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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:
Most recent Practice notes
ARCHIVED: As an archived Practice note, this guidance explains how to identify when a remittance has arisen for the remittance basis of taxation. For this purpose, one must look to the Conditions in section 809L of the Income Tax Act 2007 ( ITA 2007). Section 809L of ITA 2007 sets out four condition limbs: Conditions A and B, which operate jointly, and Conditions C and D, each considered separately. This Practice note outlines Conditions A and B, illustrates types of remittances, and highlights exemptions or exceptions to how Conditions A and B apply... Abolition of remittance basis from 6 April 2025 The remittance basis of taxation was abolished for UK resident non-domiciled individuals from 6 April 2025. The last year for which the remittance basis can be claimed is the 2024–25 tax year. From 6 April 2025, a new four-year regime, commonly known as the foreign income and gain (...
ARCHIVED: This archived Practice note summarises the concept of the remittance basis and directs you to more in-depth material. It reviews who may claim the remittance basis, what constitutes a remittance, the handling of mixed funds, business investment relief ( BIR), and foreign currency accounts. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 ( FA 2025), which obtained Royal Assent on 20 March 2025, legislates to abolish the remittance basis of taxation and to introduce a residence-based system from 6 April 2025. FA 2025 also removes domicile as the primary determinant of liability to inheritance tax. Other changes include: Amendments to the rules defining excluded property status. The removal of protected settlements status for offshore trusts. Revisions to overseas workday relief. For further detail, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new...
ARCHIVED: This archived Practice note outlines the remittance rules affecting UK‑resident non‑domiciled individuals (non‑doms). It sets out what does and does not amount to a remittance, the extension of the remittance basis of taxation to temporary non‑residents, who may use the remittance basis, how to claim it, and the potential drawbacks of doing so. It includes references to the Finance Act 2012. Abolition of the UK's existing tax regime for UK resident non- UK domiciled individuals The UK Chancellor, Rachel Reeves, confirmed on 29 July 2024 that, with effect from 6 April 2025, the government will proceed with abolishing the UK’s existing tax regime for UK‑resident non‑ UK domiciled individuals (non‑doms) and introducing the new four‑year FIG (foreign income and gains) exemption regime announced by the previous government at the Budget in March 2024—see: Spring Budget 2024— Private Client analysis—...
ARCHIVED: This Practice note, now archived, offers guidance on the remittance basis charge ( RBC). It sets out in detail what counts as a long-term resident before and after 6 April 2017, and looks at how the RBC is paid and reclaimed. It further covers nominating income and gains, the remittance of nominated income and gains, together with the applicable ordering rules. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 ( FA 2025), which secured Royal Assent on 20 March 2025, enacts legislation to abolish the remittance basis of taxation and introduces a residence-based regime beginning on 6 April 2025, with effect from that date. FA 2025 also makes residence the key determinant of liability to inheritance tax, displacing domicile as the primary factor. Further measures include amending the rules for excluded property status, removing protected...
Being a member of an occupational or personal pension scheme allows individuals to utilise tax reliefs throughout their working life to build a retirement pension. This Practice Note outlines, in broad terms, the principal areas where members can maximise available tax reliefs to improve their retirement benefits. It highlights the following features and, where relevant, flags certain pitfalls to avoid: pensionable earnings personal contributions their interaction with the annual allowance Previous discussions of these topics would have referred to the lifetime allowance charge and the lifetime allowance; the lifetime allowance charge was abolished with effect on and from 6 April 2023, and the lifetime allowance itself was abolished with effect on and from 6 April 2024. Further information is available at PTM164100 - Information and administration: overview of the information requirements in respect of the lifetime...
The register of overseas entities The register of overseas entities took effect on 1 August 2022. Overseas entities wishing to buy, sell or transfer land or property in the UK were required to sign up with Companies House and state their registrable beneficial owners or managing officers by 31 January 2023. Corporate transparency is now regarded as a critical component of any plan to curb or eradicate corruption, tax evasion, terrorist financing and money laundering. In the aftermath of Russia’s invasion of Ukraine, HM Government fast‑tracked the Economic Crime ( Transparency and Enforcement) Act 2022 ( EC( TE) A 2022). Under EC( TE) A 2022, an overseas entity must register with, and supply details of its beneficial owners to, UK Companies House before it can be recorded as the legal owner of UK land. EC( TE) A 2022 is, in large part, derived from the...
