Featured documents
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
Most recent Practice notes
ARCHIVED: This archived Practice Note reviews the tax treatment of foreign currency gains and losses realised by individuals, trustees and personal representatives when withdrawing funds from overseas bank accounts. Major amendments to the rules took effect on 6 April 2012. The Note offers a brief outline of the post‑6 April 2012 position; it also examines the rules up to 5 April 2012 in greater detail. Abolition of remittance basis from 6 April 2025 The remittance basis of taxation was abolished for UK resident non-domiciled individuals from 6 April 2025. The final year in which the remittance basis can be claimed is the 2024–25 tax year. From 6 April 2025, a new four-year regime, colloquially known as the foreign income and gain ( FIG) regime, will be available, providing 100% relief on eligible FIG for new arrivals to the UK in their first four years of tax...
FORTHCOMING CHANGE relating to call for evidence on tax support for entrepreneurs: At Budget 2025, the government launched a formal public call for evidence (closing date: 28 February 2026) on how existing tax incentive arrangements operate and on potential measures to extend support for entrepreneurs. The exercise concentrates in part on the venture capital schemes and on enterprise management incentives. It also references investors’ relief and, more specifically, invites views on how the tax regime might better enable reinvestment by successful entrepreneurs, including the function and effectiveness of business asset disposal relief. Investors’ relief is a capital gains tax ( CGT) relief intended for individuals who invest in unquoted trading companies while not taking part in the management or operation of the business. Such investors will not generally qualify for business asset disposal relief ( BADR, formerly...
Capital gains tax ( CGT) CGT provisions have long offered substantial relief to owners exiting their businesses. Up to 2008, assistance came through business asset taper relief and, earlier still, through retirement relief. When taper relief was scrapped in 2008, entrepreneurs’ relief was brought in to sustain the preferential effective CGT rate on business assets previously available under taper. From 6 April 2020, entrepreneurs’ relief took on a new name: business asset disposal relief ( BADR). In essence, BADR lowers the CGT rate payable by business proprietors when they dispose of their business. Trustees may likewise claim BADR on the sale of business assets they hold, in the same way as individuals, provided the requisite conditions are met. For further detail on when individuals can obtain BADR and the qualifying conditions more generally (including the amendments introduced by Finance Act 2016 and Finance Act 2019 ( FA...
This Practice Note deals with the chapter 9 finance company exemptions under the controlled foreign company ( CFC) rules. Under Chapter 9 of Part 9A of the Taxation ( International and Other Provisions) Act 2010 ( TIOPA 2010), groups may elect into a regime that fully or partly relieves certain non‑trading finance profits of CFCs from the CFC charge. The purpose of the regime is to allow multinational groups to use a finance company located outside the UK to provide intra‑group loans to other non‑ UK companies without suffering a substantial UK tax charge. These finance profit exemptions operate by excluding specified profits of the CFC from the charge, rather than exempting the CFC itself......
When does the chapter 5 non-trade finance gateway need to be considered? This Practice Note examines the chapter 5 gateway within the controlled foreign company ( CFC) rules. As set out in Practice Note: meaning of gateways, a CFC tax charge arises only where profits pass into the CFC charge gateway. A CFC’s assumed total profits ( ATP) will enter that gateway solely if they first satisfy the chapter 3 gateway and/or one of the gateways in chapters 4–8 of Part 9A of the Taxation ( International and Other Provisions) Act 2010 ( TIOPA 2010). Accordingly, chapter 5 is considered only after those prior gateways have been addressed......
ARCHIVED This Practice Note is archived and no longer maintained. It addresses the former CFC rules that applied until the first accounting period of a CFC beginning on or after 1 January 2013. For practice notes on related topics under the rules in force from that date, see: CFC rules—calculating the CFC tax charge— Meaning of assumed taxable total profits and assumed total profits and CFC rules—the corporation tax assumptions. Within the CFC regime, a company’s chargeable profits must be calculated in order to: apply the lower level of taxation test when determining whether a company is a CFC (see: Old CFC rules — lower level of taxation) assess whether a CFC qualifies for the de minimis exception where chargeable profits are below £50,000, and establish the amount of any CFC charge This note explains the assumptions and requirements for computing a company’s chargeable profits. For...
