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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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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...
Investment trust An investment trust is a collective investment vehicle structured as a listed, UK tax-resident public limited company. Despite the label, in legal terms an investment trust is a company rather than a trust. The expression stems from a period when these vehicles were established as trusts, but they later converted to limited companies and therefore are no longer trusts in any legal sense. Where HMRC grants approval to an investment trust, it can access certain UK tax advantages. This Practice Note sets out the eligibility criteria that must be met for a fund to obtain approval as an investment trust for UK tax purposes. It also addresses the continuing requirements that must be satisfied in every accounting period for which the vehicle holds that approval......
An investment trust is a collective investment vehicle structured as a quoted UK tax-resident company. Despite the name, it is not a trust in legal terms. Where HMRC approval is obtained, investment trusts benefit from exemption from tax on chargeable gains. For further detail on what investment trusts are, as well as the qualifying conditions and ongoing obligations they must meet, see Practice Note: Tax and investment trusts—what are investment trusts? This Practice Note sets out the specific tax rules for approved investment trusts in relation to: tax on chargeable gains tax on income, in particular the treatment of: distributions received trading versus investment transactions loan relationships and derivative contracts holdings in...
To secure, and then retain, approval as an investment trust for UK tax, a company must meet specific eligibility tests set out in the Corporation Tax Act 2010 ( CTA 2010), and comply with a range of continuing obligations under the Investment Trust ( Approved Companies) Tax Regulations, SI 2011/2999 (the Investment Trust Regulations). For further detail on those tests and obligations, see Practice Note: Tax and investment trusts—what are investment trusts? This Practice Note explains the consequences where an approved investment trust breaches any of those eligibility tests or does not satisfy one or more of the continuing obligations. It also describes the position where an approved investment trust submits returns on the footing that it is not an approved investment trust for tax purposes. For guidance on applying for investment trust approval, see Practice Note: Tax and investment...
IPT is an indirect levy on insurance premiums. Unless an exemption applies, IPT is imposed as a percentage of the premium paid on particular categories of insurance policies issued by particular categories of insurers that cover risks situated in the UK. The economic burden of IPT is usually carried by the policyholder, yet the tax itself is accounted for and paid to HMRC by the insurer by reference to three-month accounting periods. Strictly, the premium includes IPT. As a result, the legislation differentiates between the premium and the ‘chargeable amount’ (the amount before IPT is added). The premium equals the chargeable amount plus IPT. For further details on what ‘premium’ means for IPT purposes, see: Premium below. IPT is due at 12% of the chargeable amount, the standard rate, unless the premium falls within the higher rate of...
FORTHCOMING CHANGE relating to the tax treatment of carried interest: Following a call for evidence on the tax treatment of carried interest held over summer 2024, the Autumn Budget 2024 saw the government set out plans to introduce a revamped carried interest tax regime from 6 April 2026, operating within the income tax system and supported by tailored rules designed to reflect the distinctive features of the reward. A consultation then considered potential new qualifying criteria for entry into the new regime, with the government’s response being issued in June 2025. Draft legislation for the carried interest regime was published on 21 July 2025, for inclusion within Finance Bill 2026. The new provisions will apply to carried interest arising on or after 6 April 2026. All of this was confirmed at the Budget on 26 November 2025, where it was also noted that further...
FORTHCOMING CHANGES: At Budget 2025, the government signalled measures to be legislated via Finance Bill 2026: Cutting the main pool writing-down allowance on plant and machinery from 18% to 14%, effective 1 April 2026 for corporation tax and 6 April 2026 for income tax. This affects both companies and unincorporated businesses with main rate pools, including spend not eligible for—or incurred before—first-year allowances such as the super-deduction and full expensing. Introducing a new 40% first-year allowance for qualifying main rate expenditure incurred from 1 January 2026, with fewer restrictions than other FYAs. It is expected to be most valuable where costs do not qualify for the £1m annual investment allowance or existing FYAs (e.g. full expensing). Open to all businesses, it covers assets used for leasing (excluding overseas leasing) but excludes cars and second-hand assets. Extending by one year the 100% green...
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. The Finance Act 2016 introduced significant changes to how individuals are taxed on distributions. This note outlines the rules that applied to distributions made before 6 April 2016 by UK‑resident companies to individuals who are UK resident and domiciled during that period. For details on the tax treatment of distributions made before 6 April 2016 by non‑ UK resident companies, see the Practice Note: How are individuals taxed on distributions received from non‑ UK resident companies prior to 6 April 2016? [ Archived] and, for further information on the tax treatment of distributions made on or after 6 April 2016, see the Practice Note: How are individuals taxed on distributions received from companies?......
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?......
The main charge on earnings and the residual benefits charge When an employee or director acquires, holds, or disposes of shares or other securities by reason of their employment, one or more income tax charges on employment income may apply. These key charges relate to: earnings—the Weight v Salmon charge residual benefits employment-related securities notional payments giving rise to income tax: payable by the employer through pay as you earn ( PAYE), and not repaid by the employee to the employer within 90 days after the close of the relevant tax year (referred to in this note as notional payments not made good) The charges on earnings and on residual benefits are outlined below. They are especially pertinent where an...
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...
