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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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Archived: This archived Practice note considers the definition of relevant person under section 809M of the Income Tax Act 2007 for the purposes of the remittance basis of taxation Abolition of the UK's existing tax regime for UK resident non- UK domiciled individuals On 29 July 2024, the Chancellor, Rachel Reeves, confirmed that from 6 April 2025 the government will proceed with scrapping the UK’s current rules for UK-resident, non- UK domiciled individuals (‘non-doms’) and introducing the new four-year foreign income and gains ( FIG) exemption first announced by the previous government at the March 2024 Budget. The four-year FIG exemption will be available to people who become UK resident after being non- UK resident in each of the preceding ten tax years. Eligible individuals will not be liable to UK tax on their overseas income or gains, or on income and gains arising in trusts they have...
This Practice Note outlines the ‘not subject to a lower level of tax’ exemption from a charge within the controlled foreign company ( CFC) rules...
permits a borrower to apply for, and secure, an accelerated authorisation to pay UK-source interest to a non- UK lender at the reduced withholding tax rate (which could be 0%) set under the relevant double tax treaty ( DTT) with the UK, where the lender has already obtained a passport confirming it is resident in the appropriate jurisdiction and entitled to the benefit of the applicable DTT between that jurisdiction and the UK. This expedited route operates only where the passport has been granted to that lender concerned. The current DTTP scheme applies to loans entered into (or transferred) on or after 6 April 2017, and the terms, conditions and guidance for the present DTTP scheme were updated in October 2023. There was also a minor update in April 2024, which solely removed a reference to ‘ DTTP30620 DTTP2A...
Where an individual or entity (the Buyer) acquires a company, as opposed to buying the assets of a business, they also inherit all historic liabilities of that company and its subsidiaries (together, in this Practice Note, the Company). A Buyer of the Company’s share capital will usually look for the twin safeguards of a suite of tax warranties and a tax covenant from the current owner of those shares (the Seller). The exact scope and level of that protection will, naturally, reflect the parties’ respective negotiating strength. There are three principal reasons for a Buyer to require tax warranties in a share purchase agreement ( SPA): to draw out information by informing and underpinning the due diligence process to guard against unknown tax liabilities of the Company relating to periods before Completion (when the sale is finalised and the shares are...
The derivative contracts regime The derivative contracts regime sets out how a company’s profits and losses from its ‘derivative contracts’ are taxed and relieved. The principal provisions appear in Part 7 of the Corporation Tax Act 2009 ( CTA 2009) and, in this Practice Note, are called Part 7. Relevant secondary legislation includes the ‘ Disregard Regs’—the Loan Relationships and Derivative Contracts ( Disregard and Bringing into Account of Profits and Losses) Regulations 2004, SI 2004/3256, as amended. This Practice Note explains how profits and losses from a company’s derivative contracts are calculated and recognised for corporation tax. For the definition of a ‘derivative contract’ for corporation tax and the instruments and transactions within the scope of the derivative contracts rules, see Practice Note: Taxation of derivatives—what are derivative contracts? For deeper analysis of particular features of the rules, see these Practice Notes: Taxation of...
This Practice Note is about the issues that arise on a transfer of a going concern involving land and buildings For VAT purposes, a transfer of a going concern ( TOGC) carries two separate meanings: the ordinary sense, being simply the disposal of a continuing business—this is relevant, in particular, to the purchaser’s VAT registration position; and a transaction treated as a non-supply for VAT purposes, so that, in particular, no VAT is chargeable on it Although both uses are often described as a TOGC, for the remainder of this Practice Note the term is confined to the second of these meanings, referring to a non-supply......
FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: In 2027, stamp duty and SDRT are set to be superseded by a single, self-assessed levy on securities—the securities transfer charge ( STC)—which will be paid (and reported) via a new online portal as part of the modernisation programme. Broadly, the STC’s features will reflect the proposals for that tax described in a consultation carried out in 2023; in general terms, its operation is intended to align with those recommendations. Finance Bill 2026 ( FB 2026) creates a power, commencing on Royal Assent, for secondary legislation to let taxpayers pilot the new digital service by self-assessing their stamp taxes on securities obligations and by reporting transactions electronically through a digital service, thereby enabling end-to-end testing. For further information on modernising stamp taxes on securities, see the following: News Analyses: Budget 2025— Tax...
