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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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FORTHCOMING CHANGES: At Budget 2025 on 26 November 2025, the government outlined minor corrective changes to the residence-based tax system introduced by the Finance Act 2025. Key measures cover: eligibility for new arrivals under the foreign income and gains ( FIG) regime, who must be at least 10 years old at the start of the tax year restricting FIG relief claims so they can be set only against the specific foreign income, foreign employment income, or foreign gains to which they correspond aligning the qualifying asset holding company ( QAHC) rules so that carried-interest-style returns tied to services provided to a QAHC qualify for relief under the FIG regime a correction to the capital gains tax ( CGT) residence test for personal representatives, ensuring they are not UK resident where the deceased was UK non-resident but was a long-term UK resident for inheritance tax purposes a...
This Practice Note offers a concise overview of the principal UK taxes that can affect individuals who are not UK resident, namely: income tax capital gains tax ( CGT) inheritance tax ( IHT) value added tax ( VAT) national insurance contributions ( NICs) the annual tax on enveloped dwellings ( ATED) stamp duty land tax ( SDLT) As a general rule, UK tax law operates within territorial boundaries, meaning either the item taxed must arise from a UK source, or the person charged is resident in the UK. Unlike many countries, the UK tax year does not follow the calendar year; it runs from 6 April to 5 April. Non-residence for tax purposes An individual is treated as non-resident for UK tax purposes if they meet the non-resident conditions of the statutory residence test for periods after 5 April 2013 (see Practice Note: Residence after 5 April 2013). For the position before 6 April 2013, see...
Stop Press: Section 49 and Schedule 7 of the Finance Act 2026 amend the UK’s domestic legislation concerning UK permanent establishments of non- UK companies, taking effect for accounting periods (in respect of corporation tax) or tax years (for income tax) that begin on or after 1 January 2026, respectively. In each case, the measures adjust both the definition of a UK permanent establishment and the rules for attributing profits to a UK permanent establishment, so as to bring them nearer into line with the OECD Model Tax Convention, from that date and thereafter in UK law. Section 46 and Schedule 5 of the Finance Act 2026 provide for the abolition of the DPT regime and its replacement by the ‘unassessed transfer pricing profits’ ( UTPP) rules, effective for accounting periods commencing on or after 1 January 2026. HMRC has inserted a new chapter within the HMRC...
This Practice Note was initially prepared by Owen Clutton of Macfarlanes LLP and is now overseen by Lexis®PSL Private Client. Why does the residence of trusts matter? As with the residence of individuals, income tax and capital gains tax operate within territorial boundaries. In broad terms, UK-resident trustees are taxed on worldwide income and gains, whereas non-resident trustees are taxed solely on UK-source income and gains linked to the UK—see Practice Note: UK taxation of offshore trusts—income tax and capital gains tax. In addition, particular anti-avoidance frameworks—such as the transfer of assets abroad code and the charging rules under sections 86 and 87 of the Taxation of Chargeable Gains Act 1992 ( TCGA 1992)—apply only to trusts that are non-resident—see Anti-avoidance (and international private client)—overview and Practice Notes: Taxation of UK resident settlors of offshore trusts from 6 April 2025 and Taxation of UK resident...
Finance Act 2025 ( FA 2025) It signalled a major change to the UK national tax framework by scrapping the remittance basis and introducing a new approach that, in broad and general terms, excludes an individual’s non‑ UK income and capital gains from UK taxation during their first four years of UK residence, informally referred to as the ‘foreign income and gains’ ( FIG) regime. See Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and Foreign income and gains regime from 6 April 2025. Overseas workday relief, previously available, in practice, to people in their initial three years of UK residence who performed employment duties both in the UK and abroad under a single employment contract, ended on 5 April 2025 and was subsequently superseded by a comparable relief named relief for foreign employment income within the FIG regime. See......
ARCHIVED: This Practice Note is archived and no longer maintained. Abolition of non-dom regime and introduction of residence-based IHT regime from 6 April 2025 Prior to 6 April 2025, the tests of residence, domicile and deemed domicile determined the scope of an individual’s exposure to UK income tax, capital gains tax ( CGT) and inheritance tax ( IHT). Someone both UK resident and UK domiciled had the strongest ties to the UK and was typically chargeable to income tax, CGT and IHT on their worldwide earnings, gains and holdings. By comparison, a person who was neither UK tax resident nor UK domiciled faced only restricted UK tax liabilities on UK situs assets. UK tax residents who were not UK domiciled could elect for the remittance basis on overseas income and gains, and could also keep non- UK situs assets outside the IHT net. The Finance Act 2025 ( FA...
