Numbers Game Flashcards
When does the income tax year for individuals run?
6 April to 5 April the following year.
Deadline for self-employed taxpayers to inform HMRC that they have income liable to income tax?
6 months after the end of the relevant tax year.
Deadline for taxpayers to dispute the amount due under HMRC’s SImple Assessment?
60 days
What is the personal allowance for 2023-2025? Define personal allowance.
12,570 GBP.
Only taxable income above the personal allowance is taxed.
What is the personal savings allowance for 2023-2025? Define personal savings allowance.
1,000 GBP for basic-rate taxpayers and 500 GBP for higher-rate taxpayers; 0 for additional-rate taxpayers.
The amount of savings income a taxpayer can earn tax-free.
What is the income tax band for basic rate taxpayers from 2023-2024? Specify the tax rates for: (i) income; (ii) savings; and (iii) dividends in the basic rate tax band.
0 - 37,700 GBP.
(i) Income - 20%
(ii) Savings - 20%
(iii) Dividends - 8.75%
What is the income tax band for higher rate taxpayers from 2023-2024? Specify the tax rates for: (i) income; (ii) savings; and (iii) dividends in the higher rate tax band.
37,701 - 150,000 GBP.
(i) Income - 40%
(ii) Savings - 40%
(iii) Dividends - 33.75%
What is the income tax band for additional rate taxpayers from 2023-2024? Specify the tax rates for: (i) income; (ii) savings; and (iii) dividends in the basic rate tax band.
150,001 + GBP.
(i) Income - 45%
(ii) Savings - 45%
(iii) Dividends - 39.35%
How do higher and additional rate bands change in 2024-2025, compared to 2023-2024?
Higher rate - 37,701-125,140 (compared to 150,000 for 2023-2024)
Additional rate - 125,140 + (compared to 150,000+ for 2023-2024)
What is the dividend allowance for 2023-2024 and 2024-2025?
1,000 GBP for 2023-2024
500 GBP for 2024-2025
How are partnership profits and losses taxed? What about salaries paid by partnerships to: (i) partners and (ii) employees?
Each partner is taxed as a SOLE TRADER on his own share of partnership profits or losses.
Salaries paid to partners are ALWAYS profit distributions.
Salaries paid to employees are deductible expenses.
What are two examples of payments made by partnerships to partners that qualify as deductible expenses?
What about a non-qualifying payment>
Interest on a loan made by the partner to the partnership.
Rent paid to a partner for use of their assets.
Interest on a partner’s capital contributions is ALWAYS treated as allocation of profits, not a deductible expense.
Deadline for partnership tax returns?
31 January following the end of the tax year
Important restriction for individual income tax relies / personal allowances?
If you seek to claim relief of more than 50,000 GBP, you are restricted to the greater of: (i) 50,000 GBP or (ii) 25% of their income for the year in question
What are the deadline(s) for income tax payments?
If not paid under PAYE scheme, can divide into two payments: 31 January and 31 July
What is the small corporation tax rate and threshold for 2023-2025?
19%
Up to 50,000 GBP profit
What is the tapered corporation tax rate and threshold for 2023-2025?
MARGINAL RELIEF of 26.5%
50,000-250,000 GBP profit
What is the main corporation tax rate and threshold for 2023-2025? Important caveat?
25%
250,000
If company earns more than 250,000, it pays main rate of 25% on the ENTIRE profit
Corporation tax is charged on which two items?
- Taxable income
- Chargeable capital gains
Test for tax-deductible business expenses?
WHOLLY and EXCLUSIVELY incurred in the course of business
What are capital allowances?
Where a business has purchased specific items (e.g. equipment), they can apply annual writing down expenditure to spread the cost of the equipment over its useful life
What is trading loss relief?
Where a company makes a loss from trading, the sale or disposal of a capital asset, or on property income, then it may be able to claim relief by offsetting the loss against other business gains or profits in the SAME ACCOUNTING PERIOD.
3 rules for carrying forward forward trading loss relief?
(1) Not used up in the current tax year
(2) Company continues to carry on a trade
(3) Limited to 5 million plus 50% of profits in excess of that amount
Can trading loss relief be carried backward?
Yes, if not utilized in that year, it can be set off against profits from the PRECEDING 12-month period
How does capital loss relief work?
When a company makes a loss on sale or disposal of a capital asset, that loss can be set against chargeable gains arising in the same accounting period or future accounting periods
How does capital loss relief carry forward?
