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Introduction to statutory interpretation The aim of statutory interpretation is to determine the legal meaning of a statute, that is, the sense that expresses the legislator’s intention. The clearest guide to that intention is the statutory wording itself, read in its context and with its overall purpose in mind, and its broader legislative setting. Courts should seek to fulfil the purpose of legislation by construing its language, so far as they can, in the manner that most effectively serves that purpose. Put differently, the courts’ default method is purposive, and every enactment is to be construed with that end in view. There is a starting presumption that the grammatical and ordinary sense of an enactment reflects the meaning intended by the legislator. Where an enactment reasonably bears only a single meaning, and no other interpretative tools or
This Practice Note addresses identifying a fiduciary, fiduciary duties and obligations, the no conflict rule, the no profit rule, a fiduciary's duty of confidence, and the remedies available for breach of fiduciary duty. Who is a fiduciary? There is no definitive catalogue of relationships that give rise to fiduciary obligations at common law in every situation universally. Certain relationships are inherently fiduciary, eg trustee and beneficiary, solicitor and client, principal and agent, business partner and co-partners, together with mortgagor and mortgagee. The obligations of some fiduciaries have been set out in statute; for instance, trustees owe a statutory duty of skill and care under section 1 of the Trustee Act 2000 (TrA 2000), and directors' relationships with their companies are addressed in the Companies Act 2006 too. For guidance on directors' fiduciary duties, see Practice Note: of directors for further detailed
Definition of ADR Alternative dispute resolution (ADR) is defined in the CPR Glossary as a collective label for methods of settling disputes other than through the usual trial process. Some courts adopt the term ‘negotiated dispute resolution’ (NDR) to describe resolution by alternative means; for ease, this Practice Note uses ADR. For guidance on how ADR is addressed in the various court guides, see Practice Note: ADR and NDR in the court guides. In essence, ADR is a means of resolving a dispute outside the court system. It typically involves a neutral third party who either helps the parties reach a negotiated outcome, or issues a determination of the dispute that is legally binding. A binding result can follow where the agreement to refer the dispute to ADR so provides. There are multiple forms of ADR processes. For an outline of the different types and their
In brief The British constitution is uncodified, meaning it does not spring from a single constitutional document or code. It draws on a wide range of written and unwritten sources. Alongside the principal written sources of law in England and Wales—legislation (which has also introduced international and human rights principles into our constitution) and the common law—the constitution also rests on two further unwritten bases within this system: the prerogative, and non-legal constitutional conventions. In addition, on one view the basic or prevailing principle of our constitution, Parliamentary sovereignty, is ultimately grounded in political fact rather than in law. Legislation Legislation is the foremost source of constitutional law. Acts of Parliament may set out detailed constitutional rules, or even pass authority to create them to ministers or to others. Under the doctrine of Parliamentary sovereignty, legislation is traditionally regarded as taking precedence over any other form or kind of
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This Practice Note examines the standardisation of contracts for PFI and PF2, and evaluates the practical application of model form agreements. Background The tradition of model, or standard form, contracts within the PFI arena is longstanding. Before HM Treasury’s July 1999 release of version 1 of ‘ Standardisation of PFI Contracts’, the Treasury Taskforce for Projects had produced a range of Technical Notes offering guidance and drafting, which subsequently shaped a host of sector-specific or project-type-specific model project agreements and related contracts. Version 1 of Standardisation of PFI Contracts was brought forward largely in response to the second PFI review conducted by Sir Malcolm Bates, commissioned on 12 November 1998, undertaken in parallel with Peter Gershon’s assessment of central government civil procurement. A principal theme of Bates’s second review was the drive to consolidate and enhance central coordination in PFI...
This Practice Note examines the change protocol—sometimes called the change mechanism—commonly included in the Project Agreement for a PFI or PF2 (occasionally termed PFII) project. It explores why the change protocol exists, the categories of change, the steps for implementing change, the effects of change, and the ramifications under procurement law. In the 2018 Budget (delivered on 29 October 2018), the government confirmed it would cease using PF2 for new projects (see News Analysis: Budget 2018—what does it mean for infrastructure and housebuilding?). Nonetheless, the government has indicated it will continue to back private investment in infrastructure, and certain elements of the established drafting may still have relevance in those circumstances. Moreover, live PFI and PF2 arrangements will remain in operation and, given the usual duration of such arrangements, are expected to run for many years. Accordingly, while PF2 will not be pursued for fresh...
