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This Practice Note outlines the law concerning criminal recklessness. The subjective test for recklessness Certain statutory and common law offences allow the prosecution to prove mens rea through ‘recklessness’. Put simply, recklessness is where the accused takes an unjustified risk that results in unlawful harm or damage. The House of Lords in R v G reaffirmed the subjective approach to recklessness. Before R v G, two distinct tests were used, depending on the offence charged: Subjective recklessness from R v Cunningham: the prosecution had to establish that the accused personally foresaw the risk. Objective recklessness from R v Caldwell: the prosecution only needed to show that the risk would have been obvious to a reasonable person, without proving the accused themselves foresaw it. In R v G, the House of Lords concluded that the objective test could operate unfairly where a defendant did not foresee the
This Practice Note examines the remedy of rescission, explaining when and in what manner a contract can be unwound (at common law, in equity and under statute) and thereby terminated and brought to an end. It covers the consequences and effects of rescission, the principal grounds for setting aside an agreement (misrepresentation, mistake, undue influence, duress, non‑disclosure, fiduciary misdealing and bribery) and the main obstacles to claiming rescission—affirmation, the intervention of third‑party rights and the impossibility of restitution. For further guidance on rescission in the context of misrepresentation, see Practice Note: Misrepresentation—rescission as a remedy. There are many ways in which a contract may reach its end; see: Terminating contracts—how and when a contract ends—overview for a brief and accessible summary, with links to the related further practical guidance, including Practice Note: Termination and expiry of contracts. For a table
What is a res judicata? A res judicata is a determination by a court or tribunal with jurisdiction over the cause of action and the parties, which finally disposes of the issues decided so they cannot be litigated again by those bound, save on appeal. Final judgments entered by default or by consent fall within this concept, whereas rulings on purely procedural points and any decision lacking finality do not. The doctrine’s aim is to bring litigation to an end and shield parties from being harassed by the same dispute twice. in personam—binds the parties and their privies in rem—binds all persons, privy or otherwise (ie a judgment binding the whole world) A party may rely on res judicata: as an estoppel to defeat an opponent’s claim or defence; and/or as the basis of their own claim or
The offence of causing grievous bodily harm with intent Wounding or causing grievous bodily harm (GBH) with intent can be tried solely in the Crown Court on indictment. Elements of the offence Under the Offences against the Person Act 1861 (OATPA 1861), the prosecution must establish that the defendant unlawfully and maliciously: wounded with the intention of causing GBH, or caused GBH with that intention, or wounded intending to resist or prevent the lawful arrest or detention of any person, or caused GBH intending to resist or prevent the lawful arrest or detention of any person ‘Unlawfully’ and ‘maliciously’ Unlawfully The wounding or causing of GBH must be unlawful. Such conduct may be lawful if used: in self-defence in defence of another in defence of property for the prevention of crime where the victim gave express or implied consent For further information on these defences, see below:
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The Enterprise Investment Scheme ( EIS) The Enterprise Investment Scheme ( EIS) aims to stimulate investment in smaller, higher-risk trading businesses by providing a suite of tax reliefs to individuals acquiring newly issued shares in such companies. The EIS framework is prescriptive and stipulates a range of conditions that must be satisfied, covering: the individual investors (see Practice Note: EIS—conditions for relief: individual investor conditions) the issued shares (see Practice Note: EIS—conditions for relief: issued shares, the funds raised and the arrangements in general) the issuing company (see Practice Notes: EIS—conditions for relief: issuing company and EIS—conditions for relief: qualifying trades) Although the remaining Practice Notes in this subtopic proceed on the basis that an individual subscribes directly for shares in an EIS-qualifying company, investors can also secure EIS relief by subscribing through an EIS fund, so long as all other EIS...
What is gift aid relief? Gift Aid donations to a charity form a significant source of income, yet the tax repayment benefit they confer can be open to abuse. HMRC are especially alert to this kind of donation, and their inspections appear heavily directed towards checking record keeping and the soundness of repayment claims arising in this area. As a result, charities must understand in depth how the scheme functions and how to log donations to prevent difficulties with HMRC. HMRC also require that, in all circumstances, charities give donors a full and accurate explanation of the law before any declaration is made. For information about giving land, property, or shares, see Tax relief when you donate to a charity for further details provided by HMRC on that page......