Carried forward INDEFINITELY to be set off against chargeable gains in future accounting periods, limited to 5 million GBP plus 50% of the gain in excess of that amount
How does capital loss relief carry backward?
It CANNOT be carried back against gains of earlier years.
What is roll-over relief? Special condition?
A business property is sold and a new business property, also for use in their trade, is purchased with the proceeds.
Must buy the new asset 1-3 years after disposing of the old asset.
What is the effect of incorporation relief? 2 special conditions?
transferred Effect is to DELAY CHARGEABLE TAXABLE GAINS at the time of the transfer until the sale or disposal of the shares.
- Transferor is a SOLE TRADER or in a business PARTNERSHIP
- All business assets EXCLUDING CASH in consideration for shares in the acquiring company
What is the effect of group relief?
2 ways to qualify for group relief?
A company that is a member of a group may SURRENDER LOSSES to another group company to deduct the loss from the second company’s own profits.
(1) one company is a 75% subsidiary of the other
(2) both are 75% subsidiaries of a third company
What is diverted profits tax? 3 conditions?
25% tax levied on large foreign companies.
(1) No permanent establishment in the UK
(2) Annual revenues of more than 10 million GBP from the supply of goods and services
(3) Taxed at 25%
How long can a trader backdate claims for VAT paid before registration?
Up to 4 years for goods, and 6 months for services
What is the implication of the rule that VAT should be charged on the “full value of supply”?
Business must charge VAT on the full sale price, not accounting for any barter, set-off or part-exchange
What is the two-stage test for “economic activity” constituting a taxable supply in the VAT context?
- Consideration (i.e., some value) given for the supply
- Supply made for remuneration (i.e., purpose of obtaining income on a continuing basis)
What is the standard due date for businesses to pay VAT? Caveat?
ONE MONTH after the end of the VAT period (usually quarterly)
Paying ELECTRONICALLY gives up to SEVEN CALENDAR DAYS extra
What is the actual tax point?
The earlier of: (i) the date when the invoice is issued and (ii) the date payment is received
What is the basic tax point?
When the customer receives the goods or the services are performed
What is the 14-day rule?
If no invoice is issued within 14 days after the basic tax point, then the BASIC tax point applies
When can a single transaction have two tax points?
When a deposit / part-payment is received, then VAT may be levied at the time of receipt, for the value of the part-payment
What is the threshold for VAT registration (2 independent tests)?
- Turnover of taxable supplies exceeds 90,000 GBP for the previous 12 months
- Reasonable grounds to believe the value of their taxable supply will exceed 90,000 GBP in the next 30 days alone
What is the nil-rate band for IHT purposes?
Where the value of the estate and chargeable transfers does not exceed 325,000 GBP
What is business property relief?
Where the transferor has owned the business property for at least 2 years immediately prior to transfer, then the asset can be deducted from the estate value at a rate of either 50% or 100%
When is a 100% business property relief applicable (2 conditions)?
- Person who died after 6 April 1996 and
- The transfer is of: (i) unquoted shares or (ii) an interest in a business
When is a 50% business property relief applicable (2 conditions)?
- Person who died after 6 April 1996 and
- Transfer is of (i) quoted shares and securities in a company CONTROLLED by the transferor immediately before the transfer or (ii) land, buildings or equipment belonging to the transferor but used for his business
What are 2 common exceptions where business property will not qualify for tax relief?
- Was not used mainly for business in the two years immediately before the transfer
- Not required for future use in the business
5-step process to calculate corporation tax?
- Calculate pre-tax income (profit + deprciation charge - capital allowances)
- Add chargeable capital gains (subtract capital losses)
- Calculate chargeable profits (taxable income + chargeable gains - deductions and reliefs)
- Multiply chargeable profits by corporation tax rate
- Apply tax credits
What are 3 notable transfers of property that do not constitute a “disposal” for CGT purposes?
- Death of an individual - devolves estate property to PRs who then make the disposal
- Disposal to spouse
- Disposal to charity
What is the universal rule for determining the date of disposal for CGT purposes?
The date on which the parties become legally bound to transfer the relevant property.
4-step process to calculate CGT?
2nd step has three subtractions!
- Determine date of disposal.
- Calculate chargeable gain / allowable loss (remember to subtract: (i) initial expenditure (ii) capital expenditure and (iii) costs of disposal)
- Apply exemptions and reliefs
- Apply 10% basic rate or 20% higher rate)
Deadline for UK residents who sell a UK residential property to report and pay CGT?
