Jurisdiction(s):
United Kingdom

Key definition

Debt definition

What does Debt mean? Debt, in pensions practice, is the sum an employer must pay to an occupational defined benefit pension scheme to meet any funding shortfall when the employer ceases to participate or the scheme winds up. In England & Wales and Scotland, this employer debt (commonly the section 75 debt) is a statutory liability under section 75 of the Pensions Act 1995 and the Occupational Pension Schemes (Employer Debt) Regulations 2005. It is typically calculated on a buy-out basis (the estimated cost of securing members’ benefits with an insurer) and becomes immediately due to the trustees on a trigger such as...

UK tax considerations in acquiring non-performing loan portfolios: vehicle choice, withholding, securitisation, treaty relief, permanent establishment risk, funding, VAT and stamp taxes

Published by a LexisNexis Tax expert

Practice notes

Practice Note

Shifts in the economy can lead to sales of distressed Debt Portfolios. In such periods, banks commonly look to cut Balance sheet exposure to underperforming companies or individuals, while private equity and similar funds pursue returns by buying these portfolios and then securing realisation or repayment of the underlying liabilities. This Practice Note sets out the tax considerations relevant to an Acquisition of a distressed debt portfolio. For the purposes of this Practice Note, distressed debt is described as non-performing loans (NPLs). NPLs may comprise, for instance, residential mortgage lending or corporate borrowings...

Related Practice Notes

debt restructurings (ie waivers, debt/equity swaps or renegotiations)
enforcement of debts

In addition, Tax and distressed debt—checklist of points to consider summarises the principal tax points to address when approaching distressed debt more generally...

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Jenny Doak

Weil Gotshal & Manges LLP

Jenny is a partner in Weil's European Tax practice. Her experience includes restructurings, M&A transactions (private and public), joint ventures, financings, debt and equity capital markets, and special situations. Jenny advises across all sector areas, but has particular experience in certain specialist areas, including energy and TMT. Alongside her transactional practice, Jenny provides consultancy advice to clients on standalone tax matters. She also represents clients in tax litigation....

Web page updated on 22/05/2026

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