BUDGET ANNOUNCEMENT - Rix & Kay Solicitors Initial Views - Mar 2008
No one could pretend that Alistair Darling’s first budget speech was very exciting. In the realms of inheritance tax, capital gains tax, company tax rates, taxation of non-domicileries and non residents, this was probably a good thing given the previous budget and pre-budget report in October. There was good news for charities, for those selling small businesses or spreading income around family members in very small companies which was a relief after the Chancellor’s reaction to the Arctic Systems case.

Capital Gains Tax

This reduces not only for individuals but also for Trusts and Estate to 18% from 6 April 2008. There is still a little time for people to review whether they need to ‘lock in’ longstanding indexation and Taper Relief but there is obviously a significant cost to this.

Some more detail of the Entrepreneur’s Relief applicable from 6 April 2008 has been given. Those disposing of businesses will pay 10% capital gains tax on the first £1,000,000 of lifetime gains.

Charities

The Chancellor has guaranteed for the next three years to 5 April 2011 charities can recover 28p in the £ for Gift Aid donations made by individual tax payers. If this had not been done then the cut in basic rate tax from 6 April 2008 would have meant htat they could only recover 25p.

Tax Relief on Capital Expenditure

A major reform is underway for Capital Allowances. Clients need to speak to their accountants to plan the effect.

Inheritance Tax and Trusts

The opportunity to amend life interest trusts that were in existence at March 2006 has been extended to 5 October 2008 rather than 5 April 2008. It is a technical area known as ‘Transitional Serial Interests’ (TSI). If any client is involved with a trust either as a beneficiary or trustee where there is an existing life interest they should seek advice from us at the earliest moment.

Transferable Nil Rate Band Allowances for Married Couples or Civil Partners

Inevitably things are not quite as straightforward as the Chancellor would have you believe in his pre-budget report. It is however a very useful change but should be looked at in the context of inheritance tax planning for the family generally. Apart from tax families are often concerned that assets are protected in the event of second marriages or beneficiaries having significant disabilities or being subject to means tested benefits. We can provide solutions in this area.

Hilary Hughes
Tax, Trusts & Charities Unit

New tax relief for small business owners - Jan 2008
The Chancellor Alistair Darling has announced a new‘entrepreneurs’ relief’ on capital gains tax for small business owners and investors.The move cuts the capital gains tax rate from the planned 18% to 10% on lifetime gains of up to £1 million - but a local tax specialist warns that not everyone will benefit. According to Hilary Hughes of Rix & Kay Solicitors LLP,“It’s certainly welcome as small
businesses can now plan for the future with a clear idea of their tax situation, but not all business owners will benefit financially - there will be winners and losers under the new rules.” In October last year, the Chancellor gave second home owners cause for celebration when he announced plans to cut capital gains tax to a flat rate of 18%, down from 40%. But at the same time he scrapped taper relief,which can result in rates as low as 10% and indexation allowance - a real blow for business. The new relief takes effect from 6 April 2008 and applies to cumulative gains made in connection with the disposal of a trading business, including certain disposals of shares in trading companies.The first £1 million of gains will be charged at 10%,with a rate of 18% applying to gains over £1 million.The relief will not apply to those selling second homes – from 6 April they’ll pay the 18% flat rate. Hilary says,“Following the Pre-Budget Report there was real concern from small business owners who had built up a business over a lifetime and hoped to sell their firms and realise the proceeds for retirement.The latest CGT changes are likely to benefit these people.The picture is not so clear for those who start, develop and sell several businesses in their lifetime.Neither does it offer a great deal for larger businesses. It pays to carefully consider how the new regime will affect your tax liability and to plan for the future”

For professional advice on how to plan a tax-efficient future, please contact Hilary
Hughes on 01825 761555 to discuss your circumstances......[read more]

Residential Property News December 2007 - Dec 2007
HIPs latest

All qualifying residential properties will require a HIP from 14th
December. Read the latest special bulletin on our website news for
a brief outline of the key new Regulations.

Base Lending Rate

5.5% from 6th December.The next Bank of England Monetary
Policy Committee Review is 10th January 2008.

Market conditions

The pre-Christmas market is traditionally quite low-key with most
of the conveyancing activity being aimed at completing transactions
before the seasonal break, rather than being geared towards new
transactions.However, there is evidence of an underlying flattening
or cooling down - both in respect of house prices and levels of
activity.