ARCHIVED: This Practice Note is archived and is no longer maintained. Up to 5 April 2013, ordinary residence remained one of three principal considerations when determining whether, and to what degree, an individual was liable to tax in the UK. The other two were residence and domicile. Residence describes a person’s tax standing on a year-by-year basis; ordinary residence addresses the position over a longer period; domicile denotes the place a person regards as their true home. For more detail, see the Practice Notes Residence before 6 April 2013 [ Archived] and Domicile for UK tax purposes before 6 April 2025 [ Archived]. The notion of ordinary residence is set out in the Ordinary residence before 6 April 2013 [ Archived] Practice Note. This Note sets out why ordinary residence matters and considers how the pre–6 April 2013 ordinary residence rules applied to...
ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note was first prepared by Simon Goldring and Ben Harle and is now overseen by Lexis®PSL Private Client. Until 6 April 2013, “ordinary residence” existed as a separate notion from residence and domicile for UK tax. It lacked a statutory definition; its scope derived from everyday usage and judicial authority, rather than any express statutory wording. Broadly, a person was ordinarily resident in the UK where their presence here was habitual rather than incidental. The Finance Act 2013 ( FA 2013) abolished the ordinary residence concept, substituting references to residence with effect from 6 April 2013, as part of the Government’s drive to streamline the tax regime and reduce uncertainty within the system. For more information, see the Abolition of ordinary residence from 6 April 2013 and...
ARCHIVED: This Practice Note has been archived and is not maintained. Up to 5 April 2013, ordinary residence was one of three principal factors to be carefully weighed when deciding whether, or to what extent, an individual was liable to tax in the UK. The other factors were residence and domicile. For tax years 2013/14 onwards, the concept of ordinary residence was abolished, subject to transitional provisions that applied at the time. For an explanation of the concept of ordinary residence, see the Ordinary residence before 6 April 2013 [ Archived] Practice Note, and for guidance on the tax implications of ordinary residence before 6 April 2013, see the Tax implications of ordinary residence before 6 April 2013 [ Archived] Practice Note. In most cases, the abolition of ordinary residence took effect on 6 April 2013. It applies to income tax, capital gains tax ( CGT),...
This Practice Note sets out the tax implications of entering into marriage and civil partnership, including in relation to income tax, capital gains tax and inheritance tax. Seek specialist advice where appropriate. The tax treatment of civil partners mirrors that of spouses. For UK tax purposes, an individual is regarded as married or as a civil partner if they have undergone a formal marriage or civil partnership ceremony, or, from 10 December 2014, have converted a civil partnership into a marriage by formal declaration. Simply living together, or being in a so‑called common law relationship, does not amount to marriage or civil partnership. Income tax and capital gains tax ( CGT) rules refer to spouses/civil partners who are “living together”. This phrase does not require sharing the same home—or even the same country. It covers all spouses/civil partners unless one of the following...
ARCHIVED: This Practice Note has been archived and is not maintained. Residence, ordinary residence and domicile Residence, together with domicile and ordinary residence, determined the extent of an individual’s UK tax liability before 6 April 2013, notably where non- UK income and gains arose. This Practice Note deals solely with the position prior to 6 April 2013. The UK’s first formal test of individual tax residence, the statutory residence test ( SRT), came into effect on 6 April 2013. For an outline of the post 5 April 2013 regime, see the Residence after 5 April 2013 Practice Note. The SRT applies for income tax, capital gains tax and inheritance tax purposes, but not for national insurance purposes. All law, case law and guidance predating 6 April 2013 were superseded for the 2013/14 tax year and thereafter. From the same date, the concept of ordinary residence was...
This Practice Note deals with the application of the residence rules to people leaving the UK after 5 April 2013. The UK introduced its first codified individual tax residence test—the statutory residence test ( SRT)—with effect from 6 April 2013. For detailed guidance on the SRT, refer to the Residence after 5 April 2013 Practice Note. Prior to that date, an individual’s UK tax residence was assessed by reference to a patchwork of narrow statutory provisions, case law, established practice and HMRC guidance. Status for any period before 6 April 2013 must therefore still be established under those earlier rules. Application of the SRT looks in part at whether a person was UK resident in the preceding three tax years, meaning residence outcomes for 2010/11, 2011/12 and/or 2012/13 matter when assessing residence from 6 April 2013. Although the pre‑2013/14 years remain governed by the old law, an...
ARCHIVED : This Practice Note has been archived and is not maintained. Guidance on the UK residence rules up to 6 April 2013 is set out in the Residence before 6 April 2013 [ Archived] Practice Note. This Note explains how the residence rules applied to individuals arriving in the UK before 6 April 2013. For those departing the UK before that date, see Residence before 6 April 2013—application of rules to individuals leaving the UK [ Archived] Practice Note. For rules on UK residence from 6 April 2013 onwards, refer to the Introductory guide to residence and domicile for UK tax purposes before 6 April 2025 [ ARCHIVED] Practice Note. In addition to the above, the following may assist: Ordinary residence before 6 April 2013 [ Archived], Tax implications of ordinary residence before 6 April 2013 [ Archived], and Domicile for UK tax...
