Legal Practice Notes

Introduction An offshore wind farm is a generating plant comprising all the infrastructure needed to capture and gather wind energy, convert it into electricity, and securely deliver it to the main power network or a nearby local grid as required. Offshore wind is gaining prominence as a renewable solution to address climate change, with the UK and Europe leading globally in the development of large-scale offshore wind farms today. Though the recent gas shortages and spells of low wind in Europe have revealed the fragilities of relying on offshore wind for energy security, it unquestionably remains a crucial and growing share of the global energy mix, bolstered by rapid expansion in China. In recent years, the European offshore wind industry has flourished, most notably in the UK, which ranks among the largest markets and hosts several of the biggest operational offshore wind projects...

ARCHIVED: This archived Practice Note reviews the pros and cons for trustees of making a rebasing election under Finance Act 2008, Sch 7 Pt 2, para 126, and sets out the steps required. It further considers rebasing elections under section 3 of the Taxation of Chargeable Gains Act 1992 ( TCGA 1992) for gains arising in underlying companies, and TCGA 1992, section 43 on assets traced from other assets and movements between trusts. It also explains the implications of rebasing elections for those using the remittance basis. Abolition of remittance basis from 6 April 2025 The remittance basis for UK-resident, non-domiciled individuals ceased on 6 April 2025. The final year in which it could be claimed is the 2024–25 tax year. From 6 April 2025, a new four-year arrangement—often called the foreign income and gain ( FIG) regime—applies, granting 100% relief on eligible FIG to new...

ARCHIVED: This archived Practice Note summarises the typical data protection liability positions seen in general business services agreements between controllers and processors in the UK, derived from a 2020 Lexis Nexis® survey of specialists at several leading firms. It reflects the market position as surveyed in 2020 and is not updated; it is provided for background information only. It covers: the purpose of the survey and how to use this Practice Note the controller’s liability for breaches of its data protection obligations the processor’s liability for breaches of its data protection obligations indemnities which aspects of the negotiations usually consume the most time It is standard for a controller to appoint a processor to handle personal data on its behalf, commonly where one organisation supplies a service to the controller and processes personal data in providing that service. As a result, the...

This Practice Note: sets out the principal conditions that must be met for a non- UK lender to qualify for relief from UK withholding tax on interest paid under an applicable double tax treaty with the UK, drawing particular attention to the potential difficulty posed by the beneficial ownership test, and offers drafting ideas to reinforce a borrower's position As noted in: Practice Note: Tax considerations on a loan agreement—the tax gross up clause, and Checklist: Reviewing a loan with a view to alleviating UK withholding tax risk—checklist withholding tax is a central issue for a loan. The possibility that UK withholding tax could apply to an interest payment—and therefore that a borrower may need to gross up that payment for the withholding—heightens where the lender is not UK tax resident. Some lenders that are not UK tax resident are based in a...

This Practice Note offers hands-on guidance on the principal legal issues linked to making podcasts. It covers: what a podcast is; the intellectual property ( IP) rights that subsist in a podcast; other regulatory and legal matters affecting podcasts; and key issues in podcast agreements. What is a podcast? Although the term ‘podcast’ has evolved since the early 2000s, most people regard podcasts as audio—and increasingly audiovisual—programmes delivered by streaming or downloading straight to a user’s smartphone or another device. Podcasts have grown enormously in popularity and some analysts predict the market could be worth close to US$100bn in the coming years. That rise has been driven by a range of factors, including: widespread smartphone use, making it simple to stream and download podcasts lower barriers to entry than traditional media, enabling creators to swiftly test, develop and produce new podcast formats many shows...

For the income tax rates and allowances that apply in the current tax year, refer to Practice Note: Key UK tax rates, thresholds and allowances for Private Client. Personal allowances The following income tax allowances are available to individuals: personal allowance transferable personal allowance blind person’s allowance married couple’s allowance personal savings allowance dividend allowance property income allowance trading income allowance The personal allowance, blind person’s allowance, personal savings allowance, dividend allowance, property income allowance and trading income allowance are all deducted from net income to determine the taxpayer’s taxable income. This ensures that a portion of income is tax-free each year. The married couple’s allowance (which includes civil partners) is delivered as a 10% reduction in tax. In specified circumstances, the personal allowance, the blind person’s allowance and the married couple’s allowance can be...