Within 60 days of the disposal.
What is the annual personal exempt capital gain allowance for 2023-2024 and 2024-2025?
2023-2024 - 6,000 GBP
2024-2025 - 3,000 GBP
How much annual exempt capital gain allowance can be carried over to the next year?
None. CGT ALLOWANCE CANNOT BE CARRIED FORWARD
When are disposals of chattels exempt from CGT?
If the proceeds do not exceed 6,000 GBP.
When are sales of residential property CGT-exempt (3 conditions)?
- Private residence
- Principal dwelling
- Ground of up to half a hectare
What is the purpose of roll-over business relief?
Allow businesses to reinvest the proceeds of sale of business assets without being liable for CGT - CGT is postponed until new asset is sold.
What is business asset disposal relief?
An individual has a 10% tax rate on the first 1 million GBP of gains from disposal of a business.
What is investors’ roll over relief? Important caveat?
Individual shareholders who dispose of ordinary shares in unlisted companies enjoy a 10% tax rate on gains, with a lifetime limit of 10 million GBP.
Investor cannot be involved in the RUNNING OF THE BUSINESS (director, employee, etc.)
What are the CGT rates for disposals of residential property not exempt as a principal private residence and carried interest?
18% for basic rate taxpayers and 24% for higher rate taxpayers
What are the two key tests imposed by the GAAR for a tax arrangement falling within its scope?
- Main Purpose - Is it reasonable in the circumstances to conclude that the main purpose of the arrangement was to OBTAIN A TAX ADVANTAGE
- Abusive - Can the event reasonably be regarded as a REASONABLE course of action in relation to the relevant tax provisions?
In GAAR proceedings, what 2 points must the HMRC prove?
- Tax arrangement was ABUSIVE
- Adjustments made to counteract the tax arrangements are JUST AND REASONABLE
What are the two options open to a taxpayer where the court determines the existence of an abusive tax advantage under the GAAR?
- Pay penalty equivalent to 60 of the counteract tax
- Take action to fully counteract the abusive tax advantage (e.g. by amending a tax return)
What is the most important offence relating to CGT avoidance?
- CAPITAL LOSS accrues to a person directly or indirectly
- At least one of the MAIN PURPOSES of those arrangements is to SECURE A TAX ADVANTAGE
5 conditions to treat a distribution in a winding up as a dividend under the TAAR?
- Recipient was an individual
- Recipient had at least a** 5% interest** in the company
- Company was** privately owned** by fewer than 5 individuals at any point in the two years ending with the start of the winding-up
- Recipient continues to be involved with a similar trade at any time within **two years **of the distribution
- It is reasonable to assume that one of the main purposes of the winding up is to reduce income tax
When can a personal injury or negligence case be brought in the High Court?
If the claim is:
1. 50,000 GBP or more AND
2. (i) high monetary value (ii) of public importance or (iii) complex
If claim < 50,000 GBP it MUST be brought in the County Court
When can a claim for damages or a special sum be brought in the High Court?
If the claim is:
1. More than 100,000 AND
2. (i) high monetary value (ii) of public importance or (iii) complex
If claim < 100,000 GBP it MUST be brought in the County Court
How long is a claim form valid: (i) within the UK and (ii) outside the UK?
Inside the UK - 4 months
Outside the UK - 6 months
When must Particulars of Claim be served?
Either at the same time as the Claim Form or within 14 days
When must the Acknowledgment of Service be filed? What is the advantage of doing so?
Within 14 days. Filing the AoS extends the deadline for the Defence from 14 days to 28 days.
When is the Defence to Counterclaim due?
14 days from receipt of the counterclaim.
What are the monetary thresholds for
1. Small track
2. Fast track
3. Intermediate track
4. Multi-track
- Small track - 10,000 GBP
- Fast track - 10,000 - 25,000 GBP
- Intermediate track - 25,000 - 100,000 GBP
- Multi-track - 100,000 and above
What is the difference between a CFA with a success fee and a discounted CFA?