Alongside the notion of new consideration—explored further in Distribution key concepts—new consideration—the principle of repayment of capital is central, in practice, to deciding whether particular transactions amount to distributions. At its broadest level, the purpose in invoking repayment of capital is to ensure that the definition of distribution captures only a genuine and actual distribution of profits, in whatever form, by confirming that payments which merely return capital originally contributed to a company’s shareholders are not treated as distributions, and are therefore excluded. For more on distributions generally, see: Scope of distributions for tax purposes. Where is repayment of capital used?......
This Practice Note sets out how the capital allowances rules interact with the rules relating to: capital gains tax, including corporation tax on chargeable gains ( CGT) value added tax ( VAT) stamp taxes, namely: stamp duty land tax ( SDLT) in England and Northern Ireland land and buildings transaction tax ( LBTT) in Scotland land transaction tax ( LTT) in Wales It is often, but mistakenly, believed that a claim to capital allowances for plant and machinery will cut the CGT base cost of an asset and so increase any chargeable gain. That is not the case: claiming plant and machinery allowances does not reduce a taxpayer’s CGT base cost in a capital asset...
Practice Note This Practice Note sets out how gains and deficits are brought into account for corporation tax when a derivative contract serves as a hedge. As with most matters involving derivatives, the tax treatment of hedging instruments is hard to grasp without a basic grounding in the pertinent accounting rules and concepts. Accordingly, this Practice Note first outlines the accounting for hedging arrangements and then turns to the applicable tax provisions. For broader background on the accounting framework and the principal accounting ideas relevant to taxing financial instruments, see Practice Note: Loan relationships—accounting framework and principles. A comprehensive description of the relevant accounting concepts and principles lies outside the scope of this Practice Note. Any discussion of accounting rules here is not exhaustive and does not amount to accounting advice. It is provided solely to aid understanding of the derivative contracts tax regime and to...
FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: Following the 2020 call for evidence and the 2021 publication, and after scrutiny by the relevant HMRC and industry working group alongside the 2023 consultation, the government confirmed, in the consultation outcome released on 28 April 2025, that in 2027 it plans to replace stamp duty and SDRT with a single, self‑assessed stamp tax on securities, broadly consistent with the proposals set out in the 2023 consultation document. In addition, the government is consulting on updating and clarifying the legislation underpinning the higher 1.5% stamp tax charge. For more detail, see the following News Analysis articles: Tax update spring 2025— Stamp taxes on shares modernisation Tax update spring 2025— Tax analysis— Stamp and transfer taxes TAMD 2023— Stamp taxes on shares modernisation TAMD...
When a sole proprietor, or a person carrying on a business as a partner in a partnership, chooses to incorporate, that person conveys the business’s assets to a newly established company (generally speaking). Such a movement may constitute a chargeable event for VAT, CGT, income tax, stamp duty land tax and capital allowances, and may result in a liability arising for either the transferor or the transferee to tax on the transaction concerned......
This Practice Note explains when a person that has incurred VAT on supplies it has taken receipt of may reclaim that VAT from HMRC. It outlines why VAT is recoverable, what amounts can be reclaimed, the rules for allocating input tax to subsequent supplies, and the process for reclaiming VAT. It also considers particular scenarios, including whether VAT can be reclaimed before VAT registration and whether input VAT can be reclaimed where it has not been paid. Why can VAT be recovered? As set out in Practice Note: What is VAT?, under core principles, VAT should be: borne by the final consumer, and deductible by businesses at each production or retail stage, provided their activities are themselves subject to VAT, as expanded on in this Practice Note If recovery were not available in this way: VAT would not be levied solely on...
Offence of fraudulent evasion of income tax Section 106A of the Taxes Management Act 1970 ( TMA 1970) provides that a person commits an offence if they are knowingly concerned in the fraudulent evasion of income tax, whether for themselves or another. This offence, triable either way, does not extend to the evasion of taxes other than income tax and capital gains tax. Elements of the offence of fraudulent evasion of income tax Being ‘knowingly concerned’ The standard for being ‘knowingly concerned’ in an income tax fraud requires both: knowledge — not merely suspicion — that an offence exists, and genuine involvement in it (for instance, simply paying in cash is unlikely to meet this threshold) In short, the individual must possess knowledge and take part in the fraud. A person is said to know something when they are sure it is true; this contrasts in law with...
