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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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Employment-related securities and securities options An employment-related security is, in broad terms, any security—covering shares, certain insurance contract rights, debt, derivatives, warrants, and stakes in investment partnerships and other collective investment schemes—where the chance or right to obtain that security (or an interest in it) arises by virtue of the individual’s employment, or someone else’s employment. Whether securities are employment-related determines the tax treatment on acquisition, on disposal, and throughout ownership. This Practice Note examines how the income tax charging provisions interact with the capital gains tax ( CGT) framework on disposals of employment-related securities. Share options are not categorised as employment-related securities; for tax purposes they are called ‘securities options’, although options are very often granted over employment-related securities. For more on the definition, see Practice Note: What is an employment-related security? The capital gains tax regime When an individual sells or otherwise disposes of an asset for a...
This Practice Note explains the income tax treatment of convertible securities The meaning of convertible securities is provided in Practice Note: Convertible securities—definition. In broad outline, the regime for convertible securities (or interests in them) as found in Chapter 3, Part 7 of the Income Tax ( Earnings and Pensions) Act 2003 ( ITEPA 2003) operates by viewing the security itself and the conversion right as two distinct assets. Income tax liabilities may arise: on acquisition of the convertible securities, calculated by reference to the value of the underlying securities while disregarding the conversion right, and on a later chargeable event, being: conversion of the convertible securities disposal of the convertible securities, and/or a change in description (as opposed to class) of...
Practice Note This Practice Note is by Anne Redston, Barrister. The views expressed are her own; she is not authorised to represent the Tribunals Service or judiciary. This Practice Note highlights the principal distinctions between employment and self-employment. It reviews the timing of payment for income tax, National Insurance contributions ( NICs), expenses, statutory payments, leave entitlements and, briefly, employment rights. It does not address those operating through agencies (for which, see Practice Notes: Onshore employment intermediaries—income tax provisions, Onshore employment intermediaries—key practical considerations and Offshore employment intermediaries—income tax provisions and key practical considerations). From an individual’s standpoint, employment status is significant, as it determines the income tax and NICs charged on earnings, together with the statutory rights due to employees. From an engager’s standpoint, incorrect categorisation may result in PAYE and NICs assessments, as well as claims for employment rights and/or...
This Practice Note clarifies when a secondary contributor can, and cannot, recover employer’s NICs from an earner (that is, an employee or director). For ease, it uses the terms ‘employer’ and ‘employee’ instead of ‘secondary contributor’ and ‘earner’. The core statutory framework for NICs is found in the Social Security Contributions and Benefits Act 1992, with the principal secondary rules set out in the Social Security ( Contributions) Regulations 2001 ( SI 2001/1004). For current NICs rates and thresholds, see Practice Note: Key UK tax rates, thresholds and allowances. For when primary and secondary Class 1 NICs and Class 1A NICs arise in relation to employment‑related securities and securities options, see Practice Notes: NICs implications of employment‑related securities and securities options and Tax and other rates which are relevant to share...
IMPORTANT NOTE: The ability to offer tax-favoured employee shareholder shares or ESS (commonly used in private equity company arrangements) has now been removed. In the Autumn Statement 2016, the government confirmed the withdrawal of these ESS-related reliefs: Income tax and NICs relief on the first £2,000 of employee shareholder shares issued to an individual The capital gains tax exemption covering all or part of ESS shares The rule that, when a company buys back employee shareholder shares, the payment is not treated as a distribution in the shareholder’s hands These measures apply to any employee shareholder agreements entered into on or after 1 December 2016. However, individuals who received independent advice about entering such an agreement before 23 November 2016 could still complete it before 1 December 2016 and keep the beneficial income tax and CGT treatment. Likewise, anyone who obtained independent advice on 23 November 2016 before 1.30 pm...
Archived: The option to grant tax‑advantaged Employee Shareholder Shares ( ESS), often used in private equity arrangements, has been withdrawn. In the Autumn Statement 2016, the government confirmed the removal of these ESS-related reliefs: income tax and NICs relief on the first £2,000 of ESS received by an individual; the capital gains tax exemption on all or part of the ESS; and the rule that, where a company repurchases ESS from an employee shareholder, the consideration is not treated as a distribution in the shareholder’s hands. These withdrawals apply to any employer shareholder agreements entered into on or after 1 December 2016. However, individuals who obtained independent advice about entering an employer shareholder agreement before 23 November 2016 could still proceed before 1 December 2016 and retain the beneficial income tax and CGT...
FORTHCOMING CHANGE: As set out at the Autumn Budget 2024, the government initiated an independent review into the loan charge. Formally launched on 23 January 2025, the review’s remit was to examine the obstacles stopping those within scope of the loan charge, who have not yet settled and cleared their tax liabilities in full, from reaching a resolution with HMRC, and to recommend ways in which they might be encouraged to settle with HMRC (see News Analysis: Autumn Budget 2024— Independent review of the loan charge). To inform the review, a call for evidence—targeted at people still subject to the loan charge and their advisers—was issued on 28 March 2025. The Final Report of the review, alongside the government’s response, was published at Budget 2025 on 26 November 2025......
