Featured documents
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
ISAs ISAs are tax-free vehicles that allow UK residents to hold a variety of investments. They began as cash or stocks and shares options for those aged over 16, but in November 2011 the Junior ISA was introduced, enabling tax-free cash accounts to be created for the benefit of under-16s. Innovative finance ISAs took effect from 6 April 2016. Help to buy ISAs launched on 1 December 2015 as a tax-free cash account aimed at helping first-time buyers save towards a UK residential property. In addition to receiving interest on the balance tax-free, the government will boost the amount saved with a 25% bonus (up to a maximum of £3,000) when the property is purchased. These ISAs are closed to new savers from 1 December 2019, although anyone with an existing help to buy ISA can keep saving into it until 30 November 2029. Those who had...
STOP PRESS: On 28 April 2025, the UK government released draft changes to domestic tax legislation to refresh the rules on permanent establishments ( PE) and to update the Investment Manager Exemption ( IME). Stemming from a 2023 consultation and wide-ranging dialogue with industry participants, the proposals acknowledge that elements of the UK’s PE and IME regimes—now more than two decades old—no longer align with the practicalities of today’s asset management landscape. Comments on the consultation are sought by 7 July 2025. For further details, see: Open consultation: Reform of UK law in relation to transfer pricing, permanent establishment and Diverted Profits Tax. The core aim of the investment manager exemption ( IME) is to ensure a UK-based investment manager ( IM) is not treated as a branch or agent of a non-resident client when executing investment trades for that client. Absent the IME, where the...
Residence nil rate band ( RNRB) This Practice Note outlines the residence nil rate band ( RNRB), once called the additional threshold and also referred to as the residential nil rate band or residential property nil rate band. It sets out what the RNRB is, when it can apply, how the figure is worked out and also the process for claiming it in practice. Although this Practice Note includes some links to worked examples, customers are directed to Practice Note: Q& As for extensive links to Q& As and worked examples showing how the RNRB operates across different practical situations and various scenarios in practice. The RNRB sits alongside the basic NRB and can further cut the inheritance tax ( IHT) due on death. It is set against the taxable value of the estate, but unlike the basic NRB it is confined to being...
This Practice Note outlines the principles governing the calculation and use of the basic nil rate band ( NRB) and the transferable NRB on death, and flags key practical points on the operation of those calculations. For broader guidance on the NRB, the transferable NRB and the residence NRB ( RNRB) (also called the additional threshold), including how to claim these reliefs and the relevant time limits, see Practice Notes: IHT—nil rate band ( NRB) and transferable NRB and IHT—residence nil rate band. Nil rate band The NRB removes a significant slice of a deceased person’s estate from inheritance tax ( IHT), and in many cases eliminates any IHT liability altogether. The current NRB threshold is £325,000, which produces an IHT saving of £130,000. In the RNRB context, which applies to deaths on or after 6 April 2017, the NRB is sometimes described as the basic NRB. For...
Introduction The principal legislation in the Inheritance Tax Act 1984 ( IHTA 1984) and the earlier capital transfer tax system left a gap. Nothing stopped a person aiming to limit inheritance tax ( IHT) on death from making a lifetime transfer (hoping to live at least seven years thereafter) yet keeping the use or enjoyment of what was given. As a result, under those rules, someone could, in effect, divest their home for IHT purposes while still living in it. Section 102 and Schedule 20 to the Finance Act 1986 ( FA 1986) introduced the gift with reservation of benefit ( GWR or GROB) rules to shut this loophole. When the GROB rules bite, the gifted asset (or, in some circumstances, a replacement) is generally treated as remaining within the donor’s estate for IHT while the donor continues to benefit. The rules can apply where, among...
ARCHIVED: Trustees of a relevant property trust become liable to inheritance tax ( IHT) at each ten-year anniversary after the trust was set up. This levy is also described as: the principal charge the periodic charge the ten-year charge the decennial charge This Practice Note outlines how to calculate the tax due where the ten-year anniversary occurred before 18 November 2015 and the trust was established after 27 March 1974. Modifications to aspects of the calculation were introduced by the Finance ( No 2) Act ( F( No 2) A 2015). The approach now used for occasions of charge arising on or after 18 November 2015 is set out in Practice Note: Relevant property trusts—the principal (ten-year) charge. For what constitutes relevant property and how to identify the date of the anniversary, see Practice Note: The meaning of relevant...
