Legal articles
December Combined Business and Private Client Website Articles

Planning reforms will ‘meet challenges of 21st century’
Home Information Packs now needed on all home sales
Brown’s challenge to licensees over alcohol related disorder
Retirement age discrimination cases put on hold until 2009
Don’t throw away your children’s inheritance
Hiring illegal workers could land an employer in jail
Festive season puts pressure on relationships
Plan carefully to make the most of buy to let

Planning reforms will ‘meet challenges of 21st century’

New legislation is being introduced to speed up the planning system making it possible for developers to get permission for major projects in less than a year.

Ministers say the system is currently struggling to meet the challenges of the 21st century – climate change, protecting the environment and the need for new homes. The new Planning Bill is designed to reduce bureaucracy at the same time as strengthening accountability and making the decision making process more transparent.

Communities Secretary Hazel Blears said that under the present system, major projects could face years of unnecessary delay as they got bogged down in the process of getting planning permission.

The Planning Bill will bring the average time for processing applications on such projects to under a year.

The Bill will set national priorities for infrastructure following public consultation and parliamentary scrutiny. Developers can look forward to quicker decisions but they will have a legal duty to consult the local community, local authorities and key stakeholders on their projects as they prepare them.

Planning inquiries will be made more accessible to the public and people's right to be heard will be protected. Any person who registers an interest can give oral evidence at relevant stages of the inquiry.

The Bill and other reforms will also make it easier for homeowners to extend their homes. Planning permission will not be required for minor developments such as conservatories and small scale extensions where it is clear they have little or no impact on neighbouring properties.

Householders will be allowed to install small-scale renewable technologies - such as solar panels and wind turbines - without planning permission subject to safeguards and standards to ensure there is little or no impact on neighbours.

Ms Blears said: “The new measures show that it is possible to deliver not only a faster and more efficient planning system, but high quality decisions with greater community involvement.

"There will always be controversial projects that stir opinion and require difficult judgements to be made. However, having a stronger system will ensure all opinions - particularly those of the public - are heard sooner. Making good judgements in less time is of benefit to everyone. Long-lasting stalemates that finally stagger to a conclusion are no good for anyone."

Home Information Packs now needed on all home sales

Home Information Packs will now be required on all homes for sale in England and Wales, the Government has announced.

HIPs are intended to simplify and speed up the process of buying and selling a house by obliging the vendor to provide potential buyers with important information about a property right at the outset. They were originally intended to be introduced in June but had to be delayed because of administrative difficulties. It was then decided to introduce them in stages. In August, they became compulsory when selling four bedroom houses and the scheme was extended to three bedroom houses in September.

Now, effective from 14th December, they’re required when selling all homes regardless of size.

HIPs must contain certain documents relating to the property such as the results of local searches and evidence of title. Perhaps the main and most innovative feature of the packs is the Energy Performance Certificate. This measures the property’s energy efficiency and grades it from A to G.

The Government says that buyers whose homes score poor energy ratings of F or G will receive an offer of a discount or free help with energy efficiency measures from the Green Homes Service which will soon be established.

It’s estimated that a fifth of all homes are in this lower category. Ministers say the new measures will help home owners to save hundreds of pounds in fuel bills.   

Anyone selling a home regardless of its size must now provide a Home Information Pack for potential buyers. Please contact us if you would like more details.

Brown’s challenge to licensees over alcohol related disorder

Gordon Brown has challenged alcohol producers and retailers to play their part in the effort to deal with unacceptable levels of drinking or face tougher action in future.

Mr Brown was speaking after the launch of a Home Office campaign targeting pubs, clubs and off-licences in areas which have particular problems with alcohol-related crime and anti-social behaviour. Officials will focus on 1500 premises in 90 areas in an effort to clamp down on the sale of alcohol to under-age drinkers or people who are already drunk.

Retailers and publicans risk heavy fines for repeat offences and could lose their licences.

