The following Family practice note Produced in partnership with David Salter, deputy High Court judge and Recorder provides comprehensive and up to date legal information covering:
Individuals and employers are encouraged to save for retirement by tax incentives on pension contributions. The main tax breaks are:
employees do not pay tax and national insurance contributions (NICs) on pension contributions paid by their employer
all individuals receive tax relief (but not NIC relief) on their own pension contributions (subject to the annual allowance and lifetime allowance) up to the age of 75 years—basic rate relief is given at source with relief at the higher rates given as an adjustment to the person’s tax bill, for example, a personal pension contribution of £1,000 gross costs £800 when the payment is made, and a higher-rate taxpayer gets a further £200 of relief through their pay as you earn (PAYE) tax code or by reduction of their tax bill if they are self-employed—an additional rate taxpayer receives an extra £250 of tax relief, but from 2016/17 taxpayers with income over £150,000 (£240,000 from 2020/21) may incur an annual allowance tax charge where contributions exceed their reduced annual allowance
pension funds accumulate virtually free of income tax and capital gains tax on the investments held
at retirement (usually after age 55), part of the pension fund can be taken as a lump sum free of tax: broadly 25% of the fund or the lifetime allowance if lower, but more in some cases, see main
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
The principles of the notarial act are that it is:•an act of the notary and not of the parties named in the document•a record of a fact, event or transaction•in the form of a document, notwithstanding the form of the underlying document, fact, event or transactionThe purpose of the notarial act is
BREXIT: UK is leaving EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance on the impact of Brexit on e-money requirements, see Practice Note: Impact of Brexit: Payment services and electronic money directives—quick
Disposal and devolutionThe equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:•transfer, lease or mortgage inter vivos, or•by will (it passes on intestacy)No cloggingIt is a fundamental principle of a mortgage that there must be no clog
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