ARCHIVED : This Practice Note is archived and no longer maintained or updated as such. For a fuller overview of the residence rules that applied before 6 April 2013, see Practice Note: Residence before 6 April 2013 [ Archived]. From 6 April 2013, residence is determined by the statutory residence test (see Practice Note: Residence after 5 April 2013 for guidance). This Practice Note first clarifies what counts as a 'visitor' and outlines HMRC guidance on the tax treatment of visitors prior to 6 April 2013. It then covers: people who come to the UK for under 183 days in a tax year on a single occasion other short-term visitors who are in the UK for more than 183 days in one tax year habitual visitors (individuals who arrive here often and routinely) those who spend extended periods in the UK, but not exceeding three...
Anyone planning to depart the UK should weigh both fiscal and wider practical consequences of the move. Laws and customs in the destination may vary, sometimes sharply, from those in the UK. Securing high-quality information and advice before deciding is essential. healthcare retirement considerations property ownership Prospective emigrants must also think through the fallout if complications disrupt their plan to secure non-resident status, potentially requiring a return to UK residence later. This Practice Note focuses on the key considerations when aiming to become non- UK resident for tax purposes. Leaving the UK—statutory residence test At the heart of the income tax, CGT and IHT position for leavers is the concept of residence. Up to 6 April 2025, domicile also played a significant role in assessing IHT exposure and access to the remittance basis. From 6 April 2025, domicile no longer has...
This Practice Note examines the UK tax considerations when setting up a joint venture run through a partnership. For the purposes of this Practice Note, it is assumed that: the joint venture participants are UK tax resident corporate bodies the joint venture partnership vehicle is likewise UK tax resident; and the venture’s activities are conducted in the UK For information on: operating and winding up a joint venture partnership, see Practice Note: Tax implications of operating and terminating a joint venture partnership; and joint ventures with a non- UK dimension, see Practice Note: Tax implications of international joint ventures This Practice Note does not address certain investment partnerships that are unit trust schemes which may not be treated as transparent for tax purposes. What types of partnership may be used for a joint venture? A joint venture may employ one of the...
Taxpayers who settle tax after the deadline are liable to interest, charged at a rate laid down in law. The Finance Act 2009 ( FA 2009) established a unified framework for interest on late-paid tax intended to apply across all taxes, excluding excise duties; corporation tax and petroleum revenue tax were at first outside the framework, but are now slated for inclusion from a date yet to be confirmed. This Practice Note outlines both the unified rules and also covers how interest may arise where late payment falls outside that framework. Harmonised late paid interest regime The FA 2009 framework is being phased in progressively across the different taxes......
A range of tax reliefs exists for individuals who back unlisted shares and securities, including those admitted to trading on AIM. AIM, a market run by the London Stock Exchange ( LSE), is designed for small and medium-sized growth businesses. Although people often say securities are ‘listed on AIM’, they are not listed; they are simply admitted to trading on AIM. Where a company’s shares or securities are admitted to AIM and it has no other securities listed on a recognised stock exchange, the company is regarded as unquoted. This Practice Note includes a table setting out the principal tax breaks for individuals investing in unlisted, higher-risk companies, and a second table describing the reliefs for individuals who invest indirectly in such companies through a venture capital trust. For information on the reliefs available to companies, see Practice Note: Tax...
Practice Note: Forms of business vehicle—tax summary When one or more individuals decide to set up a business, they must choose the vehicle through which the business will be run. In addition to the commercial and legal reasons informing that decision (see Practice Note: Forms of business vehicle), the tax treatment applicable to each distinct vehicle will often be the determining factor in deciding whether it is suitable for carrying on a particular business. A summary of the tax consequences of operating as: a sole trader a general partnership a limited partnership a limited liability partnership a company is addressed in Practice Note: Forms of business vehicle—tax summary and the Choice of business vehicle—tax comparison table. This Practice Note brings together some of the principal tax considerations that shape the decision of a person, or a group of people, when weighing the choice of business vehicle,...
Follow the link below to download the training presentation. Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 ( FA 2025) enacted significant measures abolishing the remittance basis of taxation and introducing a new residence-based system, effective from 6 April 2025. It also substituted domicile as the principal legal determinant of inheritance tax ( IHT) exposure. Further wide-ranging reforms encompassed revisions to the legal criteria for excluded property status, the removal of protected settlements status for offshore trusts, and further reforms to......
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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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