Success fee - usually only liable to pay costs and disbursements if they are successful at the conclusion of the matter (plus an additional success fee)
Discounted CFA - costs are paid at a discounted hourly rate and if successful, client will be liable to pay the balance due by reference to the full hourly rate
What caps apply to Damages Based Agreements for:
1. Personal injury cases
2. Employment cases
3. Non-personal injury cases
- Personal injury cases - 25% of sum recovered EXCLUDING damages for future care and loss
- Employment cases - 35% of sum recovered
- Non-personal injury cases - 50% of sum recovered
When can a court lawfully stay proceedings to order the parties to pursue ADR (2 conditions)?
- Does not impair essence of claimant’s right to proceed to a judicial hearing
- Proportionate to achieving the legitimate aim of settling the dispute fairly, quickly and at reasonable cost
What is the significance of the date 1 January 2021 for purposes of determining court jurisdiction?
For claims instigated from 1 January 2021, common law rules apply (service IS jurisdiction). Before that, European rules apply (sue D in his country of domicile).
When does a limitation period stop running?
When C delivers the claim FORM and corresponding FEE to the court office for issue (even if the court office is closed)
What are 3 notable claims when a 3, rather than six-year limitation period, applies?
- PI claims
- Fatal Accident Act 1976 claims
- CPA claims
What is the time limit for a negligence action where facts relevant to the cause of action are not known at the date of accrual?
3 years from the date C first had BOTH:
1. The KNOWLEDGE required to bring the damages action AND
2. The RIGHT to bring such an action
Limitation period for a civil contribution claim?
2 years from the date of assessment of damages regarding the underlying liability
What is the scope of the Claims Portal?
PERSONAL INJURY claims up to a value of 25,000 GBP, where
1. Liability is admitted
2. Issues are straightforward
3. Claim is about RTA, EL or PL
What sums are payable if a Claims Portal claim settles at Stage 2 (initial offer and counter offer)?
- 300 GBP for RTA
- 600 GBP for EL or PL claims
What are the fixed costs if a quantum hearing is required for a Claims Portal claim?
250 GBP for a paper hearing, plus an additional 250 GBP advocate’s fee if actual hearing required
What two undertakings must an applicant for a freezing or search order provide?
- Undertaking in damages
- Undertaking to commence proceedings on the same, or next working day in the event the injunction is granted
What important consideration must be taken into account when serving a freezing or search order?
It must be served promptly and personally on the respondent
What two deadlines must a D keep in mind if served with a LoC under the PI protocol?
- If no response within 21 days, proceedings can be commenced
- If D acknowledges the letter, he has 3 months to investigate the claim before formally admitting or denying liability
What is the subject-matter limitation for the Debt Protocol?
Only applies to businesses claiming payment of a debt from INDIVIDUALS (including sole traders)
4 exclusions when computing the claim value for purposes of the claim form?
- Interest
- Costs
- Contributory negligence
- Counterclaim / set-off amounts
What two essential items must C provide before the court will issue the claim?
- Court fee
- Sufficient copies of the claim form for service on each D AND the court file
What are the time limits for service of the claim form?
- Within jurisdiction - 4 months from date of issue
- Outside jurisdiction - 6 months from date of issue
Measured BEFORE MIDNIGHT on the last calendar day of the 4 month period
When is a document deemed served?
2nd business day after completion of the relevant step
What is the deadline for filing a certificate of service?
21 days after serving the PoC
When does the “business day” end for purposes of deemed service?
4.30 PM
What are the current rates of default interest under English law?
8% per annum for both County and High Court
8% above the BoE base rate per annum for QUALIFYING DEBT claims where there is no other substantial remedy
When is a Part 8 procedure used over a Part 7 procedure?
When the claimant seeks the court’s decision on a dispute that is unlikely to involve a substantial dispute of fact
What two formalities must be followed by a litigation friend that is NOT appointed by the court?
- File EITHER (i) an official copy of their authority to act OR (ii) a certificate of suitability AND
- Serve the certificate of suitability on each party, then file a certificate of service
What monetary threshold will bind a D to a pre-action admission?
Up to the value of 25,000 GBP
3 circumstances when D need not file a Defence within 14 days of deemed service of the PoC?
- He files an AoS - extends time for filing Defence to 28 days from deemed service
- C applies for summary judgment (D then responds to the application)
- D disputes jurisdiction - must file and serve AoS indicating the same
As a general rule, when will D require court permission to bring a Part 20 Additional Claim?
When he does not file the Additional Claim at the same time as his Defence.
Why is the costs estimate in the DQ particularly important in fast and multi-track cases?