CASE HUB ARCHIVED This archived case hub sets out the position as at the judgment dated 18 June 2013; it is no longer maintained. See the timeline and related cases. Case facts Outline Appeals were brought before the General Court seeking annulment and reductions of the fines arising from the Commission decision of 25 June 2008, which found infringements of Article 101 TFEU and Article 53 of the EEA Agreement and imposed penalties of €1.7m and €1.6m on Société des Industries Chimiques du Fluor and Fluorsid Sp A/ Minmet (respectively) for their alleged involvement in a global aluminium fluoride cartel between 12 July 2000 and 31 December 2000. The case is noteworthy as it marked the first occasion the Commission applied point 18 of the 2006 Fines Guidelines, setting out a calculation approach for cartels spanning territories wider than the European Economic Area ( EEA). The...
This Practice Note offers a concise guide to the evolution of the doctrine of forum non conveniens; the principle engaged when asking the court to stay proceedings in favour of litigation in another jurisdiction. For a summary of how the doctrine operates today, see: Determining court jurisdiction—overview. In English law, the concept was absent until 1984, although it was acknowledged in Scots law. The doctrine can be said to have been adopted into English law only after the House of Lords judgment in The Abidin Daver (1984). Authority and citation Sim v Robinow (1892) 19 R 665 (not available in Lexis®Library) Issue: Forum non conveniens. Test: Whether the foreign proceedings are better suited to resolve the parties’ interests and to achieve the ends of justice. ...
FORTHCOMING CHANGE relating to new advance clearance processes: After first being trailed in the Autumn Budget 2024 within the government’s Corporate Tax Roadmap, and then consulted on at the Spring Statement 2025, the Budget 2025 set out the consultation conclusions and confirmed HMRC will roll out a new advance tax certainty service in July 2026. This service is intended for eligible parties investing in ‘major projects’ with at least £1bn of in-scope UK spend, aimed at qualifying persons. The Budget 2025 announcements indicated that the service will cover a specified range of taxes, including corporation tax, VAT and stamp taxes, but will exclude transfer pricing, valuation, purpose-based tests and hypothetical cases. Clearances will bind HMRC (but not the taxpayer) from revising its interpretation of the law, applied to fully disclosed facts, for up to five years, provided facts and law are...
What is a dividend reinvestment plan and why do companies offer them? A dividend reinvestment plan ( DRIP) is an arrangement through which a company—almost always a listed one—provides a service letting shareholders direct their dividends towards purchasing more of its shares. This service is usually operated by an independent administrator. DRIPs are often mentioned alongside scrip dividends (covered in depth in: Tax issues on a scrip or stock dividend) because the end result is very similar: the investor ends up with additional shares rather than a cash payout. Legally, however, they are distinct. Under a DRIP, the shareholder first receives the dividend and elects to deploy the cash to acquire extra shares. Of course, investors could choose to do this themselves without any company-run service. A DRIP merely simplifies the mechanics by ensuring the dividend proceeds flow straight to the...
FORTHCOMING CHANGE relating to new advance clearance processes: After an initial unveiling at Autumn Budget 2024 under the government’s Corporate Tax Roadmap, and a consultation issued at Spring Statement 2025, Budget 2025 set out the consultation conclusions and confirmed HMRC will introduce a new advance tax certainty service in July 2026. That announcement also confirmed a July 2026 start date for the service. The regime is expected to be available to qualifying parties backing ‘major projects’ with at least £1bn of in-scope UK spend. According to the Budget 2025 updates, the service will address a defined suite of taxes — corporation tax, VAT and stamp taxes — while excluding transfer pricing, valuation, purpose-based tests and hypothetical cases. Clearances will commit HMRC (but not the taxpayer) not to alter its view of the law, where all facts are fully disclosed, for up to five years,...
Article 10 of the Organisation for Economic Co- Operation and Development ( OECD)’s model tax convention ( MTC) is concerned with the taxation of dividends paid cross border. Article 10 of the Organisation for Economic Co- Operation and Development ( OECD)’s Model Tax Convention ( MTC) addresses rules on how dividends distributed across borders are taxed......