Follow the link below to download the presentation. Contents Updates to APR/ BPR Transfer between spouses Reasons asset targeting falls short APR/ BPR trust clause Funding the trust Case study Case study solution Anti‑fragmentation Administration checklist Client communications Pitfalls and risks Summary These Power Point slides are designed as a foundation for a training session on Agricultural and Business Property Relief for the relevant fee earners. The presenter can tailor them—by trimming or expanding the points—to match the audience. How to use these slides Allow around two minutes per slide, and use the case study for a 20‑minute breakout. If more depth is required, the content can be delivered over two or three separate training sessions. Further reading Autumn Budget 2024— Private Client analysis Hot topic—the reform of business property relief and...
Background Business property relief ( BPR) BPR applies to defined types of company shares and other assets meeting set conditions. The relief given depends on the type of share or property and is presently either 50% or 100% of the full value of the qualifying interest. For more detail, see Practice Note: IHT—business property relief. Shares in a trading company not quoted on a recognised stock exchange currently attract 100% BPR under IHTA 1984, s 105(1)(bb). Holdings quoted on the Alternative Investment Market ( AIM) are treated as unlisted and so also qualify for 100% BPR. At Autumn Budget 2024, the government set out plans to materially scale back BPR on eligible property from 6 April 2026. The 100% relief will be capped, ceasing to cover the entire value of qualifying business property and instead applying only to the first £2.5m from 6 April 2026. This cap was...
Since the Inheritance Tax Act 1984 ( IHTA 1984) took effect in 1985, the government has aimed to curb how much people can dispose of while alive, either by punishing any retained benefit from a gift or by raising the fiscal load on trusts set up in life. Today’s inheritance tax ( IHT) framework for lifetime transfers is paradoxically straightforward and intricate: straightforward as any effort to part with assets during life may attract IHT of some sort depending on your objective; intricate due to successive tiers of rules and anti-avoidance provisions added over time. At the same time, the structure appears clear, as lifetime gifting generally falls within scope depending on intention, yet remains demanding because of successive anti-avoidance layers and rules that have accumulated through later changes. Potentially exempt transfers ( PETs) These represent the most typical gifts and are often...
This Practice Note This Practice Note outlines the principal anti-avoidance tools on which HMRC typically depend to counter inheritance tax ( IHT) avoidance in the UK. The core IHT framework is set out in a number of separate Practice Notes, which are cited where appropriate. Although not always formulated as targeted anti-avoidance rules, there are a range of conditions and statutory provisions that limit access to IHT reliefs and exemptions (for example, the criteria for sections 142 and 144 of the Inheritance Tax Act 1984 ( IHTA 1984) to operate after a deed of variation or an appointment from a discretionary trust within two years of death), and these fall outside the scope of this Practice Note. Individuals should ensure they understand the UK tax consequences of lifetime arrangements, gifts, or transfers, including how such steps may influence the taxation of their estate on...
Estates—inheritance tax Inheritance tax ( IHT) applies across the UK and is not a devolved levy. As a result, Scottish individuals and assets are subject to IHT on the same basis as those in England and Wales. A person who is long-term resident in the UK brings their worldwide assets within the IHT net. Those who are not long-term UK resident are chargeable only on UK-situs assets. The Lexis+® Private Client module contains substantial material likely to assist Scottish practitioners, highlighted below. For introductory material on IHT, see the following Practice Notes: Introductory guide to IHT IHT—valuation principles and particular types of property IHT—the charge on death Funding inheritance tax See also the following subtopics: Estates—inheritance tax—overview Inheritance tax ( IHT)—overview Compliance and administration Personal representatives ( PRs) must submit estate asset valuations using Form IHT400, together with the other relevant...
FORTHCOMING CHANGES: At the 2025 Budget on 26 November 2025, the government declared it would introduce small remedial amendments to the residence-based tax regime enacted in Finance Act 2025......
Follow the link below to download the training presentation. Contents Essential points UK residency test Statutory residency test from 6 April 2013 Automatic overseas tests First automatic overseas test (16-day test) Second automatic overseas test (46-day test) Third automatic overseas test (full-time work overseas test) Automatic UK tests The SRT and the deceased ......
