A recently reported decision of the Special Tax Commissioners has highlighted the importance of obtaining good advice on Nil Rate Band Trust schemes.  Hart Reade have been aware of the potential difficulty that this case highlights for some time.  The problem centres around section 103 of The Finance Act 1986, which in essence disallows a deduction of a debt where the subject matter of the debt is property received from the deceased.  It is important for clients to give full details of gifts between spouses when preparing or reviewing their Wills and on implementation following the first death.

If clients are concerned that the circumstances may apply to them, they should be advised to contact their usual adviser as steps taken in their Wills can remove any potential problem.

The new Solicitors Code of Conduct comes into force on 1 July 2007 and enshrines core duties of solicitors which are:

Fours days are to be added to the minimum four weeks paid holiday from 1 October 2007 under draft regulations published by the Government with a further four days proposed from 1 April 2009.  However, employers may opt for these additional days to include statutory bank holidays.

The Regulations affect enclosed workplaces and work vehicles.  It becomes an offence to fail to prevent smoking in these places.  Cigarette "breaks" for those wishing to stand in the open outside are not likely to be caught by the legislation, but employers may not have to agree to them particularly in the absence of express contractural rights to such breaks.

The Government laid the Regulations for Lasting Powers of Attorney before Parliament on 17 April and these are expected to be passed in June.  This should mean that the implementation is on track for the current proposed start date of 1 October.  The Regulations are 104 pages long with the new document itself being 25 pages.

Many Clients are updating their arrangements for Enduring Powers of Attorney before the 1 October deadline as existing Enduring Powers of Attorney will continue to be valid.

You may have seen in the press, or if you have not so far you will shortly, that Home Information Packs will be compulsory for residential property sellers from 1 June 2007 and we try below to answer a number of your queries:

1.   Will I need a HIP to sell a property?

Properties already on the market before 1 June 2007 will not need a HIP unless they remain on the market after 31 December 2007. There are a number of exemptions and these are briefly as follows:

a)   Non-residential or mixed used properties

b)   Properties which are not placed on the open

      market ie sold to relatives or friends

c)   Tenanted property

2.   Why are HIPs being bought in?

The Government reviewed the buying and selling process for properties and sought ways to remove wasted time, money and failed sales across the country.  They thought the best way was to highlight the key concerns and information at an early stage and give potential buyers information before they made an offer.

There has been and still is considerable opposition to the scheme as it is seen as a potential burden on sellers and delay in bringing properties to the market. The information that is required in a HIP has been somewhat watered down.

3.   What will a HIP comprise of?

A legal pack must contain:

a)   Index

b)   Energy Efficiency Certificate prepared by

      an accredited inspector

c)   Statement of the main terms of sale (confirming

      whether the property is freehold and

      vacant possession)

d)   Evidence of the title (the normal documentation

      that solicitors prepare to review your title deeds)

e)   Basic property searches (or in certain areas

      confirmation they have been applied for)

There are a number of other documents which are authorised to go into the pack but not a requirement. There are also extra requirements for Leasehold properties and different rules for developers.

4.   Will Hart Reade be able to provide us with a HIP?

We are currently working with the Law Society nationally and the Eastbourne Law Society locally so that when selling your house you should see no real difference in the speed at which the property goes on the market and the information that we require from you to progress matters.  It may well be that information we would have asked you for only when a sale had been agreed is now required beforehand.

We are working with local estate agents to ensure a seamless instruction system using the most up-to-date technology.

5.   How much will they cost?

No one is quite sure at this stage.  We are confident that as the most expensive aspect of a HIP, the Home Condition Report, is no longer a requirement, the costs should be manageable.  Further details of costs will be on our website when more information is available.

There will be a lot of speculation and scare stories in the Press about HIPs. Do not worry we are HIP ready!

If you have any concerns, queries or comments on Home Information Packs please do not hesitate to email apluck@hartreade.co.uk.

• HIPS (Home Information Packs).  We have been preparing for many months for the introduction of HIPS on residential property sales on 1 June 2007 and want to reassure our clients that we have the systems in place to produce a HIP for them when they wish to sell their property.  We use on-line services to obtain information which helps speed up the process.

• Employment.  We have contracts and procedures which help avoid the real risks of contravening recently introduced statutory procedures and rules against discrimination on grounds of age, disability, sex and race.

No Smoking.  From 1 July 2007 all employers, employees, customers and visitors will not be able to smoke in the enclosed area of the workplace.  Smoking rooms will no longer be allowed and smoking in work vehicles will not be permitted.

 

Maternity Leave.  New entitlements for working parents from 1 April:

• All employed women are entitled to additional maternity leave.

• The payment period for Statutory Maternity Pay and Maternity Allowance has been extended to 39 weeks.

• Some notice periods have changed.

• Employed fathers have a new right to up to 26 weeks additional Paternity Leave.

• Enduring Powers of Attorney.  The government has delayed implementation of the new Lasting Powers of Attorney until 1 October 2007.   Enduring Powers of Attorney created before this date will continue to be valid.   Many of Hart Reade’s clients are updating their existing arrangements now because the relative simplicity of the existing form contrasts with the twelve page form of the new document together with a further one hundred and twenty-six pages of guidance.

• We have car parks at all of our offices for the use of clients while visiting the firm.

• We will always tell you what our services will cost you as soon as we can and keep you updated regularly.

• We can offer home appointments if needed.

• We offer a wide range of services which you may not need now, but please ask for details to keep on hand.

And lastly . . . please let us know what you thought of the service we gave and if and how we can improve it.