Legal Practice Notes

This Practice Note examines claims for damages for breach of statutory duty. For guidance on claims for damages for a negligent breach of the duty of care outside a statutory duty, see the following Practice Notes: Negligence—when does a duty of care arise? Negligence—when is the duty of care breached? —nature of liability A claimant who suffers loss or injury in circumstances where a defendant has contravened a statutory requirement may, in some cases, recover damages in tort, even if the facts do not fall within the scope of a recognised tort such as negligence. Where the statute expressly provides a right to damages, the position will generally be straightforward. In the absence of such a provision, the availability of a claim turns on Parliament’s intention, which must be identified by construing the statute in question. Because that intention is seldom...

The offence of driving with no insurance Under the Road Traffic Act 1988 ( RTA 1988), it is unlawful to use a motor vehicle, or to cause or allow another to use one, unless a policy of insurance or a security covering third parties is in force. Driving without insurance is a summary-only offence that carries a maximum penalty of an unlimited fine. Elements of the offence uses, or causes or permits use of a motor vehicle on a road or other public place without valid third-party insurance or security in force Meaning of ‘use’ The person regarded as the user of a vehicle is generally the driver, or their employer where the driving occurs in the course of employment. There must be some element of control, management, or operation of the vehicle at the relevant time. An owner can still be...

Practice Note This Practice Note summarises the statutory framework for enforcing council tax liabilities. It explains the legal steps for demanding unpaid sums, the issue of a summons requiring a debtor to attend the magistrates’ court, and enforcement tools including attachment of earnings, securing a charge over property and, in the most exceptional circumstances, committal to prison. Council tax became the principal means for local authorities in England to collect income from residents on 1 April 1993. While the legislation also applies in Wales, the administration of council tax there is the responsibility of the Welsh government. Council tax replaced the community charge (widely known as the ‘poll tax’), which had itself replaced domestic rating in April 1990. See Practice Note: Council tax. The council tax enforcement regime is prescribed by regulations issued by the Secretary of State under the Local Government Finance Act 1992 ( LGFA...

Forthcoming change: The Sentencing Act 2026 gained Royal Assent on 22 January 2026 and delivers extensive revisions to the Sentencing Code. It brings in additional sentencing powers, such as new financial orders, widens both the scope and obligations of community orders and suspended sentence orders, and introduces major alterations to bail and overarching sentencing principles. The Act also overhauls elements of release, recall, post-sentence supervision, and the deportation framework for foreign criminals. Some sections are scheduled to commence on 22 March 2026, with further provisions activated in stages by regulations. This content will be updated as the relevant measures are brought into force. For more information, see: LNB News 23/01/2026 5. This Practice Note sets out when a defendant may appeal to the Crown Court from a magistrates’ court’s refusal to grant bail or to vary bail conditions. It...

This Practice Note reviews the principal considerations around enforcing guarantees in a financing transaction, namely where a lender (most often a bank) has extended a loan to a corporate borrower that is supported by a guarantee from another group company of the borrower (eg the borrower’s parent company or one of its subsidiaries). It addresses the following questions: what claim does a lender have against a guarantor? by what means can a lender enforce a guarantee? how is enforcement approached where there are multiple guarantors? are there particular points to consider in syndicated transactions? are there any distinct considerations for guarantees given by individuals? The law regulating guarantees is complex and at times inconsistent; accordingly, this Practice Note is intended as a springboard for more detailed analysis. What is the nature of claim that a lender has against a...

This Practice Note explores the role, function and significance of defined terms within an agreement context. It outlines those definitions most frequently found in documents relating to transactions, and considers the method that ought properly to be adopted when reviewing or preparing a contract that uses defined terminology. For wider guidance on boilerplate clauses generally, see Practice Note: The role of boilerplate. For general guidance on construing contracts, see Practice Note: Contract interpretation—rules of contract interpretation. The definitions and interpretation clause A common boilerplate provision is the definitions and interpretation clause, often treated as a standard component. It should gather every individual defined term contained in the agreement together with all provisions that govern the overall interpretation of the agreement and, where required, the meaning of particular expressions used in it as well. Typically, the defined terms and the...

This Practice Note outlines the distinction between highway land that is only vested in the highway authority and highway land that is owned outright by the authority. It highlights leading cases and statutes, notably the Highways Act 1980 ( Hi A 1980) and the Local Government Act 1929 ( LGA 1929), and clarifies that, where land is merely vested, the authority’s proprietary interest extends physically to the upper two spade-depths of the relevant land, or to such depth as is required for the construction and maintenance of the highway, including associated drains. Whilst that form of vested ownership will usually suffice, highway authorities may purchase freehold estates in land under the Hi A 1980 for the creation of new or improved highways. Some highway land is only vested in the highway authority, whereas other highway land belongs entirely to the...

