Legal Practice Notes

An income payments agreement ( IPA) is a counterpart to an income payments order ( IPO), used where a bankrupt person consents to pay their spare income into the bankruptcy estate. Such contributions are made voluntarily rather than by a court order. To explore IPAs more fully, it helps to revisit the concept of an IPO. What is an IPO and when is it used? Once a bankruptcy order is made against an individual, the bankrupt no longer has to make further direct payments to creditors. Frequently, this means their income exceeds what is required for ordinary household outgoings. While the bankrupt remains undischarged, the court may, under section 310 of the Insolvency Act 1986 ( IA 1986), impose an IPO, specifying the amount of the bankrupt’s income that is to be claimed for the benefit of the estate during the time the order is in...

This Practice Note sets out how to use a mix of internal communication formats while supporting remote colleagues, hybrid teams and those with additional requirements. It also looks at creating effective two-way dialogue, the contribution of training to better communication, and how to evaluate the impact and success of your communication strategy. Embracing a range of formats Strong communication fosters an inclusive, engaged and high-performing workplace in which every individual feels recognised and understood. By adopting varied channels, firms can raise the quality of internal communications. A range of methods also helps meet the needs of remote and hybrid workers, and people who are neurodivergent or have other additional needs. Many organisations have traditionally leaned on emails and diarised meetings, but technological advances mean alternative formats should be considered. On their own, these methods may not be sufficient or accessible for everyone. Broadening the mix helps ensure...

Unless the parties agree otherwise, or an agreed award is issued, an arbitral award should set out its reasons. An arbitrator’s obligation to explain the decision is as exacting as that of a judge in court ( Compton Beauchamp Estates v Spence). In ABB AG v Hochtief Airport, the court advised that plainly expressed reasons, addressing the issues as argued before the tribunal, will evidently curtail the scope for unmeritorious challenges... Application to the tribunal for correction If reasons are absent or insufficient, a party may write to the tribunal seeking correction of the award under the slip rule (section 57 of the Arbitration Act 1996 ( AA 1996))—see Practice Note: AA 1996—inadequate award—correcting mistakes or errors in an arbitral award (s 57). The slip rule exists to permit the tribunal to rectify clerical mistakes or errors, or to remove any ambiguity in the award; it does not...

All family practitioners ought to approach their work with a commercially minded approach to practice. Partners must ensure the firm as a whole turns a healthy profit, heads of department must deliver a profitable team, and each individual must be profitable to safeguard their business, their team or their role. Although making major changes to systems can be culturally or personally difficult, smaller, incremental actions that lift profit margins are usually far more attainable for virtually any practice. This Practice Note sets out practical suggestions designed to strengthen performance at both personal and firm-wide scale. Professional obligations The SRA Standards and Regulations apply. The key requirements set out within the SRA Standards and Regulations comprise the following: Principles Code of Conduct for Solicitors, registered European lawyers ( RELs), registered foreign lawyers ( RFLs) and registered Swiss lawyers ( RSLs) Code of Conduct for...

Efficiency improves through five core steps: identify (and define) which process requires enhancement measure the issue analyse your data optimise the process control, ie embed the revised process so it becomes business as usual Management consultants commonly label this the DMAIC framework. This Practice Note takes you through step one. For further detail on continuous improvement and the remaining four stages, see Practice Note: Simplifying continuous improvement—law firms. It outlines two ways to identify and define which processes need improving, ie by: identifying where your processes create waste, as waste signals an inefficient process determining whether your way of working delivers what your clients want (within reason, ie within the range of what you are prepared to do for your clients) It also sets out some tactics to bring staff on board at this early...

This Practice Note outlines a straightforward five-step efficiency framework and shows how it works through a case study involving internal complaints about the in-house legal team. It also highlights related guidance and tools available to support each stage of the framework. The five steps framework The five steps in this improving efficiency framework are: define measure analyse improve control Management consultants often refer to this as the DMAIC framework. It is an excellent framework to follow when you are seeking to improve an existing process or resolve an issue or problem. It takes you through each element in turn and ensures you have viewed the process from every angle. What does each step involve? The table below sets out each of the five steps and illustrates them by reference to a hypothetical scenario—the legal team receives too many complaints. It also contains links to related guidance for each step in this...

This Practice Note sets out practical advice on importing plants and plant products from non‑ EU countries into Great Britain. It explains the risk groupings for such goods, the linked plant health controls, the process for importer registration, obtaining a phytosanitary certificate, arranging inspection of plants and plant products, and other connected matters. Introduction The principal legislation for plant health in England and Wales is the Plant Health Act 1967, which is intended to prevent pests and diseases harmful to agricultural or horticultural crops, as well as to trees and shrubs. In Scotland, the key instrument is the Plant Health ( Scotland) Order 2005, made under sections 2, 3 and 4(1) of the Plant Health Act 1967. Both have supporting secondary measures and incorporate Assimilated EU Regulations, including Assimilated Regulation 2016/2031. Plant health controls are administered by the Animal and Plant Health Agency ( APHA) in...

