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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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Foreign Account Tax Compliance Act ( FATCA) The Foreign Account Tax Compliance Act ( FATCA) comprises three main pillars: strengthened due diligence, expanded information reporting, and a potential withholding tax on US‑source payments. This Practice Note explores typical issues encountered in implementing, and complying with, FATCA, such as: whether refunds or tax credits can be claimed for amounts withheld under FATCA which obligations are excluded (grandfathered) from FATCA what counts as pre‑existing obligations for FATCA purposes For a discussion of the broad meaning of a foreign financial institution ( FFI) under FATCA, and the obligations triggered by falling within scope, see Practice Note: US: FATCA—foreign financial institutions ( FFIs). For an outline of what a non‑financial foreign entity ( NFFE) is (and is not), and the different types of agreements that can ease FATCA’s burdens, see Practice Note: US:...
The Foreign Account Tax Compliance Act ( FATCA) rests on three core pillars: heightened due diligence wider information reporting a possible withholding tax on US‑source payments FATCA’s primary aim is to secure information on offshore accounts owned by US persons, thereby imposing extensive disclosure and reporting obligations on foreign financial institutions ( FFIs) and other overseas entities. A significant concern identified by the Internal Revenue Service ( IRS) is the use of foreign corporations to hold assets abroad, which contributes to under‑reporting of income by US taxpayers. This Practice Note addresses: what a non‑financial foreign entity ( NFFE) is what an excepted NFFE is what foreign financial institution ( FFI) agreements are what an intergovernmental agreement ( IGA) is the overarching reporting and due diligence duties under an IGA For analysis of the expansive definition of an FFI for FATCA...
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 tax on securities — the securities transfer charge ( STC) — to be paid and reported via a new online portal. The STC’s core features are expected to broadly reflect the proposals consulted on in 2023. Finance Act 2026 ( FA 2026) confers a power for secondary legislation to let taxpayers trial the digital service, self‑assessing their stamp taxes on securities liabilities and submitting transactions electronically. For further details on the modernisation of stamp taxes on securities, see: News Analyses: Budget 2025— Tax analysis— Stamp and transfer taxes 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...
Updated in July 2024 Introduction The United States ranks among the world’s most competitive economies. It remains the largest national market, posting an estimated 2020 GDP exceeding US$22.3trn, and performs strongly on the World Bank’s Ease of Doing Business Index. Many overseas businesses choose to build a footprint in the US for persuasive reasons. Chief among these are entry to a powerful economy and cutting-edge technology, coupled with political stability and a mature legal framework supported by established courts, regulators and public authorities. While the US tax system can be intricate, working with a US attorney can make this obligation more manageable. There are multiple options for structuring operations in the US. This guide sets out key matters a new venture ought to weigh before commencing activity in the country. It is not exhaustive, and tailored US legal advice should always be obtained prior to...
When one or more people set out to establish a business, they must choose the vehicle through which it will operate. Beyond the commercial and legal drivers for that decision (see Practice Note: Forms of business vehicle), the tax profile of each option can be crucial in judging whether it suits a given enterprise. Before considering how tax steers the selection, it is helpful to grasp the essentials of how each vehicle is taxed. This Practice Note outlines the tax consequences of trading as a: sole trader general partnership limited partnership limited liability partnership limited company For ease, it assumes one or more unconnected UK resident individuals are starting a UK trading business on a commercial basis. It provides a summary of the overarching points and does not address the detailed rules or their application to...
The UK’s first formal tax residence test for individuals, the statutory residence test ( SRT), took effect on 6 April 2013 and has applied to determine an individual’s residence for tax years 2013/14 onwards. Further details can be found in the following Practice Notes: The structure of the statutory residence test The statutory residence test—key concepts and definitions This Practice Note outlines how the rules operate when a person arrives in, or leaves, the UK part way through a tax year. It, together with the other SRT Practice Notes, provides only a summary and is not comprehensive. Inevitably, some interpretations may be open to debate or certain situations may not have been contemplated by the draftsmen, so primary legislation should always be consulted. HMRC has issued detailed guidance on the legislation, which may be updated periodically. The current SRT guidance is...
What is the Pensions Advice Allowance? Following consultation in 2016/17, the government brought in, from 6 April 2017, the Pensions Advice Allowance. It enables eligible pension scheme members to withdraw a fixed sum from their pension pot tax-free to cover holistic retirement advice. At the member’s instruction, the scheme may therefore reduce the value of the member’s pot by the advice fee and pay the funds straight to the member’s adviser. This measure stemmed from the Financial Advice Market Review, which highlighted an advice gap affecting people who require retirement planning support but cannot meet the cost from net-of-tax income or savings. It is available in addition to other existing advice allowances and payment routes for advice. These include adviser charging, which does not permit pension monies to be used to fund holistic retirement advice. For further details, see Other types of pensions advice measures...
