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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 annual overview reflects on the standout developments of 2017 and signals what to expect in 2018. The coverage spans: fresh anti-money laundering obligations amendments to how pension benefits are taxed clarity on the VAT treatment of investment costs notable rulings on the duty of trust and confidence, and on discrimination the General Data Protection Regulation ( GDPR) a new curb on the statutory right to transfer the master trust authorisation framework the government’s pensions white paper adjustments to the employer debt regime Also included are updates on Lexis Nexis®’s content, featuring news of exciting developments over the past year and what is coming up across the next 12 months. Reviewing 2017 Scheme governance What happened? The final Money Laundering Regulations 2017, SI 2017/692 ( MLR 2017), which implement the Fourth Money Laundering Directive, were issued just in time to meet the required transposition deadline of 26 June 2017. What are the key...
ARCHIVED: This tracker is archived and no longer supported. It presents a catalogue of recent significant judgments delivered in 2023, arranged by subject. Those subjects can be found in the Table of Contents on the left of the page......
Accrual rate The speed at which pension entitlement builds as pensionable service is completed within a final salary arrangement, e.g. 1/60 for each year of pensionable service. Accrued benefits Benefits relating to service built up to a given date, measured with reference to current earnings or projected future pay. A-day ‘ A-day’ is the widely used term for the broad pension tax ‘simplification’ reforms that came into force on 6 April 2006. These changes followed a 2004 government policy to rationalise the British tax system as it applied to pension schemes. The objective was to cut the volume of legislation accumulated under successive administrations, folding the previous eight tax regimes into a single regime for all personal and occupational pensions. Key areas covered included: how much pension contribution was allowed; the range of schemes an individual could invest in; how much an...
Historically, regulation 21 of the Privacy and Electronic Communications ( EC Directive) Regulations 2003, SI 2003/2426 (the PECR Regulations) permitted pensions cold-calling, save in cases where the person called had previously told the caller they did not wish to receive such calls, or where their number was on the Telephone Preference Service register at the time. Under that regime, a call was defined in law as a connection established by means of a telephone service available to the public allowing two-way communication in real time. From 9 January 2019, the Privacy and Electronic Communications ( Amendment) ( No.2) Regulations 2018, SI 2018/1396 (the 2018 Regulations) altered PECR, SI 2003/2426, reg 21 so that it no longer applied to pensions cold-calling activities and in practice. At the same time, the 2018 Regulations introduced an opt-in approach for unsolicited direct marketing calls to...
ARCHIVED: This tracker has been archived and is not maintained. This tracker preserves an archive of news items and developments on coronavirus ( COVID-19) that relate to pensions. 22 July 2021 — TPO publishes annual report and accounts for 2020–21 The Pensions Ombudsman ( TPO) released its 2020–21 annual report and accounts, highlighting several key achievements, notably a Casework Reorganisation Programme introducing a single application route for all pension complaints and an emphasis on resolving matters as early as possible. Demand for TPO’s services was broadly steady across 2020–21. The service closed 4,853 pension complaints from 5,567 received, representing a 6% rise on the previous year. The report also records a fall in new pension complaints at the outset of the coronavirus ( COVID-19) pandemic, with demand picking up again towards the end of the year, in line with the long-term trend. TPO expects the...
ARCHIVED: This archived Practice Note summarises the principal, general effects for pensions resulting from the UK’s departure from the European Union ( EU) and the close of the implementation period (also called the transition period) on IP completion day (11 pm on 31 December 2020). The Practice Note also explores potential changes to pensions law after IP completion day. It is not being updated and is provided for background only. For details on the pensions impact of the Retained EU Law ( Revocation and Reform) Act 2023, see Practice Note: Retained EU law ( Revocation and Reform) Act 2023—impact on pensions law. What happened on IP completion day? On 31 January 2020 (exit day), the UK left EU membership and no longer had the right to engage in the EU’s political bodies and governance framework. Under the transitional provisions in Part 4 of the...
Across the UK, the majority of private sector pension arrangements—covering both occupational and personal plans—are created as trusts and, as such, fall within the scope of trust law. Trustees appointed under the governing trust deed must operate in line with that deed, the scheme rules, and any overriding legislation relevant to the scheme at all times. Above all, trust law requires trustees to prioritise the best interests of scheme members, but always consistently within the confines of the scheme’s own governing provisions and any applicable general law, in every decision they make under the scheme. Within the public sector, pension arrangements are predominantly set up by Parliamentary statute and are governed by their scheme rules and overriding legislation currently in force; however, some are constituted as trusts, bringing them under trust law and obliging compliance with the trust deed, the rules, with any...
