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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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The Offshore bonds and other foreign policies Practice Note sets out what constitutes an offshore bond and a foreign policy, and outlines the potential tax liabilities. It also focuses on several niche topics: cluster policies (also called segmented policies), personal portfolio bonds ( PPBs), the treatment of certain legacy policies, and how the foreign policy regime dovetails with the remittance basis and temporary non-residence provisions... Cluster (or segmented) policies In place of one insurance contract, certain providers supply a bundle of policies to a holder—commonly called a ‘cluster’ or ‘umbrella’ of smaller segments. Each policy, or segment, stands as a separate insurance contract. At inception every segment is the same. They may carry an identical base number with a suffix; for example, XP234567/1–100, where 1–100 denote the discrete segments. A single policy document may cover the whole cluster. UK insurers generally can offer...
This Practice Note explains the specific income tax and capital gains tax ( CGT) treatment of trusts for disabled persons. For guidance on making a vulnerable person election for income tax and CGT, see Practice Note: Taxation of trusts for disabled persons—vulnerable person election. Reform Following HMRC’s 2013 consultation, the definition of a disabled person was widened. The qualifying tests now include individuals receiving Personal Independence Payments for care or mobility at either rate, and those who get the higher rate of the Disability Living Allowance mobility component. An earlier inconsistency that granted a CGT-free uplift on the death of the disabled person for interest in possession trusts, but not for discretionary trusts, has been resolved so that both structures now obtain the uplift. Rules have been aligned across the tax system. For trusts created after 8 April 2013, trustees may distribute only the lower of 3% of the...
STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 ( FA 2025), which received Royal Assent on 20 March 2025, legislates to remove the remittance basis of taxation and to introduce a residence-based system from 6 April 2025. FA 2025 also moves away from domicile as the primary determinant of inheritance tax liability. Other updates include revisions to the rules for establishing excluded property status, the ending of protected settlements status for offshore trusts, and alterations to overseas workday relief. For further detail on these reforms, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates ( Finance Bill 2025) and Finance Act 2025. ARCHIVED: This archived Practice Note records the law as it stood up to 6 April 2025, and...
For fuller guidance on working out the principal charge, please refer to the Practice Note: Relevant property trusts—the principal (ten-year) charge. Trustees of a relevant property trust incur inheritance tax ( IHT) at each tenth anniversary of the trust’s creation. This levy is also described as any of the following: the principal charge the periodic charge the ten-year charge the decennial charge To determine whether IHT arises for a particular settlement, please now see the Practice Note: Is IHT an issue for a particular settlement? Principal charge pro forma The pro forma below sets out a suggested computation: £ £ The value of total accountable property (the notional transfer): Current value of relevant......
ARCHIVED: This Practice Note is archived and not maintained. When trust assets stop being relevant property, an inheritance tax ( IHT) charge arises. That charge is referred to as either: the exit charge, or the proportionate charge This Practice Note explains how to compute an exit charge where the charging event, i.e. the date the beneficiary became entitled, fell before 18 November 2015. Amendments to parts of the calculation were made by section 11 of the Finance ( No 2) Act 2015 ( F( No 2) A 2015). Broader guidance on calculating the exit charge appears in Practice Note: Relevant property trusts—the exit charge, which also covers the latest changes. This Practice Note includes: a summary of the changes a description of the former calculation method Summary of the changes introduced by F( No 2) A...
Nil rate band ( NRB) and transferable nil rate band ( TNRB) Each individual’s estate is assessed for inheritance tax ( IHT), but a portion is charged at zero per cent, known as the nil rate band ( NRB). For the 2023–24 tax year this stands at £325,000. The government stated in the Autumn Statement 2022 that this figure will be held at the same level until 5 April 2028. See: Autumn Statement 2022— Private Client analysis— Key Private Client announcements. Before 9 October 2007, where the chargeable transfer on death did not fully use the deceased’s available NRB—either because the estate was below the threshold or assets passed to an exempt beneficiary—the associated tax saving was not completely realised. A common illustration is spouses leaving their whole estates to each other under a Will; and, in the absence of a Will, a...
History of the gift with reservation ( GWR) regime Under the former capital transfer tax system, there were no provisions dealing with a donor keeping back any benefit from a gift, and this gap was widely and repeatedly exploited in practice. For instance, individuals might give away a house or land yet continue to occupy the home as if nothing had changed there. From 18 March 1986, the inheritance tax ( IHT) rules introduced measures designed to curb such abuse, coinciding with the arrival of potentially exempt transfers. Over time, numerous schemes were crafted to let donors pass assets on while keeping enjoyment of them, in one form or another. Consequently, the Finance Act 2004 brought in an income tax charge on advantages enjoyed by former property owners, more commonly known as the pre-owned assets charge ( POAT). What is a gift with...
