World Day for Safety and Health at Work 2023

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Friday 28th April was World Day for Safety and Health at Work, a global day for preventing accidents and injuries and promoting workplace safety.

HSE stats show that 1 million+ workers are injured in the workplace every year. Such accidents brings a lot of disruption to Employers and Employees, both financially and personally, with the potential for staff to miss out on work or make a claim if they get unfairly injured.
The theme for this year World Day for Safety and Health at Work is “a safe and healthy working environment as a fundamental principle and right at work”. The primary aim of this day is to explore practical ways in which this fundamental human right can be implemented in workplaces worldwide which we as a firm support.

The objectives are:

  1. The aim is to increase consciousness about establishing a positive and healthy work environment and decreasing fatalities and injuries related to work.
  2. To enhance awareness and encourage the implementation of secure protocols in the workplace.
  3. To emphasize the significance of Occupational Safety and Health (OSH) and its role in the workplace.
  4. To advocate for a work environment that prioritises wellness and promotes a healthy culture.

As an employer prevention is key. It is your legal duty to make sure you follow the right procedures and correct risk assessments to prevent accidents and keep an accurate record to show it. If things go wrong then you could be liable and employees may bring a claim.
Therefore use today to consider how you can support these objectives to prevent accidents in your workplace.

Family Asset Protection Trusts

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H M Revenue and Customs introduced compulsory registration of all trusts in September 2022. A number of our clients had been contacted by the companies who had advised on and set up, a Family Asset Protection Trust, asking them to arrange registration of their trust.

It has become apparent that many people are being advised by such companies to enter into these trusts at considerable cost believing that their property will be protected against inheritance tax and/or care home fees.

These companies are advising clients to transfer their property or cash into these trusts during their lifetimes and advising them that their property or cash would no longer form part of their estate and that the trust would then own them. The inference being that their value would not be taken into account on death for inheritance tax purposes or when moving into permanent care and calculating their contribution towards care fees.

However, local authorities are permitted to investigate a person’s financial history, including money transferred outright to another person or into a trust. The local authority can deem this to be deliberate deprivation of capital i.e. the transactions had been entered into specifically to reduce the value of a person’s estate. In such instances, the local authority can disregard the transfer and deem the person to still own those assets. The local authority have been known to look back into transactions up to 15 years prior to a person going into care for transfers. The long and short of it is that if the transfer had been entered into due to concerns over care fees, it will be deemed to be deliberate deprivation of capital.

In addition, if an asset has been transferred and the person retains some benefit in that asset i.e. they transfer their house but continue to live in it, they are deemed to have reserved a benefit in the asset. For inheritance tax purposes this is known as a gift with reservation of benefit, which does not reduce their estate for the calculation and its value is still taken into account.

Unfortunately, it appears these trusts, which often cost thousands of pounds, are not correctly explained to clients and they end up entering into what Age Concern describe as “a worthless piece of paper”. Sadly, they can also lead to future costs where the trust company are named as trustees and any changes are needed to the trust.

If you have any queries about Family Asset Protection Trusts or wish to discuss care home fees or inheritance tax planning, please contact our private client team.

Sarah Bruce, Legal Executive, Haverhill/Saffron Walden office
19 April 2023

Changes to tax rules between spouses April 2023

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Under the existing tax rules, a transfer of assets between former spouses or civil partners is made on a ‘no gain or no loss’ basis as long as said transfers take place in the tax year in which the former spouses or civil partners separated, thus any gains or losses from the transfer are delayed until such time that the asset is sold.

However, if the transfer takes place after the tax year in which the spouses separated it is treated as a regular disposal and will be subject to Capital Gains Tax (CGT) in the usual way.

The new rules which relate to transfers which occur after 6 April 2023 will allow for a lengthier period of the ‘no gain, no loss’ rule for up to three years after the year spouses cease to reside together.

Also, the ‘no gain, no loss’ rule will also now apply to assets that are transferred between spouses as part of an order on divorce without a time limit.

Situation 1

A married couple separated in June 2021, being the 2021/22 tax year. They agree that the wife will transfer to the husband her interest in an investment property that they jointly own.

If this transfer occurs in the same tax year in which they separated, then it will not be subject to any CGT further to the ‘no gain, no loss’ rule.

If this transfer of the investment property happens in the following tax year, the following tax year being 2022/23, it will be subject to normal CGT rules based on 50% of the market value less the wife’s 50% share of the purchase costs and accompanying legal fees.

However, if the transfer is deferred and does not occur until after the new rules are applied in April 2023, then it will be subject to no CGT under the new prolonged ‘no gain, no loss’ rule, and the husband will be taken to have received the asset at the original purchase cost.