This Practice Note offers practical guidance on importing goods into the UK or Northern Ireland from any territory outside the UK or the EU. It sets out how to obtain an EORI number, determine whether the exporter is permitted to send the goods and whether the importer may receive them, and how to submit a customs declaration, including selecting the correct tariff heading, establishing the product’s value and identifying the customs duty due. Introduction This Practice Note covers the permanent import of goods from: any country outside the UK where the goods are destined for England, Wales and Scotland; and any country outside both the UK and the EU where the goods are destined for Northern Ireland Obtain an EORI number When the UK was a member of the EU, it followed the Union Customs Code. The UK continues to apply the Union Customs Code and its...

The UK’s rules on hybrid and other mismatches The UK’s rules on hybrid and other mismatches (referred to in this Practice Note as the hybrid rules) have been in force since 1 January 2017 and are intended to neutralise tax mismatches arising from how a hybrid instrument or hybrid entity is treated for tax purposes. While the regime typically concerns cross-border arrangements involving two or more jurisdictions, it may equally apply to transactions that are entirely UK domestic. Deduction/non-inclusion mismatches ( D/ NI mismatches), meaning a payment under a hybrid mismatch arrangement is deductible in the payer jurisdiction for tax but is not brought into the taxable income of the payee or a related party investor Double deduction cases ( DD cases), meaning a payment under a hybrid mismatch arrangement gives rise to more than one tax...

As a rule, goods entering Great Britain ( GB) are subject to VAT. Import VAT is levied on goods brought into GB from outside the UK (or into Northern Ireland ( NI) from outside the EU) at the rate that would apply to an equivalent UK supply. Importers must declare the goods and account for any import duty and import VAT. Items may incur both import VAT and customs duty, or just one of them. This Practice Note focuses on import VAT, and only refers to customs duty where it influences the import VAT liability. For commentary on customs duty, see Custom duties: De Voil Indirect Tax Service [ V17.1]. Certain goods, such as alcohol and tobacco, are also subject to excise duty. Position from 1 January 2021 The UK ceased to be an EU Member State on 31 January 2020. On that date, an...

ARCHIVED Where a tenant remains in occupation following the expiry of an earlier tenancy that lacks security of tenure, it is a live question whether the circumstances (including rent being paid) evidence an agreement to enter into a fresh periodic tenancy or indicate a lesser, interim arrangement, namely a tenancy at will. As a general rule, where one party permits another to take possession of land and accepts rent, then, in the absence of any other relevant factor, the sensible and reasonable inference is that the parties intended to create a periodic tenancy. Nevertheless, the courts have repeatedly concluded that this presumption of a fresh periodic tenancy is rebutted where the occupier goes into possession, or holds over, whilst the terms of a new contracted-out lease are under negotiation; in those conditions the relationship has been treated as a tenancy at will. The...

There are three different ways by which the creation of an easement can be implied at common law: necessity intended use the rule in Wheeldon v Burrows Be aware that easements may likewise also be implied by statute under section 62 of the Law of Property Act 1925 ( LPA 1925); for additional guidance, see Practice Note: Easements— LPA 1925, s 62 and permissions. An implied grant at common law stems from an express disposal of either the servient or the dominant tenement (or a contemporaneous disposition of both). Such implications only arise where the dominant and servient tenements were formerly held in common ownership. An implied easement can also arise on the grant of a lease in the same circumstances as on a transfer or conveyance; however, its duration is confined to the period for which the lease actually...

For this Practice Note, references to trustees cover trustees and trustee directors of occupational pension schemes, together with scheme managers and pension board members for public service pension schemes. What is EDI? Equality, diversity and inclusion ( EDI) is a joined-up approach that ensures people from varied backgrounds are treated fairly, valued, and able to participate meaningfully. It seeks to embed fairness, value and meaningful contribution at the forefront for all consistently everywhere. equality concerns offering equal chances and tackling disadvantage so individuals are not constrained by background or characteristics diversity acknowledges and values visible and non-visible differences, reaching beyond legally protected characteristics inclusion makes certain this diversity is put to effective use by building an environment where people feel respected, heard and able to prosper The Pensions Regulator ( TPR) considers that, when equality, diversity and inclusion operate together in running a...

