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Setting aside a transaction for a mistake - does it work for tax schemes?

Published on 15 Aug 2023. By Rachael Healey, Partner

The doctrine of mistake can be a useful tool if a professional provides advice that the transfer of an asset can save tax and it turns out that the advice was wrong. In circumstances where the structure of the transaction adopted involves a gift, then if a taxpayer can establish mistake, it is possible to unwind the transaction and remove the tax liability altogether (including interest and penalties).

AFMs receive B+ from the FCA: Good but could do better

Published on 15 Aug 2023. By James Wickes, Partner and Sally Lord, Knowledge Lawyer Manager

In the wake of the FCA's new consumer duty requiring firms to deliver good outcomes for consumers that meet their needs and offer fair value, it comes as no surprise that the FCA has 'followed up' on its July 2021 review.

A Principal's responsibility for an Appointed Representative – a tale of a summary judgment

Published on 14 Aug 2023. By George Smith, Partner and Rachael Healey, Partner

A recent summary judgment application, successfully made by claimants against a principal, provided that the principal was responsible for the acts of an appointed representative under the appointed representative agreement and highlights the risks of an unclear appointed representative agreement. The judgment also provides some useful commentary when it comes to considering the court's approach to the critical but potentially difficult distinction between limitations on what an appointed representative can do and on how the appointed representative should do it.

Rolls-Royce entitled to hit the brakes in dispute over termination of a software services agreement (Topalsson v Rolls-Royce)

Published on 14 Aug 2023. By Helen Armstrong, Partner and Joshy Thomas, Knowledge Lawyer

In Topalsson GmbH v Rolls-Royce Motor Cars Limited [2023] EWHC 1765 (TCC), the High Court has provided useful guidance on how to determine whether a software implementation timeline agreed by the parties is binding, when implementation is considered complete and in what circumstances failing to complete implementation by the contractual deadlines entitles the customer to terminate the contract.

Directors' duties post Sequana – a differentiating factor?

Published on 11 Aug 2023. By Matthew Watson, Partner

As expected, the scope of directors' duties whilst a company is in financial difficulties has been the source of further consideration by the Court. The recent case of Hunt v Singh [2023] EWHC 1784 raised the question as to whether, following the Supreme Court decision in BTI 2014 LLC v Sequana SA, a director's duty to take into account the interests of creditors arises where the company is at the relevant time insolvent if a disputed liability comes to fruition. In Hunt, the disputed liability was to HMRC where the directors (wrongly, as it later turned out) believed that the tax scheme they were involved in worked.

Caught out by APP fraud? Here's the 101 of what can be done

Published on 11 Aug 2023. By Dan Wyatt, Partner

Dan Wyatt, partner at RPC, takes a look at the best strategy for APP fraud victims and their recovery options.

The proposed new RICS Residential Retrofit Standard

Published on 10 Aug 2023. By Alexandra Anderson, Partner and Aimee Talbot, Knowledge Lawyer

We explain the proposed RICS Residential Retrofit Standard and offer practical tips for complying with the new Standard when it comes into force.

Tribunal confirms that HMRC failed to use the correct test in HICBC case

Published on 09 Aug 2023.

The First-tier Tribunal allowed a taxpayer's appeal against an assessment for High Income Child Benefit Charge, because a severance payment from the taxpayer's employer should have been treated as largely exempt from income tax under the disability exemption.

High Court sets aside disclosure orders against Australian banks in 'lukewarm' pursuit case

Published on 03 Aug 2023. By Charlotte Henschen (née Ducker), Partner, Professional Practices Sector Lead and Suera Hajzeri, Associate

In Scenna v Persons unknown using the identity ‘Nancy Chen’[2023] EWHC 799 (Ch), the High Court set aside disclosure orders made against two Australian banks which had previously been granted at an urgent hearing without notice.

