Clarke and Son News

Clarke & Son LLP recently celebrated ten years as being recognised as an Investor in People (IIP).

IIP is the standard for businesses who demonstrate ongoing dedication to people and commitment to continuous business improvement. Part of a select but growing group of over 3,000 organisations, representing businesses of all sizes and sectors, Clarke & Son is proud of this significant milestone and has enjoyed the benefits of successive Investor in People reviews for the last decade.

Peter Turner, Senior Partner says of this achievement,

“We are very proud that Clarke & Son has held the Investors in People standard for the last ten years as it shows continued dedication to our staff which in turn has benefitted our business and the service provided to our clients.”

For more information on Clarke & Son’s services, please Tel: 01256 320 555 or email: mail@clarkeandson.co.uk

The ’sick note’ is to be replaced by a ‘fit note’ - namely a new statement of Fitness for Work from 6 April 2010.  These require GPs to certify that an employee “may be fit for work”, rather than “fit for work.”

Having received a ‘fit note’, from an employee, it is then subsequently the obligation of the employer to carry out a risk assessment on the employee’s return. The new ‘fit note’ will list the common types of changes employers can introduce to assist a return to work:

• “a phased return to work”
• “amended duties”
• “altered hours”
• “workplace adaptions”

It is believed that this will encourage further discussions between doctor and patient and between employee and employer on the potential options that could facilitate a return to work.

The ‘fit note’ will allow the GP to certify one of two options: “not fit for work” or “may be fit for work taking account the following advice…”.  The wording of the option “may be fit for some work” has been changed to “you may be fit for work taking account of the following advice…” in order to encourage employers to initiate discussions with their employee to consider what changes can be made to assist a return to work.

Where an employee is certified not fit for work, the GP will state the period of incapacity and whether the employee will need to be assessed again at the end of that period. This means that, provided the employee is fit to return to work at the end of that period, he or she will not need to return to their GP before returning to work.

For employees, the introduction of the new ‘fit notes’ should create greater openness between the employee and employer to enable both to work together to create a working environment that takes into account particular health issues thus allowing the employee to return to work.

If you require any further information on Employment Law, contact Thomas Hunt on Tel: 01256 320 555.

A landmark ruling regarding the validity of Prenuptial Agreements is expected any day now from the Supreme Court.  The matrimonial dispute is between a German heiress Katrin Radmacher and her investment banker ex-husband Nicholas Granatino.  It centres around whether Mr Granatino should be bound by the Prenuptial Agreement he entered into with Ms Radmacher in which he agreed not to make a claim on her fortune in the event that their marriage failed.  Ms Radmacher has a fortune of £106,000,000 but the Court of Appeal only awarded Mr Granatino £1,000,000.  If this decision is upheld by the Supreme Court it will represent a sea change in the law’s treatment of Prenuptial Agreements which previously had a chequered history in English law.  It will not only give legal recognition to such agreements without the need for parliamentary legislation but also set a legal precedent for other divorce Courts in the country to follow.

 For further information on Prenuptial Agreements, please contact Bhupendra Sankhla on Tel: 01256 320 555.

In February 2010, the Government announced its attention to increase the rent threshold for assured shorthold tenancies (ASTs) from £25,000 per annum to £100,000 per annum with effect from 1 April 2010.

We now understand that, although the legislation to implement this increase will be brought in as soon as possible, the change will not take effect until October 2010.

It is proposed that the new threshold will apply to existing tenancies as well as those created after October 2010. The delay in implementation is intended to give landlords time to prepare for the change, for example, by protecting the deposits for those tenancies that will become ASTs in October 2010.

For further information on tenancy issues, please contact Paul Cowdery on Tel: 01256 320 555.

The Department for Communities and Local Government (DCLG) has issued a consultation on Making better use of energy perfomance certificates and data. The consultation proposals include:

• Extending and managing access to energy performance certificate (EPC) data.
• Requiring EPCs for houses in multiple occupation, when rooms are rented out.
• Requiring EPCs for short-term holiday lets.
• Requiring property adverts to show the EPC rating.
• Extending the use of display energy certificates to commercial buildings.
• Requiring the lodgement of air conditioning reports.
• Clarifying when an EPC is required on the sale or letting of buildings.

The theme of “improving awareness” of energy efficiency runs through the consultation.  The DCLG hopes to show building owners, for example through measures such as the new EPC online tool, how making energy efficiency improvements will save the owner money in the longer term.  At the same time, the consultation proposes allowing wider access to energy efficiency data, which will enable the Government to identify areas that need to be improved if the UK is to achieve its emissions reduction targets.

The proposed changes apply to England and Wales. The Consultation closes on 25 May 2010. 

For more information on EPCs, contact Paul Cowdery on Tel: 01256 320 555.