This Practice Note addresses the United Nations-supported Principles for Responsible Investment and considers sector guidance and recommended practical actions for private equity houses to embed environmental, social and governance ( ESG) considerations within private equity vehicles and their portfolio businesses. Overview of tools and resources Numerous industry and sector-focused organisations (including development finance institutions ( DFIs) and non-governmental organisations ( NGOs)) provide publicly available tools and resources to assist private equity firms with integrating ESG factors into their investment decisions and operations. The principal bodies and their tools and resources include: Principles for Responsible Investment ( PRI): Supplies guides and case studies on ESG integration. ( Resource/tool: PRI Data Portal) Sustainability Accounting Standards Board ( SASB): Provides sector-specific ESG standards for financial materiality. ( Resource/tool: SASB Materiality Finder) Global Reporting Initiative ( GRI): Sets out a framework for...

The UN Guiding Principles on business and human rights ( UNGPs) mark a change in how human rights concerns are addressed. It is now recognised that these matters are not confined to nation states and international organisations. Businesses operate worldwide through increasingly intricate structures and supply chains, and therefore bear a corporate responsibility to respect and manage human rights within their operations—over and above any legal obligations placed upon them. Endorsed by the UN Human Rights Council in 2011, the UNGPs set out a framework for states and business organisations to identify and tackle human rights risk linked to business activity. This Practice Note highlights the key elements of the UNGPs, explains how they apply to business organisations, and suggests practical ways an organisation can embed them within its...

ARCHIVED This Practice Note, kept for reference only, sets out the statutory and regulatory amendments — including revisions to the FCA Handbook — that implemented the pension freedoms taking effect on 6 April 2015. Preparatory actions undertaken before 6 April 2015; Changes introduced on the day itself; and Subsequent technical tweaks to better realise the pension freedoms. The Note is not maintained and is supplied solely for information. From 6 April 2015, the pension freedoms permitted those with flexible benefits (that is, money purchase or cash balance benefits) to access their pension savings more readily from age 55, either through drawdown or by taking one or more cash payments called uncrystallised funds pension lump sums ( UFPLS). For further details, see Practice Note: Pension freedoms—an introduction [ Archived]. How were the pension freedoms implemented?......

This Practice Note provides guidance on putting sustainable procurement into practice under Directive 2014/24/ EU. It outlines key methods, including using labels within technical specifications and carrying out sustainability assessments at the selection and award stages, to achieve this. It further looks at performance requirements as a means of factoring in environmental and social aspects, and highlights the use of these tools to embed such outcomes. Promoting sustainable development via public procurement Directive 2014/24/ EU (the EU Public Sector Directive) derives its authority from the Treaty on the Functioning of the EU ( TFEU), which mandates that environmental protection duties are integrated into the design and delivery of the EU’s policies and activities, in particular to promote sustainable development. When implementing its policies, the EU must also consider: guaranteeing adequate social protection ( Article 8 TFEU) tackling discrimination and social exclusion ( Article 9...

This Practice Note explains the Financial Conduct Authority ( FCA) framework permitting authorised funds to deploy side pockets for assets hit by Russia’s invasion of Ukraine and the ensuing sanctions. It provides questions and answers on this framework, including topics such as: scope initial considerations impact on investors cost considerations alternatives changes to the FCA’s proposed rules any further FCA guidance relating to side pockets and managing side pockets It also highlights initial and ongoing considerations for establishing, operating, and managing side pockets within authorised funds effectively. Background On 6 July 2022, the Financial Conduct Authority ( FCA) published policy statement PS22/8, ‘ Protecting investors in authorised funds following the Russian invasion of Ukraine’, which outlined urgent measures to manage the invasion’s effects on authorised funds and retail investors. Those rules came into effect on 11 July 2022. That policy...

FORTHCOMING CHANGE: On 26 November 2025, within Budget 2025, it was confirmed that from April 2029 only the first £2,000 each tax year of pension saving made under a salary sacrifice arrangement will escape National Insurance contributions ( NICs). Any amount an employee sacrifices above £2,000 a year will attract both employer and employee NICs, meaning the surplus over £2,000 will, for NICs, be handled in the same manner as other employee workplace pension payments. Employer pension funding is unchanged, and income tax relief is also preserved. Employers must record and report the total value of salary given up using the existing payroll software already in use by employers for reporting purposes, and HMRC has pledged to work with stakeholders as appropriate in practice. HMRC will issue further guidance ‘before April 2029’. The National Insurance Contributions ( Employer Pensions...

Statutory time limits for implementing planning permission Planning consents are not permanent or open-ended. Sections 91 and 92 of the Town and Country Planning Act 1990 ( TCPA 1990) stipulate that every grant of planning permission must include a condition that limits the period within which the permission is implemented. Local planning authorities ( LPAs), relying on TCPA 1990, ss 91 and 92, have discretion to set the duration of planning permission, fixing such timescales as they reasonably judge appropriate......