The following Private Client practice note provides comprehensive and up to date legal information covering:
There is a wide range of structures that can be used to hold wealth; many use vehicles established outside the UK. This Practice Note discusses how the UK tax system treats foreign entities.
Each tax must be considered separately. An entity may be considered a settlement for inheritance tax (IHT) purposes, but may not be settled property for capital gains tax (CGT) purposes. UK tax law categorises foreign entities as companies, trusts or partnerships. Companies are opaque, while partnerships are transparent. Trusts are subject to a separate regime.
In relation to a transparent entity, a member is regarded as being entitled to a share of the underlying profits and gains of the entity as they arise. A member of an opaque entity, however, is broadly only taxed on distributions made by the entity to the member: there is no ‘look through’ from the source of the underlying profits and gains to the member. UK legislation provides little guidance on whether a foreign entity is to be treated as transparent or opaque for UK tax purposes. Instead, it is necessary to look to decisions of the UK courts and HMRC guidance. See Practice Notes: UK tax implications of overseas entity classification and distributions from overseas entities and Entity classification case law and HMRC's interpretation for more information.
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This Practice Note considers the meaning and use of conditions precedent in commercial arrangements. It also considers typical conditions precedent and drafting issues.What are conditions precedent?A condition precedent in a commercial contract details an event which must take place before:•a
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.You should also consider if the proceedings will be
On the disposition of a property (whether by way of conveyance, transfer or charge), the party making the disposition will normally provide a title guarantee which implies standard form covenants for title. A landlord may give a title guarantee when granting a lease, but this is rare in practice.
A declaratory judgment is a judgment identifying the rights, duties or obligations of one or more parties in a dispute. It is legally binding, but does not order any action by a party. A court may issue it alone or in conjunction with some other relief such as an injunction and can be granted on an
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