stating Toure was not dismissed by Ken Wilkins Print Ltd; yet Toure’s contention that his sacking was retaliation for raising race discrimination 'could not possibly have succeeded', in any event, according to Judge Shanks in a judgment handed down on 17 January 2024...

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View the related Practice Notes about Protected settlement

PRACTICE NOTES
Scottish Private Client Practice Glossary: Succession, Trusts, Guardianship and Property Terms with England and Wales Equivalents

A glossary of frequently used terms and phrases in Scottish Private Client law, with the closest England and Wales equivalents (where applicable) and links to helpful websites Ab intestato Meaning From someone who dies without a will; describes property taken under the laws of intestate succession. Nearest English equivalent None Action of specific implement Meaning A court action seeking an order compelling a party to carry out a particular act. In Scotland there is no division between equitable and legal remedies, unlike England and Wales. Nearest English equivalent Specific performance (an equitable remedy for breach of contract that can be ordered alongside, or in place of, damages) Advance notice Meaning An entry in the relevant property register that protects the grantee of a deed intended for registration in the Land Register of Scotland. The protected period of 35 days begins on the day after registration....

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PRACTICE NOTES
Commercial Rent (Coronavirus) Act 2022: protected rent debts, arbitration process, appeals, costs and landlord enforcement moratorium (England and Wales) [Archived]

ARCHIVED : This Practice Note has been archived and is not maintained . The Commercial Rent (Coronavirus) Act 2022 (CR(C)A 2022) preserves and broadens the safeguards afforded to commercial tenants during the coronavirus (COVID-19) crisis. It achieves this by ringfencing rent and service charge arrears built up while premises were mandated to shut, and by creating a statutory arbitration scheme through which sums can be written down or repayment postponed. A moratorium on landlord remedies also applies to shield tenants whilst arbitration is ongoing. Core provisions of CR(C)A 2022, together with the government’s Commercial rent code of practice following the COVID-19 pandemic (the Code), are outlined below. The government has additionally published statutory guidance on the Act’s terms. The window to commence arbitration has now closed, and with it the moratorium on landlord remedies where no reference was lodged. The moratorium endures for arrears that were referred in time (see Moratorium on landlord’s remedies). A Property Litigation Association survey reported very low take-up of the scheme, with markedly fewer...

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PRACTICE NOTES
2022 appeal round-up and tracker: key civil litigation decisions and forthcoming Supreme Court cases (England and Wales)

Practice Note This Practice Note consists of two strands created to help dispute resolution practitioners remain up to date with developments in case law that affect their field, or which influence civil litigation procedure more generally: selected forthcoming appeals to the Supreme Court are highlighted below; see Key forthcoming appeals to the Supreme Court—2022 summaries of significant appeal decisions in England and Wales (ie rulings of the Court of Appeal and Supreme Court and, where appropriate, certain judgments of the Competition Appeal Tribunal, Judicial Committee of the Privy Council, Court of Justice of the European Union), and ECtHR, which we have covered; see: Key forthcoming appeal cases—2022 You can navigate this content using the table of contents in the left-hand margin. Alternatively, search this tracker using [CTRL]+[F]. This material is not intended to be a comprehensive register of every appeal or major decision relevant to dispute resolution practitioners. Key forthcoming appeals to the Supreme Court—2022 Tort and negligence ...

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PRECEDENTS
List of issues for Employment Tribunal whistleblowing claims: protected disclosures, detriment, automatic unfair dismissal, remedies and interim relief (Great Britain)

Case No: [ Insert case number ] Between: [ INSERT NAME OF CLAIMANT ] (Claimant) and [ INSERT NAME OF RESPONDENT ] (Respondent) [ CLAIMANT’S OR RESPONDENT’S OR AGREED ] LIST OF ISSUES Jurisdiction—time limits In respect of the detriment claim, was the Claimant’s claim lodged within time, having regard to the ‘stop the clock’ effect of early conciliation? (Employment Rights Act 1996 (ERA 1996), ss 48(3)(a), 207B) If not, was it not reasonably practicable for the Claimant to present the claim in time? (ERA 1996, s 48(3)(b)) If so, was the claim made within such additional period as was reasonable? (ERA 1996, s 48(3)(b)) In respect of the dismissal claim, was the Claimant’s claim lodged in time, taking into account the ‘stop the clock’ provisions relating to early conciliation? (ERA 1996, ss 111(2)(a), 207B) If not, was it not reasonably practicable for the Claimant to submit the claim in time? (ERA 1996, s 111(2)(b)) If so,...

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PRECEDENTS
Approval order template: child or protected party costs settlement with solicitor waiver (CPR 21.10; PD 46 para 2.1(b), England and Wales)

IN THE HIGH COURT OF JUSTICE [ Chancery OR King’s Bench ] SENIOR COURT COSTS OFFICE [ insert location ] District Registry ] Claim Number [ insert claim number ] [ insert name ] Claimant and [ insert name ]...

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PRECEDENTS
Witness Statement (Precedent) for Approval of Settlement of Protected Party’s Damages Claim, with Schedule of Loss and CFA/ATE Costs, under CPR 21 and 46.4 (England and Wales)

Submitted on behalf of the claimant Statement of evidence by [ insert initial and surname of witness ] Witness statement number: [ insert number of witness statement in relation to the witness ] Exhibits: [ insert initials and number of each exhibit referred to ] Date statement signed: [ insert date ] [ Date of translation: [ insert date ] ] IN THE COUNTY COURT AT [ location ] Claim number: [ insert number ] Parties [ name ] Claimant (a protected party by [ name ] his [ family relationship ] litigation friend) and [ name ] Defendant WITNESS STATEMENT OF [ insert name ] I, [ insert full name ], of [ if the witness is making the statement in their professional, business or other occupational capacity, insert the address at which they work, the position they hold and the name of their firm or employer ], acting as Legal Representative for the Claimant, intend...

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