ARCHIVED: This Practice Note has been archived and is not maintained. 22 March 2006 marked the day of the 2006 Budget which, without any prior notice or consultation whatsoever, ushered in far‑reaching reforms to the inheritance tax ( IHT) treatment of trusts. That date stands as a watershed for the IHT treatment of trusts, because many of the principal changes took immediate effect. The first step in identifying the correct IHT position of any trust is, in the first instance, to determine whether it was created before or after 22 March 2006. Before that date, there were three principal categories of trust for IHT purposes, namely: relevant property trusts (typically discretionary trusts) interest in possession ( IIP) trusts accumulation and maintenance ( A& M) trusts On 22 March 2006, the relevant property regime was extended to encompass nearly all new lifetime trusts, whether...
The distinct class of age 18–25 trusts was brought in by the Finance Act 2006 ( FA 2006) to offset the withdrawal of traditional accumulation and maintenance ( A& M) trusts. Under the A& M framework, trusts established for children and young people up to 25 benefited from exemption from inheritance tax ( IHT) charges under those arrangements. Although the qualifying rules were quite tight and specific, they allowed any settlor, whether during life or on death, to provide for younger beneficiaries. See Practice Note: Accumulation and maintenance trusts— IHT [ Archived]. After FA 2006: existing A& M settlements kept their IHT advantages solely where the beneficiaries became outright entitled to trust property by the age of 18 new A& M type trusts could be set up for a child under 18 whose parent had died—see Practice Note: Taxation of trusts for...
Practice Note This Practice Note outlines the core income tax rules relevant to discretionary trusts and to any trusts that may retain income. Until the trustees choose to distribute funds to a beneficiary, that income is not the property of any individual. Accordingly, while the income is held by the trustees, it is charged at the special trust rates. If, and when, amounts are passed to beneficiaries, there are provisions that recalibrate the tax borne so it aligns with the beneficiary’s proper rate. See Practice Notes: Taxation of discretionary and accumulating trusts—the tax pool and Discretionary trust beneficiaries—income tax. For tax purposes, the trustees are collectively treated as a single person, separate from the natural persons who serve as trustees from time to time. Where more than one trustee is appointed, one—commonly called the ‘principal acting...
There are various types of share capital and the main differences are summarised below: Authorised share capital – Generally obsolete from 1 October 2009, as companies no longer require authorised share capital. Nevertheless, it can still be relevant to companies (i) incorporated under earlier legislation or (ii) where shareholders wish to restrict directors’ powers to issue and allot shares; in that situation, it sets the maximum number of shares that directors are permitted to allot. Issued share capital – Holders of issued shares are able to exercise their membership rights. Allotted share capital – Holders have an unconditional entitlement to be entered on the register of members (section 558 of the Companies Act 2006 ( CA 2006)), but they are not yet entitled to exercise membership rights. ......
Gifts to Specified Charities When a legacy is made to a named charity, several matters should be scrutinised thoroughly and sensible precautions adopted at every stage. Identification It is essential to verify the charity’s true identity; many organisations exist with very similar titles or comparable purposes indeed. It is not uncommon, in practice, to discover a charity name recorded incorrectly in a Will......
Part XII of the Financial Services and Markets Act 2000 ( FSMA 2000) Under Part XII of FSMA 2000, any controller or proposed controller must first secure consent from the Financial Conduct Authority ( FCA) or the Prudential Regulation Authority ( PRA) before acquiring or increasing control in a UK authorised firm, and is also required to notify the relevant regulator when reducing or ceasing control in a firm. This Practice Note outlines the duties on controllers and proposed controllers to notify and secure the appropriate regulator’s approval prior to acquiring or increasing control in a UK authorised firm. The PRA’s requirements are set out in the Change in Control Part of the PRA Rulebook, and the FCA’s requirements are contained in Chapter 11 of the Supervision manual in the FCA Handbook ( SUP 11). A summary of the FCA...