Abandon Describes a situation where the contractor halts performing the works for an extended, uninterrupted span of days (eg 20 business days) or for a greater aggregate of non-consecutive days (eg 60 business days) across the project’s duration or within a stated timeframe (eg 12 months), doing so wilfully and without justification at any stage of delivery or execution. Abandonment is ordinarily treated as a contractor default, enabling the Authority to terminate the Project Agreement and/or permitting Project Co to end the construction contract immediately for cause. Acceptance Tests Tests carried out to confirm whether the facility (or another project asset) achieves the standards required for the Authority to deem facility complete and accept it. Access Protocol The protocol that Project Co must follow in order to obtain access to the buildings forming part of the project at any time during the term. For instance, on a social housing scheme or a...
This Practice Note offers a high-level overview of the Private Finance Initiative ( PFI), outlining what PFI entails, how a standard PFI project is put together, and its core features. It also covers PFI’s successor, ‘ PF2’. In the 2018 Budget, delivered on 29 October 2018, the government stated that PF2 will not be used for new projects. Even so, existing PFI and PF2 schemes will continue, and, given the usual lifespan of these arrangements, they are likely to run for many years. What is PFI? PFI is a way to procure the design, construction and operation of public services and public sector infrastructure such as hospitals, schools, leisure facilities, social housing, waste management, emergency services, defence, roads and highways, social care and prisons. Introduced in 1992 by the Conservative government and later keenly adopted by their Labour successors, it was regarded as a...
This Practice Note explains the petroleum revenue tax ( PRT) framework. Historically, oil companies were liable to PRT on the value of oil and gas extracted and on receipts for using qualifying infrastructure, after deducting specified costs and reliefs. PRT was charged at varying rates following its introduction in 1975. It stood at 50% from July 1993, then was reduced to 0% with effect from 1 January 2016. Despite the nil rate, losses can still be generated and carried back to recover PRT previously paid. For guidance on the corporation tax, supplementary charge and energy profits levy rules applying to companies in the oil and gas sector, see Practice Note: Oil and gas—corporation tax, supplementary charge and energy profits levy. PRT post 1 January 2016 Under a 0% regime, losses computed under the PRT rules, whether arising on...
An individual can deliver their services in several distinct forms indeed. The predominant model is an employment relationship, broadly requiring the employer to run PAYE on sums paid to the employee, comply with real time information ( RTI) reporting duties, pay employer National Insurance contributions ( NICs), and observe a wide range of relevant employment law obligations. The employee is typically paid earnings only after income tax and employee NICs. A notable minority in the UK operate as self-employed, often providing their services straight to their customers and clients. These individuals must personally report and settle their own income tax and NICs liabilities independently. It is, in the end, a (sometimes intricate) factual assessment in every case whether a worker is self-employed or not. For further detail on how this is assessed, see Practice Note: Establishing employment status—from a tax and NICs...
FORTHCOMING DEVELOPMENT: Section 10 of the Finance Act 2022 will raise the normal minimum pension age ( NMPA) from 55 to 57 on 6 April 2028, with the exception of members of the firefighters, police and armed forces public service pension schemes. The Finance Act 2022 will also permit members of registered pension schemes to access benefits before 57 where, on or before 4 November 2021, they either held an ‘unqualified right’ to take benefits, or were undertaking a substantive transfer to a scheme that, on or before 4 November 2021, provided an unqualified right to a protected pension age below 57. To rely on this new 2028 protection, the scheme’s rules must, as at 11 February 2021, have contained an unqualified right to draw scheme benefits before age 57. For further details, see Practice Note: Increasing the normal minimum pension age ( NMPA) to...
A pension transfer A pension transfer takes place when an individual’s rights under one pension scheme are moved to another. The ceding scheme passes the relevant assets to the receiving scheme, which then assumes responsibility for providing the benefits for the person concerned. Members of all UK registered pension schemes that are personal pension schemes have an overriding statutory entitlement to transfer the cash equivalent of their benefits to another pension arrangement, subject to meeting certain prescribed conditions. Many personal pension schemes also allow transfers out in wider situations than those giving rise to the statutory right, for example: partial transfers transfers of benefits that are in drawdown transfers of particular assets in non-cash form In practice, it is crucial that transfers paid from personal pension schemes constitute a recognised transfer for HMRC purposes and do not inadvertently forfeit any tax-related protections or statuses the member may...