Court of Appeal: strength of a case not a relevant factor for late amendments to statements of case

Published on 03 Aug 2023. By Daniel Hemming, Partner and Alastair Hall, Senior Associate

The Court of Appeal has clarified that once a court has determined that amendments to a statement of case have a real prospect of success, the perceived strength of the case should not be a consideration when determining an application for permission to amend (CNM Estates (Tolworth Tower) Limited v Carvill-Biggs and another). ([2023] EWCA Civ 480)

Best of both worlds with PD57AC? High Court allows opinion evidence in factual witness statement

Published on 02 Aug 2023. By Rosy Gibson, Senior Associate

The High Court has allowed the witness statement of a factual witness even though the claimant had previously intended to instruct him as an expert and his statement contained opinion evidence (Polypipe Limited v Peter Russell Davidson) ([2023] EWHC 1691 (Comm). The judge confirmed that such evidence is admissible where the witness is suitably qualified, but it will not be accorded the same weight as a formal expert report. Separately, this appears to be the first reported case in which the court accepted that permission for an extension to the deadline for expert reports could be made conditional on disclosure of any unserved report(s), though the court declined to prescribe that condition in this case.

Delay at your peril: High Court holds that two week delay causes party to lose right to object to irregularity in arbitration

Published on 02 Aug 2023. By Ana Margetts, Associate (New Zealand qualified) and Tatiana Minaeva, Partner, Head of Investor-State Arbitration

In Radisson Hotels v Hayat Otel, (1). the High Court found that the claimant ("Radisson") had lost its right to challenge an arbitration award (the "Award") by continuing to take part in the proceedings for a period of two weeks after becoming aware of improper conduct by one of the arbitrators (the "Arbitrator"). The court also rejected Radisson's subsequent application seeking to redact the identities of the parties and any details which might identify them in the judgment, in order to preserve the confidentiality of the underlying arbitration (2). While the judge acknowledged Radisson's desire to keep the arbitration confidential, this ultimately did not outweigh the general public interest in open justice.

Tribunal allows taxpayer's appeal in respect of SDLT and mixed-use premises

Published on 02 Aug 2023. By Liam McKay, Of Counsel

In allowing the taxpayer's appeal, the First-tier Tribunal has held that a property comprising a dwelling house and separate paddock subject to a grazing lease was mixed use for Stamp Duty Land Tax purposes.

Fix up, look sharp: FRC update

Published on 01 Aug 2023. By Will Sefton, Partner, Head of the Lawyers Liability and Regulatory Group and Aimee Talbot, Knowledge Lawyer

What's the latest on fixed recoverable costs in professional negligence claims?

Clear failure required: High Court refuses directions under s 18 of the Arbitration Act 1996 where procedure for appointing arbitrator had not failed

Published on 31 Jul 2023. By Shai Wade, Partner, Head of International Arbitration

The recent judgment of the English High Court in Global Aerospares Limited v Airest AS [2023] EWHC 1430 (Comm) demonstrates that the court will not issue directions under section 18 of the Arbitration Act 1996 (AA 1996), until it is satisfied that the procedure for appointing an arbitrator has indeed failed. The court dismissed a claim for directions under section 18 which is described as a "gateway provision", providing a way of getting an arbitration started or preventing its abortion where there is a failure in the parties' agreed appointment process. It gives the court powers as to the arbitrator appointments, including the power "to give directions as to the making of any necessary appointments" and "to direct that the tribunal shall be constituted by such appointments … as have been made".

FSCS' annual report – historic claims but a present danger?

Published on 27 Jul 2023. By David Allinson, Partner

CoA paves the way for the responsible developer

Published on 26 Jul 2023. By Katharine Cusack, Partner and Alexandra Anderson, Partner and Sally Lord, Knowledge Lawyer Manager

Our team explore a recent judgment that touches on crucial factors for developers and construction professionals when dealing with remedying defects in buildings.

When determining whether there are 'special circumstances' account can be taken of early payments and voluntary disclosure by the taxpayer

Published on 26 Jul 2023.