Knight Frank market commentary / forecast 2008

Gavin Selbie of Knight Frank’s TunbridgeWells office echoes the
message in his firm’s December 2007 market commentary:
“The UK market has seen a significant shift in confidence and
activity in the third quarter of 2007. Central London prices to end
2007 32% higher, but annual growth will fall to 3% in 2008.The
seller's market, has been replaced very quickly by a buyer's market.
With the initial impact of the credit crunch being felt by the City
economy, the UK market is likely to enter a weaker phase and
over the next 12 months we believe that prices will rise by 3% and
sales volumes will fall.Despite this, buy to let activity has remained
high with UK rents to rise 7% in 2007 and 6% in
2008……..Southern England and the prime residential markets are
likely to perform better than the mainstream markets.Vendors of
the very best properties will still be able to name their own price
(almost).”.....[read more]

Press release - Reducing tax on your second home! - Dec 2007
People who own second homes have been celebrating the reduction of Capital Gains Tax to 18%,made by Chancellor Alistair Darling in October’s Pre-Budget Report – but a local tax specialist is warning that the benefits may not be as clear-cut as they initially appear.

According to Hilary Hughes of Rix & Kay Solicitors LLP,“There are circumstances in
which such people are better off now, so if they’re considering selling their second
home, they’d be well advised to do so before the changes take place on 6 April 2008.”

Currently, the profits made from the sale of any investment, including a second home, are taxed at either 20% or 40% - depending on whether or not the seller is a standard or higher rate tax payer. However, the amount of the profit that is taxed reduces the longer the investment (or home) is held. FromApril next year, however, there will be no such reduction, and everybody will pay a flat rate of 18% capital gains tax.

Hilary says,“Essentially, higher-rate tax payers who have made a substantial profit on their second property could be better off if they sell on or after 6 April next year. Conversely, people paying the standard rate of tax and who do not stand to make such a large profit may be well advised to sell under the current regime.” Both types of seller, however,would have stood to make substantial savings if they had taken professional advice on how to lower their tax liability.

According to Hilary,“Electing to make a Principal Private Residence within two years of buying or inheriting a second home would make the last three years of ownership free of Capital Gains Tax,meaning people in both tax bands would have to pay considerably less.” Anyone considering selling a second property, or wishing to ensure the most taxefficient way to own a second property, should contact Hilary Hughes on 01825 744406 or hilaryhughes@rixandkay.co.uk to discuss their circumstances........[read more]

New Structure for Rix & Kay Solicitors - Dec 2007
Conversion to LLP

Rix & Kay Solicitors have converted to a Limited Liability Partnership
(LLP).We will now be known as Rix & Kay Solicitors LLP and will
continue to operate from our existing offices in Uckfield,Heathfield and
Seaford.

An LLP is a legal entity similar to a limited company that is increasingly
recognised as a more appropriate business structure for professional
services firms, such as lawyers, that have a modern and forward thinking
approach to their business.The conversion to LLP means that we are
able to enhance our operational structure and offer better career
opportunities that will help us to recruit high quality candidates for the
future of the firm.

The official registered name of the firm will be Rix & Kay Solicitors LLP.
The LLP is registered at Companies House under Registered No.
OC330614......[read more]


We have put together a series of FAQ's to answer any potential questions you may have

FAQ1......[read more]
FAQ2......[read more]
FAQ3......[read more]

HIPS LATEST - Key points from Government announcement - Nov 2007
HIPS LATEST November 2007

Key points from Government announcement 22nd November 2007

•Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to the rest of the market from December 14 2007.

•Given the higher number of leasehold properties amongst one and two bedroom homes, the HIP regulations are to be amended so the lease document itself must be included, but other leasehold information (building management, financial and insurance) will be introduced as a requirement in six months’ time.

•The Government will publish guidance in December on access and charging for local authorities and personal searchers (to try and reduce cost and improve efficiency).

•The First Day Marketing provisions are also to be extended to 1st June 2008. This means that provided that the pack has been requested in writing (and is accompanied by the appropriate payment or an undertaking to make the payment) and it is expected to become available within 28 days – marketing can start without a Pack. The duty to provide a Pack does not then arise until the energy performance certificate (EPC) is obtained.

•The EPC roll out for commercial and rental properties starts in April 2008.