Jersey, Guernsey and the Isle of Man, along with the Overseas Territories of Bermuda, the Cayman Islands and the British Virgin Islands, have enacted new economic substance laws for companies and other entities operating in their jurisdictions. These rules apply to accounting periods beginning on or after 1 January 2019. Background In 2016, the EU Council pledged co-ordinated action against tax fraud, evasion and avoidance, and approved conclusions setting out the criteria and process for creating the EU list of non-co-operative jurisdictions for tax purposes. Accordingly, the EU Code of Conduct Group ( Business Taxation) ( COCG) was asked by the Council to carry out a review under which jurisdictions, including the Crown Dependencies, were evaluated against three benchmarks: tax transparency fair taxation adherence to anti-base erosion and profit shifting ( BEPS) measures In December 2017, the COCG published a list of...
ARCHIVED : This Practice Note has been archived and is not maintained. A longstanding feature of the UK rules on employment income taxation has traditionally, over many years, been to grant certain tax advantages to employees who are UK resident but not UK domiciled, where they are able to organise their employment arrangements in a particular, structured manner. An individual who is both UK resident and UK domiciled for tax purposes is liable to UK tax on all worldwide income under UK domestic law. This holds irrespective of who employs them and where their employment duties are performed. By contrast, a UK-resident but non- UK-domiciled employee who claims the remittance basis for the tax year in question will be taxed on ‘chargeable overseas earnings’ for that year only to the extent those earnings are remitted to the UK. For background details on the meaning of...
Double tax treaties ( DTTs) Double tax treaties ( DTTs) set out how taxing rights are shared between jurisdictions, with the principal aim of ensuring that taxpayers do not face tax on the same income twice in different states, an outcome that would otherwise discourage cross-border economic activity. These instruments are hybrid in nature—both international agreements and, simultaneously, part of the tax law of each state. The consensus is that they operate solely to relieve taxation, and cannot create a greater liability than would arise under domestic legislation. Notably, Action 6 (one of the 15 core Actions) within the Organisation for Economic Co-operation and Development ( OECD)’s Base Erosion and Profit Shifting ( BEPS) Project targets treaty abuse, and is the subject matter of the OECD report titled Preventing the Granting of Treaty Benefits in Inappropriate Circumstances. There are two forms of double...
FORTHCOMING CHANGE relating to changes to APR and BPR : In the Autumn Budget 2024 on 30 October 2024, the government indicated plans to materially scale back APR and BPR on eligible property from April 2026. After consultation and subsequent updates, the 100% relief will be narrowed: it will no longer cover the full value of qualifying agricultural or business assets, and will instead be available only on the first £2.5m of combined value. See News Analysis: Autumn Budget 2024— Private Client analysis — Inheritance tax. FORTHCOMING CHANGE relating to IHT on pension death benefits : Also at the Autumn Budget 2024 on 30 October 2024, the government set out that, from 6 April 2027, unused pension funds and pension death benefits will be brought within a person’s estate for IHT. This measure will apply to both defined contribution and defined benefit schemes, and to UK...
This Practice Note has been archived and is not maintained. Before 6 April 2025, an individual’s liability exposure to UK inheritance tax ( IHT) on overseas situs assets turned on their domicile status. Domicile likewise played a pivotal role in deciding whether the remittance basis could apply to the taxation of a UK resident’s foreign (non‑ UK source) income and gains. See Practice Note: Introductory guide to residence and domicile for UK tax purposes before 6 April 2025 [ ARCHIVED]. For details on the ending of the remittance basis and the residence‑based IHT framework taking effect from 6 April 2025, 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. In UK taxation, the meaning of domicile is taken from its ordinary sense and from case law, rather than being expressly...
Introduction New Zealand operates a deregulated, decentralised economy, fully open to international competition. Over recent decades, successive governments have overhauled trade settings by removing many import barriers, winding up most subsidies, and shaping the rules on overseas investment to encourage productive foreign investment into New Zealand across the country over the same period accordingly. The business environment New Zealand is regularly internationally recognised by the World Bank and other organisations as among the world’s most business-friendly jurisdictions. In the World Bank’s Business Ready 2024 report it placed sixth for Operational Efficiency and Public Services, and Transparency International’s Corruption Perceptions Index 2024 rated it the fourth least corrupt nation. New Zealand is an independent sovereign country within the British Commonwealth of Nations. Parliament is elected democratically every three years. The country has no single written constitution. Since 1993, elections have used a Mixed Member...