In Gill V Woodall & Ors [2009] , Mr & Mrs Gill had made ‘mirror’ Wills in 1993 leaving residue to each other, failing whom to the RSPCA (disinheriting their only child, Dr Christine Gill).  The court set aside Mrs Gill’s Will on the ground of undue influence - amounting to coercion - by her husband, notwithstanding that she did not change her Will in the 13 years between 1993 and her death (even after her husband died in 1999).  This case follows the courts’ current trend to find against Wills which go against the ‘norm’ and highlights the problems in cases where there is no contemporaneous evidence to explain the exclusion of a close family member.

If you wish to make a Will  we can, if you desire, explain why children or close family members have been excluded in that Will.  For more information on Making a Will, contact Nia Wharry on Tel: 01256 320 555.

Gift Aid is a tax relief for charities and for people who choose to donate to charities. Their aim is to encourage people to donate to charities both during their life times and on their deaths.

Recently, the Government has discovered a scheme that exploits the relief available for donations of listed shares and other types of qualifying investments (including land) to charities in section 431 of the Income Tax Act 2007 and section 587B of the Income and Corporation Taxes Act 1988.

The Government is proposing to introduce legislation in the Finance Bill 2010 which will reduce the tax relief on such arrangements where the acquisition was made as part of a tax advantage scheme. The legislation will not affect genuine donations to charity where tax avoidance arrangements are not involved.

If you have any questions on Tax issues, please contact Nia Wharry on Tel: 01256 320 555.

In a recent article published in the Law Society Gazette research by the Fellowship of Professional Will Writers and Probate Practitioners revealed that 67% of consumers wrongly believe that all Will Writers are solicitors.  The truth is that Will Writers are not required to hold any formal qualifications at all; currently anyone can provide a Will Writing service.  Very few people are aware Will Writers were not required to be professionally qualified. From a survey of more than 1,000 people, 82% of them assumed that training and qualifications are required before someone can become a Will Writer.

 A further point to consider in relation to Will Writers is that they do not have to have insurance to cover the evenuality that loss is caused to beneficiaries due to negligence in the preparation of a Will. The lack of necessity for insurance is particularly worrying when research conducted by The Law Society showed that vulnerable people are being left without adequate provision as a result of ‘nightmare’ Wills prepared by unregulated Will Writers.

Lord Hunt of Wirral expressed concerns about the unregulated ‘fringe legal market’ in Will Writing in his review of legal services last October. He called for Will Writing to become a regulated activity.

If you have concerns about a Will prepared by a Will Writer, please contact Nia Wharry on Tel: 01256 320 555 for further advice.

In the present economic environment, many tenants will be seeking to vacate premises, reduce the size of their premises or renegotiate their leases, so times are tough for landlords.  Furthermore, tenants who were ‘good tenants’ or who seemed financially strong may now be a less attractive proposition than they once were.

Here are some tips for landlords to help deal with tenants when a break clause in a lease is booming:

• Be ready. Do your research on your tenant and try to anticipate their stance. Get up-to-date accounts and look at their operation.  A short visit can often be very illuminating;
• Be ready to remarket your property if negotiations with your tenant break down or they wish to terminate. Put together a pack containing all the necessary planning consents, searches and so on, so a prospective new tenant is in possession of all the information they need to make a decision straight away;
• Make sure you know when and how notices must be issued. The notice you receive from your tenant may not be valid;
• If your tenant wishes to renegotiate their lease, make sure you know your market and can ascertain what their options might be.  Also, consider asking for better security; and
• If you think the tenant is likely to default, remember that your right to repossession of the property may be delayed unless you act first.

Says Charles Marchant-White,

Landlords need to take great care and do their research thoroughly in order to minimise their risks. We can help you control your risks in all property matters.

For more information on Commercial Property, contact Charles Marchant-White on Tel: 01256 320 555.

For the year 2010/11, empty commercial properties with rateable values of up to £18,000 will be exempt from business rates.

The Rating (Empty Properties) Act 2007 (REPA 2007) removed business rates relief for most unoccupied properties with effect from 1 April 2008.  REPA 2007 was widely criticised by the property industry as an additional strain on businesses in a time of economic difficulty.

In response to this criticism, the 2008 Pre-Budget Report announced that empty properties with rateable values of up to £15,000 would be exempt from business rates for the year 2009/10.  The exemption was implemented with effect from 1 April 2009.

This resulted in an estimated 70% of empty commercial properties being exempt from paying business rates.

The 2009 Pre-Budget Review announced that the temporary increase in the threshold for empty property relief will be extended for a further year and the threshold increased to £18,000.  This higher threshold reflects the effects of the 2010 business rates revaluation. The Non-Domestic Rating (Unoccupied Property) (England) (Amendment) Regulations 2010 (2010 regulations) have been passed to bring these changes into effect on 1 April 2010.

However, despite pressure from the property industry, the Government continues to assert that, in the long term, it is right to charge rates when properties stand empty. A rating charge encourages owners to re-let and reuse empty property, and owners of empty properties should not expect subsidy. 

Consequently the 2010 regulations provide that the threshold will reduce to £2,600 for financial years beginning on and after 1 April 2011.

For more information on Commercial Property, contact Charles Marchant-White on Tel: 01256 320 555.