If there has been no costs management order:
(1) A costs estimate in the DQ may be binding and may otherwise be taken into account by the court
(2) A party may be asked to explain any difference of 20% or more between his costs estimate and the final costs claimed
Deadline for filing and serving DQs?
Within 28 days of the deemed date of service of the Notice of Proposed Allocation
When must a costs budget be filed, and what is the deadline?
For multi-track cases where CCMC is listed.
At least 7 days before the CCMC if no CMO has been made (or 21 days if a CMO has been made)
What two limitations apply to trials for fast-track claims?
- Trial length of max one day
- Expert oral evidence limited to two fields, with one expert per party in each field
When will a claim generally be allocated to the intermediate track?
5 points
Claim is between 25,000 to 100,000 AND
- Claim is not suitable for the other tracks
- Estimated trial length is 3 days or less
- There will be no more than 2 experts per party OR
- The claim involves multiple Cs or Ds
What is a key case management difference between fast and intermediate track claims?
Fast track - usually standard case management directions
Intermediate track - parties must try to agree case management directions and submit their proposals to the court at least 7 days before the conference
When may claims under 100,00 be allocated to the multi-track?
Trial is expected to last more than 3 days
OR
The claims are sufficiently complex and important
Deadline for exchanging documents in Small Claims track?
14 days before the hearing
When will the court treat an interim application as having been made for time limit purposes?
When the application notice and fee are received by the court.
What are the two key deadlines to keep in mind when making an interim application?
- File notice, evidence and order at least 3 clear days before hearing (5 days for telephone hearing)
- File draft order setting out relief sought no later than 4 PM at least 2 clear days before the hearing
What can the respondent do if the court orders interim relief without notice?
Apply to set aside or vary the order within 7 days from the date the order is served
What precaution should a party take before applying for an unless order?
Send a letter warning that an application will be made for an unless order + costs if party does not comply with the relevant case maangement direction within a certain time
When will a sanction for failure to comply with CM directions apply automatically?
If the sanction is specified in the direction, order or CPR, without identifying any further procedural steps that must be taken in relation to the sanction
3 most important factors in applying for relief from sanction?
- Seriousness and significance of breach
- Reason for breach
- Overriding Objective and the need to enforce compliance with procedural directions
What kind of remedies are suitable when making a REQUEST (rather than an application) for a default judgment?
Remedies that contemplate payment of a sum of money (including delivery of goods + paying value of the goods in the alternative)
When must notice be given to D in an application for default judgment?
.
- As soon as practicable after application filed and
- At least 3 clear days before the hearing UNLESS no AofS has been filed
When is the court obliged to set aside a default judgment?
- If the deadline for AofS or Defence has not expired or
- The AofS, Defence or strikeout claim was filed before the default judgment was entered
When may the court refuse an application for summary judgment even if it finds that the respondent’s case has no real prospect of success (2 grounds)?
- Applicant’s conduct contrary to Overriding Objective or failed to comply with a Protocol or PD
- Respondent requires more time to conduct an investigation that would demonstrate real prospects of success
Deadline for filing evidence in summary judgment?
- R’s evidence - 7 days before hearing
- C’s reply evidence - 3 days before hearing
Which kinds of claims are most suitable for interim payments? Procedural safeguard?
Personal injury claims
Best practice is to invite D to consensually make an interim payment, failing which C will make an application and seek costs
What are 3 points that must be present for an interim payment order to be made?
- Would not cause an injustice to paying party
- If claim were to proceed to trial, C would likely obtain judgment for a substantial sum against Ds (eg D admitted liability but not quantum)
- Cannot be made before the end of the AofS deadline
What are 3 main considerations when determining amount of interim payment?
- Cannot exceed REASONABLE PROPORTION of the likely final judgment
- Must take into account any allegation of CN, SET-OFF OR COUNTERCLAIM
- C and D’s respective FINANCIAL POSITIONS
Note: Should not be overly concerned with C’s need for the money
Usual deadlines for respondent’s evidence and reply evidence in interim applications listed for hearing?
- Respondent’s evidence - 7 days before hearing
- C’s reply evidence - 3 days before hearing
A formal Part 36 offer must be left open for at least how long in order to be valid? Any other substantive requirement?
21 days
Must state whether it is made in respect of: (i) whole or part of the claim or any issue as well as (ii) any counterclaim
Deadline for Part 36 offeree to request clarification?
Within 7 days from receipt
When and how can a Part 36 offer be accepted?
At any time unless it is withdrawn.
