Legal Practice Notes

This Practice Note discusses the sanctions in place for those who do not comply with the houses in multiple occupation ( HMOs) licensing regime It outlines criminal offences arising from breaches and describes the sanctions available for HMO contraventions, including failures to obtain a licence, non-compliance with licence conditions, or acting in defiance of a banning order. Potential measures include: interim management orders ( IMOs) final management orders ( FMOs) rent repayment orders ( RROs) financial penalties banning orders The Note also summarises how sanctions are pursued and the routes to appeal. Responsibility for enforcing the HMO licensing system sits with the local housing authority ( LHA) for the area where the HMO is located. See Practice Notes: Houses in multiple occupation ( HMOs) and Houses in multiple occupation ( HMOs)—applying for a licence. A range of licensing...

This Practice Note Authored by Anne Redston, Barrister. It reflects her personal opinion; she is not authorised to speak for the Tribunals Service or the judiciary. It sets out how to assess whether an individual is employed or self-employed, considering: National Insurance contributions ( NICs) deeming provisions The parties’ contractual relationship HMRC status determinations and avenues for challenge HMRC’s Check Employment Status for Tax ( CEST) tool Read alongside Practice Note: Employment status tests—from a tax and NICs perspective. The reasons status matters are outlined in Practice Note: Employment status—why it matters. Note that this and other employment status Practice Notes summarise the law and do not address every scenario. HMRC may apply a different approach to workers in the entertainment sector—film, theatre, TV and radio, and musicians—which is outside the scope of this Note. Further changes are expected as the...

BREXIT At 11pm GMT on 31 December 2020—the ‘ IP completion day’—the transition/implementation phase that followed the UK’s exit from the EU, and which had been entered into after the UK’s withdrawal, came to a close. From that moment, key transitional measures ended, and significant changes started to operate across the UK’s legal regime. This note provides guidance on topics affected by these shifts. Before proceeding with your research, please refer to: Brexit and financial services: materials on the post‑ Brexit UK/ EU regulatory regime ( Archived). ESRB Background The European Systemic Risk Board ( ESRB) was established in line with recommendations that arose during the early stages of the 2007–08 financial crisis. The European Commission aimed to strengthen European Union‑level supervisory arrangements for the financial system to bolster consumer protection and rebuild trust in finance. It was considered that oversight should emphasise the...

This Practice Note This Practice Note sets out where to find up-to-date Home Office materials on immigration and nationality, and how to consult the guidance archives in Lexis Nexis® Immigration, on GOV. UK and in the National Archives when researching replaced immigration law and policy... Locating Home Office guidance On GOV. UK, Home Office immigration and nationality guidance appears in several streams, divided between documents for: applicants sponsor businesses and education institutions Home Office decision-makers and other relevant staff It can also be necessary to find prior versions of guidance to: confirm what applied on the date of a sponsor’s or applicant’s act or omission identify precise changes in the guidance wording Applicant guidance Before the post‑ Brexit immigration system, many routes for entry or stay relied on detailed PDF policy guidance for applicants. From 1 December 2020, the Home Office moved...

The tax regime applicable to property authorised investment funds ( PAIFs) applies to UK open-ended investment companies ( OEICs) which: meet a number of prescribed conditions, and have notified HMRC in advance that they wish the PAIF regime to apply to them This Practice Note concentrates on the criteria that must be satisfied for the PAIF rules to apply to an OEIC in practice. As a starting point, for a top-level overview of the PAIF tax regime in its entirety, see Practice Note: Taxation of property funds—overview. Further important elements of the framework are considered in the Practice Notes: PAIFs—tax treatment of the fund and its investors and PAIFs—breaches and exit. There is significant overlap between the PAIF tax rules and the UK tax regime for real estate investment trusts ( REITs) in many areas. This reflects their...

This Practice Note provides guidance on exclusions and limits of liability relevant to engineer, procure and construct ( EPC) contracts. It ought to be read with Practice Note: Limiting liability in construction contracts, which provides more detailed guidance on limits of liability generally. When examining any limitation or exclusion of liability clause within an EPC agreement, a central issue is the governing law that applies to that contract. That choice often affects both how the clause is construed in practice and whether it can be enforced. Considering the differing consequences arising under other jurisdictions lies beyond this note, and, unless expressly stated otherwise, all references herein are to the position under English law, together with the implications that flow from that position accordingly. When drafting any limitation or exclusion of liability clause, it is vital to use wording that is entirely clear and...