March 2026 Introduction Hong Kong stands as a leading international financial centre, regularly cited among the easiest places in the world for doing business. Its clear tax regime, established legal framework, solid financial markets, open flow of information, skilled workforce and the government’s enduring capitalist laissez-faire approach have encouraged thousands of multinational companies to set up a presence in the city. By the fourth quarter of 2025, Hong Kong demonstrated resilience, with real GDP for the quarter forecast to grow by 3.8% despite global economic headwinds. Today, the People’s Republic of China ( China) is the world’s second largest economy after the United States and remains one of the fastest-growing major economies. China is progressively shifting from “the world’s factory” towards a substantial consumer and financial market, supported by a more affluent population. Hong Kong’s geographic and cultural closeness to China, combined with its...
Warranty and indemnity and contingent risk insurance in distressed M& A transactions HWF undertook an in‑depth interview programme with 17 market insurers to produce a paper delivering insight and clear, extensive guidance on how warranty and indemnity ( W& I) and contingent risk insurance are applied in distressed deals, mapping the solutions available and the key requirements to obtain strategic cover. What types of insurance cover are available for distressed transactions? For distressed transactions, three insurance options can be offered: Traditional W& I cover Traditional W& I cover can be used when: the seller and/or management provide warranties under the sale and purchase agreement ( SPA) or a warranty deed ( WD) the sellers give sufficient disclosure on the contents of the warranty suite in the SPA or WD a virtual data room or comparable document repository is available for review buyer due diligence (internal or external) has been completed...
Disguised remuneration and share schemes For many years, HMRC has sought to ensure that benefits arising from employment are taxed under income tax with National Insurance contributions ( NICs) operated by employers through the pay as you earn ( PAYE) regime. In contrast, some employers adopted inventive remuneration structures, using employee benefit trusts ( EBTs) and other vehicles to avoid, delay, or reduce income tax exposure. In 2011, anti-avoidance provisions known as the disguised remuneration rules were introduced in Part 7A of the Income Tax ( Earnings and Pensions) Act 2003 ( ITEPA 2003). HMRC’s guidance is set out in the Employment Income Manual beginning at EIM45000. The legislation applies where: there is an arrangement that relates to a current, former or prospective employee, or a relevant person connected to the employee. For these purposes, employee includes...
FORTHCOMING CHANGE: Following the Autumn Budget 2024, the government set up an independent examination of the loan charge to review its operation and practical impact. Formally unveiled on 23 January 2025, the review’s remit was to ‘examine the barriers preventing those who are subject to the loan charge but have not already settled and paid their tax liabilities in full from reaching resolution with HMRC’ and to ‘recommend ways in which they can be encouraged to settle with HMRC’ (see News Analysis: Autumn Budget 2024— Independent review of the loan charge). To support this work, a call for evidence directed at individuals still within scope of the loan charge (and their advisers) was issued on 28 March 2025 for public consultation. The Final Report, together with the government’s response, appeared at Budget 2025 on 26 November 2025. In addition, the report concluded that the loan...
FORTHCOMING CHANGE: Following the Autumn Budget 2024 announcement, the government initiated an independent review into the loan charge in question. Formally launched on 23 January 2025, the review’s brief was to examine, in particular, obstacles stopping those still affected by the loan charge, who have yet to settle and pay their tax liabilities in full, from reaching agreement with HMRC, and to recommend how they might be encouraged to reach settlement with HMRC (see News Analysis: Autumn Budget 2024— Independent review of the loan charge). To support this work, a call for evidence aimed at individuals remaining within the scope of the loan charge, and their advisers, was issued on 28 March 2025. The review’s Final Report, together with the government response, was released at Budget 2025 on 26 November 2025......
The most straightforward way to invest in property together is for the investors to hold the asset jointly. Though this is comparatively uncommon in a commercial setting, where investors tend to create a structure such as a partnership or a company to serve as the joint venture vehicle, it still represents the prevailing and most familiar form of joint investment. For many individual investors, this is the route most often taken in practice. Contractual joint ownership Contractual joint ownership can take several forms, including: where each participant holds a direct legal interest in the asset (see Practice Note: Establishing a beneficial interest (joint ownership)) where a trust—express or implied—is established over the property, so that trustees hold the property for the trust’s beneficiaries (see Practice Note: Trusts of land—property) where an implied partnership arrangement is in place (see Practice Note: Forming a...
Practice Note Across England and Wales, Scotland and Northern Ireland, leases sit at the core of any UK property-related business. Interests in land of any meaningful duration are commonly structured as leases, allowing landlord and tenant to benefit from the legal rights and obligations that accompany that relationship. While the legal mechanics of granting a lease operate in the same way in all cases, there is no single tax outcome for a grant. The tax position of the landlord granting the lease, and the tenant to whom it is granted, depends on their particular circumstances and on the features of the lease itself. This Practice Note considers only the direct tax position (income tax, corporation tax and CGT) on the grant of a lease. In this note, CGT is used to mean both capital gains tax and corporation tax on chargeable gains. For the direct tax...
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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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