The application is brought by way of an application notice that complies with the Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 1.35. The application notice should set out the nature of the remedy sought and the fact the application is made under section 245 of the Insolvency Act 1986 (IA 1986). The remedy sought will typically be a declaration that the floating charge is invalid

This Q&A looks at whether it is possible to vary this type of a legacy by deed of variation so that it is expressed so as to carry the intermediate income and, if so, how the taxation consequences would differ. The circumstances considered in this Q&A are where the beneficiary of the legacy is a minor and the legacy is contingent on the beneficiary attaining the age of 21, and the residuary beneficiary is also one of the executors of the estate. Income Tax The residuary beneficiary (R) is entitled to the income as part of the residuary estate after payment of expenses chargeable to that income. The executors pay income tax at the basic rate on the income (less any such expenses) and pay the balance to R with a tax deduction certificate showing the tax deducted. R is taxed on the gross amount, but given credit for the tax paid, so if R is a higher

Valid execution A simple contract in writing is usually executed by way of signing and dating that document. The key requirement for the formation of a contract is that there is acceptance of the offer which is then communicated to the other party. The exact way in which a simple contract can be executed is determined by the type of legal person executing it. For further details on the execution of specific types of contract, see Practice Note: Executing documents—deeds and simple contracts. Parties often execute deeds or simple contracts in counterpart, which means that they each sign separate copies of it, rather than all parties signing the same copy of the agreement. Executing a document in counterpart can make completion of a transaction a great deal easier to coordinate, especially where there are a large number of parties, or the parties are located some distance from each other and cannot

The Official Custodian for Charities, who is a member of the Charity Commission's staff, is a statutory corporation under section 21 of the Charities Act 2011 (CA 2011). Title to a charity’s land can be vested in him by an order from the Charity Commission or the court. Ordinarily, orders are obtained from the Charity Commission, which has produced an online guidance note and application form. See: Guidance on vesting land in the Official Custodian and Vesting of land in the Official Custodian form. The order will specify the property that will vest in the Official Custodian, so a new order is required each time land is acquired by the charity. The Official Custodian will not enter into a transfer directly

On the grant of a lease SDLT is generally payable in respect of any premium and the net present value (NPV) of the rent over the term of the lease. The NPV of a lease is calculated using a complex formula set out in para 3, Schedule 5 to the Finance Act 2003 (FA 2003). For more detail, see Practice Note: SDLT chargeable consideration—leases. Where a rent review is scheduled to take place within the first five

In the context of an unfair prejudice petition under section 994 of the Companies Act 2006 (CA 2006), the court has a wide discretion as to the remedy, if any, it grants on finding that there has been unfairly prejudicial conduct. The remedy usually sought is the purchase of the minority’s shares by the majority, at a price determined by the court and this can be regarded as the typical order to which a successful petitioner is entitled (Grace v Biagioli). If the majority makes a plainly 'fair' offer to purchase the minority’s shares (eg offering a price determined by a reputable independent expert valuer) before proceedings begin, and which is not accepted, a petition may be struck out since such an offer means that the conduct complained of can no longer be regarded as unfair (O'Neill v Phillips). Where an order is made for the petitioner’s shareholding to be bought

The application is brought by way of an application notice that complies with Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 1.35. The application notice should set out the nature of the remedy sought and the fact the application is made under section 239 of the Insolvency Act 1986 (IA 1986). The remedy sought will typically be a declaration that the transaction constituted a preference and an order restoring the position to what it would

This Q&A relates to the following Practice Note: Profits à prendre. Since 13 October 2003 (when Land Registration Act 2002 came into force) it has been possible to register a profit a prendre 'in gross' with its own title. To be registered with its own title a profit a prendre must: • exist in its own right and not be annexed to the ownership of other land

This Q&A relates to a right to light being transferred due to a ‘coincidence’ between old and new windows in a building. Where work is carried out to a dominant building so that windows which enjoy a right to light are replaced by new windows, the general principle is that alterations to windows will not destroy the right to light enjoyed provided there is coincidence between at least part of the old and new

This Q&A assumed that the settlor holds an interest in possession under the trust. This response considers only inheritance tax. Unless the settlor's interest is a qualifying interest in possession, the trust will be subject to the relevant property trust regime for inheritance tax (IHT) purposes. Therefore, on settlement, there would be an immediate charge to 20% IHT, subject to any available reliefs, such as the nil rate band (NRB). See Practice Note: The meaning of relevant property. While the trust subsists, it will be subject to ten-yearly and exit charges under the relevant property regime. For more information on these charges, see Practice Notes: Relevant property trusts—the exit charge and Relevant property trusts—the principal (ten-year) charge. As the settlor is a beneficiary of the trust, the property which they have contributed

The burden of inheritance tax on an estate is governed by section 211 of the Inheritance Tax Act 1984, which provides that: (1) Where personal representatives are liable for tax on the value transferred by a chargeable transfer made on death, the tax shall be treated as part of the general testamentary and administration expenses of the estate, but only so far as it is attributable to the value of the property in the United Kingdom which: (a) vests in the deceased's personal

When drafting a tax covenant, it is important to know the basis on which the target shares have been valued. Usually, the price is based on the net asset value (taking into account tax assets and liabilities) of the target company or group at a specified date, which is normally also the date used to allocate responsibility between the parties for tax liabilities. The tax covenant allocates responsibility for tax liabilities arising in the target company or group by making the seller liable (subject to exclusions) for those tax liabilities occurring (or treated as occurring) on or prior to a specified date, with the buyer responsible for the period following that date. Where completion accounts are used and tax assets and tax liabilities are included in those accounts, this date should be the date of completion of the sale of the target company's