Beneficial ownership registers—private clients and trusts An outline of the principal shifts towards transparency of beneficial ownership for private clients and trusts, highlighting: Global momentum towards beneficial ownership disclosure The PSC Register Registration duties for overseas entities owning UK land Beneficial ownership registers under 4MLD and 5MLD The definition of beneficial ownership within 4MLD and 5MLD Interaction between 4MLD and the PSC framework Application of 4MLD and 5MLD to trust beneficial ownership Fifth Money Laundering Directive (5MLD) Brexit implications Designed for individuals with limited or no prior understanding of the Economic Crime ( Transparency and Enforcement) Act 2022 ( EC( TE) A 2022). See also: Compliance for trusts—overview; Offshore tax evasion (and private client)—overview; Offshore trusts—taxation—overview; Creation of...
A significant share of those investing in UK property reside outside the UK. The British real estate market appeals to a broad and diverse spectrum of investors, from high net worth individuals buying premium residential assets to international funds placing capital into London office space or out-of-town shopping centres across the UK. Typically, such investors seek to organise their investment so that: as far as possible, they do not fall within the scope of UK taxation, namely: for companies—corporation tax on income and chargeable gains for individuals and trusts—income tax on trading income, capital gains tax ( CGT) and inheritance tax to the extent any UK tax does arise, they are entitled to double tax...
Practice Note The tax outcome for the owner hinges on whether a property is bought, retained or sold as an investment or as part of a trading (ie dealing) venture. Land, more than many other asset classes, can be kept as an investment or treated as trading stock, and the correct classification turns on each party’s particular position—the identical deal may amount to investment for one participant and trading for someone else. This Practice Note sets out the main factors used to differentiate trading from investment activity in relation to property. Those factors apply equally to transactions yielding gains and those producing losses. It also explains HMRC’s stance when opening enquiries into whether a property deal is trading or an investment in nature. It further addresses particular situations, such as mixed-motive transactions, taxpayers both dealing and investing, and tenants transacting in superior...
From April 2019, the profit fragmentation rules are designed to stop UK-resident individuals, including partners, and UK-resident companies carrying on a UK-taxable trade or profession, from sidestepping UK tax by channelling taxable business profits to entities located in jurisdictions with substantially lower tax than the UK. Where the rules bite, the diverted amounts are brought back into the profits of the UK trade as a counteraction. These provisions apply from 1 April 2019 for corporation tax and from 6 April 2019 for income tax and Class 4 National Insurance contributions ( NICs), covering all profits diverted on or after those dates. Background The profit fragmentation regime was announced at Autumn Budget 2017. The government argued that existing anti-avoidance rules were not adequately stopping the diversion of profits from UK businesses to offshore entities, including: diverted profits tax ( DPT) hybrids mismatch ...
Government policy For many years, as a feature of government policy in the UK, the establishment of private pensions to sit alongside state provision has been actively promoted. This initially took the form of occupational pension schemes set up by employers for their workforces and, in later years, broadened to include personal pensions arranged by individuals themselves. The principal means of encouragement has been the granting of tax reliefs, both to those creating pension schemes and to their members, in respect of contributions, pension fund income, and pension benefits. It should also be recognised that, until very recently, neither the offering of private pensions in the UK nor membership of a pension scheme was compulsory; even now, exceptions apply (see ‘ Stakeholder pension schemes’ and ‘ Automating enrolment and the National Employment Savings Trust ( NEST)’ below). General administration of private pension schemes rests with the...
This Practice Note highlights the principal UK tax rates, thresholds and allowances most pertinent to Private Client practitioners. It is designed as a quick reference rather than a full technical resource and does not include forthcoming alterations to rates or thresholds for future tax years. For fuller information on the tax rates applicable to individuals and businesses, including employment taxes and corporation tax, see Practice Note: Key UK tax rates, thresholds and allowances. Inheritance tax ( IHT) Subject to certain exemptions and allowances, inheritance tax ( IHT) may arise on lifetime gifts and transfers, on an individual’s death, and on chargeable events affecting trust assets. For details of the principal IHT exemptions and reliefs, see Practice Note: IHT exemptions and reliefs on death and lifetime gifts, and for general guidance on IHT, see: Inheritance tax (...
ARCHIVED: This Practice Note brings together analysis and insight on the principal stages and key milestones of the 2016–17 Budget and Finance Bill cycle. It features discussion of the Autumn Statement 2016 and the Spring Budget 2017, reviews the draft clauses of Finance Bill 2017 ( FB 2017) and offers commentary on the Finance Act 2017 ( FA 2017). It further monitors the development of the second Finance Bill 2017, which includes a significant suite of measures omitted from the Finance Act 2017. For a fuller guide to the annual Budget and Finance Bill cycle, including the procedural aspects of passing a Finance Act, see Practice Note: The Budget and Finance Bill process. Second Finance Bill 2017 On 8 September 2017, the government published the second Finance Bill 2017, reintroducing a substantial number of provisions that had been removed from the Finance Act 2017 owing to the...
