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
Dividend A company possesses an implied authority to distribute its profits to its members, unless its articles of association stipulate otherwise. A dividend represents one form of distribution made by a company to its members; indeed, dividends are, in practice, the form of distribution most commonly made by companies. To make a lawful distribution, the company must comply with Part 23 of the Companies Act 2006 ( CA 2006) and with the common law rules on distributions, as those rules are modified by the statutory provisions just mentioned. For discussion of the law and practice applicable to company distributions, see Practice Note: Distributions. For an outline of the consequences of failing to comply with the law on distributions, see Practice Note: Unlawful distributions. In ordinary parlance, ‘dividend’ means a share of profits, whether at a fixed rate or otherwise, allocated to the holders of a...
ARCHIVED : This Practice Note has been archived and is not maintained. The Liechtenstein Disclosure Facility ( LDF) was a voluntary route for disclosure that covered all principal taxes, including, but not limited to, income tax, corporation tax, PAYE, capital gains tax, VAT and inheritance tax. Launched in September 2009, it was initially intended to run until 2015, then extended to 5 April 2016, before the end date was brought forward to 31 December 2015. The LDF was open to all UK taxpayers, including individuals, executors, trustees, partnerships and companies. While directed at those with UK tax liabilities connected to Liechtenstein, taxpayers without an existing link could bring themselves within scope by, for example, opening a bank account in the jurisdiction. It enabled disclosure of tax irregularities for the ten years prior to April 2009 and allowed settlement on favourable terms, alongside a...
This Practice Note examines the actions commonly undertaken by companies in the setting of finance transactions and outlines the steps that can be taken to confirm the capacity and authority of a company incorporated under English law. There are various types of company incorporated in England and Wales that may participate in a finance transaction. For more information on different types of company, see: Types of borrowers— Companies. For the purposes of this Practice Note, the assumption is that the entity in question is a private company limited by shares, since most finance transactions in England and Wales will feature at least one such company as borrower or as a provider of security... Why is it important to understand the acts a company will perform in a finance transaction? Lender's perspective A lender will seek to understand the acts a company will carry out in a...
What is gift aid relief? Gift Aid donations to a charity form a significant source of income, yet the tax repayment benefit they confer can be open to abuse. HMRC are especially alert to this kind of donation, and their inspections appear heavily directed towards checking record keeping and the soundness of repayment claims arising in this area. As a result, charities must understand in depth how the scheme functions and how to log donations to prevent difficulties with HMRC. HMRC also require that, in all circumstances, charities give donors a full and accurate explanation of the law before any declaration is made. For information about giving land, property, or shares, see Tax relief when you donate to a charity for further details provided by HMRC on that page......
Article 10 of the Organisation for Economic Co- Operation and Development ( OECD)’s model tax convention ( MTC) is concerned with the taxation of dividends paid cross border. Article 10 of the Organisation for Economic Co- Operation and Development ( OECD)’s Model Tax Convention ( MTC) addresses rules on how dividends distributed across borders are taxed......
ARCHIVED: This Practice Note has been archived and is not maintained. 22 March 2006 marked the day of the 2006 Budget which, without any prior notice or consultation whatsoever, ushered in far‑reaching reforms to the inheritance tax ( IHT) treatment of trusts. That date stands as a watershed for the IHT treatment of trusts, because many of the principal changes took immediate effect. The first step in identifying the correct IHT position of any trust is, in the first instance, to determine whether it was created before or after 22 March 2006. Before that date, there were three principal categories of trust for IHT purposes, namely: relevant property trusts (typically discretionary trusts) interest in possession ( IIP) trusts accumulation and maintenance ( A& M) trusts On 22 March 2006, the relevant property regime was extended to encompass nearly all new lifetime trusts, whether...
The distinct class of age 18–25 trusts was brought in by the Finance Act 2006 ( FA 2006) to offset the withdrawal of traditional accumulation and maintenance ( A& M) trusts. Under the A& M framework, trusts established for children and young people up to 25 benefited from exemption from inheritance tax ( IHT) charges under those arrangements. Although the qualifying rules were quite tight and specific, they allowed any settlor, whether during life or on death, to provide for younger beneficiaries. See Practice Note: Accumulation and maintenance trusts— IHT [ Archived]. After FA 2006: existing A& M settlements kept their IHT advantages solely where the beneficiaries became outright entitled to trust property by the age of 18 new A& M type trusts could be set up for a child under 18 whose parent had died—see Practice Note: Taxation of trusts for...