By serving written notice of acceptance on the offeror
What is the key consideration in determining when the amendment of a Part 36 offer will take effect?
Whether the amendment makes the offer more or less advantageous to the offeree. If the offer is more advantageous, it takes effect immediately and triggers a new relevant period; if less advantageous, it only takes effect at the end of the relevant period.
What are the costs implications if D accepts C’s Part 36 offer within the relevant period?
Automatically liable to pay C’s costs on the standard basis until the date on which the notice of acceptance is served on C.
What are the costs implications if D accepts C’s Part 36 offer outside the relevant period?
If parties do not agree, court will order D liable to pay C’s costs unless it is determined to be unjust
What are the 4 penalties where D rejects C’s Part 36 offer and C gets an equal or larger award at trial?
- Indemnity costs from expiry of the relevant period until judgment date
- Interest on costs at 10% above base rate
- Interest on the whole claim at 10% above base rate from the date expiry of the relevant period until the date of trial
- Additional damages or costs (5-10%) depending on the type of claim
If making a Part 36 offer to pay a single sum of money, when must D make the payment?
within 14 days of acceptance if the parties have not agreed to the contrary
What are the costs implications if C rejects D’s offer and recovers less at trial?
- D’s costs on the standard basis from the expiry of the relevant period
- Interest on those costs
Distinguish disclosure from inspection.
Disclosure - identifying documents that exist
Inspection - giving the opposing side sight of the documents
When does disclosure usually occur in small claims track?
Usually at the same time as witness statements are exchanged
When does disclosure usually occur in fast / intermediate / PI multi-track cases?
In accordance with court’s directions as part of the first set of case management directions
When does disclosure usually occur in non-PI multi-track cases?
In accordance with the court’s directions at the first CCMC (following filing of DQ, disclosure report, and EDQ)
Deadline to produce documents for inspection pursuant to other party’s request?
7 days of the request, which must be given in writing
Deadline for serving a WS in support of an interim application?
- ASAP
- In any event, at least 3 days before the hearing
What option does a party have if a witness refuses to give evidence?
Apply without notice for permission to serve a witness summary, by the date specified for exchanging witness statements
What is the AUTOMATIC sanction if a WS is not served on time for an intended witness?
The witness cannot be called to give oral evidence unless the court gives permission.
Deadline for serving a notice to admit facts? Why would other party comply?
21 days before trial.
Non-compliance risks costs consequences if the fact or issue is ultimately proven at trial at cost to the requesting party
Why is it importannt to serve a notice to admit / produce documents? Deadline?
If no notice to prove document is served within the later of SEVEN DAYS of disclosure OR the latest date to EXCHANGE WITNESS STATEMENTS, the party is DEEMED TO ADMIT the authenticity of any document disclosed
Possible procedural response + deadline for responding to a hearsay notice?
Can apply for order to** cross-examine** the maker of the hearsay statement and/or file a notice to **attack the credibility **of that maker, no later than 14 days after service of the hearsay notice
Unique situation where an expert owes his primary duty to the instructing party and not the court?
In PI or clinical negligence claims where C is under the care of a treating expert: primary duty is owed to C as a witness, so expert gives evidence as a factual witness
When can parties request the court’s permision to rely on expert evidence at trial?
When filing the DQ or at any PTR, in relation to expert oral testimony
What is the main disadvantage of changing expert witness after court has already given permission to rely on expert evidence?
Will generally be permitted only in exceptional circumstances and subject to applicant disclosing report of previously instructed expert
What is the usual deadline for putting (written) questions to an expert witness?
Only one round, within 28 days of receipt of the expert’s report
How is expert oral evidence dealt with differently between the various tracks?
Court permission ALWAYS required.
For small claims and fast track, permission only granted in exceptional circumstances.
For multi-track, parties will indicate on the PTC whether permission is sought and the court will decide at the PTR.
When are consent orders most useful?
Where the basis of the settlement is a payment of a sum of money.
What is the default timescale for compliance with a consent order absent provision to the contrary?
14 days.
What are the 3 outcomes with respect to the existing claim, following a negotiated settlement?
- Stayed with permission to apply - can enforce settlement on application w/o issuing new claim
- Discontinued - C will be ordered to pay D’s costs absent express contrary provision but new claim needed to enforce settlement terms
- Dismissed - new claim needed to enforce settlement terms
What are the 3 usual provisions in a Tomlin Order?