Originally authored by Paul Seal, this Practice Note is presently overseen by Lexis Nexis®. Its purpose is to outline, at a high level, how the tax framework operates and how it connects to income. It does not attempt to address every complexity of the UK income tax regime. Topics are considered in broad terms and this Practice Note does not cover employment taxes or share incentive arrangements. For broader background, consult the Income tax subtopic, and for the rates and allowances in force for the current tax year, see Practice Note: Key UK tax rates, thresholds and allowances for Private Client. The coverage is intentionally general and not exhaustive of intricate rules throughout. Income tax applies to specified individuals on defined types of income, apportioned across tax years to establish the rates due. The tax year The tax year, or year of...
Income tax applies to any person on specified types of income, with amounts attributed to particular tax years to determine the rate due and liability payable. The legislative basis for income tax Most of the detailed rules on income tax are contained in: Income Tax ( Earnings and Pensions) Act 2003 Income Tax ( Trading and Other Income) Act 2005 Income Tax Act 2007 Yet these provisions only supply the framework for charging income tax. The power to levy it is granted by parliament each and every year. Each Finance Act includes a clause expressly confirming that income tax is charged for the relevant tax year. A 'tax year' runs from 6 April to the following 5 April and is typically referred to and described using both calendar years; for example, the '2018–19 tax year' covers 6 April 2018 to 5 April 2019. Who is chargeable to income...
The main types of income are: employment income pension income social security income trading income property income savings and investment income miscellaneous income Traditionally, applying income tax required first identifying the income’s source and then confirming that it fell within one of the Schedules specified in the Income and Corporation Taxes Act 1988 ( ICTA 1988). The Act initially arranged the categories of income liable to income tax into six historic Schedules: A, B, C, D, E and F. In 1996, the Tax Law Rewrite Project was launched to recast primary direct tax legislation. Following its completion, the Schedules were abolished for both income tax and corporation tax, with the Income Tax ( Earnings and Pensions) Act 2003 ( ITEPA 2003), the Income Tax ( Trading and other Income) Act 2005 ( ITTOIA 2005) and the Income Tax Act 2007 ( ITA...
ARCHIVED : This Practice Note is archived and is no longer maintained. Finance Act 2016 introduced significant alterations to how individuals are taxed on distributions. It outlines the rules relevant to distributions made before 6 April 2016 by non- UK resident companies to individuals who are UK resident and domiciled. For details of the tax position for distributions made before 6 April 2016 by UK resident companies, see Practice Note: How are individuals taxed on distributions received from UK resident companies prior to 6 April 2016? [ Archived], and for information on the tax treatment of distributions made on or after 6 April 2016, see Practice Note: How are individuals taxed on distributions received from companies?......
General principles The trustees are, for tax purposes, regarded collectively as a single person, distinct from the individuals who serve as trustees from time to time. An interest in possession ( IIP) means a beneficiary has an immediate right to the trust income as it arises. That income belongs to the beneficiary, and the trustees lack authority to retain it, save to meet proper expenses. Where trust income does not fall within the definition of accumulated or discretionary income in section 480 of the Income Tax Act 2007 ( ITA 2007), it is treated as the income of ‘other persons’ and taxed at the basic and dividend rates. Ultimately, the income is assessed on the beneficiary at their personal rates, irrespective of when, and even whether, it is actually paid to them. Nevertheless, the trustees are liable to income tax on income arising from trust...
In general terms, a life tenant has the right to the income generated by an interest in possession ( IIP) trust, and that income is charged to tax at the life tenant’s marginal rates. This applies whether the trustees collect the income and remit it to the life tenant, or where the income is ‘mandated’ so the life tenant is paid it straight from the source. While the ultimate income tax outcome is identical, the steps for reporting the income and settling any tax vary, depending on the route by which the income is received. The source of the beneficiary's income For a life tenant of an IIP trust, the income arises from the trust assets themselves, not from the enforceable right against the trustees to run the trust correctly. Consequently, for income tax, the life tenant’s income sources mirror the trust’s...
Income tax liabilities are most often prepared by an individual’s tax adviser (typically with a software package) or by HMRC after a tax return is submitted, rather than by a tax lawyer, although lawyers handling trust administration will commonly compute a trust’s income tax too. It is, however, valuable to understand how the liability is determined so you can advise a client on the effect a particular course of action or decision may have on their tax position, for example the possibility of claiming loss relief. There are seven stages to calculating a person’s income tax liability for a tax year: step 1—calculate total income step 2—deduct tax reliefs step 3—deduct allowances step 4—calculate the tax at applicable rates step 5—add the tax amounts together step 6—deduct tax reducers step 7—add additional tax...
Popular documents
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 ]...
Discover more from LexisNexis