When advising an individual on cross-border or offshore tax planning, it is essential to determine the ‘source’ of income received by or on behalf of that person. This Practice Note outlines why ‘source’ matters for income tax and explores what it means in this context. The income tax charge applies only to particular kinds of income under distinct charging provisions within the income tax acts. Accordingly, when identifying source, regard must be had to each distinct category of income. The Charges to income tax—tables sets out a summary of the charges for each category and the legislative provisions relevant to that charge. What is the meaning of source of income? ‘ Source of income’ describes where income originates or from where it is derived. Income arising in the UK has a UK source and income arising outside the UK has a non- UK (or...

Changes in a person’s circumstances which occur after the grant of entry clearance or permission: can result in cancellation or curtailment of a person’s stay in the UK where their leave to enter or remain is limited, and will frequently need to be notified to the Home Office Notifying the Home Office of a significant change of circumstances can, in itself, prompt cancellation or curtailment. This Practice Note addresses both matters. The withdrawal of a person’s permission is described as: cancellation, when this happens at the port of entry or while the person is outside the UK, or curtailment, when the individual is already in the UK From 1 December 2020, the Immigration Rules, Part Suitability (and before it, Part 9) no longer uses the term curtailment, referring instead to cancellation throughout. For the purposes of the Rules,...

This Practice Note This Practice Note sets out who holds ownership of IP generated in the course of employment. It then outlines the legal position and prevailing practice for businesses when securing IP rights from employees and contractors, highlighting key considerations. It further offers practical guidance on the principal IP clauses and related provisions commonly found in employment contracts and contractor agreements, as well as practical steps. On a day-to-day basis, employees, consultants and contractors create valuable IP for organisations as part of their assigned duties and responsibilities within their roles. For example: R& D personnel may devise inventions that are capable of being protected by patent. They may also develop new formulae, recipes or algorithms, or design novel methods or processes to make operations more efficient. If these are kept confidential, significant rights can exist as know-how or trade...

Government security classifications The Government Security Classifications policy took effect in April 2014 and has seen several updates since 2018. It exists to make sure information is appropriately categorised, exchanged and safeguarded. The policy covers all information, in any medium, that is created, processed, gathered, stored or shared by government to provide services and run its operations. Classifications reflect how sensitive the material is, judged by the likely impact if it were compromised, lost or misused. It therefore applies to information in any form across government, used to deliver services and conduct business, with handling guided by the likely impact of compromise, loss or misuse. OFFICIAL SECRET TOP SECRET Before this framework, six grades of classification were in use. The regime aims to streamline the process for handling official documents and refresh a system designed for paper-based material, with the...

Assimilated Regulation ( EU) No 1169/2011 on the provision of food information to consumers ( Assimilated FIC) Assimilated FIC sets out the core rules, duties and overarching principles for food information—and especially food labelling—across the UK. It likewise operates within the EU. See Practice Note: Introduction to EU food law. It covers all pre-packed items, non-prepacked foods, goods packed on-site for direct sale, and fare supplied by mass caterers. Distinct obligations apply to the various product types and to operators at different points along the supply chain. Assimilated FIC took effect across the EU on 13 December 2011, when the UK remained an EU Member State. As the UK is no longer a Member State, it may revise and develop Assimilated FIC as it considers appropriate. In England, the Food Information Regulations 2014 ( FIR 2014), SI 2014/1855 provide the national enforcement framework and some...

Practice Note Under Part 4A of the Financial Services and Markets Act 2000 ( FSMA 2000), any firm—be it a business, a not-for-profit body or a sole trader—undertaking one or more regulated activities in the UK must be authorised or registered by the Financial Conduct Authority ( FCA) or the Prudential Regulation Authority ( PRA). Banks, credit unions, insurers and managing agents of a Lloyd’s syndicate are required to apply to the PRA for authorisation. Firms seeking approval to conduct any other activities should apply to the FCA. This Practice Note outlines the FCA and PRA authorisation process under FSMA 2000, Pt 4A. It does not cover the FCA’s authorisation and registration processes for consumer credit, payment services or electronic money institutions, which are set out in the following Practice Notes: FCA authorisation of consumer credit firms UK regulation of payment services...

This Practice Note outlines the UK framework governing exchange traded funds ( ETFs), broadly open-ended investment funds that mirror, for example, an index, asset class or strategy and are dealt on an exchange or other trading venue. It also highlights market developments and financial stability considerations in the ETF sector. What is an ETF? An ETF is defined as a fund in which at least one unit or share class is traded throughout the day on at least one trading venue, and where at least one market maker acts to keep the trading price of its units or shares from diverging materially from its net asset value and, where relevant, its indicative net asset value. This definition appears in the Financial Conduct Authority ( FCA) Handbook Glossary and is derived from Article 4(1)(46) of Directive 2014/65/ EU ( Mi FID II). ETFs are the most...