Mr Brown said there would be a co-ordinated approach to “build upon the efforts to deal with some of the problems, particularly related to our target groups – that is young people and binge drinkers”.

From January, as part of that co-ordinated approach, local authorities will be able to impose extra costs on pubs and clubs to manage alcohol related disorder in newly prescribed Alcohol Disorder Zones.

In the meantime, the Government is pressing ahead with its review of the 2003 Licensing Act. Ministers think it likely that 24-hour licences will remain the exception rather than the rule.

Retirement age discrimination cases put on hold until 2009

All employment tribunal cases involving age discrimination claims based on compulsory retirement have been put on hold for at least a year pending a ruling by the European Court of Justice. 

The Employment Tribunal Service has decided that all cases must await the outcome of legal action being taken by Heyday, the organisation that campaigns on behalf of the elderly. Heyday, which is backed by Age Concern, claims that by allowing employers to retire people at 65, Britain is breaking European law.

A ruling isn’t expected until 2009 at the earliest which means more than a year of uncertainty for both employers and employees.

Employees who want to lodge a claim can still do so but will have to wait for the ruling by the European Court before their case can be heard.

The problem is much more acute for firms because if they retire someone at 65 they could later be accused of age discrimination depending on the outcome of the Heyday case. 

Firms may have to review their retirement policy and consider all the implications before obliging an employee to retire at 65.

Don’t throw away your children’s inheritance

Investors still need to plan ahead to protect their wealth for their children despite the decision by the Chancellor Alistair Darling to make the inheritance tax allowance transferable between spouses and civil partners.

The measures are welcome but do not really improve the situation in the way that some reports have suggested. Nor do they remove the need for inheritance tax planning if people want to pass on as much of their wealth as possible to their children and chosen beneficiaries.

The Chancellor isn’t giving much away at all because it has long been possible for couples to effectively double their tax threshold by the use of trusts. Hundreds of thousands of couples have already done so. It should also be remembered that although married couples will benefit there is no change in the situation for single people and those who cohabit. There is also the danger that inflation and rising house prices will continue to erode the value of the inheritance tax allowance.

Mr Darling backdated the changes indefinitely which could be very helpful for widows, widowers and bereaved civil partners as they may be able to use their deceased partner’s allowance when passing on their estate to their children and families. Anyone in this situation should consider taking legal advice to see if they could benefit.

Trusts still have a significant role to play in protecting wealth for the next generation. There are also exemptions and reliefs that could enable you to give away some of your money without it later being subjected to inheritance tax. Many people who have already set up trusts may still find them useful for other reasons. For example, they may be advantageous if there are concerns about long term care issues.

Hiring illegal workers could land an employer in jail

The Home Office has warned employers that they must source migrant labour through legal means or face severe penalties including unlimited fines and even prison sentences.

It’s part of a comprehensive programme to reform Britain’s immigration controls.

Employers that negligently hire illegal workers face a maximum fine of £10,000. The fine can be repeated for each worker found to be employed in the business. If it can be proved that an employer knowingly took on illegal workers then he could incur an unlimited fine and be sent to prison.

The measures take effect in February.

The Border and Immigration Agency, which will monitor compliance, is to issue a code of practice providing guidance on how employers can protect themselves from employing illegal migrant workers in a way that doesn’t leave them open to racial discrimination claims.

The Agency points out that this is important because “employers who only carry out checks on workers who they believe are not British citizens, for example, on the basis or race or ethnicity, could find this is used against them as evidence in any proceedings brought under the race relations legislation”.  

Festive season puts pressure on relationships

The Christmas and New Year period are traditionally seen as a time for families but sometimes the reality doesn’t quite live up to the expectation for many people.

For some couples who may already be experiencing difficulties in their relationships the festive season can turn out to be a major turning point. It’s not unusual for pressures that have been kept under control all year to suddenly come to the surface as people suddenly find themselves spending more time in each other’s company over the holiday season.