This Practice Note explores the legal and practical considerations that arise when a personal pension scheme is wound up by its provider, the scheme administrator, and any trustee. What does it mean? Care must be taken to distinguish the winding up of a personal pension scheme from an employer’s choice to stop participating in the arrangement which, in the context of employee relations, may be portrayed as the winding up or closure of the employer’s group personal pension plan. Any pension arrangement that is not an occupational pension scheme is a personal pension scheme, and it must, in general, be created by a person with permission under the Financial Services and Markets Act 2000 ( FSMA) to establish a personal pension scheme or stakeholder pension scheme in the UK. Unlike occupational pension schemes, a personal pension scheme does not have to be set up under...
Before 6 April 2006, personal pension schemes had to offer retirement benefits on a money purchase basis to gain HMRC approval. Although that rule no longer applies, its legacy—together with the original, narrow list of authorised providers—has influenced the investment structures and strategies that are typically available in the personal pensions market... Investment strategy Unlike trustees of occupational pension schemes, contract-based pension providers are not obliged to prepare a statement of investment principles ( SIP). Their main public-facing document is the Independent Governance Committee ( IGC) annual report. IGCs must act in the interests of policyholders. While their primary role is to assess value for money, the report goes beyond that: it sets out how the IGC has considered policyholders’ interests more broadly. It must also detail the arrangements the pension provider has established to ensure that policyholders’ views are directly conveyed to the IGC. For...
Practice Note overview This Practice Note sets out the conditions that must be met by companies, other than the note issuer, to: qualify as securitisation companies—this Practice Note outlines the criteria a company must meet to be: an asset-holding company an intermediate borrowing company a warehouse company a commercial paper funded company meet the additional requirements for such securitisation companies to be taxed on their returns from securitisation activities in accordance with the permanent securitisation regime For guidance on the tax treatment of securitisation companies within the permanent securitisation regime, see Practice Note: Asset-backed securitisations—the UK tax treatment. For the conditions a company must meet to qualify as a...
ARCHIVED This Practice Note is not maintained any longer, as it concerns the application of EU free movement rules in the UK before IP completion day, when domestic measures giving effect to EU free movement were revoked, subject to specified savings and modifications. For more detail and context, including on the applicable savings and the status of CJEU case law, see Practice Note: Brexit and the end of EU free movement law in the UK. The Practice Note is kept in an archived form for historical interest and reference, since EU law as it was formerly implemented in the UK still has relevance in some limited circumstances. For historical versions of the Immigration ( European Economic Area) Regulations 2016, SI 2016/1052, including the version immediately before revocation, consult Legislation.gov.uk. For continuing development of EU free movement law in EU Member States, see:...
Prior to the EU General Data Protection Regulation coming into force on 25 May 2018, the Data Protection Act 1998 ( DPA 1998) defined the data protection duties on pension scheme trustees and employers when processing personal data as a data controller (see: Terminology below). For more information on the requirements applying in a pensions context on and from 25 May 2018, see Practice Note: Data protection for pensions lawyers. Terminology Terms commonly used under the DPA 1998 included: Processing: an all‑embracing concept covering obtaining (collecting), recording, holding (storing), using, disclosing or erasing (deleting) data Data subject: an individual who is the subject of the data held. In a pension scheme context, typical data subjects are scheme members, and any beneficiaries or dependants of those members Personal data: data relating to a living individual who can be identified from that data Data controller: the person or...
FORTHCOMING CHANGE: The Finance Bill 2025–26 includes provisions bringing unused pension funds and death benefits within a deceased member’s estate, and thus within the inheritance tax ( IHT) regime, with effect from 6 April 2027. Under these proposals, unspent pension savings and death benefits will fall within IHT from 6 April 2027. The rules will not cover death-in-service payments to active members in relevant employment, nor a dependant’s scheme pension (defined as a DB scheme spouse’s or dependant’s pension). Existing exemptions, including those for spouses and civil partners, will continue in force. Personal representatives will have primary responsibility for settling any IHT. For further detail, see: Practice Note: Inheritance tax and pensions News Analyses: HMRC— Reforming inheritance tax—unused pension funds and death benefits HMRC confirms new IHT rules on unused pension funds to apply from 6 April 2027 HMRC policy paper: Inheritance Tax: unused pension funds and death...