The above situation will apply to married couples or those in civil partnerships who separated from April 2019 onwards, for the reasons that the new rules will benefit transfers within three years of a separation.

Situation 2

A married couple separated in February 2018. Unfortunately, they could not agree on the division of assets, and so, they decided to instruct legal representatives to issue applications at Court, which leads to lengthy delays. If their matter fails to settle until after April 2023, then the new tax rules will then be effective and any transfers made between them will be conditional on the ‘no gain, no loss’ rule.

Situation 3

A married couple separated in August 2022. Harmoniously, they broker a financial agreement after the application of the new rules (the husband will remain in the former family home and the wife will transfer her interest to him. The wife is to get a 45% share in the proceeds of sale when the house is sold. Consequently, the wife will be permitted to have her CGT Private Residence Relief remain despite the fact that she did not reside in the former family home at the time of its sale.

The CGT consequences of property division on separation or divorce is a complicated area to get to grips with. That being the case, do not delay on getting the right legal advice. Please contact our Family Department here at Adams Harrison on 01799 523441 (Saffron Walden), 01440 702485 (Haverhill), or 01223 832939 (Sawston). [email protected].

Samuel Ward Academy Mock Interview Day

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We were delighted to be involved in supporting Samuel Ward Academy’s ‘Mock Interview Day’ with year 10 pupils on Wednesday 22nd March 2023.

Samuel Ward Academy Mock Interview Day

Louise Taghi, our Practice Manager, saw 7 students. She evaluated their CV’s and personal statements and performed a mock interview with them. After the interview Louise gave feedback to the student and returned a short written report on their performance.

Louise said “The students were well prepared and, although attending a face to face interview was nerve racking they engaged well and provided informative and interesting answers to my questions. I was impressed by the approach of the students I interviewed.”

Jacqui Singleton, Careers Practitioner at Samuel Ward Academy, said “Today turned out to be such a positive day for so many of our students. As nervous and anxious as they may feel before hand, they will look back on the experience in due course and realise how inspiring it has been.

These things don’t happen on their own, its takes support and commitment from people like Louise, and for that both myself and the school community are grateful.”

Samuel Ward Academy Logo

Young Citizen Awards 2023

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Jennifer Carpenter, Managing Partner was delighted to attend the Young Citizen Awards evening on Monday to meet six fantastic young people chosen by their schools for service to the school and/or local community and for being role models to their fellow students. Adams Harrison sponsored the event held by the Rotary Club of Haverhill & District that looks to award young people that have followed the Rotary moto of “Service Above Self”. The schools that participated in the event were: Castle Manor Academy and Samuel Ward Academy from Haverhill and Linton Village College.

National Conveyancing Week 2023 and Changes to EPC Rules For Landlords.

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It is National Conveyancing Week on 20th March to 25th March 2023.

The Adams Harrison conveyancing team work hard to provide the best service not only to residential homebuyers but also for landlords purchasing buy-to-let properties.

This article below informs you of new changes coming into force on 1st April 2023 regarding Energy Performance Certificates.

It is essential that landlords comply but it is also useful for new and existing tenants to be aware of their landlords’ responsibilities.

If you have any questions about this article, or would like a quotation for the sale or purchase of a property please use our contact form.

Or call any of our offices to speak to a member of the Conveyancing team.

We also have experts in Commercial Property work so please do contact us for more information.

Incoming changes to Energy Performance Certificates on 1 April 2023 and its effects on landlords and tenants

Old Rules

An Energy Performance Certificate (EPC) is a certificate that measures a property’s energy efficiency and CO2 emissions. The latest Minimum Energy Efficiency Standards apply to all existing tenancies. Since 1st April 2018 (for new lets and renewal tenancies) and 1st April 2020 (for all existing tenancies), the rules required an EPC rating to be E or higher meaning a tenancy could not be granted to new or existing tenants if the property has an EPC rating of F or G, unless the property is exempt, after these dates.

New Rules

All landlords and tenants must be aware of the incoming changes to the EPC requirements as there are criminal offences for breaching the new rules. From 1 April 2023, it will be an offence to continue to let or rent out a property if it does not have a rating of at least E, unless a valid exemption applies. The penalty is based on the rateable value of the property and will be between £10,000 – £150,000 per breach. Details of the breach may also be made publicly available.

From 2025, all newly rented properties will be required to have an EPC rating of C or above. Currently properties only require an EPC rating of ‘E’ or above. Existing tenancies will have until 2028 to comply with the new rule changes.

What does this mean for landlords?

1 in 7 (15%) landlords surveyed have no knowledge of the upcoming changes to the Energy Performance Certificate (EPC) rules, according to new research from Shawbrook Bank. Landlords currently unaware of the level of work needed on their property could lose rental income until all necessary work is carried out. Landlords will need to prepare for these costs to bring their properties up to the required rating.

