Farrer & Co

Companies incorporated outside the UK are not automatically outside the UK corporation tax net. If their most important decisions are, in reality, made in the UK, they may be UK tax resident, regardless of where they are incorporated. The First-tier Tribunal’s decision in Cogefin (Bermuda) Limited & Anor v HMRC [2026] UKFTT 1108 (TC) illustrates the risks.

Can we expect new rules around the use of restrictive covenants for employees? Whilst employment lawyers, HR professionals and business-owners throughout the country have been readying themselves for the many and wide-ranging changes brought about by the Employment Rights Act 2025, one topic has been noticeably absent: employee restrictive covenants. This comes partly as a surprise, given the increasing scrutiny of restrictive covenants (particularly non-competes) both home and away.

Amid continuing global economic uncertainty, defaults under loans secured against artworks are becoming an increasingly common feature of the art finance landscape. For lenders, enforcing security over art under English law can present a unique set of practical and legal challenges, given the moveable nature of these assets and their often significant and volatile value. This article examines the key issues lenders should be aware of when seeking to enforce English law security over artworks.

The growing use of AI is posing questions about whether existing laws are adequate to determine who is responsible when AI causes harm. The UK Jurisdiction Taskforce’s (UKJT) recently published Legal Statement on Liability for AI Harms under the private law of England and Wales (the Legal Statement) examines how existing English law is likely to allocate liability.

Rhian Lewis, Head of Pro Bono and Counsel, has been selected to serve on the Attorney General's International Rule of Law Committee, representing law firms committed to pro bono work. The committee brings together representatives from across the legal profession to support the rule of law globally, by increasing impact across the UK pro bono community working internationally. Rhian says: "It is a privilege to have been selected to join the Attorney General's International Rule of Law Committee.

In each edition of the Brief, the Farrer & Co Residential Property partners give us a brief insight into their working lives. This month, we provide an overview of advice given to a private bank taking security over a portfolio comprising residential properties in England, France and Australia and valuable artworks held in London. The Brief We were recently instructed by an English private bank in connection with a substantial financing transaction.

The publication of the final version of Keeping children safe in education (KCSIE 2026) marks an important change in the way schools are expected to respond to children who are questioning their gender from 1 September 2026. Whereas previous government guidance on gender-questioning pupils had been published separately, these issues now sit expressly within the statutory safeguarding framework for schools in England.

In recent years, menopause has moved firmly up the workplace agenda. Employers have become increasingly aware of the impact that menopause symptoms can have on employee wellbeing, attendance, performance and retention, as well as the legal risks that can arise where appropriate support is not provided.

To put it simply, bullying is not something employers can afford to ignore. Whilst there is no legal definition of bullying, it can give rise to a range of legal claims, create significant health and safety risks, damage workplace culture and lead to substantial reputational and financial consequences. This article provides an overview of the key legal risks to keep in mind and what employers can do to minimise their exposure.

The Supreme Court's judgment in Saxon Woods Investments Ltd v Costa [2026] UKSC 21 provides important clarification on directors' duties under section 172 of the Companies Act (s 172) 2026 and, in particular, the duty to act in good faith. It reinforces the principle that a director's genuine belief that they are acting in a company's best interests will not excuse bad faith conduct which subverts a board's decision by covert means.