ARCHIVED : This archived Practice Note sets out details of the Diverted Profits Tax ( DPT) regime, which was repealed with effect for accounting periods beginning on or after 1 January 2026. DPT applied to accounting periods beginning between 1 April 2015 and 31 December 2025. The regime has been replaced by the unassessed transfer pricing profits ( UTPP) rules, as set out in Schedule 5 to the Finance Act 2026. This Practice Note is not maintained and is supplied for background purposes only. The DPT provisions are contained in Part 3 of the Finance Act 2015. The legislation establishes a tax intended to deter the avoidance of UK tax by multinationals operating in the UK. The introduction of DPT was first signalled in the Autumn Statement 2014. Note that DPT is a separate tax and is not corporation tax. In overview, DPT applies in two...
STOP PRESS : Significant reforms to the UK prospectus regime came into force on 19 January 2026. The rules now governing public offers of securities and admissions to trading in the UK are set out chiefly in the Public Offers and Admissions to Trading Regulations 2024, SI 2024/105 (the POATRs) and the FCA sourcebook, The Prospectus Rules: Admission to Trading on a Regulated Market ( PRM). The UK Prospectus Regulation and the FCA Prospectus Regulation Rules have been repealed. These reforms aim to streamline capital raising and materially cut the instances when a company must publish an FCA approved prospectus for a further issue of shares. For full details of the changes, see Practice Note: UK prospectus regime reform. This Practice Note reflects the prospectus regime in force before 19 January 2026. This Practice Note considers the underwriting of an offer of shares by a...
What are unauthorised unit trust ( UUTs)? Unit trusts, as a structure, are principally employed as investment funds for investors. An ‘unauthorised’ unit trust ( UUT) is a unit trust that has not been authorised by the Financial Conduct Authority under the Financial Services and Markets Act 2000 ( FSMA 2000). Unit trusts are established by trustees holding assets on trust for unitholders. The trustees hold legal title to the fund’s assets but are obliged to apply those assets for the benefit of the unitholders. A fund manager will provide investment advice to the trustees. Interests in a unit trust may only be promoted to the UK general public (retail investors) if the unit trust has been authorised under FSMA 2000. However, to obtain authorisation under FSMA 2000 a unit trust must comply with various regulatory provisions, including restrictions on its...
ARCHIVED : This Practice Note has been archived and is not maintained. On 6 October 2011, the United Kingdom and Switzerland entered into an accord on tax co‑operation, formally titled the UK- Swiss Confederation Taxation Cooperation Agreement (the ‘ Agreement’). Although not a disclosure facility, the Agreement afforded UK taxpayers an opportunity to fully regularise their tax position where income and gains from accounts in Switzerland had not previously been properly notified to HMRC for UK tax purposes. Its scope is confined solely to the assets situated in Switzerland......
DEVELOPMENT : On 18 November 2025, the OECD Council endorsed updates to the OECD Model Tax Convention on Income and on Capital. The changes are: fresh guidance on the treatment of cross-border ‘home office’ arrangements under tax treaties, giving clarity to employers and staff a new optional treaty clause to ensure income from activities linked to natural resource extraction is taxed where it arises, reinforcing source-country taxing rights and supporting resource-rich developing economies further refinements to promote consistency in interpreting treaties and to bolster tax certainty These updates will be reflected in revised condensed and full editions of the OECD Model Tax Convention, scheduled for release in 2026. This Practice Note sets out the status of the 15 action points in the Organisation for Economic Co-operation and Development ( OECD)’s Base Erosion and Profit Shifting ( BEPS) project, including any pertinent UK...
On 23 June 2016, the United Kingdom held a referendum on its EU membership, with a majority opting for the UK to leave the EU. On 29 March 2017, the Prime Minister sent formal notice of the UK’s intention to withdraw, setting in motion the Article 50 TEU process. At 11 pm on 31 January 2020 (exit day), the UK’s withdrawal took effect in law and the UK ceased to be an EU Member State. Exit day signalled the close of the Article 50 withdrawal phase and the beginning of a time-limited transition/implementation period, during which the interim arrangements in Part 4 of the Withdrawal Agreement applied. These transitional measures created a standstill period while the UK and the EU set about implementing the Withdrawal Agreement and negotiating the legal terms governing their future relationship, to apply after the transition ended. The EU- UK Trade and...