FORTHCOMING CHANGE : Following the Budget 2025 announcement on 26 November 2025, the government is progressing legislation through the National Insurance Contributions ( Employer Pensions Contributions) Bill to restrict the level of salary sacrifice pension contributions that qualify for National Insurance Contribution ( NIC) relief to £2,000 per year. Any pension contributions above £2,000 made via salary sacrifice will, for NIC purposes, be treated in the same manner as other employee workplace pension payments; that is, primary and secondary Class 1 NIC charges will apply to those contributions. This reform is scheduled to take effect from 6 April 2029. The Bill leaves the detailed rules to be set out in regulations. For additional detail, see News Analysis: Bill to limit NIC relief passes Second Reading in Commons despite opposition and Practice Note: Salary sacrifice NIC relief to be capped at £2,000 from 6 April 2029,...
Requirements for PPF entry The conditions for a scheme to transfer into the PPF are: the scheme must be an eligible scheme—see: What schemes are eligible? below and either: a qualifying insolvency event must occur in relation to a scheme employer—see: What is a qualifying insolvency event? below, or the employer is unlikely to continue as a going concern and meets SI 2005/590, reg 7—see: Alternative route to PPF entry, below the insolvency practitioner for the employer must confirm that a scheme rescue cannot proceed—see: Duty of insolvency practitioner to issue notices confirming status of scheme (section 122 notices) and the scheme’s assets must be below the ‘protected liabilities’ (broadly, the benefits the PPF would pay to...
This Practice Note explains the meanings of ‘flexible benefit’, ‘safeguarded benefit’ and ‘safeguarded‑flexible benefit’ in relation to the pension freedoms that took effect on 6 April 2015 (for further detail, see Practice Note: Pension freedoms—an introduction [ Archived]). Why does the distinction matter? Drawing a line between flexible benefits and safeguarded benefits is crucial, as the pension freedoms introduced on 6 April 2015 are available only for the former and not the latter. Put simply, someone holding safeguarded benefits alone cannot use the pension freedoms unless they first convert those safeguarded benefits into flexible benefits, for example by transferring to a flexible benefit arrangement or by converting them within a scheme into flexible benefits. The government initially floated a consultation on extending certain pension freedoms to safeguarded benefits, but nothing further has emerged since the July 2014 announcement. In any event, schemes providing...
Types of death benefits payable There are two categories of scheme benefits payable when a member dies: pension death benefits lump sum death benefits Up to 5 April 2015, the pension death benefit provisions in the Finance Act 2004 ( FA 2004), s 167, meant a pension death benefit could only be paid to a dependant of the member for it to be an authorised payment. ‘ Dependant’ is set out in FA 2004 Sch 28 Pt 2 para 15. From 6 April 2015, a pension death benefit may be settled not only on a dependant of the deceased member but also on a nominee or a successor and still be treated as an authorised payment. ‘ Nominee’ is defined in FA 2004 Sch 28 Pt 2 para 27A, while ‘successor’ is defined in FA 2004 Sch 28 Pt 2 para 27F. In...
Levying penalties against those who enable defeated tax avoidance arrangements is intended to deter the architects, sellers and intermediaries of abusive avoidance structures and arrangements. Rolling out and strengthening this statutory framework forms part of a wider governmental drive, developed over a number of years, to eradicate tax evasion and aggressive tax planning. Complementary actions in this sphere encompass the general anti‑abuse rule ( GAAR); issuing conduct notices to promoters of tax avoidance schemes ( POTAS); creating criminal offences for promoters and offshore tax evaders; and publishing a further revised edition of the Professional Conduct in Relation to Taxation guidance (see General principles of tax avoidance— Private Client—overview for further details). At Spring Statement 2025 on 26 March 2025, the government opened a consultation on a package of measures aimed at tightening the net around promoters (and other enablers) of marketed tax...
Background to this Practice Note For context, the Law Commission’s Digital Assets: Consultation Paper formally defines a ‘digital asset’ as any asset that is presented in digital or electronic form. Digital assets span a wide range and include, among others, cryptoassets and stablecoins. Under the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017, SI 2017/692 ( MLRs 2017) (as amended), a ‘cryptoasset’ means cryptographically protected digital representations of value or contractual rights that rely on some form of distributed ledger technology ( DLT) and are capable of being transferred, stored, or traded electronically. In consultation paper CP19/3: Guidance on cryptoassets, the FCA identified three broad classes of cryptoassets: ‘exchange’ tokens — the FCA explained that exchange tokens are used in a manner akin to traditional fiat money. Nonetheless, while they can operate as a medium of...
This Practice Note examines when a trader may levy a charge for using particular payment instruments, for example debit or credit cards (a ‘payment surcharge’). It considers the effect of the Consumer Rights ( Payment Surcharges) Regulations 2012, SI 2012/3110 ( CR( PS) R 2012), as updated by the Payment Services Regulations 2017, SI 2017/752 ( PSRs 2017). It outlines the legislative context, defines surcharging, sets out the limits on surcharges and relevant carve-outs, and looks at enforcement and available remedies... Background The CR( PS) R 2012 took effect on 6 April 2013 to give effect to Article 19 of Directive 2011/83/ EU ( OJ L 304/64), the EU Consumer Rights Directive ( EU CRD). That measure barred traders from imposing payment method fees on consumers that exceeded the costs the trader actually incurred for that method. Its impact proved narrow, however, and the EU...
