Although VAT is a tax that is ultimately borne by the final consumer, the responsibility for paying VAT to HMRC lies with VAT registered suppliers of goods and services. For more details, see below: How is VAT collected? This Practice Note provides an introduction to the mechanics businesses must use when paying VAT to HMRC. This Practice Note includes reference to EU VAT Directive 2006/112/EC. The UK ceased to be an EU Member State on 31 January 2020. On this date, the UK entered an implementation period (IP), during which it continued to be treated as a Member State for many purposes, and remained bound by EU law. The IP ended at 11 pm on 31 December 2020. On that date, a body of EU-derived rights and legislation, known as retained EU law (REUL), was converted into domestic UK law. For more on REUL and tax, see Practice Note: Retained EU law and tax. On 1 January 2024, REUL that remained in force after the end of 2023 was recategorised as ‘assimilated law’.

Summary This Practice Note covers the status of Financial Support Directions (FSDs) issued under the Pensions Act 2004 (PA 2004), more particularly the ranking of FSD liabilities in insolvency with reference to the Supreme Court decision in the case of Nortel/Lehman. The judgment provided important guidance on: • the ranking of FSD liabilities in insolvency • the proper construction of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 14.1 (formerly the Insolvency Rules 1986 (IR 1986), SI 1986/1925, r 13.12(1)(b)), defining contingent debts that may be proved in an insolvency • the nature of insolvency expenses, and • the court's residual discretion, if any, to direct payments be made outside the statutory scheme of distributions The decision also dealt with the status of contribution notices issued under PA 2004, s 47 (section 47 CNs), which enforce compliance with FSDs. For more information on FSDs and CNs, see Practice Notes: • The Pensions Regulator and

Company’s assets upon winding up The company's assets on a winding up are to be applied in meeting first the expenses of the voluntary winding up, then in meeting preferential claims, then in satisfying the company's liabilities pari passu, and thereafter distributed among the members according to their rights and interests in the company, subject always to the company's articles. Where a company is insolvent, ie where there are insufficient assets to meet all its liabilities, principles of priority for the payment of these liabilities are crucial. Section 107 of the Insolvency Act 1986 (IA 1986) expresses this major purpose thus for voluntary liquidations: 'Subject to the provisions of this Act as to preferential payments, the company's property in a voluntary winding up shall on the winding up be applied in satisfaction of the company's liabilities pari passu and, subject to that application, shall (unless the articles otherwise provide) be distributed among the members according to their rights and interests in the company.' The

The two main categories of entity that should be recorded on a PSC register are registrable individuals with 'significant control' (as defined in accordance with the five conditions set out in Schedule 1A, Part 1 to the Companies Act 2006 (CA 2006)), and any other registrable 'relevant legal entities' (RLEs) that have significant control and are 'subject to their own disclosure requirements'. Charities typically establish themselves as either trusts, unincorporated associations, charitable incorporated organisations (CIOs) or companies limited by guarantee. Some of these structures will therefore have to maintain their own PSC register. In addition, if they are themselves legal entities, they are likely to be registrable RLEs which may appear in the PSC register of a particular company or LLP which they happen to have significant

The effect of a clause with similar wording was considered by Simon Gleeson (sitting as a deputy judge of the High Court) in Gabb v Farrokhzad in the context of the tenant having accepted an offer for the purchase of a leasehold

A limited liability partnership (LLP) is not a partnership but a body corporate that is formed under the Limited Liability Partnerships Act 2000 (LLPA 2000). LLPA 2000 is largely a framework statute covering the formation of an LLP and the relationship of the members of an LLP. It is supplemented by various statutory instruments. In particular: • the Limited Liability Partnerships Regulations 2001 (LLPR 2001), SI 2001/1090 apply certain provisions of partnership law to LLPs • the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009, SI 2009/1804 apply many parts of the Companies Act 2006 (CA 2006), with

Claiming interest CPR 16.4(2) provides that: If the claimant is seeking interest he must: • (a) state whether he is doing so— ◦ (i) under the terms of a contract; ◦ (ii) under an enactment and if so which; or ◦ (iii) on some other basis and if so what that basis is; and • (b) if the claim is for a specified amount of money, state— ◦ (i) the percentage rate at which interest is claimed; ◦ (ii) the date from which it is claimed; ◦ (iii) the date to which it is calculated, which must not be later than the date on which the claim form is issued; ◦ (iv) the total amount of interest claimed to the date of calculation; and ◦ (v) the daily

The standard of care in professional negligence cases The standard of care in professional negligence cases is that of 'reasonable skill and care' as formulated in the Bolam case. There are indicators as to how that test is applied in practice and the use of industry opinion in professional negligence claims, which can vary as between different industries. Please see our Practice Note: Standard of care in professional negligence claims for more guidance and, in particular, you may find the section on the standard of care expected of solicitors and barristers useful. Once the existence of a duty and standard of care which the prospective defendant has breached is established, it remains necessary to demonstrate that the resulting damage

We are not aware of any authority specifically dealing with assessment of damages for landlord disrepair in the context of shared ownership leases. However, the principles for landlord disrepair cases are that the object of an award of damages is not to punish the landlord but to restore the tenant to the position they would have been in had there been no breach (Wallace v Manchester City Council (where the Court of Appeal helpfully clarifies how damages for breach of repairing obligations by a landlord are to be assessed)). The facts of each case must be looked at carefully to see what damage the tenant has suffered and how they may be fairly compensated by a monetary

When does the question of assessment arise in such cases? During the term of a lease, if the tenant has failed to comply with its repairing obligations under the lease, the landlord may (among other options) decide to carry out the repairs and claim the costs from the tenant as a debt: this is commonly known as a 'Jervis v Harris clause'. However, once the lease term has ended, the landlord can no longer rely on such a clause. At that stage, damages are the only available remedy. There are various protocols to be followed at the outset of 'dilapidations' claims once the lease term has ended. For further guidance on these, see Practice Note: Dilapidations claims at the end of the term—Dilapidations Protocol and Procedure What is the common law measure of damages? The common law measure of damages is: • the cost of carrying out the repairs, plus • the loss of rent while those repairs are being carried out However, the sum of these two figures is subject

A bailment arises whenever one person (the bailee) is voluntarily in possession of goods belonging to another person (the bailor). For more commentary on when a bailment may arise, see commentary from Halsbury’s Laws of England on bailment: • Meaning of 'bailment': Halsbury's Laws of England [101] Bailment is a special type of transaction and a claim against a defaulting bailee may lie in contract, tort, or on the basis of the bailment itself. The principal torts which may be committed by a defaulting bailee who loses, damages or fails to return goods are negligence and conversion. Damages in such cases are awarded according to the specific rules which govern those torts. In each case, such damages are fundamentally compensatory, their object being to restore the bailor to the position which he would have occupied had the tort not been committed. For more

A confiscation order deprives a defendant of the benefit he/she gained from their criminal conduct. A confiscation order does not itself confiscate any property, but instead, requires the offender to pay over a sum of money representing the value of the benefit received. Proceeds of Crime Act 2002 (POCA 2002) contains a clear procedure for obtaining a confiscation order: • step one: does the defendant have a criminal lifestyle • step two: has the defendant benefited from his criminal conduct, and • step three: determining the recoverable amount If the defendant has benefited from criminal conduct, the court will go on to quantify it. This includes benefit obtained from particular criminal conduct and