What does this mean for tenants?

As a tenant, you are entitled to a copy of your home’s EPC and must be provided with one when you move in. If your landlord undertakes an EPC assessment for your property, they must give you at least 24 hours written notice of a visit from an assessor.

If you want to find your property’s EPC rating, simply go to the Government’s Energy Performance of Buildings Register, type in your postcode and click on your address.

Personal Injury Claims – Qualified One-Way Costs Shifting

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Changes to Qualified One Way Cost Shifting

A new rule change is to be implemented from the 6th April 2023 which will see costs set off brought back to QOCS cases. Defendants will also be able to enforce Costs Orders up to “the aggregate amount in money terms of any orders for or agreements to pay or settle a claim for, damages, costs and interest”. This would include cases concluding by way of acceptance of a Part 36 offer or Tomlin Order.

What is QOCS?

QOCS stands for Qualified One-Way Costs Shifting and was introduced in April 2013 to provide Claimants in Personal Injury claims with protection against liability to pay Defendants’ legal costs if they are unsuccessful with their claim, save for in limited circumstances. A Defendant was not able to recover their legal costs unless one of the following applied.

• The claim is struck out (under certain conditions)
• The Claimant is found to be fundamentally dishonest
• The Claimant fails to beat the Defendants’ Part 36 offer

The rule changes have reversed the effects of Cartwright –v- Venduct Engineering Limited and Ho v Adelekun that a Defendant could only enforce in respect of orders for damages (as opposed to settlements) and cannot enforce in respect of a Claimants’ costs at all.

The changes to the QOCS rule will be updated to cover deemed costs orders and agreements to pay damages. This means that acceptance of Part 36 offers and Tomlin Orders will now be recognised under the QOCS rules and importantly where claims settle under these types of agreements then a Defendant will be able to enforce its costs against damages, interest and any Claimants’ costs.

This rule change only applies to claims where proceedings are issued on or after the 6th April 2023.

It is evident that with these new changes, Claimants will now have more risk in personal injury claims than before and Claimants will need to consider carefully the costs consequences of a Defendants’ offer making a Defendants’ offer much more powerful than before.

We have the skill and experience to negotiate settlement in PI claims. The vast majority of our claims are settled without the need to issue proceedings and this more than ever will be crucially important to minimise the risk to our clients as a Claimant in personal injury claim proceedings in relation to costs.

If you require advice or representation regarding a personal injury claim then please contact us. We offer an initial, free consultation regarding any potential claim.

 

Thank you letter from Arthur Rank Hospice

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Following our donation to the Arthur Rank Hospice Charity we received this lovely letter of thanks from Ellie Weatherly, their Corporate Partnerships Lead. It is always nice to see what benefit will be derived from our donation. To find out more about Arthur Rank Hospice go to www.arhc.org.uk

Each Christmas our staff nominate three charities (one located close to each office) to receive a donation which we make in lieu of sending Christmas Cards.

Our chosen charities for December 2022 were:

Sawston office – Arthur Rank Hospice Charity https://www.arhc.org.uk

Saffron Walden office – Together in Sound https://www.saffronhall.com/take-part/together-in-sound-saffron-walden

Haverhill office – Papworth Trust https://www.papworthtrust.org.uk/

Donation to Arthur Rank Hospice Charity

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Richard Booth presents cheque donation to Ellie Weatherly from Arthur Rank Hospice Charity

To complete the trio of cheque donations made from our three offices in lieu of Christmas cards in December 2022 Richard Booth presented a cheque for £150 to Ellie Weatherly of Arthur Rank Hospice Charity this afternoon.

You can find out more about Arthur Rank Hospice Charity here: https://www.arhc.org.uk/. The Charity is close to our Sawston office and is based in Shelford Bottom.

Women in Law and International Women’s Day

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December 2022 marked 100 years from the time when the first woman was admitted as a solicitor in England and Wales.

The Sex Disqualification (Removal) Act permitted women to be able to work in the Civil Service and the judicial system. Prior, women were not allowed to join the legal profession as they were not recognised as ‘persons’ under the Solicitors Act 1843.

Following on from the Representation of the People Act 1918, which gave some women the right to vote, the Sex Disqualification (Removal) Act 1919 made it easier for women to become lawyers, and in December 1922, Carrie Morrison was the first woman to qualify as a solicitor, with others also being admitted.

Gloria Steinem, world-renowned feminist, journalist and activist once said “The story of women’s struggle for equality belongs to no single feminist nor to any one organisation but to the collective efforts of all who care about human rights.”

For women all over the globe, March 8th is a time to reflect on our past struggles and make stronger our shared voice. This year, the theme for the UN International Women’s Day is ‘DigitALL: Innovation and technology for gender equality.