When entering into any negotiation, be it a multimillion pound business deal or an agreeing the office coffee rota, there are two main elements to consider: • the structure and stages of the negotiation • the human aspect—emotions and negotiation style This Practice Note covers the first element: See Practice Note: The human side of negotiation for guidance on the second element. The structure of the negotiation A negotiation typically has five stages: • planning—what you need to prepare before the negotiation • discussions—where you establish what is on the table • proposals and concessions—where the main negotiating happens • agreement—finalising terms • making it work—putting the negotiated solution into practice Most people focus on the central three stages, but by spending more time planning, you can put yourself in a stronger and more confident position. There is also a tendency for people to overlook the fact that the end of the negotiation may signal the start of an ongoing working relationship—consideration of the long-term impact of the negotiation may influence any concessions

The UK’s first formal tax residency test for individuals known as the statutory residence test (SRT) took effect on 6 April 2013. Before this, whether an individual was tax resident in the UK was determined by a combination of case law, practice and HMRC guidance, which led to many uncertainties—see Practice Note: Residence before 6 April 2013 [Archived]. This Practice Note: • sets out the key elements of the SRT, and • outlines: ◦ the basic rule ◦ the automatic overseas tests ◦ the automatic UK tests, and ◦ the sufficient ties test This Practice Note, and the further Practice Notes on the SRT, are only a summary and are not comprehensive. There will inevitably be areas where an interpretation is debatable or where a given situation does not appear to be in the consideration of the draftsmen, so reference should always be made to the primary legislation. Detailed guidance on the legislation has been issued by HMRC entitled ‘Guidance note: Statutory Residence Test (SRT)—RDR3’. Information

A sublease (also referred to as an underlease) is a lease granted not by the freeholder of a building but by a tenant who has a superior lease to the sublessee. This can occur in various circumstances and is common for example in large blocks of flats where the freeholder grants a long lease (often 999 years) to a headlessee who then sublets each flat by a separate sublease. The headlessee is only able to grant rights including subtenancies that arise out of its demise. A headlessee, therefore, is not in a position to be able to grant a sublease for a term equal to or greater than his own

Arbitration analysis: Dr Markus Altenkirch and Benedic Schmeil of Baker & McKenzie’s Frankfurt office discuss the role of arbitral secretaries and the impact of the Yukos decision.

This Practice Note sets out how the European Commission (the Commission) will substantively assess mergers under the EU Merger Regulation (EUMR). NOTE—On 30 April 2026, the Commission published draft revised Merger Guidelines for consultation, intended to replace the existing 2004 horizontal merger guidelines and 2008 non-horizontal merger guidelines. The existing guidelines currently remain in force pending finalisation of the review, which the Commission expects in Q4 2026. Where a transaction falls within the scope of the EUMR, the Commission must assess whether a concentration is compatible with the single market. The EUMR provides that a concentration which results in a significant impediment to effective competition (SIEC), in the internal market or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position shall be declared incompatible with the single market. A concentration which does not result in a SIEC in the internal market or in a substantial part of it must be cleared (ie declared compatible with the single market). The SIEC test The SIEC

The Competition and Markets Authority (CMA) can prohibit any mergers that qualify for investigation under UK merger control that may be expected to result in a substantial lessening of competition (SLC). There are, broadly speaking, two types of mergers: • horizontal mergers—transactions between firms supplying competing products/services • non-horizontal mergers—transactions between either firms operating at different levels of the supply chain (vertical mergers), or firms supplying products/services at the same level of the supply chain but which do not compete (conglomerate mergers). On 3 September 2026, the CMA updated its Merger assessment guidelines to reflect the CMA’s revised approach to assessing rivalry-enhancing efficiencies in mergers. Since 2014, the CMA has also published the following guidance: • Mergers: Guidance on the CMA’s jurisdiction and procedure. A revised version of this guidance was published on 23 December 2020, to reflect the impact of the UK's exit from the EU at the end of the transition period and changes in the UK legal framework (for example, the temporary introduction of new jurisdictional thresholds and changes

