Legal Practice Notes

In broad terms, the doctrine of overreaching permits purchasers (including tenants and mortgagees) acting in good faith for money or money’s worth to rely exclusively on the legal title. For registered land, this refers to the entries on the register of title, which records ownership of the legal estate and does not concern itself with equitable interests. A buyer taking a legal estate in land from trustees will not be affected by any trusts on which the land is held if the purchase price is paid to all the trustees (there must be at least two) or to a trust corporation. Payment in that form results in the beneficiaries’ interests being ‘overreached’. This is commonly called the 'two trustee' rule. Overreaching also occurs on sales: under the powers of the Settled Land Act 1925 by a mortgagee (see Overreaching by a mortgagee) or personal...

An annuity is a periodic sum paid out of personal estate. See Savery v Dyer (1752) Amb 139 (not reported by Lexis Nexis®). It is personalty ( Parsons v Parsons). An annuity is a legacy, being a bequest of whatever capital is needed to produce the annuity amount. They can be useful where a drip-feed approach is desired. In essence, they are legacies settled by instalments over a beneficiary’s lifetime. The Will ought to specify whether: executors may buy the annuity using estate capital; a sum from income is reserved to finance the purchase; both capital and income are earmarked to fund the purchase; the annuity is acquired during the executors’ lifetimes (if funds permit), with any deferred annuity vesting in trustees on death; Different routes carry different tax consequences, for capital and income. Annuities may arise: inter vivos by...

This Practice Note This Practice Note addresses the criteria governing an employer’s vicarious liability in tort, arising from particular legal relationships and specified conduct, including wrongful acts. It further reviews liability within ‘relationships akin to employment’ and the circumstances in which more than one employer may share responsibility (dual vicarious liability). It analyses, in particular, the ‘close connection test’, which identifies the necessary link between the relationship and the wrongdoing, as re-examined by the Supreme Court in Trustees of the Barry Congregation of Jehovah's Witnesses v BXB. It sets out the stance regarding liability for the acts of independent contractors, and proceeds to outline when an employer might be answerable for torts committed by someone else’s employees, and where liability to third parties in contract (express and ostensible agency) can arise in practice. This Practice Note also details liability for breaches of...

Legacy or bequest The expressions ‘legacy’ and ‘bequest’ are ordinarily confined to a sum of money or a personal item, though in some situations they can also denote a gift or devise of land. Furthermore, whether a ‘legacy’ encompasses an annuity turns on the context. Sir William Page Wood VC, in Gaskin v Rogers, explained that where a Will merely uses the word ‘legacy’ and directs a distribution amongst legatees, then, unless the face of the Will shows the testator has departed from the word’s settled legal meaning, annuitants are included. He added that the term ‘pecuniary legatees’ does no more than exclude specific legatees—namely, those entitled to particular chattels—and it does not, prima facie, prevent annuitants receiving the same advantage as they would have enjoyed had the Will spoken simply of ‘legatees’ rather than ‘pecuniary legatees’. All such...

ARCHIVED: This Practice Note is archived and is not being actively maintained at this time. It provides detailed information on the Finance Act 2026 ( FA 2026), which obtained Royal Assent on 18 March 2026. It is preserved for historical reference and context, tracing the legislation’s journey from draft publication, through Parliament, to enactment. It also sets out the principal provisions and signposts major events and documents—such as any published amendments—relevant to the legislation’s progress and development. The tracker is divided into two parts as follows: Progress of FA 2026 FA 2026—measure by measure As outlined below, the government released draft legislation twice for public consultation ahead of its possible inclusion in FB 2026. For analysis of those drafts, see News Analyses: Tax update spring 2025— Tax analysis— Corporation tax and international and Legislation Day: Draft Finance Bill 2026— Tax...

An enduring power of attorney ( EPA) can be revoked in just three ways: automatic revocation revocation by the donor revocation by the court Automatic revocation An EPA stops having effect if either the donor or the attorney is made bankrupt, or if a debt relief order (under Part 7A of the Insolvency Act 1986) is made in respect of the donor or the attorney. Where attorneys are appointed jointly, any reference in the Mental Capacity Act 2005 ( MCA 2005) to ‘the attorney’ is to be understood as referring to any one of the attorneys acting under the EPA. If attorneys are appointed jointly and severally, the provision is treated as addressing only the bankruptcy of the last remaining attorney under the power. If any other attorney under the power becomes bankrupt, that person simply ceases to act as an attorney; this does not...

