The financial result at the end of a financial accounting period expressing the excess funds available after accounting for movement in the liabilities within a fund and therefore potentially available for distribution by way of a bonus declaration, or withheld via the process of smoothing to bolster the estate of a with-profits fund.

A surplus reassurance arrangement whereby the ceding company retains all risks up to a certain level, its retention level, and reassures the excess above this limit.

Occurs when an insurance policy is cancelled and the insurance company pays an amount known as the surrender value to the policyholder. It includes for the encashment of a life policy, for example an endowment assurance policy, by the assured, prior to its maturity.

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES ONLY This Practice Note considers the extent to which accrued pension rights under registered occupational pension schemes can be surrendered or forfeited. The general rule against surrender—the inalienability rule Under section 91(1) of the Pensions Act 1995 (PA 1995), a person’s entitlement in respect of accrued benefit rights under a registered occupational pension scheme cannot be assigned, commuted, surrendered or charged, and no lien or set-off can be exercised in respect of it. Furthermore, any agreement to effect any such thing is unenforceable. This rule is known as the inalienability rule. In circumstances where the inalienability rule applies, section 91(2) provides that no order can be made by any court that would restrain an individual from receiving their occupational pension. This was demonstrated in the case Manolete Partners Plc v White where the Court of Appeal overturned the High Court’s decision to approve an injunction order requiring a member to draw down their occupational pension scheme benefits and pay them over to a creditor.

Also known as an implied surrender. It occurs when the unequivocal conduct of both parties is inconsistent with the continuation of the tenancy. It is often demonstrated by the delivery of possession by the tenant and acceptance by the landlord.

This Practice Note covers how a surrender by operation of law (implied surrender) may arise, the effect of the landlord accepting the keys, and circumstances that may cause a surrender. Main principles A surrender by operation of law (or ‘implied surrender’) occurs when the unequivocal conduct of both parties is inconsistent with the continuation of the tenancy. This is demonstrated by the delivery of possession by the tenant and acceptance by the landlord. The tenant cannot unilaterally end its obligations under the lease. The key question is whether the landlord's actions are so inconsistent with the continued existence of the tenancy that they can only be justified on the basis that the landlord has taken back possession. The parties' actions are considered objectively, looking at their conduct as a whole. In Artworld v Safaryan the Court of Appeal upheld a ruling that surrender by operation of law had occurred where the cumulative effect of the landlord's conduct evidenced an intention to take over the property and treat it as their own, even though:

This Checklist sets out some of the key steps and issues that the landlord should consider when contemplating taking a surrender of a lease from its tenant. It is not exhaustive and you must always consider whether there are any other issues that need to be addressed in your particular circumstances. The Checklist assumes that: • the surrender is express and not by operation of law, and • there will be no re-grant in favour of the tenant immediately following the surrender This checklist can be read in conjunction with Practice Note: Lease surrenders and Checklist Surrender of lease—acting for the tenant—checklist. How to use this Checklist Whilst the mechanics of a surrender of a lease are similar to a sale and purchase (because the tenant is selling and the landlord is buying), there are some differences. The first section (Key considerations) in this Checklist sets out key issues to consider with further detail in the table in Procedure when dealing with the surrender of a lease below. The table also sets out the procedure

This Checklist sets out some of the key steps and issues that the tenant should consider when contemplating surrendering its lease to its landlord. It is not exhaustive and you must always consider whether there are any other issues that need to be addressed in your particular circumstances. The Checklist assumes that: • the surrender is express and not by operation of law, and • there will be no re-grant in favour of the tenant immediately following the surrender This Checklist can be read in conjunction with Practice Note: Lease surrenders and Checklist Surrender of lease—acting for the landlord—checklist. How to use this Checklist Whilst the mechanics of the surrender of a lease are similar to a sale and purchase (because the tenant is selling and the landlord is buying), there are some differences. The first section (Key issues) in this Checklist sets out the key issues to consider with further detail in the table in Procedure when dealing with the surrender of a lease below. The table also sets out the procedure and follows

Precedent transfer An adaptable Word version of the precedent form TP1 can be downloaded, saved or printed from the link on this page. Drafting notes to precedent transfer Panel 3—Property description Where a plan accompanies the transfer, HM Land Registry Practice Guide 40: guide overview of Land Registry plans sets out detailed rules relating to the plan. A failure to follow these rules may result in the application for registration being rejected. In particular, any plan relating to a disposition of part of a registered estate must be signed by the transferor. In any event, it is good practice to have the plan signed by both parties (so as to ensure that the transferor (tenant) and the transferee (landlord) have approved the extent of the property that is being surrendered. Where a plan is not sufficient to allow clear identification of the land, HM Land Registry may ask for an additional plan to be lodged. HM Land Registry guidance confirms that it will treat the plan as though it was attached to the application form

A patent proprietor can ask to surrender his or her patent. This has the effect of the patent rights coming to an end once the surrender has been accepted.

Precedent transfer An adaptable Word version of the precedent form TR1 can be downloaded, saved or printed from the link below: Drafting notes to precedent transfer Panel 8—Consideration If the Landlord is paying the Premium to the Tenant, select the first option ‘The transferor has received from the transferee for the property the following sum (in words and figures):’ and enter the amount of the Premium as directed. If the Tenant is paying a ‘reverse’ premium to the Landlord for the surrender, select the second option ‘The transfer is not for money or anything which has a monetary value’ and record the payment of the reverse premium (and the Landlord’s acknowledgement of receipt of it) in Panel 11 (Additional provisions). The Land Registry fee is payable under Scale 2 based on the value of the lease immediately before the surrender and not the amount of the reverse premium paid by the tenant: for these purposes the surrender is treated as being ‘other than for monetary consideration’ (see the leases section in HM Land Registry Guidance: Registration Services fees). Panel

A company within a group can, in certain circumstances, surrender a tax refund which is due to it to another member of that group. It can be to the advantage of the group as a whole because it can reduce the amount of interest for underpaid tax that the group is required to pay. For these purposes, a group means a loss relief group as described in Practice Note: Group relief—loss relief group. Conditions for the surrender of tax refunds In order to surrender a tax refund, the surrendering company and the recipient company must: • jointly give notice of the surrender to HMRC • be members of the same group for the whole of the period: ◦ beginning at the start of the accounting period to which the refund in question relates, and ◦ ending on the date on which notice of the surrender is given—this period will very likely be longer than just the period to which the refund relates, as the relationship must persist up to the point of the notice,