STOP PRESS : In March 2025, the government set out plans to fold the Payment Systems Regulator, and most of its remit, into the Financial Conduct Authority. The aim is to simplify oversight, cut duplication, and help firms concentrate on innovation and delivering services. Timing remains uncertain, though HM Treasury indicated in a letter that it would consult on the proposal’s detail during summer 2025. HM Treasury launched a public consultation on 8 September 2025, closing on 20 October 2025, outlining options for a leaner payments regulatory framework. Under the proposals, the FCA would assume the PSR’s roles, including advancing competition and innovation across payment systems and the services they provide, while championing the interests of consumers and businesses making everyday payments. Legislation will follow when Parliamentary time permits. Meanwhile, the PSR and FCA intend to work in close...
Pay As You Earn ( PAYE) The PAYE system is the mechanism by which an employer or pension provider withholds specified statutory deductions from an employee’s pay or a pensioner’s income. These comprise: deductions towards the employee’s income tax liability National Insurance contributions ( NICs) other pay-related deductions such as student loan repayments In effect, PAYE is HMRC’s approach to collecting income tax and NICs from individuals on an ongoing basis, instead of requiring everyone to complete a tax return to notify HMRC of what they owe. PAYE is not a precise calculation of an employee’s tax liability; it is an approximation of the tax the employee should pay, derived from HMRC’s view of the pay and benefits they are expected to receive. The tax is worked out using notices of coding that HMRC issues to employers and pension...
Pay as you earn ( PAYE) Pay as you earn ( PAYE) is the system through which employers (and other payers) must withhold and account to HMRC for income tax, National Insurance contributions ( NICs) and other statutory deductions on specified payments of PAYE income, namely: employment income pension income social security income Together, these are treated as PAYE income. For further details, see Practice Note: Scope of the PAYE system. PAYE income covers cash amounts paid to employees or directors (e.g. salaries, bonuses and termination payments). Non-cash remuneration is generally outside the scope of PAYE. An important exception is where payments are, or are treated as, readily convertible assets, which are subject to PAYE. This Practice Note outlines the definition of readily convertible assets, which is very broad. It includes assets (such as shares) that are tradeable on a...
Pay as you earn ( PAYE) Pay as you earn ( PAYE) is the system through which income tax (together with National Insurance contributions ( NICs) and certain other statutory deductions) must be withheld by employers (and other payers) and accounted for to HMRC in respect of specified payments of, namely the following categories: employment income pension income social security income (together, PAYE income). For further information and guidance, see the Practice Note titled Scope of the PAYE system. PAYE income typically covers cash amounts paid to employees or directors (eg salaries, bonuses and termination payments). Non-cash remuneration is generally outside the operation of PAYE, but an important exception applies where amounts are provided as (or treated as) readily convertible assets for PAYE purposes. In the sphere of employment-related securities, whether PAYE obligations arise depends largely—though not entirely—on the securities in point being readily...
FORTHCOMING CHANGE : At the Spring Budget 2023, the government revealed plans to deliver IT systems enabling tax agents to payroll benefits-in-kind for employers. This step is intended to cut burdens on employers and to enable agents to support their clients more effectively, and sits within the government’s long-term strategy to simplify the tax system for taxpayers and their agents. Alongside salary and other pay elements, such as overtime and bonuses, many employers repay employees for work-related costs and offer benefits for both motivation and recognition, providing support as well as incentivisation. The tax treatment of non-cash earnings is covered in Practice Note: How employment income is taxed—non-cash earnings or benefits. This Practice Note explains how payroll currently operates for expenses and benefits, reflecting the simplification that applied from 2016. It therefore reflects the position as it has applied since 2016. It also includes a short...
Pay as you earn ( PAYE) Pay as you earn ( PAYE) is the system through which employers (and other payers) must deduct income tax, National Insurance contributions ( NICs) and certain other statutory withholdings, and account for them to HMRC from specified payments of PAYE income. PAYE income comprises payments of: employment income pension income social security income See Practice Note: Scope of the PAYE system. PAYE income includes cash amounts paid to employees or directors, for example salaries, bonuses and termination payments. Although non-cash remuneration generally falls outside PAYE, a significant exception applies where the payment is, or is deemed to be, a readily convertible asset. Whether PAYE obligations arise on the acquisition of securities when an employment-related securities option is exercised depends on whether those securities constitute readily convertible assets. For comprehensive guidance on the meaning of readily convertible assets, refer to Practice Note:...
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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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