FORTHCOMING CHANGE In the 30 October 2024 Autumn Budget, the Chancellor confirmed that the existing 100% inheritance tax ( IHT) relief on qualifying property will be capped at £1 million, with any value above that level attracting relief at only 50%. Where a taxpayer, or their estate, also holds assets qualifying for agricultural property relief ( APR), the value of those assets will count when determining whether the £1 million ceiling has been breached. Another measure in the Autumn Budget 2024 reduces business property relief ( BPR) from 100% to 50% for quoted shares that are not listed on a recognised stock exchange. Accordingly, quoted shares tagged as ‘not listed’ on the markets of recognised stock exchanges will now benefit from only 50% relief rather than 100%. These reforms apply to deaths occurring on or after 6 April 2026, and to lifetime gifts made on or...
A discretionary trust provides a highly adaptable type of arrangement. Under such trusts, trustees exercise discretion over when distributions are made, in what manner, and to which recipients, covering both capital and income. Beneficiaries, or a class of them, appear in the trust deed, and the choice of who among the potential beneficiaries should benefit rests wholly with the trustees, sometimes with the guidance of a letter of wishes. Accordingly, timing, method and recipient of any payments are decided case by case. Why discretionary Will trusts are used There are times when passing assets straight to a beneficiary under a Will is not advisable. For instance: the beneficiary is, or in the future might become, bankrupt the beneficiary is, or in the future might be, going through divorce the beneficiary is disabled, needs help with managing money, or receives state benefits, where any money received directly from the estate might...
FORTHCOMING CHANGE : In the 30 October 2024 Budget ( Autumn Budget 2024), the Chancellor of the Exchequer revealed that the existing 100% inheritance tax relief available for qualifying agricultural property will be capped at the first £1m of value, with anything above that level benefiting from only 50% relief. On 23 December 2025, the government unexpectedly confirmed that the 100% relief ceiling would instead be set at £2.5m in total, replacing the earlier £1m proposal. Where the taxpayer, or their estate, also holds assets that qualify for business property relief, the value of those assets will be aggregated when determining whether the £2.5m limit has been surpassed for the purposes of the relief calculation overall. These measures will apply to deaths occurring on or after 6 April 2026, and to lifetime gifts made on or after 30 October 2024 if the donor dies on or...
STOP PRESS : Further to the Autumn Budget 2024 announcement on 30 October 2024, the 100% relief for APR and BPR on qualifying property will be curtailed by a combined allowance of £2.5m with effect from 6 April 2026. Refer to section 65 and Schedule 12 of the Finance Act 2026, which amend sections 104 and 116 onwards of the Inheritance Tax Act 1984. See also Practice Notes: IHT—agricultural property relief and IHT—business property relief. On death, an individual is regarded as having made a transfer of value equal to the value of their estate immediately before death. Exemptions from UK inheritance tax fall into three categories: those applying only during lifetime those available either during lifetime or on death those applying solely on death Most IHT exemptions can apply to both lifetime dispositions and transfers on death, including the exemption for...
This Practice Note is archived and no longer maintained. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime The Finance Act 2025 ( FA 2025), which obtained Royal Assent on 20 March 2025, ends the remittance basis of taxation and brings in a residence-based system from 6 April 2025. FA 2025 also makes domicile no longer the decisive factor when assessing inheritance tax liability. Amendments to the rules defining excluded property status Abolition of protected settlements status for offshore trusts Revisions to overseas workday relief For details on these changes, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates ( Finance Bill 2025) and Finance Act 2025. This Practice Note reflects the law as it stands up to 6 April 2025. From 6...
ARCHIVED : This Practice Note has been archived and is not maintained. The application of inheritance tax ( IHT) turns on an individual’s domicile. A person can be domiciled in the UK either under common law (private international law) or, for IHT alone, by the statutory deemed domicile regime. This Practice Note addresses only the deemed domicile regime and does not deal with the common law. For commentary on the common law position, refer to the Domicile for UK tax purposes before 6 April 2025 [ Archived] Practice Note. At the Summer Budget 2015, the government unveiled extensive reforms to the taxation of foreign domiciliaries (non-doms), altering the deemed domicile framework set out here. In broad terms, the earlier 17-year condition was substituted with a 15-year condition for IHT. A corresponding 15-year test was also brought in for exposure to income tax and capital gains tax ( CGT)....
