Private Client analysis: This decision clarifies that recurring royalty payments settled on trust may constitute capital, rather than income, for trust law purposes where the trust instrument objectively treats the royalty stream itself as part of the trust fund. Mr Justice Richards confirmed that there is no overriding principle requiring royalties derived from an assigned contractual right to be characterised as income and emphasised that construction of the trust instrument remains paramount. The judgment provides important guidance for drafting and administering trusts holding royalty or other contractual income streams, highlighting the distinction between trust law classification and tax treatment and the need for careful allocation of receipts between capital and income. Produced in partnership with Alexandra Rogers of Foot Anstey LLP.

This Q&A covers orders for sale of a residential jointly owned property following the grant of a charging order by the court. It also covers the procedure for issuing the application form seeking an order for sale. Background The application for seeking an order for sale (to enforce a charging order) is made pursuant to CPR 73.10C and is governed by the procedure detailed in CPR 8. If the property is jointly owned, the charging order will only be in respect of the judgment debtor’s share of the property and as a result will affect the recoverability of the sum secured by the charging

In answering this Q&A we have limited our research to cover pre-action requirements when seeking an order for sale. We assume you are referring to applying under CPR 8 for an order for sale to enforce a final charging order against a property CPR PD 8A, para 3.1 sets out the types of claims for which the Part 8 procedure may be used. The claimant must use the Part 8 procedure for applications to enforce charging orders by sale under CPR 73.10C, para 4. For more information

The rules governing which payslips are required for submission with an Appendix FM of the Immigration Rules application when attempting to satisfy the minimum income requirement (MIR) via salaried employment are contained at Appendix FM-SE of the Immigration Rules. Paragraph 2 states as follows: ‘2. In respect of salaried employment in the UK (except where paragraph 9 applies), all of the following evidence must be provided: (a) Payslips covering: (i) a period of 6 months prior to the date of application if the person has been employed by their current employer for at least 6 months (and where paragraph 13(b) of this Appendix does not apply); or (ii) any period of salaried employment in the period of 12 months prior to the date of application if the person has been employed by their current

When to register charging orders If the court makes an interim charging order, the effect is that the relevant asset stands charged with amount of the judgment debt, interest and costs. A final charging order, if granted, will provide that the interim charging order simply continues (subject to any modifications). It is advisable that registration of the charge should be done as soon as the interim charging order is made. Waiting for the final charging order risks the charging order being defeated by a further charge or sale or a sale of land. Registration of both interim and final charges There is some debate on the issue, but ultimately it is not necessary

In principle, there is no reason why a freehold owner could not enter into a transfer of part and retain the airspace above their land. The horizontal division of the land will need to be clearly documented in the transfer. HM Land Registry practice guide 40, Supplement 2 provides (at section 6): ‘HM Land Registry increasingly receives applications to register airspace, roof-space, tunnels and so on. Registrations of strata, either airspace or subsoil,

Overage (sometimes known as clawback or deferred consideration) enables a seller to benefit from an uplift in the value of land (eg where planning permission is obtained or where completed units are sold). Entitlement to overage is a contractual matter and overage provisions will be construed against the person seeking to rely on them. Clarity is therefore essential. See Practice Note: Overage—drafting points. There are numerous authorities where the effectiveness and applicability of overage provisions contained in sale and purchase agreements have been challenged after completion of the purchase and in none of them has it ever been found that the provisions were invalid by reason of the fact that they are contained in the agreement and not in a separate deed. In Sovereign

We assume that both the dominant and servient land were registered at the time the easement was granted. For an easement to have protection, it must be completed by registration against both the servient and the dominant titles. The express grant or reservation of a legal easement out of a registered estate on or after 13 October 2003 is a registrable disposition. Unless and until registered, the easement is equitable only. This requirement

Non-fungible tokens (NFTs) are a type of cryptographic, digital asset that represents ownership of an underlying, inherently unique and irreplaceable item. This item can be digital or real world, such as artwork or real property. The ‘tokenising’ of ownership or other rights is seen as a way to simplify the buying, selling, or trading of assets, rights, and/or obligations via the digital ecosystem of the internet. NFTs are often sold or traded on an online marketplace, and have gained notoriety in recent months because of the large sums people have been willing to pay for them. Minting (creating), selling, investing in, and trading NFTs is a relatively new phenomenon. Unsurprisingly, as minimal case law exists on the subject, there is currently some uncertainty as to whether and, if so, to what extent, the sale or licensing of NFTs could be subject to UK consumer protection regulations and/or the

The rules relating to energy performance certificates (EPCs) in relation to dwellings have changed and been made more stringent by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (MEES Regs 2015), SI 2015/962 which came into force in April 2018. EPCs are needed whenever a property is built, sold or rented and once obtained has a validity of ten years. As from April 2018, if a property has an energy rating lower than an E, ie F or G it becomes unlettable. The Energy Performance of Buildings (England and Wales) Regulations 2012 (EPC Regs 2012), SI 2012/3118 state that ‘a reference to a building includes a reference

The prohibited names provisions are aimed at preventing phoenix companies from causing a disadvantage to creditors by creating more transparency surrounding the re-use of company names in these situations. Breach of these provisions can lead to severe penalties, both civil and criminal. Section 216(3) of the Insolvency Act 1986 (IA 1986) and Rule 22.4–22.5 of the Insolvency Rules 2016, SI 2016/1024 contain exceptions allowing a director to use a prohibited name in certain situations. SI 2016/1024, r 22.4 provides: ‘(2) The person will not be taken to have

Family analysis: David Bedingfield, barrister at 4 Paper Buildings, discusses how the court came to decide that it was in the best interests of twins to be separated for adoption, following ‘incompetence and serial failings’ by the local authority.