Processing and transferring data

This subtopic explains and provides practical guidance on the six potential lawful grounds for processing personal data under the United Kingdom General Data Protection Regulation (UK GDPR) (Assimilated Regulation (EU) 2016/679), also known as the legitimate grounds or conditions for processing. It also provides practical guidance on specific issues such as:

  1. legitimate interest assessments

  2. direct marketing

  3. data processing in the employment relationship

  4. supply chains under data protection law

  5. data sharing between controllers

  6. processing children’s personal data

Lawful grounds for processing personal data

There are six potentially lawful grounds for processing personal data:

  1. the data subject has given consent to the processing of their personal data for one or more specific purposes

  2. processing is necessary for the performance of a contract to which the data subject is a party or to take steps at the request of the data subject before entering into a contract

  3. processing is necessary for compliance with a legal obligation to which you are subject

  4. processing is necessary to protect the vital interests of the data subject or another natural person

  5. processing

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ICO publishes letter on progress against economic growth commitments and work planned for 2026

The Information Commissioner’s Office (ICO) has published a letter to the Prime Minister, the Chancellor of the Exchequer, and the Secretary of State for Business and Trade setting out a one-year update on its five economic growth commitments made in January 2025. These commitments are to: (1) give businesses regulatory certainty on artificial intelligence (AI); (2) cut costs for small and medium-sized enterprises (SMEs); (3) enable greater innovation through its Regulatory Sandbox and Innovation Advice services; (4) unlock privacy-preserving online advertising; and (5) make it quicker and easier to transfer data internationally. The letter confirms that the ICO is working with the government on legislation to introduce a statutory code of practice on AI and automated decision-making, and that its expanded data essentials platform for SMEs is due to launch in spring 2026. It also states that the ICO has secured funding to design an experimentation regime to support the testing of emerging technologies, with research findings due by mid-February 2026. In addition, the ICO says it is assessing low-risk online advertising activities that could operate without consent under the Privacy and Electronic Communications Regulations (PECR) and will provide evidence to the government in the spring. The letter also highlights that the ICO published updated guidance on international data transfers in January 2026, aimed at simplifying requirements and supporting cross-border data flows, which underpin around 40% of UK exports. The ICO adds that it will continue to issue further guidance and improve regulatory clarity throughout 2026.

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