FORTHCOMING CHANGES: At the Budget on 26 November 2025, the government set out minor corrective adjustments to the residence-based tax regime introduced by Finance Act 2025. Key points are: new residents wishing to use the foreign income and gains ( FIG) regime must be at least 10 years old at the start of the tax year relief claims under the FIG regime can be offset only against the specific foreign income, foreign employment income or foreign gains to which they relate alignment of the qualifying asset holding company ( QAHC) rules so that carried-interest-style returns connected with services to a QAHC qualify for relief under the FIG regime a correction to the capital gains tax ( CGT) residence test for personal representatives to ensure they are not UK resident where the deceased was UK non-resident but was a...
IHT—residence nil rate band Q& As This Practice Note is designed to direct practitioners to Q& As and worked examples explaining the rules by which the inheritance tax ( IHT) residence nil rate band ( RNRB)—also called the additional threshold—and the transferable RNRB (brought-forward allowance) are worked out and applied on deaths occurring on or after 6 April 2017. For an overview of the RNRB, see Practice Note: IHT—residence nil rate band. Note that while new Q& As are added as they arise, individual Q& As are not updated and reflect the law as at the date shown in each instance. In particular, Q& As dated before 6 April 2025 are likely to discuss the domicile-based IHT regime, rather than the residence-based regime in force from that date. For details on the basic nil rate band ( NRB) and the...
STOP PRESS: At the 2025 Budget, the government confirmed plans to legislate against IHT avoidance that exploits the situs of personal assets and trust property. A key proposal expands rules on indirect holdings of UK residential property to capture UK agricultural property. For further detail, see: Budget 2025— Private Client analysis — International and Policy Paper: Inheritance Tax: anti-avoidance measures for non-long-term UK residents and trusts. This Practice Note outlines amendments to the excluded property rules from 6 April 2017 introduced by the Finance ( No 2) Act 2017 ( F( No 2) A 2017). As a result, UK inheritance tax ( IHT) is charged on UK residential property owned by (or on behalf of) a long-term UK resident ( LTR), whether held directly or via intermediate structures, unless the interest is through a diversely held vehicle. Before 6 April 2025, when domicile stopped being a...
This Practice Note outlines compliance and accountability for Inheritance Tax ( IHT) on a deceased individual’s estate, addressing: Accountability—the obligation on personal representatives ( PRs) to submit an IHT account to HMRC PRs’ duty to make enquiries and provide accurate information to HMRC Form IHT400 The reduced IHT400 Form IHT205 for excepted estates (for deaths before 1 January 2022) Form IHT207 for excepted estates of those domiciled overseas Other circumstances where an IHT account does not need to be filed PRs’ responsibility to lodge corrective accounts when valuations change or when further assets or liabilities are discovered Form IHT30 for an optional clearance application (statutory certificate of discharge) once satisfied there will be no further changes to the IHT position Penalties and interest For guidance on IHT compliance relating to trusts, see Practice Note:...
ARCHIVED: This Practice Note is archived and no longer being updated... This Practice Note addresses UK inheritance tax ( IHT) matters arising in cross border contexts and considers: actual and deemed domicile; double tax agreements and unilateral relief; and the exposure of personal representatives ( PRs) to IHT and to overseas inheritance or estate taxes. It also notes, briefly, the effect of the changes to the taxation of non-domiciled individuals that came into force on 6 April 2017 on estate planning, including the use of excluded property trusts... For the fundamentals of IHT, consult the Inheritance tax ( IHT) subtopic... For details on IHT for estates, see the Estates—inheritance tax subtopic... The International Comparator tool is likewise a helpful resource for comparing the tax and estate planning rules of various jurisdictions... A new residence-based regime for IHT from 2025–26 Before 6 April 2025, domicile status...
FORTHCOMING CHANGES: During the 26 November 2025 Budget, the government stated it plans to implement small remedial changes to the residence-based tax system brought in by Finance Act 2025......
STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 ( FA 2025), which was granted Royal Assent on 20 March 2025, enacts the removal of the remittance basis of taxation and brings in a comprehensive residence-based system with effect from 6 April 2025. FA 2025 likewise substitutes residence for domicile as the principal determinant of liability to inheritance tax. Additional reforms include targeted revisions to the criteria for excluded property, the scrapping of the protected settlements status for offshore trusts, and consequential alterations to overseas workday relief. For details on these updates, refer to Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates ( Finance Bill 2025) and Finance Act 2025. Who are ‘overseas...
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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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