This Practice Note deals with the exempt period exemption from a charge under the controlled foreign company ( CFC) rules. A company may fall within the CFC regime for an accounting period, but a CFC tax charge only arises where: the CFC has chargeable profits that pass the gateways, and none of the exemptions under the CFC rules apply There are two forms of exemption: Entity level exemptions — these remove the CFC from the CFC rules entirely for that accounting period. The relevant exemptions are: the exempt period exemption, which is explained in this Practice Note the excluded territories exemption the low profits exemption the low profit margin exemption the tax...
This Practice Note sets out the low profit margin exemption from a charge under the controlled foreign company ( CFC) rules. Even where a company is a CFC for an accounting period, a CFC tax charge will arise only if both: the CFC has chargeable profits that pass through the gateway; and none of the exemptions from the CFC rules apply. There are two types of exemption: entity level exemptions — these remove the CFC from the CFC rules entirely for that accounting period and are: the low profit margin exemption, which is explained further in this Practice Note the exempt period exemption the excluded territories exemption the low profits exemption the tax...
This Practice Note sets out, for calculation purposes, the corporation tax assumptions that must be applied when determining: the assumed taxable total profits and assumed total profits of the CFC the corresponding UK tax within the tax exemption rules, and the creditable tax of the CFC In turn, these assumptions are integral to the operation of the CFC rules and to the calculation of any resulting CFC charge. The corporation tax assumptions For these purposes, the assumptions are grouped into two broad categories: assumptions concerning the CFC itself, and assumptions about the application of the corporation tax rules to the CFC The assumptions are that: the CFC is: resident in the UK not a close company, and not a member of a group or...
Low profits exemption This Practice Note outlines the low profits exemption from a charge under the controlled foreign company ( CFC) rules. Even where a company is a CFC for an accounting period, a CFC tax charge will only arise if: the CFC has chargeable profits that pass through the gateway, and none of the exemptions from the CFC rules apply There are two types of exemption: entity level exemptions—these remove the CFC from the CFC rules entirely for that accounting period......
This Practice Note sets out the meaning of control for the purposes of the controlled foreign company ( CFC) rules. This point matters because, for a company to be a controlled foreign company (a CFC), it must be ‘controlled’ by persons resident in the UK......
Shares in a company can be held in certificated form or uncertificated form Shares are certificated where the company has issued, or ought to have issued, a paper share certificate covering those holdings. By contrast, shares are uncertificated when they exist in electronic form; no paper certificate is, or needs to be, produced for such holdings. For further detail on the difference between certificated and uncertificated shares, see Practice Note: Transfer of shares—law and procedure. The mechanism by which a share transfer becomes effective is influenced by the way the shares are held: Certificated shares are commonly transferred using a physical instrument of transfer. Uncertificated shares are transferred by electronic means. Where a shareholder intends to transfer certificated shares, they will ordinarily be required, as part of the process, to complete and execute an instrument of transfer. The prescribed form of that instrument is determined by the...
A collective defined contribution ( CDC) scheme is a type of defined ambition arrangement. What is defined ambition? At its core is the principle of risk sharing, meaning the pension scheme’s risks are not shouldered wholly, or mainly, by either the employer or the members. A defined ambition pension combines aspects seen in traditional defined benefit ( DB) schemes with elements typical of traditional defined contribution ( DC) schemes. According to the Department of Work and Pensions ( DWP), the purpose of a defined ambition pension is to provide members with greater certainty than a pure DC pension, while aiming for less cost volatility for employers than current DB pensions. In a traditional DB arrangement, the employer typically carries the full burden of risks linked to investment performance, inflation and how long members live. There has been a marked move away from traditional DB owing to factors...
For comprehensive analysis of the regulation, consenting and incentivisation of the net zero energy transition under the laws of England and Wales, see also: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. That textbook offers an in-depth exploration of matters addressed in this Practice Note. What is carbon capture, usage and storage ( CCUS)? The term CCUS is sometimes described as ‘carbon capture and storage’ ( CCS); broadly, CCS represents a narrower subset within the same sector. CCS describes a range of processes that capture and store CO 2 emissions from industrial activities......