HMRC can take account of early payments, voluntary disclosure and proportionality when considering whether 'special circumstances' exist justifying the reduction of tax-geared penalties for late filing of a tax return.

THE RISE OF THE DE-INFLUENCER: What does this mean for brands?

Published on 25 Jul 2023. By Ela Broderick-Basar, Associate

Over the past decade, advertisers have increasingly capitalised on the 'influence' of influencers to help shape and create consumer demand for their products and services. In turn, influencers are able to monetise their social media content and connections with brands, creating a symbiotic relationship between the two.

A narrow escape – software services provider entitled to rely on single aggregate liability cap (Drax v Wipro)

Published on 25 Jul 2023. By Helen Armstrong, Partner and Joshy Thomas, Knowledge Lawyer

When it comes to bespoke software development projects, a lot can go wrong. There's risk for the customer such as project delays, software defects, functionality issues and a lack of meeting of minds in terms of project requirements.

Confidentiality of arbitration proceedings may not always be protected - The Republic of India v Deutsche Telkom AG [2023] SGCA(I) 4

Published on 20 Jul 2023. By Swee Siang Boey, Partner

In general, arbitration proceedings are confidential. Arbitration-related cases which end up in the courts often are reported only after the names of parties have been anonymised, and it is quite common for a sealing order to be issued on the court file, so as to preserve the confidential nature of the arbitration.

Listing reforms in the UK: to market, to market?

Published on 19 Jul 2023. By Ali Chowdhry, Associate

The Financial Conduct Authority is proposing wide ranging reforms to the UK's Listings Rules to entice more high growth companies to list in London

Scots law decision confirms that privilege doesn’t change its spots

Published on 19 Jul 2023. By Tim Potts, Senior Associate

The Scots law judgment in University of Dundee v Chakraborty [2023] CSIH 22 has reiterated that whether or not a document is protected by legal professional privilege is determined at the point in time at which the document is created. A non-privileged document cannot later acquire privileged status. The judgment also made certain findings about waiver of privilege which may be more controversial, particularly in the context of regulatory investigations.

Strictly need to know: High Court provides further guidance on confidential embargoed draft judgments

Published on 19 Jul 2023. By Dan Wyatt, Partner and Heather Clark, Senior Associate

In a judgment that has recently become available, the English High Court has once again warned parties and their legal representatives of the importance of ensuring that the embargo on sharing confidential draft judgments is not breached, a consistent message with a growing body of case law on this subject. The judgment or its outcome should only be shared with those who need to see the draft judgment or be informed of its contents before the judgment is handed down. If in doubt, parties should seek the court's permission before distributing, or risk being held in contempt of court (R (on the application of Kinsey) v London Borough of Lewisham [2022] EWHC 2723) (1).

Finsbury Food v AXIS: what are the key takeaways for warranty and indemnity insurers and policyholders?

Published on 19 Jul 2023. By Charmaine Chew, Senior Associate and Matt Ward, Associate

The Commercial Court recently handed down its judgment in the case of Finsbury Food Group Plc v AXIS Corporate Capital UK Ltd & Ors [2023] EWHC 1559 (Comm). This is the first time the court has considered a claim under a W&I insurance policy, and provides a helpful example of how key concepts, such as material adverse change and valuation, are considered by the court.

Legislation extending time limits for assessing unpaid offshore tax did not prevent the requirement to correct rules from applying to determine the time limit for making a discovery assessment

Published on 19 Jul 2023. By Alexis Armitage, Senior Associate

Tribunal confirms that legislation extending time limits for assessing unpaid offshore tax did not prevent the requirement to correct rules from applying to determine the time limit for HMRC to make a discovery assessment.

Context is everything – key takeaways on green claims from the CMA's recent consumer law conference

Published on 18 Jul 2023. By Oliver Bray, Senior Partner, Technology, Media & Telecoms Sector Lead and Hettie Homewood , Senior Associate and Praveeta Thayalan, Knowledge Lawyer

On 28 June 2023, the Competition and Markets Authority (CMA) held a highly anticipated conference on consumer law and enforcement. RPC's Senior Partner Oliver Bray was invited to speak on green claims alongside a stellar panel comprising Anna Jewitt (CMA), Justine Grimley (Advertising Standards Authority (ASA)), Tim Rowe (Financial Conduct Authority), and Rupert Earle (Bates Wells).