Development (or growth) capital typically means putting funds into a well-established business that generates income and profits, yet lacks adequate cash to finance expansion or restructuring. Background to development capital investment Why seek investment? A company may pursue this type of private equity to: expand its business restructure its operations fund a significant acquisition rework its balance sheet, eg by reducing debt Such businesses often cannot assume more borrowing, whether because of current leverage or prevailing market conditions. Private equity is viewed as a practical alternative. Typically, this kind of funding does not trigger a change of control, as investors acquire a minority shareholding. Moreover, unlike other private equity styles, investors do not heavily involve themselves in day-to-day management. Current shareholders are not seeking an exit and the management team remains in place. Types of investors and...
This Practice Note concentrates on the admission requirements for equity shares within the commercial companies category of the Financial Conduct Authority’s ( FCA) Official List. It sets out the core listing standards that apply to all securities, alongside the additional obligations for the commercial companies category, as provided for in the UK Listing Rules ( UKLR). Structure of the UK listing regime The UK listing regime comprises 11 distinct categories, each designed for different issuer types and the securities seeking admission. An issuer must adhere to the specific provisions of the UK Listing Rules ( UKLR) that correspond to the category under which it is seeking a listing......
Hybrid capital instruments Hybrid capital instruments are forms of debt that incorporate equity-like characteristics. They commonly grant the issuer the option to cancel or defer interest payments, are frequently long-dated or perpetual, and may allow for discharge or conversion into shares in specified circumstances. These traits can create uncertainty over whether amounts payable under such instruments are treated as interest for tax purposes (generally deductible under the loan relationships rules) or as distributions (which are not). That ambiguity can pose particular issues for the financial sector, where banking companies (under Basel III) and insurance companies (under Solvency II) are obliged to maintain a set amount of capital—often called regulatory capital, or capital requirements. The securities used to raise this capital must include features that provide for loss-absorbency if a bank or insurer comes under financial pressure and has diminished capital levels. Prior to 1...
This Practice Note This Practice Note is authored by Anne Redston, Barrister. It expresses her personal view; she is not authorised to represent the Tribunals Service or the judiciary. This Practice Note discusses: which taxes and other areas fall within the jurisdiction of the First-tier Tribunal ( Tax Chamber) ( FTT) the legislative foundations for the FTT’s jurisdiction the FTT’s inherent power to rule on issues of open justice the FTT operating in both adversarial and inquisitorial modes the FTT’s appellate role and its supervisory function matters outside the FTT’s remit when the FTT may exercise judicial review ( JR) jurisdiction practicalities where a case raises both public law and revenue law points the FTT’s equitable jurisdiction This Practice Note, together with the other notes on appealing to the FTT, is a summary only and does not...
ARCHIVED: This Practice Note is archived and not maintained This Practice Note covers the Finance Act 2025 ( FA 2025), which received Royal Assent on 20 March 2025. Kept for historical interest, it traces the legislation’s journey from draft release, through Parliament, to enactment. It also summarises the principal provisions and signposts key milestones and documents, including any published amendments, relevant to its progress. The tracker is divided into: Progress of FA 2025 FA 2025—measure by measure For overviews of the draft Finance Bill 2025, see News Analysis: Legislation Day: Draft Finance Bill 2025— Tax analysis and News Analysis: Publication of Finance Bill 2025. For details of measures announced in the Autumn Budget 2024 on 30 October 2024, see News Analysis: Autumn Budget 2024— Tax analysis. For comprehensive monitoring of the consultations referenced, see: Tax—consultation and legislation...
ARCHIVED: This Practice Note has been archived and is not maintained. This note provides details on the Finance Act 2024 ( FA 2024) and the Finance ( No 2) Act 2024 ( F( No 2) A 2024), which obtained Royal Assent on 22 February 2024 and 24 May 2024, respectively. It is kept for historical interest, mapping both measures from draft release through their Parliamentary passage to enactment, summarising core provisions, and signposting significant milestones and documents—including any published amendments—relevant to their progression. The tracker is organised into three parts: Progress of FA 2024 and F( No 2) A 2024 FA 2024—measure by measure F( No 2) A 2024—measure by measure For an overview of the provisions in the draft Finance Bill 2024 ( FB 2024—also referred to as Finance Bill 2023–24 and Autumn Finance Bill 2023 ( AFB 2023)), which was enacted as FA 2024, see...
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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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