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A company set up to exercise a local authority's power under the Local Government Act 2003, s 95 to trade in function-related activities.
Under the Local Government (Best Value Authorities) (Power to Trade) (England) Order 2009, SI 2009/2393, any local authority or fire and rescue authority may set up a trading company after it has approved a business case, ie a comprehensive statement covering objectives and associated investment and other resources required, business risks with an indication of their significance, and the expected financial results and any other relevant outcomes expected; it must also recover the costs of any accommodation, goods, services, staff and anything else it supplies to the company under any agreement or arrangement. Local authority trading companies can take a variety of legal forms, including joint ventures with other public sector and/or private and third sector partners.
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Characteristics of commercial letters of credit Commercial letters of credit (also known as traditional letters of credit or L/Cs) are used in relation to the movement of goods in the context of international or domestic trade. They are often used as a method of payment under contracts of sale because they are a useful tool where a seller has concerns over the creditworthiness of its buyer or the jurisdiction in which its buyer is located. They are sometimes referred to as documentary letters of credit or documentary credits. By contrast, standby letters of credit are a different type of letter of credit. They serve a different purpose. They are used in similar circumstances to on demand guarantees or performance bonds to provide a means for securing payment or other obligations. They are a form of quasi-security. For information on standby letters of credit, see Practice Note: Characteristics of standby letters of credit and Q&A: What is the difference between a standby letter of credit and a letter...
The remittance basis—business investment relief—clawback of exemption STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime Finance Act 2025 (FA 2025) which received Royal Assent on 20 March 2025, implements legislation to abolish the remittance basis of taxation and replace it with a residence-based regime, commencing on 6 April 2025. FA 2025 also replaces domicile as the key factor in establishing liability to inheritance tax. Other changes include amendment of the rules determining excluded property status, the abolition of protected settlements status of offshore trusts, and changes to overseas workday relief. For information on these changes, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence-based regime for IHT from 2025–26. See also: Finance Bill Tracking Service: Key dates (Finance Bill 2025) and Finance Act 2025. Individuals can bring foreign income and capital gains into the UK for the purposes of investment in UK companies without triggering a remittance. This is known as business...
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Inheritance tax—client guide What is inheritance tax? Inheritance tax (IHT) is broadly a tax charged on a person’s death, based on the value of that person’s net estate immediately before death. The net estate is the total value of the assets owned by that person, less the total value of debts and other liabilities owed by them. In order to prevent people avoiding the tax by making large gifts shortly before they die, the tax also extends to gifts made within seven years before the death. Some other gifts and events which are not linked to a person’s death are also caught by IHT. When is IHT payable? IHT is payable on transfers of value, which are made: • when a person makes certain gifts (or deemed gifts) during their lifetime • when a person dies • on certain events relating to trust funds Lifetime gifts There are three types of lifetime gifts for IHT: • exempt gifts • transfers of value which are immediately chargeable to tax,...
Covering letter to EMI option holders (options granted pursuant to EMI rules and agreement) [insert date of letter] [insert name of employee] [insert address of employee] Dear [insert name of employee] [insert name of Company] (Company) Option to be granted under the [insert name of EMI scheme] (the Scheme) I am delighted to notify you that the directors of the Company have approved the grant of an enterprise management incentives (EMI) share option to you under the Scheme (Option). I enclose a copy of the rules of the Scheme and the option agreement which needs to be executed by you and the Company in order for the grant of the Option to take effect. The Option will entitle you to acquire [insert maximum number and type of shares which can be exercised pursuant to the option agreement] shares in the Company (Shares) at a price of [insert exercise price of shares] per Share [if there is an ‘Exit’ event of the Company (which...
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When a local authority wishes to submit a tender for a service contract being procured by another local authority, do they have to do so through a trading company or can they respond and contract directly with the other local authority for the provision of services? As a general rule, the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102 seek to ensure that potential tenderers (whether public or private sector) are not excluded from a tender process because of their legal form. For example, PCR 2015, SI 2015/102, reg 19(1) provides that a tenderer which is allowed to provide a certain service in its home Member State cannot be prevented from tendering to provide those services in another Member State which has different rules about the legal form service providers are required to take. In relation to consortium bids, the effect of PCR 2015, SI 2015/102, reg 19(3) is that a group of economic operators cannot be required to take a particular legal form in order...
On what grounds can a contracting authority refuse a request from a bidder to clarify aspects of a bid already submitted in a public procurement process? This Q&A covers procurements carried out under Public Contracts Regulations 2015 (PCR 2015), SI 2015/102 and where the request to clarify the bid has been made after the deadline for bids to be submitted. General rule There is no general duty on a contracting authority to allow a bidder to correct its tender. In J.B Leadbitter v Devon County Council, the authority rejected the tender based on the fact it was incomplete and the court ruled that the contracting authority did not have a general duty to admit a late tender or allow the correction of a non-conforming tender. In R (on the application of Hersi & Co Solicitors) v Lord Chancellor (as successor to the Legal Services Commission), Coulson J also held It is the responsibility of the tender to submit a full, complete and compliant tender and...
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This week's edition of Tax weekly highlights includes: (1) the UT decision in Nellsar on valuation, (2) the UT decision in Murphy on the validity of enquiries into share loss relief, (3) News Analysis on the FTT decision in Eyre on entrepreneurs’ relief, and (4) News Analysis on the UT decision in Scatola on the validity of enquiries into an SDLT avoidance scheme.
This week’s edition of Private Client highlights includes: (1) OPG publishes updated professional deputy costs for England and Wales and updated property and financial affairs guidance for attorneys; (2) the Law Commission launches a consultation on a new regulatory framework for funerary methods; (3) HMRC updates its guidance on VAT and private schools; (4) Jusan Technologies Ltd v Uconinvest Llc, which considers the registration of shareholders and the power of directors to bind a company; (5) New Supplemental Swiss Rules for Trust, Estate and Foundation Disputes which will come into force on 1 July 2025; (6) analysis of HNW Lending Ltd v Lawrence, which provides useful guidance on the application of the Contracts (Rights of Third Parties) Act 1999; and (7) two more free webinars.
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