A lease may be surrendered in one of two ways: expressly or by operation of law. As for express surrender, as a disposal of interest in land, s 53(1)(a) of the Law of Property Act 1925 (LPA 1925) requires that it be in writing and where it is a lease operating at

This Q&A assumes that both the contract with the supplier and the contract with the customer are subject to English law. Breach of contract There are two potential breaches in the scenario—that of the supplier of the components to the owner and that of the owner to the customer. The breach is the failure to supply the relevant goods or delay in doing so. The principles outlined below would be applicable to either breach. The remedies available are damages for breach of contract for loss suffered and/or termination of the contract. See: Remedies for breach of contract—overview. In the absence of a specific termination right covering the relevant circumstances, a contract cannot automatically be terminated by the innocent party in the event of a breach. In order to justify termination, the breach must be serious enough

Scope of supremacy As originally drafted, the EU Treaties did not include any provision by which the supremacy, or as it is alternatively referred to, the primacy of EU law was guaranteed. Overwhelmingly, the application of the principle of supremacy by the Court of Justice has guaranteed the uniform application of EU law across the Member States and without this principle, EU law would be devoid of its integrative effect. The principle of supremacy is therefore a judicial development and the commitment of the Court of Justice to upholding this principle is the single most identifiable reason why EU law has secured sophisticated and deep integration between the Member States. The principle of supremacy has been developed and established by the Court of Justice in a series of key cases, wherein the Court of Justice and national courts have sought to define the relationship between European law and national law and also national constitutional law. It is therefore also important to understand the material contribution of national courts in upholding the principle of supremacy by

THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL PENSION SCHEMES What are additional voluntary contributions? Why distinguish them from other contributions? Additional Voluntary Contributions (AVCs) are contributions paid by members of occupational pension schemes which are not required under the scheme rules and which therefore entitle the member to benefits which are additional to the basic benefits provided by the relevant pension scheme. The form of the benefits derived from the AVCs depends on the rules of the scheme. They can be additional defined benefits (often called 'added years') but in most cases AVC benefits will accrue on a money purchase basis. The contributions, and the benefits provided in respect of them, are treated as being in a separate category from the normal contributions and benefits for a number of purposes. In some areas this has led to more restrictive treatment than for other benefits; in others more favourable rules apply. In particular, funds derived from AVCs have been treated differently from other scheme assets on a winding up of the pension scheme.

Double tax treaties (DTTs) adopt the principle that companies within a multinational group should be taxed on the basis that they act at arm’s length in their dealings with each other. To ensure the correct application of the separate entity approach, DTTs permit states to adjust the profits of group members such that the effect of any special conditions or relationships are eliminated for tax purposes. This is known as the ‘arm’s length principle’. Article 9 of the Organisation for Economic Co-Operation and Development (OECD) model tax convention (OECD MTC) and the UN model tax convention (UN MTC) allow contracting states to adjust the taxable profits of ‘associated enterprises’ where they have entered into transactions that are not on arm’s length terms. The 2025 updated commentary on Article 9 of the OECD MTC explicitly states that, in adjusting the taxable profits of an associated enterprise, a tax authority should follow the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (2022) (OECD TPG) which provides detailed guidance on

Introduction This Practice Note looks at the taxation of benefits paid under a pension scheme on a member’s death. This will depend primarily on whether the individual was a member of a defined benefit (final salary) scheme or a defined contribution scheme, such as a SIPP or a personal pension plan. It will also depend on whether the pension scheme member: • dies before taking retirement benefits, or • dies while drawing retirement benefits, whether in the form of a secured pension, a life annuity or income drawdown, and, in either case, at what age (that is death before age 75 or death on or after age 75) Defined benefit (DB) schemes When a member of a defined benefit (DB) scheme dies, the benefits payable will depend on whether the member dies before or after retirement. Death before drawing benefits On death before retirement, any lump sum death-in-service payment will normally be paid by the Pension Scheme Administrators (PSAs), exercising their discretion, to one of the beneficiaries under the Rules