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This Practice Note outlines the law concerning criminal recklessness. The subjective test for recklessness Certain statutory and common law offences allow the prosecution to prove mens rea through ‘recklessness’. Put simply, recklessness is where the accused takes an unjustified risk that results in unlawful harm or damage. The House of Lords in R v G reaffirmed the subjective approach to recklessness. Before R v G, two distinct tests were used, depending on the offence charged: Subjective recklessness from R v Cunningham: the prosecution had to establish that the accused personally foresaw the risk. Objective recklessness from R v Caldwell: the prosecution only needed to show that the risk would have been obvious to a reasonable person, without proving the accused themselves foresaw it. In R v G, the House of Lords concluded that the objective test could operate unfairly where a defendant did not foresee the
This Practice Note examines the remedy of rescission, explaining when and in what manner a contract can be unwound (at common law, in equity and under statute) and thereby terminated and brought to an end. It covers the consequences and effects of rescission, the principal grounds for setting aside an agreement (misrepresentation, mistake, undue influence, duress, non‑disclosure, fiduciary misdealing and bribery) and the main obstacles to claiming rescission—affirmation, the intervention of third‑party rights and the impossibility of restitution. For further guidance on rescission in the context of misrepresentation, see Practice Note: Misrepresentation—rescission as a remedy. There are many ways in which a contract may reach its end; see: Terminating contracts—how and when a contract ends—overview for a brief and accessible summary, with links to the related further practical guidance, including Practice Note: Termination and expiry of contracts. For a table
What is a res judicata? A res judicata is a determination by a court or tribunal with jurisdiction over the cause of action and the parties, which finally disposes of the issues decided so they cannot be litigated again by those bound, save on appeal. Final judgments entered by default or by consent fall within this concept, whereas rulings on purely procedural points and any decision lacking finality do not. The doctrine’s aim is to bring litigation to an end and shield parties from being harassed by the same dispute twice. in personam—binds the parties and their privies in rem—binds all persons, privy or otherwise (ie a judgment binding the whole world) A party may rely on res judicata: as an estoppel to defeat an opponent’s claim or defence; and/or as the basis of their own claim or
The offence of causing grievous bodily harm with intent Wounding or causing grievous bodily harm (GBH) with intent can be tried solely in the Crown Court on indictment. Elements of the offence Under the Offences against the Person Act 1861 (OATPA 1861), the prosecution must establish that the defendant unlawfully and maliciously: wounded with the intention of causing GBH, or caused GBH with that intention, or wounded intending to resist or prevent the lawful arrest or detention of any person, or caused GBH intending to resist or prevent the lawful arrest or detention of any person ‘Unlawfully’ and ‘maliciously’ Unlawfully The wounding or causing of GBH must be unlawful. Such conduct may be lawful if used: in self-defence in defence of another in defence of property for the prevention of crime where the victim gave express or implied consent For further information on these defences, see below:
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ARCHIVED : This Archived Practice Note sets out the pre‑6 April 2018 tax treatment of payments in lieu of notice. For the tax position applying to such payments where employment ends on or after 6 April 2018, see Practice Note: Taxation of payments in lieu of notice ( PILONs) and post‑employment notice pay ( PENP). Historically, the tax (and National Insurance contributions ( NICs)) treatment of payments in lieu of notice ( PILONs) has been a particularly intricate area. These are payments made in place of the amounts due for an employee’s or a director’s period of notice. Because of the complexity and the resulting uncertainty, the tax treatment of PILONs changed fundamentally from 6 April 2018. In broad terms, from that date all PILONs, whether paid under an implied or express contractual PILON provision, or not, are fully taxable and subject to...
As this Practice Note outlines, termination payments come in numerous forms, and the first task at the outset is to determine whether the particular payment is chargeable as earnings under section 62 of the Income Tax ( Earnings and Pensions) Act 2003 ( ITEPA 2003), or instead falls within alternative charging provisions in ITEPA 2003, before assessing if the £30,000 exemption in ITEPA 2003, s 403, can apply to that payment in the circumstances. In everyday understanding, 'tax' typically embraces National Insurance contributions ( NICs), because NICs reduce disposable funds much like conventional taxation. Accordingly, the NICs consequences must be weighed when judging the financial efficiency of any such payment. However, as NICs are governed by their own statutory regime, which does not mirror the tax code, their treatment should always be addressed separately when reviewing a termination payment. This separation ensures clarity and helps...
