FORTHCOMING CHANGE: On the 27 April 2023 Tax Administration and Maintenance Day, the previous Conservative government published a summary of responses to its 2021 call for evidence entitled ‘Modernising debt collection for non-paying businesses’. The summary of responses notes that the government will focus an initial consultation on four of the six proposals from that 2021 call for evidence, one of which is the proposal to extend direct recovery of tax debts (DRD) to digital wallets. Before it consults on these measures, HMRC will develop an evidence base around the scale of the problem of serial non-payers and an assessment of the current legal barriers to extending these powers. The summary of responses also states that the government ‘will take a view on the best time to consult’. For further information, see News Analysis: Tax Administration and Maintenance Day—27 April 2023. Direct recovery of tax debts (DRD) refers to HMRC's ability to instruct banks and building societies (ie deposit-takers) to deduct amounts to settle taxpayers' tax debts directly from their bank accounts,

The parent company pays a dividend in specie of the shares of the subsidiary that is to be demerged. The target company must have sufficient distributable reserves to cover the book value of the subsidiary in the company's accounts.

Where a dispute is brought to an end by a payment of damages or compensation, whether under a court order or an out-of-court settlement agreement: • the person receiving the payment (the claimant) will want to know whether that amount is taxable, and • the person making the payment (the defendant) will want to know whether they can claim any tax relief This Practice Note considers these two questions in turn, in relation to direct UK taxes. The parties will also need to know whether the payment attracts VAT, and this is considered in Practice Note: VAT treatment of damages and compensation payments. Tax considerations may also be relevant to the calculation of the amount of the damages or compensation payment. This is considered in Practice Note: The effect of tax on the quantum of damages. Tax reliefs apply to payments made by public authorities under certain specific compensation schemes, including the Windrush Compensation Scheme and the Post Office Horizon Compensation scheme. These are not covered in detail in this Practice

The direct tax treatment of landlords and tenants in relation to the grant of leases is considered in Practice Note: Direct tax treatment of leases—grant of a lease. This Practice Note considers the direct tax treatment of landlords and tenants in other transactions in relation to leases, principally assignments, surrenders and variations of existing leases. The VAT and stamp duty land tax (SDLT) treatment of these transactions is also of critical importance in determining the overall tax treatment of the parties, for which, see Practice Notes: • VAT issues for new and ongoing leases • VAT issues for lease assignments and terminations • SDLT chargeable consideration—leases, and • SDLT—common lease transactions As with the treatment of landlords and tenants in relation to the grant of leases, the tax treatment of transactions affecting existing leases depends on a number of factors including the tax status of the parties, the term of the lease and the purpose for which the transaction is entered into. The legal mechanics relating to property, and

The legal structures of property interests in the jurisdictions of England and Wales, Scotland and Northern Ireland place leases at the centre of any UK property-related business. Most interests in land of any significant duration will be structured as a lease so that landlord and tenant may access the legal rights and obligations inherent in that status. Even though the legal mechanics associated with the grant of a lease are the same in all situations, there is no single tax treatment of the grant of the lease. The tax treatment of the landlord who grants the lease and the tenant to whom the lease is granted will depend on their own individual circumstances, as well as the characteristics of the lease itself. This Practice Note considers only the direct tax (income tax, corporation tax and CGT) treatment of the grant of a lease. In this note, CGT is used to refer to both capital gains tax and corporation tax on chargeable gains. For the direct tax treatment of the assignment

In many real estate sale and purchase transactions, the consideration for the sale will include an element of overage. Overage can be structured in a number of ways. Its direct tax treatment will depend on the way it is structured and the tax status of the recipient and payer. This Practice Note considers the principal types of overage and the direct tax treatment of the seller and purchaser. The payment of overage will also have consequences for SDLT and VAT purposes, which may be sufficiently significant to drive the form of the transaction. These are outside the scope of this Practice Note. For the VAT consequences, see Practice Note: VAT treatment of overage and for the SDLT considerations, see Practice Note: SDLT chargeable consideration — overage payments. In this Practice Note, references to income tax include corporation tax on income and CGT means both capital gains tax and corporation tax on chargeable gains. What is overage? Overage describes the position where a seller (typically, though