- Proceedings are stayed on the agreed terms as set out in the annexed settlement
- Agreement as to costs (each party to bear their own costs in the absence of contrary provision)
- Settlement terms are confidential
When will C not be liable to pay other parties’ costs even following discontinuance?
- Contrary agreement
- Court is satisfied there are cogent reasons or changed circumstances to justify the alternative order
How does C discontinue proceedings?
Filing and serving a notice of discontinuance on all other parties.
What is the consequence of failing to pay the trial fee? Any relief?
Claim automatically struck out.
Defaulting party may apply to reinstate claim within 7 days of order striking out the claim - reinstatement will be conditional on payment of the fee
When should the trial bundle normally be served?
3-7 days before the start of the trial.
3 situations where leading questions may be used during examination in chief?
- Matter is UNDISPUTED
- DENIAL is invited from the witness
- Witness is HOSTILE (summoned to court without providing witness statement)
3 situations where a civil matter may involve a trial by jury?
- Fraud
- Malicious prosecution
- False imprisonment
What is the default deadline for satisfying a judgment for the payment of money?
14 days of the date of the judgment or order, unless otherwise specified
What two documents should be produced in a fast-track trial to facilitate costs orders?
- Bundle of any correspondence containing offers
- A statement of costs
How long does the costs protection under a Legal Aid last?
Only as long as the duration of the Legal Aid certificate - protection will cease when the certificate is withdrawn
What is the indemnity principle in the costs context? Main implication?
A party cannot recover more costs from an opposing party than he is liable to pay his own legal representative.
A client funded by a CFA or DBA generally cannot recover the success fee or damages portion, and can only claim the costs and disbursements.
2 key differences between standard and indemnity costs bases
- Standard - costs must be reasonable and proportionate; indemnity - costs need only be reasonable
- Standard - doubt as to proportionality in favour of the paying party; indemnity - doubts as to reasonableness resolved in favour of the receiving party
What are fixed costs?
Specific amounts prescribed by the CPR which are recoverable in specified circumstances unless the court orders otherwise (e.g. for low-value PI RTA claims)
What is summary cost assessment?
Where the court assesses the costs of the successful party immediately following an interim application or a fast track trial.
What document must the receiving party file in summary cost assessment? Deadline?
A statement of costs in Form N260, either 24 hours or 2 days before the trial for an interim hearing and fast track trial respectively.
What is the time limit to commence detailed assessment?
3 months form the date of the costs order
If the parties cannot agree a draft bill of costs, what is the timeline for resolution?
- Serve Notice of Commencement in Form N252
- Paying party must serve points of dispute on receiving party within 21 days of service (otherwise default costs certificate)
- Receiving party must serve points of reply within 21 days
What is the costs threshold for provisional assessment? Time frame
Detailed assessment where the costs claimed are less than or equal to the amount set out in 75,000 GBP
Paper-based assessment that usually takes six weeks
When may the receiving party apply for an interim costs certificate?
Once a request for a detailed assessment hearing has been made.
When will the court issue a final costs certificate?
Once:
1. The receiving party has filed the final bill of costs as amended during the assessment hearing OR
2. A negotiated outcome is reached and a consent order as to costs is made
When and how are costs only proceedings commenced?
Dispute is settled on the basis that one party should pay the other’s costs but the amount to be paid has not been agreed, so costs proceedings are required to determine the sum.
Must be commenced as a Part 8 claim
What is the test for permission to appeal (2 grounds)
Either:
- Appeal has REAL PROSPECT of success
- There is some OTHER COMPELLING REASON to hear the appeal
What are the permissible grounds of appeal?
- ERROR (fact, law or exercise of discretion)
- INJUSTICE (procedural or other irregularity)
Two ways to apply for permission to appeal?
- Orally, at the relevant hearing or trial
- In writing, by filing and serving an **Appellant’s Notice **and application for permission within **21 days **from the date of the judgment
Recourse if permission to appeal is refused (2 kinds)?
If application was heard orally by lower court, seek FURTHER HEARING before DESTINATION JUDGE
If application was in writing, seek ORAL HEARING
When does a respondent not need to respond to an appeal?
If he just wants to maintain the lower court’s decision for the reasons given therein.
Deadline for Respondent’s Notice to an appeal? Why would Respondent want to file this?
14 days from receipt of an Appellant’s Notice.