Case law recognises multiple definitions of cohabitation. In relation to remedies open to cohabitants, the initial step is to demonstrate that the relationship is adequate to justify a particular remedy. The issue of whether cohabitation occurred may likewise arise on the breakdown of a marriage or civil partnership, eg when evaluating the relevance of pre-marital or pre-civil partnership cohabitation within financial proceedings as appropriate......

Trust drafting Testators often intend to incorporate a trust, or several trusts, within their Wills. Even where that is not intended, a trust can still come into being: Where a beneficiary is under 18 at the testator’s death and the testator does not wish the minor’s parent or guardian to issue a receipt on their behalf; a trust is required to hold the minor’s share until they attain 18 and are able to give a valid receipt. In these cases, it is usually better to set out the trust expressly in the Will to control its terms and the appointment of trustees. Where gifts are contingent, and a trust would allow the property to be managed until the contingency is fulfilled. Once the choice is made to include a testamentary trust, its structure must be settled. For instance, if the intention is to...

The rules concerning settlor‑interested trusts are anti‑avoidance measures designed to stop a settlor from sidestepping tax on assets they have not fully given away. This Practice Note primarily addresses the income tax position of settlor‑interested trusts, while also sketching the capital gains tax ( CGT) and inheritance tax ( IHT) implications. For an at‑a‑glance overview of their tax treatment, refer to the table in Practice Note: Taxation of trusts—summary of tax treatment of settlor interested trusts. Income tax—settlor interested trusts The principal rule under which income can be treated as the settlor’s own is set out in section 624 of the Income Tax ( Trading and Other Income) Act 2005 ( ITTOIA 2005), which HMRC includes within the ‘settlements legislation’ (also called the ‘settlements code’ or ‘settlor code’). This general rule is subject to specific exceptions (see ‘ Exceptions to the general rule’ below)....

This starter guide offers an overview of the Private Client practice area. It is designed for trainee solicitors, paralegals, and anyone new to Private Client work. It concentrates on core topics within Private Client law and signposts additional Lexis+® UK resources and materials that deliver more comprehensive detail. Newcomers to Private Client will also find the Overviews within each subtopic of the Private Client module helpful. These Overviews introduce each subtopic and link to pertinent content within it, aiding navigation of the area. For instance, see: Will drafting—overview and Inheritance tax ( IHT)—overview. If something is not covered here, try browsing our Private Client topic tree or using the search bar to locate further Private Client content. The guide also includes links to help you get the most from the Private Client materials, including how to subscribe to email alerts and how to contact the Lexis Ask...

The Acceptance in Lieu ( Ai L) scheme enables those who are liable to UK inheritance tax ( IHT) to settle that charge by offering heritage property as full or part payment of the IHT due. To qualify, the property must be regarded as pre-eminent for its national, scientific, historic or artistic importance, and both HMRC and the Secretary of State must approve the application. As with other heritage property reliefs, the intention of the Ai L scheme is to ensure that pre-eminent heritage assets remain in the UK for the public benefit, rather than being sold to private dealers and/or taken out of the country. What property may qualify for the Ai L scheme In line with the conditional exemption from IHT, the Ai L scheme requires that the heritage property meets the qualifying criteria and is designated as...

What is the annual exemption? Each person (subject to certain exceptions—see below) is allowed an annual exempt amount when working out the taxable portion of their chargeable gains for the tax year for CGT purposes. This annual exempt amount is often referred to as the annual exemption. Any gains covered by the annual exemption are outside the scope of capital gains tax ( CGT). Tax-free amount For 2025–26, the CGT annual exemption is £3,000 for individuals, personal representatives ( PRs) and trustees of disabled persons. For all other trustees, the exemption stands at £1,500. For the current figure and those for recent years, see Practice Note: Key UK tax rates, thresholds and allowances for Private Client. No carry forward Any unused part of the annual exemption for a tax year is forfeited. It cannot be carried into a later year or passed to someone...

' Bed and breakfasting' ' Bed and breakfasting' once described the tactic of selling shares and then buying them back the next day. Although most prevalent before 1998, arrangements where an individual disposes of an asset and reacquires it a short while later are still used in modified forms to produce capital gains tax ( CGT) savings in the current or a future tax year, subject to careful attention to applicable anti-avoidance rules. Why was this done? Prior to the 1998 changes to the share matching rules (see below), the purchase price of the replacement shares was not linked to the sale proceeds of the original shares. Instead, the cost of the new holding would be matched with the later disposal of those replacement shares, potentially many years ahead. By undertaking near-simultaneous sales and repurchases of shares in the same company and class, an...