Discovery assessments A discovery assessment is an HMRC assessment to charge tax (or additional tax) where it identifies that too little tax was assessed for an earlier tax year or accounting period. HMRC will typically issue a discovery assessment when it is out of time to open an enquiry into the relevant tax return. This Practice Note concentrates on one specific element of the discovery rules: in some circumstances, HMRC can only make a discovery assessment if, at a given point in time, it did not have sufficient information to be aware of a potential loss of tax. For an explanation of the following: HMRC’s power to open an enquiry, and the relevant time limits within which it may do so the meaning of HMRC making a ‘discovery’ (of a potential loss of tax) the taxpayer’s ability to avoid a discovery assessment where the return was prepared in line with...
HMRC may probe suspected tax-related criminal offences in England and Wales by exercising the powers, and observing the safeguards, set out in the Police and Criminal Evidence Act 1984 ( PACE 1984). Equivalent legislation exists for Northern Ireland. PACE does not extend to Scotland, but there is legislation providing powers and protections that replicate the PACE measures, tailored to the Scottish legal system. The balance of this Practice Note addresses the legislation in England and Wales. Alongside HMRC’s powers to examine tax-related criminal offences in Wales, the Welsh Revenue Authority holds powers to investigate offences linked to Welsh devolved taxes. Tax enquiries can also be undertaken by the National Crime Agency ( NCA). The NCA operates independently of HMRC, though HMRC may supply information to it for the purposes of its functions. One of the NCA's functions is the recovery of money and assets...
FORTHCOMING CHANGE relating to a consultation and draft legislation on better use of new and improved third-party data : Following a Spring Statement 2025 consultation, which closed on 21 May 2025, draft provisions were issued on 21 July 2025 for inclusion in Finance Bill 2026 ( FB 2026). These would confer regulation-making powers to enhance the quality and timeliness of third-party data obtained by HMRC under its bulk data-gathering powers, with a particular focus on financial account information and card sales data. The reform aims to modernise HMRC’s approach by shifting from notice-based requests to a standing reporting obligation and by rolling out standardised schemas for submissions. It also mandates collection of tax identifiers, such as National Insurance numbers, to improve data matching, together with a range of penalties for non-compliance. At Budget 2025, the government confirmed it would proceed, after which...
FORTHCOMING CHANGE: On Tax Administration and Maintenance Day, 27 April 2023, the former Conservative administration issued a call for evidence on refreshing HMRC’s information and data-gathering powers to support the digital overhaul of taxpayer services, strengthen HMRC’s compliance functions, and cut administrative burdens. With a deadline of 20 July 2023, the exercise asked for views on, among other areas: ways to reform and enhance the collection of information and data from third parties, informed by international best practice; scope to modernise HMRC’s third-party information and data-gathering powers and the accompanying safeguards; how to streamline the process by which HMRC issues information notices obliging a taxpayer or third party to supply information, data or documents. At Spring Statement 2025, the government released a summary of responses to that call for evidence as Annex C to the consultation titled ‘ Better use of new and...
FORTHCOMING CHANGE: On 15 February 2024, the government issued a call for evidence titled ' The Tax Administration Framework Review: enquiry and assessment powers, penalties, safeguards', seeking input and views on how HMRC’s enquiry and assessment powers, penalties and safeguards might be overhauled. It considered a broad set of reform avenues, carefully weighing opportunities and risks around a more consolidated suite of powers, assessing whether parts of the tax system could benefit from HMRC taking a different approach, and updating how HMRC delivers statutory notices to taxpayers and agents alike. The call for evidence closed on 9 May 2024. On 30 October 2024, HMRC released the outcome of the exercise, summarising responses and setting out the government’s next steps and intentions. Among these next steps is a commitment to build on the call for evidence by consulting on options for new...
This practice note chiefly concerns registered occupational pension schemes One outcome of recent pensions legislation reforms, including the introduction of anti‑age discrimination legislation (for further information, see Practice Note: Age discrimination for pension lawyers), has been to permit a new and wider flexibility in how members of registered pension schemes can accrue benefits and ultimately receive them from such arrangements. In particular, the past few years have witnessed the rise of the concept of ‘flexible retirement’ as a recognised approach. Concept of flexible retirement Broadly, flexible retirement captures the ability of members to: begin taking benefits from registered pension schemes whilst remaining in active service with the sponsoring employer of their pension arrangements; and continue to build up benefits, if they so choose, after normal pension date (typically age 65) and in ways that comply with the age discrimination...
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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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