Residential property news November 2007 - Nov 2007
HIPs latest
The HIP industry is starting to get into its stride, with keen competition and prices.
However, we have encountered:
• Lack of Government clarity on when it proposes to roll out compulsory HIPs to
the remainder of the market.
• Poor service standards being talked of across the HIP market place (supporting
the argument that the industry was not ready for the roll out).
• Dreadful service from Southern Water (drainage and water searches) which they
promise to get back on track by mid to late November. This has delayed not just HIP production but also many clients from being able to exchange contracts and move.
• Impressive service from local authorities and the Land Registry. When acting for buyers, some extremely low quality HIP products. Clearly some estate agents are more concerned with “any HIP will do” without considering the quality of its content – inconsistent with their own branding and market positioning. Watch this space........[read more]

Lasting Powers of Attorney - Brochure & Questionnaire - Nov 2007
You should consider making a lasting power of attorney as there are times in every person’s life, when they may need someone else to act on their behalf. It is not just something to consider in your later years but there are situations throughout your life when it could be useful.

The law has changed in relation to how you appoint people to manage your affairs in the event you are unable to do so yourself. The people you appoint are still called attorneys but now the form you use to appoint them enables you to specify, in some detail, what powers attorneys should have. As a consequence, the Lasting Powers of Attorney Form (“LPA”) is 25 pages long and this questionnaire is designed to guide you and to give you some information about the contents of the form before you discuss it with us. You can create a further LPA to deal with Health and Welfare issues so please ask us for details if you are interested in this......[read more]

The First edition of Catastrophic Injury News - Nov 2007
Welcome...
It gives me great pleasure to introduce this first edition of
Catastrophic Injury News, produced by the specialist Catastrophic
Injury Team at Rix & Kay.
The aim of this bi-annual publication is to provide you with a snapshot of the
type of cases that we have the privilege of being involved in and also special
interest topics and up-to-date news on this specialist area.

Frances Pierce Head of Catastrophic Injury Team.....[read more]

The Government’s Proposed Changes to Inheritance Tax Legislation - Oct 2007
The Government’s Pre Budget Report outlined proposals for reforming the inheritance tax (IHT) regime. We thought it might be helpful if we gave you some
information about the proposed changes and how they interact with nil rate band discretionary will trusts. .....[read more]

Rix & Kay join in the World’s biggest coffee morning for Macmillan - Sep 2007
Rix & Kay solicitors are holding on September 28th a coffee morning at our Heathfield office in support of Macmillan Cancer Support. Last year over two million people raised their mugs and raised a staggering £6.7 million. Events like this help Macmillan to improve the lives of people affected by cancer by providing practical, medical, emotional, and financial support......[read more]

Residential property news September 2007 - Sep 2007
HIPs latest
See our special report published on or website News 17th August 2007. The new HIP suppliers are reporting very small trickles of business. We’ve got 4 under way! However, it is August, and it has never been a popular month for new listings with estate agents. We’re standing by for a big influx of new work in September!.....[read more]

Can landlords make it easier for themselves to let property - Sep 2007
Can landlords make it easier for themselves to let property and are corporate occupiers making the best use of flexibility of lease terms in their leases.
According to a report from the CBI and property advisor GVA Grimley’s two thirds of corporate occupiers are opposed to there being legislation to make the code of Leasing Business Premises mandatory. The code aims to promote fairness in commercial leases and aims to ensure that business occupiers have the information necessary to negotiate the best use available to them. Having flexibility to end leases reduces the cost of decisions that have to be made when a business needs to change. A large proportion of business’s have annual strategic reviews of their property holdings so having flexibility in lease terms would make certain properties more attractive. The British Property Federation are promoting the Commercial Landlords Accreditation Scheme so as to guide businesses towards landlords who offer, a wider range of flexibility, manageable leases, who understand business needs and who deal with their customers complaints fairly and quickly.......[read more]

Latest: Home Information Packs 17th August 2007 - Aug 2007
Compulsory HIPs and Energy Performance Certificates (EPC’s) were phased in by
the Government from 1 August 2007, starting with the sale of homes with four or
more bedrooms.
From 10th September 2007, the scheme will be extended to properties with three or
more bedrooms.......[read more]

Sheila Riches - Press Release - Aug 2007
Rix & Kay secure compensation for Mr Dawes after Judge denies liability.....[read more]