Occupation order An occupation order, made under the Family Law Act 1996 ( FLA 1996), sets out, defines, limits or manages rights of occupation in the family home between the parties who are, or who have been, in certain categories of relationship. In essence, an occupation order will simply either be a declaratory order or a regulatory order in nature. Declaratory orders include: confirming the existing occupation rights in the home extending the statutory occupation rights beyond the ending of the marriage on divorce or death granting the occupation rights in the home to non-entitled applicants (an occupation rights order) Regulatory orders available include: requiring one party to vacate the family home suspending the occupation rights and/or forbidding one party from entering or re-entering the home, or part of the home obliging one party to permit the other to enter and/or remain within the...

This Practice Note examines how the 2005 Hague Convention on Choice of Court Agreements—which provides regimes for allocating court jurisdiction and for the recognition and enforcement of judgments—will operate in the UK after the end of the Brexit implementation period, viewed from the perspectives of both the UK and the EU Member States. The Convention applies solely to exclusive choice of court agreements. Definitions This Practice Note uses the following definitions: Hague Convention— Convention on Choice of Court Agreements concluded on 30 June 2005 at The Hague ECA 1972— European Communities Act 1972 EU( W) A 2018— European Union ( Withdrawal) Act 2018 EU( WA) A 2020— European Union ( Withdrawal Agreement) Act 2020 exit day—is defined in EU( W) A 2018, s 20 implementation period—is defined in EU( WA) A 2020, s 1. ‘...

Producing a proposal document demands more than good writing skills. Several distinct tasks must be completed to the right timetable and in the proper order. Co-ordinating the team’s input calls for care, planning and resolve. If key steps are missed or mistimed, the process can rapidly slip out of control. This Practice Note offers guidance for law firms on important points to address when preparing a proposal document. It assumes the firm has chosen to pitch. For further guidance on pitching for business, see Practice Note: Pitching for business and Precedent: To bid or not to bid questions. The importance of good management Effective management and clear leadership are essential to deliver a compelling proposal. This can rest with one person or be shared, for example by the pitch lead and a senior BD person. In a joint arrangement, the pitch lead...

Benefits of registration Registering a pension scheme delivers valuable tax reliefs and exemptions for the scheme and its members, including: tax relief on member contributions up to specified limits tax relief on employer contributions no income tax arises on earnings where an employer pays contributions to a registered pension scheme for an employee certain lump sums on retirement (eg a pension commencement lump sum) or following a member’s death are not subject to income tax, provided conditions are satisfied most investment income is not liable to income tax gains realised on disposals of scheme investments are exempt from capital gains tax Consequently, the vast majority of pension schemes are registered. Occupational schemes that are not registered are treated, for tax purposes, as Employer Financed Retirement Benefit Schemes (...

The PRA’s Fundamental Rules These high-level provisions sit within the PRA Rulebook and, taken together, set out the Prudential Regulation Authority ( PRA)’s expectations of firms. They also articulate the PRA’s general objective of advancing the safety and soundness of firms, and the insurance objective of securing an appropriate degree of protection for those who are, or may become, policy holders. The Fundamental Rules comprise: Fundamental Rule 1 — a firm must run its business with integrity. Fundamental Rule 2 — a firm must carry on its business with due skill, care and diligence. Fundamental Rule 3 — a firm must conduct itself in a prudent manner. Fundamental Rule 4 — a firm must at all times maintain adequate financial resources. Fundamental Rule 5 — a firm must maintain effective risk strategies and risk management systems. ...

‘ Reporting fund’ A ‘reporting fund’ is an offshore fund that has obtained reporting fund approval and has not departed the regime, whether voluntarily or by exclusion. In essence, UK investors in such funds are taxed each year on their portion of the fund’s reported income, irrespective of whether that income is paid out or retained. This allows capital gains treatment to apply when they dispose of their interest. For offshore funds that do not report income in this manner (‘non-reporting funds’), disposals by investors are taxed as income. The governing provisions are in Part 3 of the Offshore Funds ( Tax) Regulations 2009, SI 2009/3001 (the Offshore Funds Regulations). For the UK tax definition of an ‘offshore fund’, see Practice Note: Tax and offshore funds—what is an offshore fund? This Practice Note covers: the eligibility criteria and application process for the...