Applies where Respondent wants to seek permission for a CROSS APPEAL from the appeal court or ask the appeal court to uphold the lower decision for DIFFERENT REASONS to those given by the lower court
How long is a court judgment or order enforceable?
6 years from the date of the judgment or order.
When is interest available on a judgment in: (i) the County Court; and (ii) High Court?
(i) County Court - Judgment is for 5000 GBP or more, or relates to a qualifying debt under the Late Payment of Commercial Debts (Interest) Act 1998
(ii) High Court - Interest always accrues
Standard interest rate on judgments?
8% per annum
When must judgment creditor apply for a judgment to be transferred from the COUNTY court to the HIGH court?
When execution is sought for payment of a sum exceeding 5,000 GBP - only High Court can enforce
When must judgment creditor apply for a judgment to be transferred from the HIGH court to the COUNTY court?
Execution is sought for payment of a sum under 600 GBP OR an AoE or charging order is sought for a sum under 5,000 GBP
What best-practice safeguards should be followed before commencing enforcement proceedings?
Obtain informaiton on why judgment debtor failed to comply with the judgment or order and the extent/location of his assets:
- Ask the judgment debtor
- Instruct a tracing agent
- Apply for debtor to be questioned by the court at an information hearing
Deadline to serve order on judgment debtor to attend questioning? Any other deadlines?
Must serve order PERSONALLY no later than 14 DAYS prior to the hearing.
Must also either: (i) serve affidavit of service no less than 2 days prior to hearing OR (ii) notify court no later than 7 days prior to the hearing if service was not possible
What is the consequence if the judgment debtor fails to attend court for questioning or answer questions put to him?
A committal order may be made, although likely to be SUSPENDED if failure is UNINTENTIONAL
Is court permission required to take control of goods?
ONLY if judgment is > 6 years old
What documents are needed to take control of goods in High Court and County Court enforcement proceedings?
High Court - Writ of Control
County Court - Warrant of Control
2 deadlines to take note of when asking enforcement officer to enforce a writ or warrant of control?
- Enforcement officer must give not less than 7 CLEAR DAYS notice of enforcement
- Notice of enforcement is VALID FOR 12 MONTHS
What is the most common way an enforcement agent takes control of goods?
Enter into a CONTROLLED GOODS agreement with the debtor:
- D permitted to retain custody of goods
- D acknowledges the agent has taken control of the goods
- D agrees not to remove or dispose of the goods or permit anyone to do so before the debt is paid
3 things to advise client seeking an attachment of earnings order
- CANNOT use any other enforcement method unless the court gives permission
- NO INTEREST will accrue on the judgment debt while the order is in force
- Employer entitled to levy an ADMINISTRATION CHARGE of 1 GBP per monthly deduction
2 substantive requirements for attachment of earnings order
- Debt must exceed 50 GBP
- Debtor must be EMPLOYED (not self-employed or unemployed)
3 options for a judgment debtor who receives Form N337 applying for AoE order?
- Respond without challenging the grant - order will be granted without hearing
- Challenge the grant - there will be a hearing
- Fail to respond in time - court will issue an order endorsed with a penal notice requiring the debtor to respond
Two limitations on third party debt orders against banks and building societies?
- Not available against JOINT accounts
- Cannot require payment that would reduce account balance below 1 GBP
What is the debt threshold for a charging order (2 pts)
- 1,000 GBP
- For High Court - 5,000 GBP unless in respect of a High Court maintenance order
What is the difference between a charging order in respect of registered and unregistered land?
- Registered land: Notice whether the property is solely or jointly owned
- Unregistered land - either an order affecting land (for a final charging order) or a pending action and caution against first registration (for interim charging order against jointly owned land)
3 deadlines to keep in mind when applying for interim charging order
Creditor must:
1. Serve order at least 21 DAYS before hearing
2. File certificate of service at least 2 DAYS before hearing
Debtor must:
3. Notify court in writing of any objection to the interim charging order
When will the interim charging order be made final (2 situations)?
- If no objection received within 28 days of serving the interim charging order, automatically made final
- If objection received, application will be referred to DJ and transferred to home court or hearing centre for a final hearing
How do you enforce a foreign judgment in England and Wales?
Commence a Part 7 claim with an application for summary judgment`
Court enforces on the basis of an IMPLIED CONTRACT to pay the judgment d
How do you enforce a Commonwealth judgment in England and Wales?
Register the judgment in the English courts WITHIN 12 MONTHS