Practice Note This Practice Note is authored by Anne Redston, Barrister. It sets out her personal view; she is not authorised to speak for the Tribunals Service or the judiciary. A person’s classification as employed or self-employed carries significant consequences for income tax and National Insurance contributions ( NICs). Employment law and negligence liability are also affected; see Practice Note: Employment status—why it matters. This Practice Note should be read with Establishing employment status—from a tax and NICs perspective, which also considers HMRC’s Check Employment Status for Tax ( CEST) tool. Despite the importance of the line between employment and self-employment, there is no clear definition of what makes an individual employed or self-employed. Instead, a substantial body of court decisions has developed. From that case law, various principles—often called status tests—have emerged. This Practice Note outlines those status tests and examines some of the leading cases. This...
STOP PRESS: In 2024, the Financial Reporting Council ( FRC) initiated a review of the UK Stewardship Code. The opening phase centred on targeted outreach designed to test whether asset managers, asset owners and other signatories are using the current Code in ways that deliver stronger stewardship outcomes through engagement with issuers across all asset classes in particular. Acting on the feedback received, the FRC introduced measures to lighten the reporting burden for signatories to the UK Stewardship Code, with those changes coming into force on 31 October 2024. The second phase took the form of a public consultation, which was launched on 11 November 2024 and closed on 19 February 2025. A revised UK Stewardship Code was published on 3 June 2025, with implementation and the first reporting cycle planned for 2026 thereafter. For further information, see LNB News 27/02/2024 16, LNB News...
This Practice Note has been archived and is no longer being updated. It brings together the successive HMRC guidance releases for the coronavirus ( COVID-19) Self- Employment Income Support Scheme ( SEISS) and includes tracked-change versions that mark revisions between editions, enabling practitioners to see at a glance which iteration of the guidance applied on any specific date... For a guidance tracker: providing details of the various versions of the HMRC guidance on the Coronavirus Job Retention Scheme ( CJRS), see Practice Note: Coronavirus Job Retention Scheme—guidance tracker [ Archived] providing details of the various versions of general guidance on coronavirus ( COVID-19), see Practice Notes: Coronavirus ( COVID-19)—guidance tracker for employment ( BEIS working safely guidance to 1 April 2022) [ Archived] Coronavirus (...
FORTHCOMING CHANGE: On 26 November 2025, within Budget 2025, it was confirmed that from April 2029 only the first £2,000 each tax year of pension saving via a salary sacrifice arrangement will be free from National Insurance contributions ( NICs). Employee pension amounts exchanged above £2,000 annually will attract both employer and employee NICs, meaning the excess over £2,000 will, for NICs, be handled like standard employee workplace pension contributions. Employer pension funding is unchanged, and income tax relief also remains intact. Employers must report total salary foregone using current payroll systems, and HMRC has pledged to work with stakeholders. Further HMRC guidance will appear ‘before April 2029’. The National Insurance Contributions ( Employer Pensions Contributions) Bill 2026 will add a new subsection to section 4 of the Social Security Contributions and Benefits Act 1992, empowering ministers to make regulations so...
UKCG Code, UK Listing Rules and DTRs The UKCG Code applies to companies that hold a listing of equity shares in the equity shares (commercial companies) category, whether incorporated in the UK or elsewhere, and it sets out provisions on the establishment of committees of the board. It requires the creation of an audit committee, and it also envisages that, in particular circumstances, companies with a listing of equity shares in the equity shares (commercial companies) category may wish to establish a separate risk committee. For further guidance on audit committees, see Practice Note: The audit committee. Under the Financial Conduct Authority ( FCA) UK Listing Rules ( UKLR), all companies with a listing of equity shares in the equity shares (commercial companies) category are required either to comply with the provisions of the UKCG Code or to explain to...
This Practice Note explains how an individual may secure an unconditional right to work in the UK through settled status (indefinite leave to remain, permanent residence, settlement) or by becoming a British citizen. It outlines which groups may apply for settled status, notes proposals for change, and describes how British citizenship can be obtained. Settled status Anyone with settled status in the UK is permitted to work here. The terms ‘settled status’, ‘indefinite leave to remain’, ‘permanent residence’ and ‘settlement’ are interchangeable. Family members can join someone who holds settled status and, after 12 months, may apply for British citizenship. There is a broad range of categories that can qualify to apply for settled status, including individuals who have completed sufficient continuous compliant employment in the UK under various schemes, such as: skilled workers ...