This Practice Note outlines how trustees of bare trusts are treated for income tax and capital gains tax ( CGT). Although, in equity, a bare trust is a form of trust, for both income tax and CGT its existence is disregarded. As a result, no liability to tax sits with the trustees for either income or chargeable gains. Instead, the two regimes look through to the beneficiary, who is assessed at their own rates of tax. Income tax The legislation in the Income Tax Act 2007 ( ITA 2007), which sets out the settlements rules for income tax, excludes bare trusts from those provisions. Several provisions in ITA 2007 treat actions carried out by a bare trustee as though they were undertaken by the absolute beneficial owner......

The concept of ‘security for costs’ is widely known and understood by common law practitioners but may well be less familiar to civil lawyers, as it is intimately connected to the common law principle that, in general, the legal expenses of conducting court proceedings should ‘follow the event’—put simply, the loser pays. In proceedings in England and Wales, the general default position, where a court elects to make a formal costs order, is that the unsuccessful party will be required to pay the successful party’s recoverable costs, although the court retains a broad and flexible discretion in this area—see: Costs orders—overview. To reinforce that principle, the device of security for costs enables a defendant (whether facing the main claim or a counterclaim) to seek an order that the claimant provide security for the likely recoverable costs the defendant will incur in...

This Practice Note sets out an overview of take‑or‑pay provisions in the energy industry and explores typical EU, regulatory and competition law questions that often arise when assessing take‑or‑pay terms in energy agreements. Its emphasis is on EU and international legal frameworks, illustrated with examples, while English law is addressed only in brief outline. For further guidance on drafting take‑or‑pay provisions and on the common features of those clauses, see Practice Note: Drafting take‑or‑pay clauses in energy contracts. For the English courts’ attitude to such clauses, together with a thorough consideration of take‑or‑pay clauses and also the rule on penalties, refer to Practice Note: Take‑or‑pay clauses in energy contracts: the rule on penalties. Introduction to ‘take-or-pay’ clauses in the energy sector A take‑or‑pay term is a contractual mechanism under which the purchaser undertakes to pay for a minimum volume of the relevant goods or...

What is securities lending? A securities lending arrangement typically sees the lender transferring a security outright to a borrower, while the borrower concurrently delivers collateral to the lender by way of an outright transfer. At the same moment, they agree that, on a future date, the borrower will return equivalent securities and the lender will return the collateral... In 2018, the International Securities Lending Association ( ISLA) issued documentation allowing parties to provide collateral under a security interest rather than via title transfer. This Practice Note focuses on transactions supported by title transfer collateral and, below, summarises the security interest approach together with the key differences from title transfer collateral... Any asset capable of being transferred between parties can be used in a securities lending transaction. The assets most frequently involved are equity securities (shares) and debt securities (bonds), although comparable...

Background to medical use claims Second (and later) medical use patent claims (called ‘second medical use claims’ below) are unique to the pharmaceutical/biotechnology sectors and serve to delineate an invention’s ambit by specifying a medical use. For a primer on these and other categories of patent claim, see Practice Note: Major types of patent claims. There are two distinct forms of second medical use claim, outlined in greater detail below. Making the medical use an explicit feature of a claim affects both its patentability and the breadth of protection. To place second medical use claims in context, it should be recognised that they originated under the earlier 1973 version of the European Patent Convention ( EPC 1973), which has since been superseded by the EPC 2000. The earliest second medical use claims allowed by the European Patent Office ( EPO) from the...

This Practice Note looks at the way that options and pre-emption agreements over UK land are treated for stamp duty land tax ( SDLT) purposes. Options commonly feature in development contexts, though they also appear in other deals. For additional guidance on indirect taxes within commercial development, see Practice Note: Development of commercial property—indirect tax considerations. From 1 April 2015, SDLT no longer applies to land transactions involving interests in or over land in Scotland; from that date, land and buildings transaction tax ( LBTT) applies, subject to transitional rules. Accordingly, references here to ‘ UK land’ for SDLT purposes exclude interests in or over Scottish land from 1 April 2015. For more information, see the LBTT subtopic. SDLT also ceased to apply to land transactions involving interests in or over land in Wales from 1 April 2018; from then, land...

This is a theft offence under section 8 of the Theft Act 1968 ( TA 1968), rooted in dishonesty and further aggravated by the use of, or threats of, force. It is triable solely on indictment in the Crown Court. Elements of the offence of robbery An individual is guilty of robbery if: they steal something; and immediately before or at the time of doing so, and in order to do so, they: use force on any person; or put any person in fear of being subjected to force then and there Force, or the threat of force, must occur ‘immediately before or at the time’ of the theft. There is no clear guidance on what ‘immediately before’ entails. If the force used or...