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL DEFINED BENEFIT PENSION SCHEMES THAT ARE SUBJECT TO EMPLOYER DEBT REQUIREMENTS Since 27 January 2012, it has been open to parties to implement a flexible apportionment arrangement in order to: avoid triggering an employer debt under the Pensions Act 1995, s 75 altogether (for further information on s 75 debts (also known as employer debts), see Practice Note: When is a section 75 debt triggered?), or reduce the amount that may become payable if an employer leaves a multi-employer scheme (or otherwise ceases to employ active members) Flexible apportionment arrangements do not replace other mechanisms for dealing with an employer debt, eg scheme apportionment arrangements or the corporate restructuring easements, and cannot be used where the scheme has entered insolvency or winding up. Introduced chiefly to assist where several employers cease to employ active members in the same scheme at...

What are hygiene improvement notices? Hygiene improvement notices are tools used by enforcement authorities such as the Food Standards Agency ( FSA) or local authorities to uphold the Food Safety and Hygiene ( England) Regulations 2013 ( FSH( E) R 2013), SI 2013/2996. A hygiene improvement notice compels a food business operator to take steps necessary to achieve compliance with FSH( E) R 2013, SI 2013/2996. See Practice Note: Applying the Food Safety and Hygiene ( England) Regulations 2013. They should not be confused with improvement notices under the Food Safety Act 1990 ( FSA 1990). Improvement notices under FSA 1990 serve to enforce regulations made under Part II of that Act. Non-compliance with a hygiene improvement notice under FSH( E) R 2013, SI 2013/2996 constitutes a criminal offence. Guidance on applying hygiene improvement notices is set out in the Food Law Code of Practice issued by the FSA, and the FSA in...

Background to FCA rules concerning the use of investment platforms As a strand of its consumer protection agenda, the Retail Distribution Review ( RDR) prompted the Financial Services Authority ( FSA)—predecessor to the Financial Conduct Authority ( FCA)—to reassess how investment platforms, and their deployment, should be regulated. At an early stage the FCA also differentiated between the regulatory approach to platform providers and the approach applied to platform users, drawing a clear line between the two. The emphasis here is therefore on obligations of users rather than requirements for providers. This note, in particular, addresses the latter, setting out the FCA’s expectations of financial adviser firms regarding systems and controls, and of professionals in relation to indicative behaviours when using platforms. This Practice Note further considers the quality of advice, the distinctions between advised and non‑advised platform use, systems and controls, and the...

Perspectives on operations management: process management There are numerous avenues to enhance the service you deliver. A powerful approach is to view that service as a process—or a set of processes—that spans functions and departments within the organisation. The core aim of operations management is to deliver maximum value to customers by overseeing every link in the delivery chain through rigorous process management. What are processes? Processes are the essential means by which value is produced. Put simply, they can be described as activities, or groups of activities, that take inputs, add value, and generate outputs for both internal and external customers. In practice, processes constitute organisational capabilities, and it is these capabilities that form the basis of competition. Controlling processes An important performance objective is consistent outcomes for customers; most organisations note that reliability is among the biggest drivers of...

UK income tax is charged on the profits of a property business, whether carried on in the UK or abroad. A property business covers activities that derive income from land and encompasses all dealings undertaken with that objective. Income taxpayers include both: UK resident persons (ie individuals or trustees)—liable to income tax on the profits of their UK and overseas property businesses; and non- UK resident persons (ie non- UK resident individuals or trustees or, prior to 6 April 2020, companies investing in property)—liable to income tax on the profits of their UK property businesses but not their overseas property businesses For an explanation of how profits and losses of a UK or overseas property business are calculated, see Practice Note: Property income—the income tax charge. Broadly, a property business loss may arise where interest and other property letting costs exceed rental...

Stakeholder pension schemes after 1 October 2012 The duty on employers to nominate and provide access to a stakeholder pension scheme (as set out in section 3 of the Welfare Reform and Pensions Act 1999 ( WRPA 1999)) ended on 1 October 2012, when the requirement to enrol workers automatically into a qualifying scheme (introduced by the Pensions Act 2008) took effect. However, unless a relevant exception applies (eg where an employer is notified that a designated stakeholder pension scheme has commenced winding up), employers remain under a continuing duty in respect of relevant employees to deduct employee contributions to an existing stakeholder scheme from their pay and remit them to the trustees or managers of the schemes. In addition, any existing or new stakeholder pension schemes must continue to be operated in line with the statutory requirements for such schemes, eg...

This Practice Note This Practice Note outlines how mediation unfolds and the matters that the parties' solicitors should address before, during, and following the mediation. It covers initial information, the intake meeting, a memorandum of understanding, plus the participation of third parties in mediation, and features a glossary explaining frequently used terms and their definitions and meaning too......