This Table provides an overview of the direct tax treatment (ie corporation tax, income tax or capital gains tax treatment) of owning freehold or leasehold commercial property in the UK. Specifically, it sets out how UK tax resident, and overseas resident, companies and individuals that directly hold UK property are taxed in relation to rental income and sale proceeds depending upon whether they hold such property as an investment or for trading purposes. The Table assumes that the UK property in question is commercial rather than residential property. More specifically, it assumes that the property does not comprise (or include) a single dwelling worth more than £500,000 and does not fall within the scope of the annual tax on enveloped dwellings (ATED). For more details on ATED, see Practice Note: ATED—the basics. The Table does not cover: • the indirect tax treatment of UK property ownership, ie the ownership of interests deriving their value from UK property. For more information about the tax treatment of indirect ownership, see Practice Note: Non-residents and tax on chargeable

‘Direct-to-home’ or ‘broadcast-satellite'>direct broadcast satellite services’ are digital satellite services that provide television viewing services directly to subscribers through satellite transmission. A satellite dish is placed outside a home in order to receive the signals and to broadcast the transmission onto a television set, eg Sky TV and Freesat.

Restructuring & Insolvency analysis: This case involved two decisions on an application by the Special Administrators of Argentex LLP (‘Argentex’) for directions in connection with the proposed close out of Argentex’s foreign exchange (‘FX’) trading book. The Special Administrators sought directions from the Court as to whether: (i) their proposed course action would create any liabilities as an expense of the administration (the ‘Expense Question’); and (ii) Argentex was entitled to close out the contracts which made up the trading book (the ‘Termination Question’). In relation to the Expense Question, the judge (ICC Judge Agnello KC) held that the Special Administrators would not be incurring any liabilities as an expense of the special administration by: (i) not performing the contracts which made up the trading book; or (ii) closing out the customer contracts that make up the trading book. In relation to the Termination Question, the Judge held that on the proper construction of the relevant agreements with its customers, Argentex was not entitled to close out the contracts which made up the trading book. Written by Marcus Haywood, barrister at South Square.

CLAIM NO. [insert claim number] In the high court of justice BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES INSOLVENCY AND COMPANIES LIST (ChD) Companies court BEFORE [The Honourable Mr Justice OR The Honourable Mrs Justice OR His Honour Judge OR Her Honour Judge] [insert name of judge] DATED: [insert date]. In the matter of [insert company name] and In the matter of the companies act 2006 _______________________________________ Order FOR DIRECTIONS _______________________________________ Upon the application by part 8 claim form dated [insert date] of [insert company name] (company number [insert company number]), with its registered office is at [insert address] (the Company) And upon hearing Counsel for the Company, being the Claimant

This Practice Note considers directions questionnaires for civil claims that are issued before 1 October 2023. It covers how and when to complete, file and serve the directions questionnaire and the consequences of a failure to file a directions questionnaire. The directions questionnaire is Form N180 or N181, depending on the track to which the claim is allocated. The rules relating to directions questionnaires vary, depending on whether proceedings are issued before or after 1 October 2023. This Practice Note considers directions questionnaires for civil claims issued before 1 October 2023. For information on directions questionnaires for civil claims issued on or after 1 October 2023, see Practice Note: Directions questionnaires—position on or after 1 October 2023. Note, however, that for personal injury claims, the rules vary depending on the date when the cause of action accrues, and for disease claims, when the first letter of claim has been sent. For these claims, the rules set out in this Practice Note only apply to personal injury claims where the cause of action accrued before

This Practice Note considers directions questionnaires for civil claims that are issued on or after 1 October 2023 (except personal injury claims). It covers how and when to complete, file and serve the directions questionnaire and the consequences of a failure to file a directions questionnaire. The directions questionnaire is Form N180 or N181, depending on the case management track to which the claim is allocated. The rules relating to directions questionnaires vary, depending on whether proceedings are issued before or after 1 October 2023. This Practice Note considers directions questionnaires for civil claims issued on or after 1 October 2023. For information on directions questionnaires for civil claims issued before 1 October 2023, see Practice Note: Directions questionnaires—position before 1 October 2023. Note however that for personal injury claims, the rules vary depending on the date when the cause of action accrues and for disease claims when the first letter of claim has been sent. For these claims, the rules set out in this Practice Note only apply to personal injury