ARCHIVED This Practice Note consolidates analysis of the key milestones in the 2014–15 Budget and Finance Bill process, bringing together the principal developments and references. It provides commentary on Autumn Statement 2014 and Budget 2015, analysis of the draft provisions of Finance Bill 2015, and commentary on Finance Act 2015. For a detailed explanation of the annual Budget and Finance Bill process, including the procedural aspects involved in the passage of a Finance Act, see: The Budget and Finance Bill process. For further information on the implications of a general election for the Finance Bill process, see our News Analysis: What does the general election mean for the Finance Bill process? Summer Finance Bill 2015 The draft Summer Finance Bill 2015 was released on 15 July 2015. Key information can be found in the following sources: Draft Summer Finance Bill 2015 clauses and...
ARCHIVED This Practice Note brings together analysis of the principal milestones and developments in the 2015–16 Budget and Finance Bill process. It also features commentary on the Autumn Statement 2015 and Budget 2016, evaluates the draft provisions of Finance Bill 2016, and provides commentary on the Finance Act 2016. For a comprehensive description of the annual Budget and Finance Bill process, including the procedural steps involved in passing a Finance Act, see: The Budget and Finance Bill process. Finance Act 2016 The Finance Act 2016 received Royal Assent on 15 September 2016. For further information on the legislative history, see: Finance Act 2016......
For income tax rates and allowances relevant to the current tax year, refer to Practice Note: Key UK tax rates, thresholds and allowances for Private Client. For differences in the income tax rates and allowances for individuals in Scotland and Wales, and for links to additional material, see Practice Note: Tax—devolution tracker. Why this is important Personal allowance As a general rule, the personal allowance cannot be transferred to another person or carried into a future tax year, although in limited cases part of certain allowances can be shifted to a spouse or civil partner (see below). If an individual does not have sufficient taxable income to absorb the allowance in that tax year, the benefit for that year is lost. The personal allowance is also removed or reduced in the following circumstance: Where the taxpayer elects to use the remittance basis, they forfeit any UK personal...
A person intending to come to the UK should carefully consider the potential tax consequences well before they arrive, to maximise the likelihood of reducing or avoiding any UK tax exposure. For insight into why certain pre-arrival planning is needed, see Practice Notes: Residence after 5 April 2013 and Foreign income and gains regime from 6 April 2025. For information on how employment income is taxed in the UK, see Taxation of earnings and benefits—overview. The degree of planning required will differ from individual to individual, depending on their particular circumstances and intentions: someone here on a short-term project or assignment, leaving their family in their home country, will have different matters to address in practice than someone seeking permanent employment, undertaking long-term study, or arriving to get married. Tailored advice may therefore be necessary and this Practice Note is only a general guide. Note in...
Practice Note This Practice Note brings together links to News Analysis and principal materials and key resources charting the evolution of the ‘single’ post- Brexit immigration regime, which takes effect from IP completion day and applies both to EEA nationals ineligible for the EU Settlement Scheme and to non- EEA nationals. The collection covers Migration Advisory Committee ( MAC) commissions and reports, the May administration’s White Paper, plus assorted reports and commentary from think tanks and other organisations of note and relevance. Numerous elements of the government’s finalised framework are detailed in Statement of Changes in Immigration Rules HC 813 and the accompanying guidance and related guidance. See Practice Note: The post- Brexit immigration system: what will it look like? [ Archived] For an explanation of how EU free movement law ceased to operate in the UK on IP completion day, consult Practice Note: Brexit and the end of...
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...
FORTHCOMING CHANGE: The Finance Bill 2025–26 includes provisions bringing unused pension funds and death benefits within a deceased member’s estate, and thus within the inheritance tax ( IHT) regime, with effect from 6 April 2027. Under these proposals, unspent pension savings and death benefits will fall within IHT from 6 April 2027. The rules will not cover death-in-service payments to active members in relevant employment, nor a dependant’s scheme pension (defined as a DB scheme spouse’s or dependant’s pension). Existing exemptions, including those for spouses and civil partners, will continue in force. Personal representatives will have primary responsibility for settling any IHT. For further detail, see: Practice Note: Inheritance tax and pensions News Analyses: HMRC— Reforming inheritance tax—unused pension funds and death benefits HMRC confirms new IHT rules on unused pension funds to apply from 6 April 2027 HMRC policy paper: Inheritance Tax: unused pension funds and death...
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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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