This Practice Note sets out how arbitration operates in family matters, available for financial disputes from March 2012 and for children issues from July 2016. It reviews, in particular, the applicable rules, explains the part played by a solicitor acting for a party in achieving a binding arbitration, and highlights the principal benefits of arbitration. It also describes the reach and application of the Institute of Family Arbitrators ( IFLA) scheme and the arbitrator’s powers. For practical guidance on the courts’ role and approach in relation to arbitral awards or determinations, see Practice Note: Family arbitration—the role of the courts. What is arbitration? Arbitration is a formal method of dispute resolution in this context. The parties enter into an agreement by which they appoint a suitably qualified individual (an arbitrator) to decide their dispute and issue an award. Family law disputes have been...

Statutory user rights—background Statutory user rights emerged to support local authorities following the 1974 overhaul of local government. Prior to that change, numerous urban district or borough councils ( UDCs) existed across non-metropolitan England and Wales, based in sizeable, substantial town hall premises. The Local Government Act 1972 ( LGA 1972) swept away all UDCs. In many instances, in practice, they were superseded by far larger district councils, themselves operating alongside continuing, though significantly altered, county councils in place. Yet certain duties—particularly managing parks, recreation grounds and allotments—were assigned to a newly created parish council mapped precisely onto the former UDC area. A large number of these new urban parish bodies took on the designation of town council, in many cases. Because most responsibilities of the former UDC moved to the district council, ownership of the old town halls passed to the new...

FSB Formed in April 2009 at the London G20 summit, the FSB succeeded the Financial Stability Forum ( FSF). It was set up after G20 leaders called for an expanded FSF membership to enhance its effectiveness as a vehicle for national authorities, standard-setting bodies ( SSBs) and international financial institutions ( IFIs), and to oversee the implementation of robust regulatory, supervisory and other financial sector policies. The FSB functions as a formalised international convening and co-ordinating body, based in Basel, Switzerland. It advances international financial stability by working through, and co-ordinating, national competent authorities and international standard-setting bodies as they develop regulatory, supervisory and other financial sector policies. Its particular aim is to fortify financial systems and improve the stability of international financial markets, bringing together national authorities responsible for financial stability in significant financial sectors, namely central banks, treasuries,...

This Practice Note explains the steps to secure Financial Conduct Authority ( FCA) authorisation for a unit trust, highlights the necessary documentation, and points to the applicable provisions of the Financial Services and Markets Act 2000 ( FSMA 2000) together with the Collective Investment Schemes sourcebook ( COLL) within the FCA Handbook. It also considers COLL 7.4, which prescribes the winding-up procedure for an authorised unit trust ( AUT)... What is an AUT? A unit trust is a form of collective investment scheme ( CIS) where a trustee holds the assets for investors (the unitholders) under a trust deed. An AUT is a unit trust granted authorisation by the FCA under FSMA 2000, s 243. Other permitted UK-authorised CIS structures include open-ended investment companies ( OEICs) and authorised contractual schemes ( ACSs) (see Practice Notes: Open-ended investment companies ( OEICs) and Taxation of...

E& W Brussels I (recast)—related proceedings (art 30) [ Archived] ARCHIVED: This Practice Note is archived and not maintained. It reviews the position where related proceedings are commenced in different jurisdictions within the EU, and the manner in which the courts of EU Member States will handle such situations. Related proceedings are those in which multiple actions are so closely connected that it is expedient to hear and determine them together, so as to avoid the risk of irreconcilable judgments that might arise if separate proceedings were pursued. The Note sets out the meaning of ‘related proceedings’ as contained in Article 30 of Regulation ( EU) 1215/2012, Brussels I (recast), and considers the range of issues a court may take into account when exercising its discretion to stay proceedings. Another variety of multiple proceedings is ‘parallel proceedings’ or ‘lis pendens’, which are addressed in Article 29 of...

Loan market and developments Offer a succinct summary of the current position of the loan markets in your jurisdiction and any notable recent developments. Lending by Guernsey banks is generally confined to deals concerning local real estate or other Guernsey assets held by Guernsey businesses. In practice, Guernsey financing is chiefly provided by UK and other European banks to Guernsey vehicles that own both Guernsey and non- Guernsey situs assets, including UK property. Provide a short outline of any impending legal changes or other factors that may influence the loan markets or the answers below. No relevant changes are anticipated. Lending Must any consents or licences be obtained to lend in your jurisdiction or to enforce rights under a loan agreement, and if so, what is the procedure for securing such consent or licence? Are there any additional lending restrictions that foreign lenders should note?......

ARCHIVED: this archived Practice Note is unmaintained and is supplied solely for background reference. In addition, certain links might not take you to the provisions as they stood on the date the guidance in this Practice Note was issued......