When considering a payment detailed under a settlement agreement, there are numerous potential income tax charging provisions. These include: • section 62 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), for general earnings • ITEPA 2003, s 225, for restrictive covenant payments, and • ITEPA 2003, s 403, for payments on termination The question of whether a particular payment falls within ITEPA 2003, s 403 will depend upon whether the payment is ‘received directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of a person’s employment’. If it does not satisfy this condition, it could still be taxable under ITEPA 2003, s 62 as general earnings (specifically, an emolument). How the payment is to be taxed will be heavily dependent on the facts of the situation. There have been numerous decisions where the tribunals and

For the purposes of this Q&A we have assumed that: • the management company owns the freehold of the block • all residents are shareholders of the management company, and • the granting of the extension is completed via an express surrender and regrant Capital Gains Tax When the limited company grants the new leases, it will be making part disposals out of its freehold for CGT purposes (strictly, for the purposes of corporation tax on chargeable gains) in consideration of the surrender of the old lease and the lump sum paid by the lessee for the new lease, which would give rise to a chargeable gain. For HMRC's guidance on this, see: HS292 Land and leases, the valuation of land and Capital Gains Tax (2015) and CG70950. However

A deed of variation made more than two years after the death of the deceased can constitute a valid agreement between the beneficiaries regarding the disposition of the estate. However, the inheritance tax (IHT) advantages of section 142 of the Inheritance Tax Act 1984 (IHTA 1984) and the capital gains tax (CGT) treatment of section 62(6) of the Taxation of Chargeable Gains Act 1992 (TCGA 1992) will not apply—the disposition under the deed of variation will therefore not be treated as having been made by the deceased for IHT and CGT purposes. X and Y would be gifting their remainder interest under the trust created

When parents sell their main residence at an undervalue to their son, there are several tax implications to consider, including capital gains tax (CGT), inheritance tax (IHT), potential pre-owned asset charges (POAT) and stamp duty land tax (SDLT). Firstly, for CGT purposes, the sale of a main residence is generally exempt under the principal private residence relief provisions of section 222 of the Taxation of Chargeable Gains Act 1992, provided the property has been the seller's only or main residence throughout their period of ownership. However, if the property is sold at an undervalue, the transaction may be treated as a part-gift, and the market value of the property at the time of transfer

For information about legal and equitable charges over land, see Practice Note: Land registration—legal and equitable charges and HM Land Registry. The principal taxes that may arise in relation to dealings with property include stamp duty land tax (SDLT) and capital gains tax (CGT). SDLT is charged on chargeable land transactions. The SDLT provisions are set out in Part 4 of the Finance Act 2003 (FA 2003). The legislation provides that SDLT shall be charged on land transactions. A land transaction is defined as the acquisition of a chargeable interest. A chargeable interest is defined very broadly in FA 2003, s 48 as: • an estate, interest, right or power in

The Pay As You Earn (PAYE) system is the means by which an employer makes certain statutory deductions from an employee’s income. For more information, see Practice Note: Scope of the PAYE system. The PAYE system relies on an array of reporting requirements, forms and compliance. Employers are required to comply with a number of month-end PAYE compliance and reporting requirements, including deducting the correct amount of tax and reporting these amounts to HMRC. This covers income tax, National Insurance contributions (NICs), student loan deductions and other statutory payments. This reporting is completed under the Real Time Information (RTI) system. The standard return required under RTI is the full payment submission (FPS). This should be submitted to HMRC on or before each payment is made to employees. These may therefore have to be made more than once per month if employees are on other payment cycles. The FPS contains details of both payments made in the year to date, and payments made in the current period.

In answering this Q&A, it has been assumed that members of the limited liability partnership (LLP) are not employees of the LLP and that the salaried members rules do not apply (for which, see Practice Note: Taxation of UK LLPs—Employment status of individual members of LLPs—the salaried member rules). An LLP is a body corporate for company law purposes, but is generally taxed as though it were a partnership (ie it is tax transparent). This means that an LLP's profits and gains will normally be taxed in the hands of its members, rather than being assessed on the LLP itself. Tax transparency also means that

It appears that the intention of the property owner in the present scenario is to grant exclusive possession of residential property to an employee and his wife. That grant is intended to be rent-free and for the duration of the life of the last-surviving. Such a grant is possible, but would need to be carefully drafted. There is reference to ensuring that no security of tenure is created when considering alternative structures, but it is likely that the granting of a life interest without more would create such security. Depending on the intention of the employer, an arrangement could be entered into terminable on notice, but this would not amount to a lease

We refer you to the following content that may assist you in your research: • Lexology Panoramic: Art Law (in particular, see the answer

Part II of the Landlord and Tenant Act 1954 (LTA 1954) provides security of tenure to business tenants whose tenancies fall within the protection of LTA 1954. LTA 1954, s 24 provides that a tenancy to which LTA 1954, Pt II applies does not come to an end after the fixed term of the tenancy expires. Instead, a ‘continuation tenancy’ automatically arises. LTA 1954, Pt II sets down a statutory procedure for a business tenant to follow if they wish to obtain a new lease from their landlord. This procedure permits a tenant to apply to court for an order that a new lease be granted to them. The process begins with the tenant serving a notice on the landlord pursuant to LTA 1954, s 26. Thereafter, pursuant to LTA 1954, ss 24 and 29, the

For the purpose of this Q&A we have assumed that an implied Landlord and Tenant Act 1954 protected tenancy has arisen following expiry of a contracted out lease. The case law in respect of the terms of an implied periodic lease which arises when a tenant holds over is in the context of yearly tenancies and provides that a tenant who holds over after the expiration of the term and pays rent in circumstances where the court implies the grant of a yearly tenancy will, in the absence of facts pointing to a contrary conclusion, be held impliedly to have agreed to hold as tenant from year to year upon such terms of the old lease as are applicable to such a tenancy. The applicable terms are not confined to those necessarily incident to a yearly tenancy, but include those terms which may be incident to

Part 5 of Schedule 2 to the Town and Country Planning (General Permitted Development) (England) Order 2015, SI 2015/596 (GPDO 2015) (GPDO 2015, SI 2015/596, Sch 2, Pt 5) sets out the position in relation to permitted development rights for caravans. GPDO 2015, SI 2015/596, art 2 states that ‘caravan’ has the same meaning as that in the Caravan Sites and Control of Development Act 1960 (CSCDA 1960). CSCDA 1960, s 29 defines ‘caravan’ as: ‘...any structure designed or adapted for human habitation