We would like to comment upfront that this query concerns areas of law which are not, as yet, entirely settled and, depending on the circumstances, it may be worth seeking counsel’s opinion. Key questions to consider are: • is a floating charge a contract to dispose of an interest in land, meaning it would fall within section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989)? • if so, is the whole of the floating charge invalidated if the lender has not signed, or is it only invalid as regards land which might fall in the floating charge assets? • if the floating charge is only invalid for failed execution to the extent the floating charge assets comprise land, then the next question is whether the floating charge can still be considered a qualifying floating charge? • can the charge be countersigned at a later date? Is

Scholarship income is one of many types of income which are exempt from income tax. The exemption to income tax is set out in section 776 of the Income Tax (Trading and Other Income) Act 2005 (see Practice Note: Exemptions and reliefs from income tax). However, if the sums in question are earnings from an office or employment, that exemption will not apply. When considering the question of whether an individual is an employee (and therefore whether payments received are earnings from that office or employment), HMRC takes a similar approach to the employment tribunals in determining employment status. However, HMRC is not bound by decisions made by the employment tribunals and could reach different conclusions on the same facts. Despite the importance of the distinction between employment and self-employment

The position will depend on the precise terms of the discretionary trust, the deed of appointment of revocable life interest and other trust documents. The explanation below is a general overview of the income tax position of settlor interested trusts. The starting point is to consider the so-called settlements legislation (or settlor code) in sections 624–628 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005). The general rule relating to income that may be treated as the settlor’s own income is contained in ITTOIA 2005, s 624. This states that the income arising under a settlement is treated for income tax purposes as the settlor’s income (and his income alone) if: • it arises during the settlor’s lifetime, and • from property in which he has

For guidance on income tax during the period of administration and the income tax treatment of beneficiaries under a Will, see: Estates—income

Assuming that the deceased had not made chargeable lifetime transfers or failed potentially exempt transfers during the last seven years of their life and they were not entitled to trust assets or other property, then the legacies expressed to be tax-free would likely fall within their available basic nil rate band, such that grossing up would not be required. The

This Q&A considers only the position as regards inheritance tax (IHT) in the UK as at the deceased’s death. There may be other UK and foreign tax considerations and further IHT consequences on the subsequent death of the party taking the usufruct. Usufructs are commonly found in civil law countries, most notably in France and Spain. Article 578 of the French Code Civil provides that: ‘a usufruct is the right to enjoy property belonging to another, as if its owner, at the expense of preserving that property.’ HMRC generally treats a usufruct as equivalent to an English law interest in possession settlement for IHT purposes. This view was stated in the HMRC Trusts & Estates Newsletter—April 2013 and confirmed in HMRC Trusts & Estates Newsletter—September 2015. In particular: ‘HMRC has always been of the view that

The inheritance tax (IHT) charge on an individual’s death falls under two headings: • the 'additional charge'—which can arise on chargeable lifetime transfers (CLTs) and potentially exempt transfers (PET) made by the deceased in the seven years before death, and • the 'estate charge'—which arises on the value of all the property the deceased owned (or was deemed to own) immediately before death See Practice Note: Calculating the IHT charge on death. The estate charged at death may include the following components (amongst others): • the free estate—this is the value of all the assets, less liabilities, owned outright by the deceased at the date of death • assets beneficially owned which pass under the deceased's Will or intestacy or a statutory nomination • jointly owned property—the taxable estate includes

Where a variation falls within section 142(1)(a) of the Inheritance Tax Act 1984 (IHTA 1984), the variation shall be treated as if it had been effected by the deceased for inheritance tax purposes. There is similar treatment for capital gains tax if the variation falls within section 62(6) of the Taxation of Chargeable Gains Act 1992, but this Q&A focuses on the inheritance tax position. IHTA 1984, s 142 contains restrictions and conditions for the treatment in IHTA 1984, s 142(1) to apply. IHTA

It will need to be considered whether the pension policy lump sum death benefit is part of the deceased’s estate or otherwise chargeable to inheritance tax (IHT) on the deceased’s death. It will depend on the type of pension and the terms of policy itself. It will also depend on the dates that the deceased made the binding nomination and any additions

The Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) has, with effect from 1 August 2016, succeeded the Third Parties (Rights Against Insurers) Act 1930 (TP(RAI)A 1930). The question is whether the rights bestowed by either or both of these Acts are at all affected by the fact that the company or organisation which would otherwise be the defendant is liable (or alleged to be liable) by virtue of vicarious liability for the acts or omissions of an employee or other person closely connected with it. An insurer will not be vicariously liable for the acts or omissions of its insured or the servants or agents of the insured, since those acts or omissions will be either unconnected or not sufficiently connected with

Interest and charging orders The process of obtaining a charging order allows interest to accrue, securing the sum owed, all accrued interest and all interest accruing. Where a judgment creditor takes proceedings in the County Court or the Family Court to enforce payment under a relevant judgment, the judgment debt ceases to carry interest thereafter, except where those proceedings fail to produce any payment from the debtor in which case interest accrues as if those proceedings had never been taken. However, 'proceedings to enforce payment under a relevant judgment' do not include proceedings under the Charging Orders Act 1979 (COA 1979) (Article 4(2) of the County Courts (Interest on Judgment Debts) Order 1991, SI 1991/1184 (SI 1991/1184, art 4(2)). Neither CPR 73 nor the COA

Practice Direction; (interest: pleading) deals with the issue of interest under the Bills of Exchange Act 1882 (BEA 1882). John Elton, Senior Master, Queen's Bench Division provided that: • by BEA 1882, s 57 the holder of a cheque (or