Practice Note This Practice Note outlines the core income tax rules relevant to discretionary trusts and to any trusts that may retain income. Until the trustees choose to distribute funds to a beneficiary, that income is not the property of any individual. Accordingly, while the income is held by the trustees, it is charged at the special trust rates. If, and when, amounts are passed to beneficiaries, there are provisions that recalibrate the tax borne so it aligns with the beneficiary’s proper rate. See Practice Notes: Taxation of discretionary and accumulating trusts—the tax pool and Discretionary trust beneficiaries—income tax. For tax purposes, the trustees are collectively treated as a single person, separate from the natural persons who serve as trustees from time to time. Where more than one trustee is appointed, one—commonly called the ‘principal acting...
Gifts to Specified Charities When a legacy is made to a named charity, several matters should be scrutinised thoroughly and sensible precautions adopted at every stage. Identification It is essential to verify the charity’s true identity; many organisations exist with very similar titles or comparable purposes indeed. It is not uncommon, in practice, to discover a charity name recorded incorrectly in a Will......
Discovery assessments A discovery assessment is an HMRC assessment to charge tax (or additional tax) where it identifies that too little tax was assessed for an earlier tax year or accounting period. HMRC will typically issue a discovery assessment when it is out of time to open an enquiry into the relevant tax return. This Practice Note concentrates on one specific element of the discovery rules: in some circumstances, HMRC can only make a discovery assessment if, at a given point in time, it did not have sufficient information to be aware of a potential loss of tax. For an explanation of the following: HMRC’s power to open an enquiry, and the relevant time limits within which it may do so the meaning of HMRC making a ‘discovery’ (of a potential loss of tax) the taxpayer’s ability to avoid a discovery assessment where the return was prepared in line with...
HMRC may probe suspected tax-related criminal offences in England and Wales by exercising the powers, and observing the safeguards, set out in the Police and Criminal Evidence Act 1984 ( PACE 1984). Equivalent legislation exists for Northern Ireland. PACE does not extend to Scotland, but there is legislation providing powers and protections that replicate the PACE measures, tailored to the Scottish legal system. The balance of this Practice Note addresses the legislation in England and Wales. Alongside HMRC’s powers to examine tax-related criminal offences in Wales, the Welsh Revenue Authority holds powers to investigate offences linked to Welsh devolved taxes. Tax enquiries can also be undertaken by the National Crime Agency ( NCA). The NCA operates independently of HMRC, though HMRC may supply information to it for the purposes of its functions. One of the NCA's functions is the recovery of money and assets...
FORTHCOMING CHANGE relating to a consultation and draft legislation on better use of new and improved third-party data : Following a Spring Statement 2025 consultation, which closed on 21 May 2025, draft provisions were issued on 21 July 2025 for inclusion in Finance Bill 2026 ( FB 2026). These would confer regulation-making powers to enhance the quality and timeliness of third-party data obtained by HMRC under its bulk data-gathering powers, with a particular focus on financial account information and card sales data. The reform aims to modernise HMRC’s approach by shifting from notice-based requests to a standing reporting obligation and by rolling out standardised schemas for submissions. It also mandates collection of tax identifiers, such as National Insurance numbers, to improve data matching, together with a range of penalties for non-compliance. At Budget 2025, the government confirmed it would proceed, after which...
FORTHCOMING CHANGE: On Tax Administration and Maintenance Day, 27 April 2023, the former Conservative administration issued a call for evidence on refreshing HMRC’s information and data-gathering powers to support the digital overhaul of taxpayer services, strengthen HMRC’s compliance functions, and cut administrative burdens. With a deadline of 20 July 2023, the exercise asked for views on, among other areas: ways to reform and enhance the collection of information and data from third parties, informed by international best practice; scope to modernise HMRC’s third-party information and data-gathering powers and the accompanying safeguards; how to streamline the process by which HMRC issues information notices obliging a taxpayer or third party to supply information, data or documents. At Spring Statement 2025, the government released a summary of responses to that call for evidence as Annex C to the consultation titled ‘ Better use of new and...
