Time-weighted rate of return meaning

In this issue Trusts Court of Protection Elderly and vulnerable clients UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Regulatory compliance for Private Client Contentious trusts and estates International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Latest Q&As Useful information Trusts CTJ update on Commercial Court seminar on equity in commercial law The Courts and Tribunals Judiciary (CTJ) records that the Commercial Court has staged its latest seminar centred on equity in commercial law. Discussions addressed the accountability of fiduciaries, how equity underpins commercial bargains, and the doctrine of equitable rescission. See: LNB News 19/05/2025 45...

PI & Clinical Negligence weekly highlights—27 June 2024 In this issue: Clinical negligence Case management High court decides on consequential matters in claim involving injury sustained during rugby match Other PI and clinical negligence news Daily and weekly news alerts Useful information Clinical negligence Minor’s claim for damages for negligent management during labour and delivery dismissed In LN (a child, by his litigation friend, MC) v Blackpool Teaching Hospitals NHS Foundation Trust [2024] EWHC 1478 (KB), the King’s Bench Division rejected the child claimant’s action seeking compensation for personal injuries and consequential losses said to have resulted from the negligent handling of his mother’s labour and birth by the defendant NHS Trust. A post‑natal chest X‑ray demonstrated a large right‑sided tension pneumothorax with mediastinal shift. By the time of the proceedings, the medical experts were agreed that the claimant showed evidence of delayed development, with some continuing difficulties, and a history of visual issues alongside speech...

Banking & Finance—November 2024 case round-up Sata Internacional-Azores Airlines SA v Hi Fly Ltd and another company [2024] EWHC 2762 (Comm) Aviation finance—unpaid rent—novation of lease—rectification of novation agreement The claimant, SATA Internacional-Azores Airline SA (SATA), leased an aircraft from the defendant, Hi Fly Ltd (Hi Fly). By 2019, SATA was experiencing financial difficulties and, following negotiations, Hi Fly sold the aircraft to a third party, AELF, with the lease simultaneously novated so that AELF became the lessor. AELF and SATA then agreed to terminate the lease early, providing for re-delivery on an ‘as is where is’ basis in return for a lump sum termination payment. When these arrangements were put in place, SATA owed Hi Fly just under US$3m comprising unpaid rent, maintenance reserve payments and default interest. Of that total, a little under US$1m related to amounts outstanding from before 1 September 2019, and it was accepted that SATA remained liable to Hi Fly for that portion. There was, however, a dispute concerning the remainder...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Internal rate of return (IRR) Internal rate of return (IRR) is the benchmark financial metric set by the British Private Equity & Venture Capital Association (BVCA) for judging private equity outcomes and making comparisons across investments. IRR seeks to identify the break-even rate for an investment while recognising the time value of money, and is typically described as the discount rate that, when applied to a sequence of projected cashflows from a specific investment, results in the net present value of anticipated cash inflows (eg investments or loans to an investee company) being equal to the net present value of anticipated cash outflows (eg dividends or interest from the investee company or exit proceeds)... The formula 0 = P0 + P1/(1+IRR) + P2/(1+IRR)^2 + P3/(1+IRR)^3 + ... + Pn/(1+IRR)^n, where P0, P1, ... Pn represent the cashflows in periods 1, 2, ... n, respectively...

A 'loan relationship' means a monetary debt arising from the lending of money. Yet this wording does not capture every form of arrangement or transaction that is taxed under the loan relationships regime. The regime’s scope is specifically and expressly extended to include certain other arrangements and transactions that are treated as equivalent to debt finance. These, often labelled 'deemed loan relationships', cover arrangements which, though not meeting the strict definition of a 'loan relationship', generate a return that is economically the same as interest (sometimes described as an interest‑like return, i.e. an interest-like return). For further detail on the meaning of loan relationship and the various types of 'deemed loan relationships' within the scope of the loan relationships taxing regime, see Practice Note: Loan relationships—what are they? For the computation rules governing how profits and losses on loan relationships are calculated, recognised and brought into account for corporation tax purposes, see Practice Note: Loan relationships—the main tax rules. What do the disguised interest rules target? The disguised...

Coronavirus (COVID-19)—holiday and holiday pay [Archived] If you require general guidance on matters concerning the right to holiday and holiday pay during the Coronavirus (COVID-19) pandemic, consult Practice Note: Coronavirus (COVID-19)—holiday and holiday pay [Archived]. The way holiday pay is calculated under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, has continued unchanged throughout the coronavirus pandemic; the amendments contained in the Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendments Regs 2020), SI 2020/814, do not apply to the calculation of holiday pay. Under regulation 16 of the WTR 1998, SI 1998/1833, a worker taking statutory holiday is entitled to be paid at the rate of a “week’s pay” for each week of leave, with that figure determined in accordance with sections 221–224 of the Employment Rights Act 1996 (ERA 1996), subject to specified modifications. Different approaches to calculating a week’s pay are used depending on whether the worker has “normal working hours” or “no normal working hours”...