This Practice Note summarises the characteristics of the different forms of allowance protections. Allowance protections exist in several variants. Their initial role was to curb or eliminate exposure to the lifetime allowance ( LTA) charge. With the LTA charge removed on 6 April 2023, and the entire LTA regime abolished from 6 April 2024, the emphasis of protections has shifted to: the higher lump sum allowance, and the higher lump sum and death benefit allowance, that they can confer—for further information, see What does the protection do?, below the prospect of a higher tax-free lump sum—for further details, see Lump sum protections, below HMRC provides a protection look-up facility giving registered pension scheme administrators and practitioners the means to verify whether the allowance protection (or enhancement) a member relies upon is valid for a higher lump sum allowance and/or lump sum and death...
FORTHCOMING CHANGE : On 10 October 2025, the Department for Work and Pensions ( DWP) stated it plans to consult on the £30,000 threshold that obliges pension scheme members to take independent financial advice before moving safeguarded pension benefits into a flexible benefit scheme, amid increasing scrutiny of whether the £30,000 level remains suitable in view of inflation and higher advice fees. For further information, see LNB News 22/10/2025 44. On 6 April 2015, pension freedoms were brought in, enabling members with flexible benefits (namely, money purchase benefits and cash balance benefits) to access their pension pots in additional ways, including through drawdown or by taking one or more lump sums known as uncrystallised funds pension lump sums ( UFPLSs). These pension freedoms do not extend to safeguarded benefits (namely, defined benefits ( DB) and other benefits that are not money purchase or cash...
Broadly speaking, tax applies to UK registered pension schemes in three different areas: the tax treatment of member and employer contributions, including any repayment of member contributions the tax treatment of assets held by the scheme, including the investment returns generated by those assets the tax treatment of benefits paid out by the scheme Where an individual participates in more than one registered scheme, the contributions paid to—and the benefits received from—each arrangement are combined and considered together when establishing that person’s overall tax liability. This Practice Note concerns registered private sector pension schemes. Public sector pension schemes are predominantly governed by separate legislation. Their tax position is broadly similar, though not invariably the same, as that which applies to registered private pension schemes......
ARCHIVED This archived Practice Note outlines how the lifetime allowance regime worked before its abolition on 6 April 2024. It is not maintained. For further details, see Practice Note: Abolition of the lifetime allowance. The core principle of the pensions tax regime is that members of registered pension schemes receive: various tax advantages while building up retirement and life assurance benefits; and certain tax advantages when specific benefits are paid from a registered pension scheme (eg the tax-free pension commencement lump sum) In return, and to avoid tax charges, a registered pension scheme must comply with a range of restrictions relating to the: accrual of benefits payment of contributions; and payment of benefits Until 5 April 2024, a key constraint on the build-up of members’ benefits within the pensions tax regime was the lifetime allowance, which limited the amount of benefits that could be...
FORTHCOMING DEVELOPMENT : Under section 10 of the Finance Act 2022, the normal minimum pension age ( NMPA) is set to rise from 55 to 57 with effect from 6 April 2028, excluding members of the public service schemes for firefighters, police and the armed forces. It also introduces a right for members of registered pension arrangements to access benefits before 57 where, on or before 4 November 2021, they already held an ‘unqualified right’ to do so, or were actively transferring to a scheme that, by that date, offered an unqualified right to a protected pension age below 57. To rely on this 2028 protection, the scheme’s rules must have, as at 11 February 2021, conferred an unqualified right to draw scheme benefits before age 57. For more detail, see Practice Note: Increasing the normal minimum pension age ( NMPA) to...
FORTHCOMING CHANGE HMRC intends to bring in limited technical tweaks in early 2026 to make sure the rules scrapping the lifetime allowance keep working as envisaged. These changes will tidy up provisions, fix minor drafting anomalies and support smoother implementation, taking effect retrospectively from 6 April 2024. While the majority of pension savers will be unaffected, they will resolve targeted issues including: how certain overseas lump sums paid to UK residents are treated; how crystallised rights are valued for trivial commutation lump sums; how scheme-specific and stand-alone lump sums function; and aligning enhancement factors with the position before April 2024. For more detail, see: Implementation of the abolition, below. Up to 5 April 2024, a principal constraint on building up members’ benefits under the pensions tax framework was the lifetime allowance, which limited the level of benefits that could be...
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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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