Counting the cost of the UK tax system

We are seeing an increase in enquiries from both beneficiaries of trusts seeking the removal of trustees, and from trustees facing allegations that they have not complied with their duties. Sometimes it is clear that a matter has not been dealt with appropriately by a trustee, but on other occasions this stems from a general breakdown of the relationship between the parties.

Two recent publications, the Law Society’s International Data Insights Report 2025 and Queen Mary University’s (“QMU”) International Arbitration Survey, analyse statistics concerning international arbitration and reaffirm London’s leading role in global dispute resolution.

Being a trustee carries significant responsibilities and often involves managing high value assets and making complex decisions in the best interests of all the beneficiaries. While trustees generally strive to act with care and integrity, allegations of breach of trust can arise. Whilst such allegations can be stressful and complex, how trustees manage the trust and how they respond to allegations is crucial to maintaining trust, protecting the trust’s assets, and avoiding potential contentious proceedings.

The tips below should generally be adopted through the life of the trust and may avoid disputes arising in the first place.

This quarterly civil fraud update provides a summary of reported decisions handed down in the courts of England and Wales in the period of July - September 2025.

The United Arab Emirates (“UAE”) has joined in global efforts to improve transparency and compliance in the crypto sector by signing the Multilateral Competent Authority Agreement (MCAA) under the Crypto-Asset Reporting Framework (CARF). The framework is expected to be rolled out in UAE in 2027, with the first automatic exchanges of information with other tax authorities such as HMRC taking place in 2028.

The COVID pandemic was a difficult time for businesses,  and many legitimately relied on financial support provided through government schemes to help them to survive and retain employees. However, it is estimated by HMRC that circa £10billion was also lost as a result of incorrect applications and outright fraud.

At a time when a national broadcaster feels obliged to unpick (for the lawyer in us: alleged) misleading information from the leader of the free world, I almost choked on my breakfast when reading that we should also be concerned that some of us lawyers may be misleading the public too: 'No win, no fee' under fire: SRA vows to stop law firms hoodwinking consumers | Law Gazette Why now is a mystery; the term has been a feature of daytime TV advertising for decades!

As the global regulatory landscape continues to evolve, two major frameworks are set to reshape how crypto-assets are reported: the Crypto-Asset Reporting Framework (“CARF”) and the European Union’s Directive on Administration Cooperation in taxation (“DAC8”).

On 11 September 2025, the Supreme Court handed down its judgment in The Prudential Assurance Company Ltd v Commissioners for His Majesty’s Revenue and Customs, a case that delves into the interaction between VAT group rules and the timing of taxable supplies. The decision has significant implications for businesses operating within VAT groups, particularly in relation to deferred consideration and success fees.

The headlines this week around former Deputy Prime Minister Angela Rayner are a reminder of the importance of taking the right advice from appropriate professionals and the potential consequences when such advice is called into question.

This quarterly civil fraud update provides a summary of reported decisions handed down in the courts of England and Wales in the period of April - June 2025.

Judicial commentary shows that judges are exceedingly aware of the unreliability of witnesses’ memory when considering evidence at trial. While judges may take differing views as to the reliance that ought to be placed on oral evidence as compared to contemporaneous documents, procedural safeguards are now in place to help strengthen the reliability of witness evidence, in CPR Practice Direction 57AC - Trial Witness Statements in the Business and Property Courts (“PD 57AC”).

We have previously written about the potential death of the shareholder principle in our previous blogs. The recent Privy Council decision in Jardine Strategic Limited v Oasis Investments II Master Fund Ltd & Ors No 2 confirms what we suspected; the shareholder principle no longer exists in England & Wales.

We all know that arbitration and litigation are governed by different rules which dictate the way disputes are dealt with and the way that hearings proceed.  One perhaps surprising difference, however, is the approach to oral evidence. 

Issues with expert evidence can have a profound impact on the credibility of a party’s case, and consequently the likelihood or not of a party succeeding at trial. In this article we discuss some recent case law which highlights the need for parties to carefully comply with their procedural obligations regarding expert evidence, namely Part 35 of the CPR (“Part 35”) and the accompanying Practice Direction, to avoid such risks.

One of the key duties of a liquidator is to investigate the affairs of the insolvent company to determine whether its demise resulted from the acts (or omissions) of its directors or third parties against whom claims may be brought to obtain redress for losses suffered by the Company. This article focuses on claims initiated by the liquidator themselves, whether on their own behalf or on behalf of the company, and considers the weight that will be given to the liquidator’s evidence.

Where a party wishes to rely on a witness statement at trial, Civil Procedure Rule (CPR) 32.5 provides that they must call the witness to give oral evidence unless the court orders otherwise, or notice is provided of the intention to rely on the statement as hearsay evidence.

One of the issues that may arise during litigation is a witness failing to turn up at court to give evidence.

In an ideal world, witnesses providing evidence in First-tier Tax Tribunal proceedings would do so in person at a hearing. It is often easier to build a rapport with the Judge in person, you avoid technical issues, and however informal the Tax Tribunal is in comparison to the civil courts, there is something to be said about looking into the whites of a witness’s eyes during a cross examination.

For a will to be valid, the testator must have had testamentary capacity at the time it was made. Testamentary capacity refers to the mental ability of the testator to make a valid will.

Waqar Shah, a Partner at Kingsley Napley, takes a closer look at the recent report by the Committee of Public Accounts on the cost of the tax system.