FORTHCOMING CHANGE: On 15 February 2024, the government issued a call for evidence titled ' The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards', seeking input and views on how HMRC’s enquiry and assessment powers, penalties and safeguards might be overhauled. It considered a broad set of reform avenues, carefully weighing opportunities and risks around a more consolidated suite of powers, assessing whether parts of the tax system could benefit from HMRC taking a different approach, and updating how HMRC delivers statutory notices to taxpayers and agents alike. The call for evidence closed on 9 May 2024. On 30 October 2024, HMRC released the outcome of the exercise, summarising responses and setting out the government’s next steps and intentions. Among these next steps is a commitment to build on the call for evidence by consulting on options for new...
ARCHIVED : This Practice Note has been archived and is not maintained. HMRC may levy a penalty when tax returns contain inaccuracies or omit required information. The regime that applied before 1 April 2009 (the ‘old penalties’) differs from the current arrangements (the ‘new penalties’). Both systems operate in parallel and will continue to do so for a number of years, as the applicable regime is determined by the original filing date and the relevant return period. For more on the new penalties in Schedule 24 to the Finance Act 2007, see: Penalties for inaccuracies in returns—introduction to the regime. What periods are covered by the old regime? The old penalties apply to tax returns with a filing date up to and including 31 March 2009. For income tax, capital gains tax and Class 4 national insurance contributions, they apply to returns up to and...
There are occasions when charity trustees, or executors of a will that includes a charitable legacy, feel a moral duty to permit that gift to be redirected, in whole or in part, to someone who is neither the named beneficiary nor a beneficiary of the charity or its purposes. The clearest example practitioners may encounter is where a flaw or illegality in the will prevents an intended beneficiary from inheriting, with the result that the charity gains an unanticipated larger legacy, potentially the entire estate... What is an ex-gratia payment? The Charity Commission view an ex-gratia payment as one that involves: trustees waiving rights to money or property to which the charity is legally entitled, even if it has not yet been received a payment of money by trustees from the charity’s existing funds a transfer by trustees of existing charity...
The way a distribution from a trust is taxed in the hands of the recipient turns first on whether it is income or capital. Fixed interest trusts (life interest trusts) In a fixed interest trust, one or more of the beneficiaries are entitled to receive the trust’s income as of right for a specified period or term. Where the arrangement is a life interest trust, the beneficiary, or life tenant, enjoys an absolute entitlement to the trust’s underlying income; that entitlement is known as an interest in possession. By comparison, within a discretionary trust the trustees have the power to decide whether, when and how much income to distribute to the beneficiaries from time to time. These distinctions are significant because they point to the source from which the income arises in each case. Identifying the source is important because it fixes the tax...
STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime The Finance Act 2025 ( FA 2025), which secured Royal Assent on 20 March 2025, enacts the removal of the remittance basis and introduces a residence-based system from 6 April 2025. It also makes residence, rather than domicile, the determinant for inheritance tax exposure. Revises the rules for excluded property status Removes protected settlements status for offshore trusts Updates overseas workday relief For further details, 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. This Practice Note briefly sets out the pros and cons of trustees using a company to hold investment assets instead of holding them directly, and...
Practice Note This Practice Note has been prepared by Anne Redston, Barrister, and reflects her own perspective; she is not authorised to speak for the Tribunals Service or the judiciary in any capacity. The Note explains what to do once a taxpayer chooses to appeal an HMRC decision to the First-tier Tax Tribunal ( FTT). It spans the period from the outset of the appeal process through to the hearing date, and carefully considers, among other relevant procedural matters: the appeal form—where to find it and practical guidance on completing it correctly the FTT’s allocation of the case to a category and the effects and implications of that allocation pre-hearing directions issued by the FTT handling evidence expected to be given by video or telephone from a location outside the UK, and matters relating to...
Practice Note This Practice Note is authored by Anne Redston, Barrister. It reflects her personal perspective; she is not authorised to speak for the Tribunals Service or the judiciary. It explains what to expect at an appeal hearing before the First-tier Tax Tribunal ( FTT) and addresses practicalities, including: who will attend (including witnesses) and where each person will sit how to address the FTT and HMRC the sequence of events during the hearing the distinction between law, evidence and argument the three categories of decision notice You should also consider the position on costs. Further detail is provided in Practice Note: Costs in the First-tier Tax Tribunal ( FTT). The FTT offers additional guidance on hearing procedures in its leaflet, ' At your hearing'. Before you read this Practice Note, you should consult Practice Note: Appealing an HMRC...
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