The El Niño year and impact on subsidence claims

Published on 13 Jul 2023. By Andrew Roper, Partner and Aimee Talbot, Knowledge Lawyer

Insurers should be bracing for a wave of subsidence claims arising from the increasingly warm weather. The UN’s World Meteorological Organization (WMO) has declared that an El Niño climate event is in progress, which helps explain why June 2023 was the hottest on record in the UK.

Property Digital Rights – A New Revenue Stream in a Digital World

Published on 13 Jul 2023. By Elizabeth Alibhai, Partner

Advances in technology are opening up exciting new frontiers for property owners and managers. Almost two billion people globally use augmented reality (AR) on their mobile phones and nearly 400 million engage in a virtual metaverse reality.

The Sky's the limit for trade mark applications. Or is it?

Published on 12 Jul 2023. By Sarah Mountain, Partner and Ellie Chakarto, Senior Associate

Enhanced Regulatory Supervision of Asset Managers in Europe – Greenwashing Risks

Published on 12 Jul 2023. By James Wickes, Partner and Nick Cumming, Associate

A common methodology has been developed by ESMA to allow national European regulators to share knowledge and experiences to facilitate convergence in how they supervise sustainability related disclosures.

Judicial Review in the Tax Sphere: Does the Court of Appeal's decision in Murphy offer taxpayers a glimmer of hope?

Published on 12 Jul 2023. By Adam Craggs, Partner and Liam McKay, Of Counsel

Allowing the taxpayers' appeal, the Court of Appeal overturned the High Court's refusal of the taxpayers' judicial review claim, finding that HMRC had breached the taxpayers' legitimate expectation in respect of the application of an extra statutory concession.

General Damages Uplift: Beware

Published on 11 Jul 2023. By Genevieve Isherwood, Senior Associate

A recent decision in Coventry Combined County Court will have far -reaching impact on the valuation of all personal injury claims. The decision of Recorder Jack gives the green light for Claimants to seek higher general damages awards. In clinical negligence claims, where general damages can already be as high as £400,000, this will have significant implications for Defendants and their insurers.

Tribunal confirms taxpayer can benefit from HMRC dispensation for employee expenses

Published on 05 Jul 2023.

In a recent case the First-tier Tribunal allowed the taxpayer's appeal, finding that the company's 'broad-brush' approach to verifying employees' claims for expenses was sufficient to comply with HMRC's dispensation and therefore the payments were not subject to income tax or NICs.

What does the FRC's proposed corporate governance overhaul mean for D&O exposures?

Published on 04 Jul 2023. By James Wickes, Partner and Aimee Talbot, Knowledge Lawyer

The Financial Reporting Council (FRC) has now published the draft new UK Corporate Governance Code following the Government's requirements that it incorporate more robust internal control and prudent and effective risk management requirements. The deadline for responses to the FRC's consultation is 13 September 2023.

The CPR 3.10 cure: Court of Appeal prioritises substance over form in defective jurisdiction challenge

Published on 03 Jul 2023. By Carolin Ayres, Associate

In a recent decision, the Court of Appeal, considered whether a failure to expressly state that an application to strike out a claim on the basis that the court lacked jurisdiction was being made pursuant to CPR 11, was a defect that could be cured by CPR 3.10. The Court of Appeal concluded that it could and the claim was struck out.

With great power comes a need to establish legal liability

Published on 29 Jun 2023. By David Allinson, Partner

The Upper Tribunal has confirmed the FCA cannot impose a redress scheme on a single firm unless the conditions in s.404 of FSMA (the need to establish breach, actionability, causation and loss) are met; and a redress scheme cannot be imposed solely in reliance on breaches of the Principles.