Adjustments for vulnerable or disabled individuals in probate Probate practitioners should, in a range of situations, make reasonable changes for vulnerable or disabled people engaged in administering an estate—whether acting as personal representatives or as beneficiaries—particularly where there are visual, communication or mobility difficulties. Adaptations may involve: supplying written guidance in larger type; guaranteeing accessible meeting space and appropriate parking; visiting clients at home; or arranging an appropriate interpreter. If there is a Will, the testator may themselves have had a disability, which can be indicated by the style of attestation clause employed, eg a clause tailored for a blind or visually impaired testator. Frequently, concerns only emerge after death, when relatives or beneficiaries of the deceased challenge the Will’s validity. Anyone handling the probate should confirm that the Will was duly executed and that, in the circumstances, the correct form of attestation was used. Even with a...

What is a no contest clause A no contest clause, sometimes called a forfeiture clause, is a term in a Will that strips a beneficiary of their entitlement if they dispute the Will’s terms. Such clauses can also feature in trusts. As applications under the Inheritance ( Provision for Family and Dependants) Act 1975 ( I( PFD) A 1975) have risen, interest in adding a no contest clause to a testator’s Will has similarly grown, as a way to deter or head off such claims. Can Family provision claims be excluded As a matter of public policy, it is widely accepted that the court’s jurisdiction cannot be excluded. Therefore, any Will provision purporting to bar a beneficiary from bringing an I( PFD) A 1975 claim would probably be ineffective and treated as void by the court. I( PFD) A 1975, ss 15 and 15A permit the court, on...

Scope of this Practice Note Land (or real property) is routinely provided as collateral for borrowing. In this setting, land is more significant than some other assets, as it may serve in personal lending scenarios (e.g. home purchases) just as much as in commercial lending transactions......

It is almost invariably sensible for the partners of a limited liability partnership ( LLP) to put in place a limited liability partnership agreement, both to prevent any unsuitable default rules under the Limited Liability Partnerships Act 2000 ( LLPA 2000) from automatically taking effect, and to augment the statutory legal regime where it is lacking. Default provisions The Limited Liability Partnerships Regulations 2001, SI 2001/1090 ( LLPR 2001) provide default terms that will govern how an LLP operates if, and to the extent that, there is no express agreement to the contrary......

Maintained by Adrian Shipwright and Julian Hickey at Burnell Chambers Introduction to tax compliance Charities are not entirely outside the scope of taxation; however, they generally benefit from several exemptions (all of which are subject to complex anti-avoidance rules). Well-governed charities ordinarily will face no direct tax liabilities. A charity must prepare and submit tax returns in three clearly defined circumstances: if it receives a notice requiring it to file a return if it has taxable income, gains or profits not covered by a relief or tax exemption, for example income arising from trading that is not within the charitable trading exemption (see the Tax treatment of the charity guidance note) if it has applied income or gains to non-charitable purposes or into non-qualifying investments The type of Tax Return required depends upon the way in which the charity is constituted. Where a charity fails to declare the correct amount of tax on...

Effective preparation of bundles Meticulous bundle preparation underpins a calm, efficient hearing and is something practitioners should keep firmly in view as part of their overall work for any hearing. This Practice Note offers a guide to creating and deploying electronic bundles (or e-bundles) in civil proceedings in England and Wales. It sets out practical pointers on the interface between digital case management and e-bundles, the varieties of electronic bundle, judicial expectations when assembling electronic bundles, guidance in the Civil Procedure Rules ( CPR) on preparing bundles, effective methods for preparing and using electronic bundles, and the benefits and drawbacks of using electronic bundles. It also surveys widely applicable tools to consider when collating evidence and other documentation electronically. For general guidance on preparing a bundle for: trial—see Practice Note: Preparing trial bundles an interim application—see Practice Note: Preparing for an application hearing—...

A codicil can be used to amend a Will: alter executors or modify gifts, by adding or removing. As a rule, major revisions are best done through a new Will; codicils suit minor tweaks, like replacing executors or adding a bequest. Yet, even slight adjustments via codicil risk creating uncertainty, so drafting demands caution. In particular, ‘as if’ revocation-style clauses are hazardous; as Megarry J observed in Re Lawrence’s Will Trusts, such wording is a dangerous tool because few draftsmen can anticipate every outcome of rigorously applying the hypothetical scenario it creates. Given that the words ‘as if’ often appear in codicils, proceed with care and consider preparing a fresh Will. Amending one provision can mean other provisions also require revision, so the original Will should be reviewed in the light of any......