This Practice Note This Practice Note explains how employers should complete a ‘right to work check’ properly, outlining the core actions for both digital and in-person checks, the records that must be kept, and how to plan for follow-up checks. It summarises online and manual routes in parallel, highlights documentation retention duties, and advises on scheduling necessary repeat checks across the employment lifecycle. It also addresses checks for British and Irish nationals using Identity Document Validation Technology through a Digital Verification Service. A right to work check must be undertaken before employment starts, to confirm the individual is permitted to perform the role. When completed correctly, the employer gains a statutory excuse against a civil penalty. For more detail, including which categories of workers require checking, see Practice Note: Right to work checks: when and why. This Practice Note describes the process for right to work...
This Practice Note concentrates on the range of tax reliefs (income tax relief, national insurance contribution relief and corporate tax relief) available for member and employer payments into registered pension schemes. It further outlines how a member may obtain income tax relief for their own contributions, and explains the tax position of employer contributions paid on termination of the member’s employment. For broader guidance on pension taxation, see Practice Note: Tax treatment of pensions—an introduction. Member contributions to registered pension schemes Section 188 income tax relief A key benefit of registered pension schemes is the availability of income tax relief for members on contributions they, or a third party on their behalf, pay into the scheme. That relief, set out in section 188 of the Finance Act 2004 ( FA 2004), has the following features: conditions......
PRA PS21/25 and FCA PS25/15: reform of the remuneration regime Joint consultation On 26 November 2024, the Prudential Regulation Authority ( PRA) and the Financial Conduct Authority ( FCA) issued Joint Consultation Paper 6/24–24/23, Remuneration reform, which outlines proposed amendments to the remuneration framework as follows: revisions to the Remuneration Part of the PRA Rulebook ( Appendix 1) updates to Supervisory Statement SS2/17— Remuneration ( Appendix 2) modifications to SYSC 19D within the FCA Handbook ( Appendix 3) consequential amendments to the FCA’s non- Handbook guidance FG23/6: General guidance on the application of ex-post risk adjustment to variable remuneration ( Appendix 4), and the withdrawal of the FCA’s non- Handbook guidance in FG23/4: Dual-regulated firms Remuneration Code ( SYSC 19D): Frequently asked questions on remuneration, and FG23/5: General Guidance on...
An individual can deliver their services in several distinct forms indeed. The predominant model is an employment relationship, broadly requiring the employer to run PAYE on sums paid to the employee, comply with real time information ( RTI) reporting duties, pay employer National Insurance contributions ( NICs), and observe a wide range of relevant employment law obligations. The employee is typically paid earnings only after income tax and employee NICs. A notable minority in the UK operate as self-employed, often providing their services straight to their customers and clients. These individuals must personally report and settle their own income tax and NICs liabilities independently. It is, in the end, a (sometimes intricate) factual assessment in every case whether a worker is self-employed or not. For further detail on how this is assessed, see Practice Note: Establishing employment status—from a tax and NICs...
Broadly speaking, tax applies to UK registered pension schemes in three different areas: the tax treatment of member and employer contributions, including any repayment of member contributions the tax treatment of assets held by the scheme, including the investment returns generated by those assets the tax treatment of benefits paid out by the scheme Where an individual participates in more than one registered scheme, the contributions paid to—and the benefits received from—each arrangement are combined and considered together when establishing that person’s overall tax liability. This Practice Note concerns registered private sector pension schemes. Public sector pension schemes are predominantly governed by separate legislation. Their tax position is broadly similar, though not invariably the same, as that which applies to registered private pension schemes......
This guide is intended mainly for trainees, newly qualified lawyers and anyone else who is new to, or not familiar with, pensions law. A- Day The registered pension scheme framework began on A- Day (6 April 2006). Under this framework, described in Part 4 of the Finance Act 2004 ( FA 2004), pension schemes of any kind are classed as either registered or unregistered. Schemes that held ‘tax approval’ before A- Day, under the then existing approval systems, were switched automatically to registered pension scheme status on A- Day, unless they chose to opt out. Since A- Day, other schemes have been able to seek registration under FA 2004, s 153, provided they meet the regime’s conditions. To benefit from the tax reliefs available under the registered pension scheme regime, it is not enough for a person merely to belong to a...