NMC concerns over potentially fraudulent nurse registrations

Published on 28 Jun 2023. By Shireen Hussain, Paralegal

The Nursing and Midwifery Council (NMC) is contacting more than 500 professionals who trained abroad to determine whether they could have gained fraudulent or incorrect entry to the register after unusual and concerning data emerged from one its testing sites.

'Dawn Raids' – what to do should HMRC come knocking!

Published on 28 Jun 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

In the post-pandemic world, the number of dawn raids being carried out is on the increase. Against such a backdrop, it is crucial that businesses are fully prepared should the unthinkable happen.

FCA expresses concern about overseas pension transfers

Published on 27 Jun 2023. By Ben Simmonds, Associate and Mars Yeung, Associate

The FCA has emphasised the importance of consumer protection amid promises of significant returns from overseas pension arrangements and offshore investments held within SIPPs. The FCA's publication is a reminder to UK firms of their consumer obligations when accepting pension transfer referrals from overseas advisers.

The Building Safety Act 2022: a guide for conveyancers

Published on 26 Jun 2023. By Rhian Howell, Partner & Head of Bristol Office and Daniel Charity, Associate

We explain below how the BSA is intended to protect leaseholders, what steps solicitors can take to ensure purchasers and lenders are protected and what to do if that protection cannot be obtained.

What’s next for PFAS litigation?

Published on 26 Jun 2023. By Lucy Dyson , Partner

RPC’s Lucy Dyson explores how growing public awareness of PFAS and the associated health and environmental concerns has seen a rise in litigation in the US that parallels asbestos as a toxic tort, with claims over chemical contamination in Europe also on the rise.

HMRC's attempt to strike out appeal fails

Published on 21 Jun 2023.

The First-tier Tribunal refused HMRC's application for the taxpayer's appeal to be struck out on the basis the appeal had no reasonable prospects of success.

Compliance Handbook Update: Bribery and corruption

Published on 20 Jun 2023. By Alexandra Prato, Associate

The handbook emphasises providing compliance practitioners with insight into the practical application of FCA and PRA rules. Each chapter is discussed in the statutory and regulatory context with practical analysis of the subject, together with tips and guidance that firms may find helpful.

Duties to third party investors in tax avoidance schemes following McClean

Published on 20 Jun 2023. By Nick Bird, Partner

We analyse the Court of Appeal's recent decision in David McLean and others v Andrew Thornhill KC in which the court considered the circumstances in which duties are owed to non-clients in the context of legal advice made available to investors in tax schemes.

Let us in!

Published on 20 Jun 2023. By Adam Craggs, Partner and Michelle Sloane, Partner

Adam Craggs and Michelle Sloane explain what a business should do should HMRC come calling unexpectedly.

Covered: Insurance regulation – Asia edition

Published on 16 Jun 2023. By Andrew Carpenter, Partner and Heidi Ng, Associate

Covered: Insurance regulation – Asia edition

Thirty minutes in Decentraland: A metaverse adventure

Published on 14 Jun 2023. By Christopher Whitehouse, Of Counsel and Becky Baker , Associate

Decentraland is one of the best known 'metaverses' that currently exist. It is a giant virtual world where users can create 'avatars' (a digital representation of yourself) and interact with one another. Users can also buy and develop virtual land, the mechanics of which involve purchasing an NFT (non-fungible token) connected with the relevant land plot. Users can then develop their land and build unique 3D environments.

Met police withdraw: a radical restructuring of mental health provision

Published on 14 Jun 2023. By Genevieve Isherwood, Senior Associate

Metropolitan police officers to be banned from responding to mental health incidents from 31 August 2023.

Interest in possession trust was ineffective in avoiding inheritance tax charge

Published on 14 Jun 2023. By Liam McKay, Of Counsel

In dismissing the taxpayer's appeal, the First-tier Tribunal held that the assets of a property trust were beneficially held by the principal beneficiary and formed part of her estate for inheritance tax purposes.