ARCHIVED : This Practice Note is archived and is no longer maintained. From 1 April 2017, the worldwide debt cap rules were repealed and superseded by the corporate interest restriction ( CIR) rules. Accordingly, the worldwide debt cap described here should be treated as relevant only for periods before 1 April 2017, being the date the CIR took effect. For any period straddling that date, the debt cap should be applied to a notional period ending on 31 March 2017. For more on the CIR, which replaces and repeals the debt cap, see Practice Note: Corporate interest restriction. Relief for finance costs of UK-resident companies that are members of large groups may be restricted (ie disallowed) where, broadly, the group’s UK-based net debt exceeds 75% of the group’s gross debt (the gateway test). The debt cap applies to periods of account beginning on or after 1...
ARCHIVED : This Practice Note has been archived and is not maintained. This Practice Note is archived and is no longer maintained. With effect from 1 April 2017, the worldwide debt cap regime was repealed and replaced by the corporate interest restriction ( CIR). Consequently, the rules summarised in this Practice Note should therefore be treated as applying only to periods before 1 April 2017, which is when the CIR came into force. Where a period of account straddles that change, the former debt cap must accordingly be applied to a notional period ending on 31 March 2017. For further details on the CIR, which abolishes and substitutes the debt cap provisions, see Practice Note: Corporate interest restriction. In broad outline and terms, tax relief for the financing expenses of UK-resident companies within large groups may generally be limited (ie...
FORTHCOMING CHANGE relating to from 6 April 2026 and from 6 April 2027 : Finance Bill 2026 ( FB 2026) introduces an amendment to ITA 2007, s 874, substituting the wording ‘the basic rate’ with ‘the savings basic rate’. Consequently, from 6 April 2026, payers of UK source yearly interest will be obliged to deduct a sum equal to income tax charged at the savings basic rate from those payments. For the 2026–27 tax year, the savings basic rate stands at 20%. Under FB 2026, this rate is set to rise to 22% with effect from 6 April 2027. As a result, from 6 April 2027, the income tax to be deducted from a UK source yearly interest payment will be calculated at 22%. In short, the deduction applicable to UK source yearly interest will be 20% for 2026–27, increasing to 22% for...
Exports for VAT purposes From 1 January 2021, for VAT purposes, an export refers to a supply of goods dispatched from Great Britain ( GB) to any destination outside the UK, or from Northern Ireland ( NI) to a non- EU country outside the UK. There are two categories of exports: direct and indirect. For VAT purposes, a direct export takes place where the goods are removed under the control of, or on behalf of, the supplier; by contrast, an indirect export is where removal occurs under the control of, or on behalf of, someone other than the supplier, most commonly by the overseas customer. Do please note that the customs definitions differ: a direct export is when goods leave the EU without travelling through another Member State, whereas an indirect export is when goods depart the EU via another Member State. This...
This Practice Note addresses VAT zero-rating available to developers who sell or let residential buildings, other than dwellings, that they have built. Such properties are classed as buildings for a ‘relevant residential purpose’ ( RRP). For guidance on the zero-rating of dwellings, see Practice Note: Zero-rated sales and leases—person constructing a dwelling. Why does zero-rating matter? If zero-rating is not in point, the supply will ordinarily be exempt, meaning the developer is unable to reclaim VAT (ie input tax) on expenditure, including construction costs, professional fees and potentially the purchase of the site. For further detail, see Practice Note: When can a person recover VAT? There is also a zero-rating for constructing an RRP building, but only where the works are commissioned by the ultimate user, for example the operator of a care home. The zero-rating considered in this Practice Note is an...
This Practice Note addresses the zero rate of VAT available to developers who sell or grant leases of specific buildings they have built, where the property is designed for charitable use. Such properties are termed buildings for a relevant charitable purpose ( RCP). This Practice Note contains citations to case law of the EU Court of Justice. For advice on whether rulings of the Court of Justice bind the UK courts, see Practice Note: Assimilated law— Assimilated case law. For commentary on assimilated law (previously retained EU law) and tax more broadly, including the bespoke approach now applied to VAT legislation, see Practice Note: Assimilated law and tax. The Court of Justice decisions cited in this Practice Note were issued before the end of the implementation period (which the UK entered on 31 January 2020 and which concluded at 11 pm on 31...
Under the UK’s VAT regime, taxable supplies can be subject to the standard rate, a reduced rate, or be zero-rated. This Practice Note sets out the principal categories of zero-rated and reduced-rate supplies, and offers further detail on five commonly encountered zero-rated areas in practice: food books and printed materials construction of buildings, plus some sales and leases by property developers drugs, medicines and appliances clothing and footwear Zero-rated supplies A zero-rated supply is still treated as a taxable supply even though no VAT is charged on it, making it different from an exempt supply. This leads to two key consequences: zero-rated supplies count when assessing whether a business must (or is entitled to) register for VAT; see Practice Note: Who must and who can register for VAT in the UK? input tax attributable to a zero-rated supply can be recovered from HMRC (whereas input tax on an exempt supply is not...
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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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