CASE HUB ARCHIVED —this archived case hub reflects the position at the date of the judgment of 10 January 2020; it is no longer maintained. See further, timeline and commentary Case facts Outline An appeal brought by Tobii AB (publ) challenging the Competition and Markets Authority’s 15 August 2019 decision, which blocked Tobii AB (publ)’s completed purchase of Smartbox Assistive Technology Limited and Sensory Software International Limited (together, Smartbox) and required full divestment of Smartbox (i.e. unwinding the deal). Latest development On 17 February 2020, the CAT handed down a ruling on consequential issues, including permission to appeal (refused) and costs. Parties Tobii AB (publ) ( Tobii): Tobii is a Swedish high‑tech firm that designs and provides products and assistive technology for communication, as well as eye control and tracking. Competition and Markets Authority (...
CASE HUB ARCHIVED —this archived case hub reflects the position at the date of the judgment of 8 August 2023; it is no longer maintained. See further, timeline. Case facts Outline Appeals were brought by Hg Capital, Cinven and Mercury Pharmaceuticals (among others) contesting the CMA’s Chapter II finding on excessive and unfair pricing of liothyronine tablets, which identified an abuse of dominance and levied penalties exceeding £101.4m. Latest development On 8 August 2023, the CAT handed down its judgment: (i) it rejected the appellants’ challenges to the CMA’s decision; however, (ii) it cut Cinven’s penalty from £51.9m to £37.1m and Hg Capital’s from £8.6m to £6.2m. Parties Appellants: HG Capital LLP ( Hg Capital) Cinven ( Luxco 1) S.a.r.l. and others ( Cinven) Mercury Pharmaceuticals Ltd, Advanz Pharma Services ( UK) Ltd and others ( Advanz Pharma—formerly trading as...
CASE HUB ARCHIVED This archived case hub records the position as at the judgment dated 7 June 2018 and is no longer maintained. Note — on 20 December 2018, the Court of Appeal granted the CMA permission to appeal the CAT’s judgment of 7 June 2018. See the timeline, commentary and related cases. Case facts Outline Flynn Pharma Limited and Flynn Pharma ( Holdings) Limited v CMA (1275/1/12/17), and Pfizer Inc. and Pfizer Limited (1276/1/12/17) — appeals before the CAT concerning the CMA’s decision of 12 February 2016 in Case CE‑9742‑13 regarding phenytoin sodium capsules. Latest development On 25 July 2018, the CAT ruled that: (i) both Flynn and Pfizer were refused permission to appeal the CAT’s 7 June 2018 judgment; (ii) the question of abuse was remitted to the CMA for reconsideration consistent with that judgment; and (iii) the remittal should proceed...
Application and purpose of the client money distribution and transfer rules The client money distribution framework was overhauled on 1 January 2013 to meet the requirements of articles 39 and 48 of the EU European Market Infrastructure Regulation ( Regulation ( EU) No 648/2012, OJ L 201, 27.7.2012) ( EU EMIR). Following the UK’s departure from the EU, this legislation was kept as the retained European Market Infrastructure Regulation ( UK EMIR) (see Impact of Brexit on CASS and the FCA’s powers and requirements below). Subsequent modifications were introduced in July 2013 through policy statement PS14/9: Review of the client assets regime for investment business, implementing consequential revisions to the client money distribution provisions prompted by the extensive range of proposed amendments to the client money rules set out in PS14/9. Material further changes were made in July 2017 via policy statement PS17/18: CASS 7A and the...
Background to the The collapse of firms including Lehman Brothers International ( Europe) ( LBIE) in 2008 and MF Global UK Ltd in 2011 triggered complaints about the Financial Services Authority’s ( FSA) rules in the Client Assets Sourcebook ( CASS), as insolvency practitioners struggled to obtain information and records for client money and custody assets ( CMCA). At the time, these events highlighted problems in accessing information and records, and the limitations in the existing framework. Consequently, the FSA — the predecessor to the Financial Conduct Authority ( FCA) — concluded that CASS compliance standards at numerous firms were inadequate. In 2010 the regulator therefore moved to strengthen its client asset regime by refining the CASS provisions (see, for instance, consultation paper 10/09, Enhancing the Client Assets Sourcebook) and by allocating greater resources to the safeguarding of CMCA, for example by creating the Client Asset Unit to...
This database details how the CMA (and the former OFT) have calculated fines imposed for cartels that have Chapter I of the Competition Act 1998 (or Article 101 TFEU prior to Brexit) under the current fining guidelines. Refer to a database outlining how the European Commission calculated fines levied on undertakings found......
Popular documents
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 ]...
Discover more from LexisNexis