The problem can be compounded by the feeling that yet another year has passed and that it’s now or never to make a fresh start.

Most family and matrimonial lawyers receive a surge of inquiries once the New Year begins from people who feel they have reached the end of the road in the relationship and want a divorce. It’s a traumatic time for all concerned because as well as the emotional upheaval there are inevitably going to be numerous practical matters to consider.

The average divorcing couple will have significant assets to divide between them. That can sometimes prove difficult, especially as most of that wealth is likely to be held in the family home. Sometimes the home may have to be sold so the proceeds can be divided; sometimes it’s possible for one party to remain there in return for concessions in other parts to the settlement.

There are many important issues that most people don’t even consider until they get professional help. The couple will have to reach agreements about all their assets including investments, property and even pensions. It’s easy for some of these items to be overlooked with the result that one side gets an unfair settlement.

Joint bank accounts and credit cards will have to be cancelled and replaced by individual accounts. This may prove difficult for the divorcing partner who may have moved out of the marital home and so find it difficult to provide the proof of address needed to set up a new account. It can sometimes prove difficult to get a loan as your partner’s credit history may be kept on your credit file for several months after the separation.

Wills should be revised as each party makes a clean break and reassesses how they want to provide for their loved ones in the future.

Even more important than reaching agreements over finance is the need to make suitable arrangements for the children. Many husbands fear that their wives will try to limit their access to their children. Most couples manage to reach amicable arrangements but where this is not possible one side may have to take legal action.

Many people think that this means going to court but that doesn’t always have to be the case. Mediation in which a third party helps the couple come to an amicable agreement is now becoming more common and is nearly always a better alternative than resorting to court action.

It is far less costly and often enables even embittered couples to remain on good terms, which is the best approach in the long term, especially if children are involved. 

Plan carefully to make the most of buy to let

The credit crunch has sent shock waves through financial markets and made many people wary about where they place their hard earned investment money.

In spite of this general uncertainty, however, buy to let investors remain stoical about current difficulties and seem confident about the future. There is certainly no sense of panic in the findings of a recent survey by the Association of Residential Letting Agents. (ARLA)

ARLA found that just over half of all buy to let investors plan to increase their portfolios over the coming year. Nine out of ten say they won’t sell their properties even if prices start to fall.

More than half of all landlords are investing for long term capital gain, with only 2.5%, looking to make short term capital gains.

The tendency to take a long term view is one of the reasons why buy to let investors aren’t too concerned about the current uncertainty. However, anyone considering entering the market should do their homework first to make sure they invest their money wisely to reduce risk and maximise returns. The old adage of location, location, location still holds true so great care should be taken before deciding what kind of property to buy and where to buy it.

For example, you should think twice before you take on newly built flats in city centres. There is a surplus in many areas and so the chances of losing money are high. You should always make sure you know the area well before buying any property and understand the needs of the kind of tenant you hope to attract. Take location into account as well as the availability of public transport, local amenities, schools and the proximity to colleges or places of work. For example, it would be inadvisable to try to rent to students if the property is miles from their college. On the other hand, it might be difficult to rent out a family home if it is right in the middle of a noisy student area.

Investors also need to be familiar with certain legal obligations. For example, you will need a licence from your local authority if you want to rent out homes of multiple occupation such as student flats. The Housing Act also places obligations on landlords to ensure their properties are safe, secure and free from hazards.

New investors will also need to familiarise themselves with the tenancy deposit scheme which is designed to protect a tenant’s money from unscrupulous landlords. When a tenant pays a deposit, the landlord has 14 days to hand it over to a government approved private company.

The buy to let market remains strong and even though house prices are beginning to cool, it seems there is no shortage of investors wanting to get involved. According to a survey by Mintel, the buy to let market could double in the next three years. Many new investors will only be taking on one or two properties and will see it as a nestegg for their retirement.