The UK’s rules on hybrid and other mismatches Known in this Practice Note as the hybrid rules, the UK regime has been in force since 1 January 2017, designed to neutralise tax mismatches arising from the tax treatment of a hybrid instrument or a hybrid entity. While typically aimed at cross-border transactions involving two or more jurisdictions, the rules may equally bite on arrangements that are entirely domestic in the UK as well. In particular, they address the following: deduction/non-inclusion mismatches ( D/ NI mismatches), ie situations where a payment within a hybrid mismatch arrangement is deductible for the payer for tax purposes but is not brought into taxable income by the recipient or a related party investor; and double deduction cases ( DD cases), ie scenarios where a payment within a hybrid mismatch arrangement yields more than one tax deduction for tax...
Since 1 January 2017, the UK’s regime tackling hybrid and other mismatches (called the hybrid rules in this Practice Note) has been in force, designed to neutralise tax asymmetries caused by the tax treatment of a hybrid instrument or hybrid entity. While the hybrid rules are generally aimed at cross‑border dealings spanning two or more jurisdictions, they may equally bite on arrangements that are entirely domestic to the UK. In particular, the rules focus on: deduction/non‑inclusion mismatches ( D/ NI mismatches), ie where an amount under a hybrid mismatch arrangement is deductible for tax in the payer’s territory but is not brought into the taxable income of a payee or a related party investor, and double deduction scenarios ( DD cases), ie where an amount under a hybrid mismatch arrangement results in more than one tax...
The UK’s rules on hybrid and other mismatches The hybrid and other mismatch regime (called the hybrid rules in this Practice Note) has been in force since 1 January 2017, designed to neutralise tax asymmetries arising from the tax treatment of a hybrid instrument or hybrid entity. While they typically address cross-border arrangements spanning at least two jurisdictions, they can also apply to transactions undertaken entirely within the UK. deduction/non-inclusion mismatches ( D/ NI mismatches), i.e. where a payment under a hybrid mismatch arrangement is deductible for the payer for tax purposes but is not brought into the taxable income of a payee or a related party investor double deduction cases ( DD cases), i.e. where a payment under a hybrid mismatch arrangement gives rise to more than one tax deduction The legislation addresses discrete categories of D/ NI mismatches and DD cases in...
The UK’s rules on hybrid and other mismatches Since 1 January 2017, the UK has operated legislation on hybrid and other mismatches (referred to in this Practice Note as the hybrid rules) designed to counter tax mismatches arising from how a hybrid instrument or hybrid entity is treated for tax purposes. Although the hybrid rules typically address cross-border arrangements spanning two or more jurisdictions, they can also bite on transactions undertaken wholly within the UK. Specifically, the hybrid rules are aimed at: deduction/non-inclusion mismatches ( D/ NI mismatches), ie where a payment made under a hybrid mismatch arrangement is deductible for tax in the payer’s jurisdiction but is not brought into the taxable income of a payee or a related party investor, and double deduction cases ( DD cases), ie where a payment under a hybrid mismatch arrangement results in more than one tax...
The UK’s rules on hybrid and other mismatches Known in this Practice Note as the hybrid rules, the UK’s regime has been in force since 1 January 2017 and is intended to neutralise tax mismatches arising from the tax treatment of a hybrid instrument or hybrid entity. Although the hybrid rules are generally engaged in cross-border dealings involving two or more jurisdictions, they can also extend to arrangements that are entirely UK domestic. Specifically, the rules target: deduction/non-inclusion mismatches ( D/ NI mismatches), ie where a payment under a hybrid mismatch arrangement is deductible in the payer jurisdiction for tax purposes but is not brought into the taxable income of a payee or a related party investor, and double deduction cases ( DD cases), ie where a payment under a hybrid mismatch arrangement produces more than one tax...
The UK’s rules on hybrid and other mismatches These rules—referred to in this Practice Note as the hybrid rules—have been in force since 1 January 2017 and are designed to neutralise tax mismatches arising from how a hybrid instrument or hybrid entity is treated for tax purposes. They counter differing characterisations. While the hybrid rules typically address cross‑border dealings involving two or more jurisdictions, they can equally extend to transactions carried out wholly within the UK. In particular, the hybrid rules focus on: deduction/non‑inclusion mismatches ( D/ NI mismatches), ie where a payment under a hybrid mismatch arrangement is deductible in the payer jurisdiction for tax, but is not brought into the taxable income of a payee or a related party investor; and double deduction cases ( DD cases), ie where a payment made under a hybrid mismatch arrangement gives rise to more than one tax...
The UK’s rules on hybrid and other mismatches The UK’s regime tackling hybrid and other mismatches (described in this Practice Note as the hybrid rules) has applied from 1 January 2017 and is intended to neutralise tax mismatches that result from the tax treatment of a hybrid instrument or a hybrid entity. Although these rules typically concern cross-border arrangements involving multiple jurisdictions, they can equally apply to transactions that are wholly domestic within the UK. deduction/non-inclusion mismatches ( D/ NI mismatches), meaning a payment within a hybrid mismatch arrangement is deductible for tax in the payer’s jurisdiction but is not brought into the taxable income of the payee or a related party investor double deduction cases ( DD cases), where a payment under a hybrid mismatch arrangement generates more than one tax deduction Separate chapters deal with distinct categories of D/ NI mismatches and DD cases, and in each...
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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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