Is a tax return required? Personal representatives ( PRs) are obliged to notify HMRC of any income that has not suffered tax during the administration period, as well as any capital gains realised in that time on disposals of assets within the deceased’s estate. Under the general rule in section 7(3) of the Taxes Management Act 1970 ( TMA 1970), PRs are not required to notify chargeability where the only receipts have already been taxed at source or carry an attached tax credit (for example, bank interest, dividends paid before 6 April 2016). In many estates up to the 2015–16 tax year, in practice, all estate income was taxed at source and no return was needed. From 2016–17, however, the rules for dividend income were altered by the removal of the dividend tax credit. Banks also no longer deduct tax at source on bank...

FORTHCOMING CHANGE relating to the tax treatment of carried interest: After a call for evidence on the taxation of carried interest that ran through summer 2024, the Autumn Budget 2024 set out plans to introduce a revamped carried interest regime from 6 April 2026. This will sit within the income tax system, with tailored rules to reflect the distinctive features of the reward. The intention is to recognise the particular nature of such rewards within taxation. A consultation then examined potential new qualifying criteria for access to the regime, and the government issued its response in June 2025. Draft legislation for the carried interest regime was published on 21 July 2025, intended for inclusion in Finance Bill 2026. The provisions will apply to carried interest arising on or after 6 April 2026. All of this was confirmed at the 26 November 2025 Budget, which also noted that...

Devolution settlements in the UK Within the UK’s devolution arrangements, devolved governments can only legislate in fields where they hold competence. The accompanying table sets out the extent of legislative competence for both the Scottish Parliament and the Senedd Cymru. For further reading, consult Practice Notes: An introduction to devolution in Scotland, Wales and Northern Ireland; Structure and operation of the Scottish Parliament; and Structure and operation of Senedd Cymru......

The Copyright and Rights in Databases Regulations 1997 ( CRD 1997) The Copyright and Rights in Databases Regulations 1997 ( CRD 1997), SI 1997/3032, gave effect to the EU Database Directive by revising UK copyright law as it relates to databases. The CRD 1997 also established a distinct, sui generis protection: the database right. Unlike copyright, this right applies whether or not the database is an intellectual creation, provided there has been sufficient 'investment'. Copyright in a database and the database right are separate and independent. For deeper guidance on copyright in databases and the database right, see Practice Note: Copyright in databases and database right. Being EU-derived legislation, the CRD 1997 continues to have effect in the UK as assimilated law. Assimilated law is the term for retained EU law ( REUL) that remains in force after the end of 2023. The shift from REUL to...

Tax following the accounts As a general position, for corporation tax, a company recognises profits and losses from its loan relationships by reference to the profit or loss shown in its accounts, in accordance with Part 5 of the Corporation Tax Act 2009 ( CTA 2009). In short, accounts prepared in line with generally accepted accounting principles ( GAAP) are the foundation from which taxable and relievable items and amounts for a company’s loan relationships are determined. This approach is commonly described as ‘tax following the accounts’. There are, nonetheless, several exceptions where the loan relationships rules require a move away from the accounts and insist that credits and debits are worked out on another basis. For broader guidance on the tax treatment of loan relationships, including how a company’s profits and losses are calculated for corporation tax, see Practice Note: Loan...

Joint venture The expression ‘joint venture’ has no fixed legal definition in UK law. It denotes a commercial arrangement in which two or more parties agree to combine their resources to deliver a proposed project (or other business activity) and to share the resulting gains. The term spans many scenarios, from structural arrangements that create or modify economic control of a legal entity—such as joint venture companies or partnerships—to non-structural set-ups including contractual joint projects and informal, undocumented collaborations. A joint venture can be established for a single project, a defined period, or as a continuing business relationship... they may not have the requisite knowledge, expertise, technology, resources and/or funding by splitting funding obligations, they can reduce financial risk they may gain access to new markets they can keep running their own businesses whilst also pursuing the...

This Practice Note provides a concise overview of the principal consumer laws that organisations engaging with consumers ought to know. It reviews the core rules that apply when trading with, or contracting for, consumers in the UK, together with other significant legislation that shapes the business-to-consumer relationship in areas such as advertising, data protection, e‑commerce, product liability and safety, the supply of services, and civil enforcement and consumer disputes, as well as additional measures that protect consumers. It does not address sector‑specific regimes (eg travel and transport, insurance, consumer credit, gambling, charities), product‑specific regimes (eg alcohol, tobacco, animal/food/textile products, cars, medicines, fireworks), requirements on product or packaging marking or labelling, underage sales, or environmental legislation. EU legislation is outside the scope of this Practice Note. For further detail, see Practice Note: Key EU consumer...