Pay As You Earn ( PAYE) The PAYE system is the mechanism by which an employer or pension provider withholds specified statutory deductions from an employee’s pay or a pensioner’s income. These comprise: deductions towards the employee’s income tax liability National Insurance contributions ( NICs) other pay-related deductions such as student loan repayments In effect, PAYE is HMRC’s approach to collecting income tax and NICs from individuals on an ongoing basis, instead of requiring everyone to complete a tax return to notify HMRC of what they owe. PAYE is not a precise calculation of an employee’s tax liability; it is an approximation of the tax the employee should pay, derived from HMRC’s view of the pay and benefits they are expected to receive. The tax is worked out using notices of coding that HMRC issues to employers and pension...
FORTHCOMING CHANGE : At the Spring Budget 2023, the government revealed plans to deliver IT systems enabling tax agents to payroll benefits-in-kind for employers. This step is intended to cut burdens on employers and to enable agents to support their clients more effectively, and sits within the government’s long-term strategy to simplify the tax system for taxpayers and their agents. Alongside salary and other pay elements, such as overtime and bonuses, many employers repay employees for work-related costs and offer benefits for both motivation and recognition, providing support as well as incentivisation. The tax treatment of non-cash earnings is covered in Practice Note: How employment income is taxed—non-cash earnings or benefits. This Practice Note explains how payroll currently operates for expenses and benefits, reflecting the simplification that applied from 2016. It therefore reflects the position as it has applied since 2016. It also includes a short...
The onshore employment intermediaries legislation generally applies where an onshore intermediary is engaged to arrange the supply of a worker’s services. Its purpose is to prevent real employment being misrepresented as self-employment to cut employment taxes—especially National Insurance contributions ( NICs)—and to avoid costs linked to statutory employment rights. For a fuller explanation, see Practice Note: Onshore employment intermediaries—income tax provisions. That Practice Note focuses on the practical aspects of the rules. Onshore employment intermediaries The consultation leading up to the 2014 launch of the onshore intermediaries rules exposed a range of issues with the definition and application of ‘supervision, direction or control’ within the amended legislation. Following that feedback, HMRC made limited revisions while the provisions were in draft and has also released guidance on the crucial phrase ‘supervision, direction or control’......
Onshore employment intermediaries—income tax provisions This Practice Note outlines the income tax rules relevant to onshore employment intermediaries. For further details of the practical considerations, refer to Practice Note: Onshore employment intermediaries—key practical considerations. These onshore employment intermediary provisions broadly apply where an onshore intermediary entity is interposed to arrange the supply of a worker’s services under the legislation. The regime is broadly designed to prevent genuine employment being artificially presented as self-employment to cut employment taxes, in particular National Insurance contributions ( NICs). For the income tax framework that applies to offshore employment intermediaries, see Practice Note: Offshore employment intermediaries—income tax provisions and key practical considerations......
THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES. There is no overarching legislation dictating how members’ pension entitlements must be handled during temporary absences from employment, save for the following carve-outs: time away under statutory family leave, including maternity, paternity, adoption, parental or shared parental leave—for details, see Practice Note: Maternity and other statutory family leave—the pension requirements interruptions in pensionable service ignored under preservation legislation when assessing if an early leaver has two years’ qualifying service—for details, see Practice Note: Early leavers—preservation — Breaks in pensionable service Beyond these, the approach to pensions during a temporary break will be determined by the scheme’s rules and the nature of the absence. Employment contracts may also set out particular arrangements for some absences (eg sickness). Accordingly, employers establishing pension provision for staff must decide how members’ pension rights are to be treated when work is...
Section 54 of the Modern Slavery Act 2015 ( MSA 2015) It obliges certain commercial organisations operating in the UK to publish an annual transparency statement that outlines the actions taken during the financial year to make sure slavery and human trafficking are not occurring in any supply chains or any part of the business. The statement may set out details of the organisation's structure, policies, due diligence, the assessment and management of risk, training, and how effective these measures are in ensuring the business's supply chain is free from modern slavery and human trafficking. MSA 2015, s 54 applies to all commercial organisations that: carry on a business, or part of a business, in the UK ......
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When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...
This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...
Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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