Newsletter June 2010

Client Update - June 2010

In this issue:

•	HIPs to be Abolished
•	30-Year-Old Objection Prevents Public Right of Way
•	Cohabiting After Divorce Affects Maintenance Payments
•	Sons Overturn Father's Will Where Mental State in Doubt
•	VAT and 'Going Concern' Transfers
•	Use of Premises Makes Rent an Administration Expense

Welcome to the June edition of our monthly newsletter, keeping you, your family and your business up to date with news from the legal world and topical, useful advice.

Time to move?
The suspension of Home Information Packs (HIPs), just one of the changes introduced by our new Government and something you can read about on our website, has had an immediate effect on the property market with the volume of homes being put up for sale increasing to levels not seen for almost two years. Will the fact you don't need to stump up for a HIP encourage you to test the water and put your house on the market now there is no upfront cost other than the more modestly priced Energy Efficiency Certificate? With house prices increasing and fixed term mortgage rates at an all time low, now could be an excellent time to consider selling if it's something that's been on the cards for a while. Contact us for moving advice and a quote for your conveyancing requirements.

Make a Will
The subject of Wills always tends to make our newsletter, and this time around there is no exception. It’s an important subject and so we’ll issue another subtle reminder to make sure yours is up to date and if you don't think that you need a Will then read our article giving 10 Reasons for Making a Will. If you are in doubt about any part if it, it’s well worth talking to us. One of our news stories, summarised below, involves a will being overturned on the grounds of mental incapacity, a subject that also raises the issue of Lasting Powers of Attorney. Do you have one in place to ensure your affairs are dealt with as you wish should you suddenly find yourself unable to take care of them yourself? If not, get in touch for advice.

In the Business World
Announcements that public sector cuts will be high on the agenda of the Coalition government has led to the Institute of Chartered Accountants warning small businesses to check current contracts with public sector companies and to be prepared for the expected £6.2bn worth of cuts. If your business serves the public sector, you may need to change your business plan in the near future to accommodate change. If this change involves variations to the way your company is structured or to the roles of your employees, taking legal advice in advance of making any decisions is vital.

In dispute? There is another way to resolve issues…
Legal disputes can be a nightmare for small businesses with far reaching financial and operational consequences. There is a way, however, to prevent issues going to court: by using mediation. If you are in dispute over a business matter, whether with a supplier, contractor or business partner, talk to us to explore a wider range of options.

We would like your help!
Would you mind doing us a favour? We are always interested in raising the profile of the firm and we are currently asking all clients to post a review of the firm on Google Local. This is becoming and important place for people to find a solicitor and we would like make sure that when people look for us there, they can find some reviews of the firm. All you need to do is visit Google Local and part way down the page is a link saying "Write a review". Thanks in advance if you feel able to help.

Neves News
We are very pleased to report that trainee solicitor Atiyyah Younis has recently passed her final professional skills course exam with flying colours achieving a pass rate of 72%. Atiyyah is currently working in our Family department, but will shortly be moving across to our Private Client department. Congratulations Atiyyah.

We also welcome Rohana Khan who is a trainee solicitor on secondment from a different firm to gain experience in our family department in Luton.

HIPs to be Abolished

Although we have become used to the Government announcing initiatives which never see the light of day (or announcing them as new initiatives months or years later), the news that Home Information Packs (HIPs) have been scrapped by the new Government will...

30-Year-Old Objection Prevents Public Right of Way

Private Property An owner of an estate was recently successful in preventing the creation of a public right of way, thanks to a previous owner who had disputed a planning enquiry nearly 30 years previously.

The dispute involved a pathway which a local planning inspector decided should be designated a public right of way. The title to the land was not registered and the ownership of the path was not certain, but the current owner of the estate claimed ownership.

Cohabiting After Divorce Affects Maintenance Payments

Co-Habitation A recent case illustrates that cohabiting with someone else after a divorce may affect any maintenance payments received.

In the case, a man who had been ordered to pay his wife £125,000 a year in maintenance succeeded in persuading the Court of Appeal that the payment should be recalculated, after a private detective produced evidence that his ex-wife had set up house with another man and was expecting his child.

Sons Overturn Father's Will Where Mental State in Doubt

Last Will A recent case, involving a bitter dispute amongst a Norfolk farming family, has shown that a will may not be upheld by the courts if there are serious doubts about the testamentary capacity of the person who made it. In the case concerned, the two sons of the deceased persuaded the court to overturn their late father’s will on the ground that he was mentally incapable when he created it.

VAT and 'Going Concern' Transfers

Tax Questions The sale of a business which is already trading will normally be treated for VAT purposes as a ‘transfer as a going concern’ (TAGC).

TAGC is an important concept for VAT purposes, because such a transfer is not a taxable supply – no VAT is charged by the vendor and none is recovered by the purchaser. There are various criteria which have to be met for a transfer to qualify, the most important of which is that the new owner must become VAT registered for the transfer to be a TAGC. Another is that the new business must be the same as or not significantly different from the old one. A third is that the transfer must put the transferee in a position to run the business transferred.

Use of Premises Makes Rent an Administration Expense

rent overdue Insolvencies have been running at a high rate for some time now, presenting problems for landlords and tenants alike.

It should be remembered that the expenses of the administration of an insolvent company rank for payment before debts due to unsecured creditors. Therefore, if a landlord can show that rent is an administration expense, there is a better chance of it being received from the insolvent tenant.