August 2007 Residential Property: trends and developments - Aug 2007
Base Lending Rate increased to 5.7%.....[read more]

July 2007 Residential Property: trends and developments - Jul 2007
Base Lending Rate remains at 5.5% but the committee's decision was a thin majority.....[read more]

May 2007 Residential Property: trends and developments - Jun 2007
Bank of England Monetary Committee raised the base lending rate to 5.5%.....[read more]

The Childrens Act and how it could help you - May 2007
Are you unmarried and your partner has left you and your children with little or no financial support? After all married couples can rely on the courts to protect their financial rights but as you do not have this benefit, what can you do?

Miss Green had been in a relationship with Mr White for 3½ years. They have two young children under 5. Miss Green had given up her well-paid job just before she had her first child at her partner’s insistence and has not worked since.

Mr White earns a large salary and has substantial assets in his sole name which he retained when the relationship ended. Mr White did however provide Miss Green with a deposit for her rental accommodation and the rent for the first 6 months. He also paid maintenance for the children at £500 per month which he believed was a generous proposal!

Miss Green was now unable to work due to her commitments to the young children. As a result of the loss of her partner’s income she could no longer afford basic needs such as a car and her situation was getting worse by the day. Miss Green was now in a desperate situation so a friend advised to seek legal advice to obtain greater financial support.

In view of Mr White’s wealth, there was never a need for Miss Green to ever get herself into such dire financial straits. Schedule I of the Children Act 1989 enables Miss Green to apply to the court for an order that Mr White provides a home for Miss Green and the children to live in which was consistent with the previous standard of living. Miss Green was also able to apply for a lump sum with which to purchase a car, furnish and equip her home and to provide for the children’s needs and a further lump sum to cover the children’s nursery fees and private education.

An application can be made by a parent who has the care of the child and this applies even if the parents never lived together. Schedule I applications are on the increase and Rix & Kay have the expertise to assist you in this complex area of law. Please contact Mrs Sharon L Pugh on 0845 1667 263 who will be more than happy to help.

March Budget 2007 - residential property owners - Apr 2007
Stamp Duty Land Tax:
Rates unchanged.
Exchange schemes (non developer): where properties were being part exchanged, SDLT was calculated on the aggregated market value of both properties.....[read more]

March 2007 Residential Property: trends and developments - Apr 2007
Schools effect
The media have recently paid a lot of attention to the government plans for chaging the way school places are allocated.....[read more]

Kent and Sussex Collaborative Family Law Group - Mar 2007
The Kent and Sussex Collaborative Family Law Group has been formed by lawyers qualified to practice as Collaborative Lawyers. The lawyers work from different practices, ensuring independence, but will represent the interests of either the husband or the wife in a collaborative process.

Collaborative Law was developed in the United States by lawyers who were frustrated with the adversarial approach of their peers but recognised that for many people, mediation did not provide a sufficient framework of support and advice for the participants.

To collaborate a husband and wife each need to appoint a qualified Collaborative Lawyer. The lawyers will meet with their clients in the normal way and then, pretty immediately, meet their opposite number to discuss the process, timing and needs of the couple. The meeting is followed by a series of four way (round table) meetings between the couple and their respective lawyers where every aspect of the divorce/separation is discussed and agreed.

Collaborative lawyers commit themselves to the resolution of disputes by agreeing that, should there be a breakdown in any negotiations, both lawyers will play no further role. By taking this position the lawyers are liberated from their usual role and are free to do nothing but help the clients negotiate.

Lawyers know that 95% of cases settle before trial however they are trained to understand that it is only by preparing fully for trial that settlement can be achieved. Why spend all that energy on the 5% who fail to agree, you might ask.

Collaborative lawyers aim to put the energy and legal fees into negotiations and settlement not adversarial trial preparation. The traditional negotiating style is positional, both the husband and wife ask for more than they know they will get in the hope of achieving what they have both been advised they will get. If a husband and wife have the confidence in both lawyers to approach the negotiations with realism they are going to save time and money and are more likely to end up with a settlement that they want.

Take this example:
A couple are arguing over an orange, they both ask for three quarters but are awarded half each by the judge. They are then asked what they wanted the orange for. The husband says the juice and the wife the skin to make pot pourri (this is probably a 70’s parable) the result is that they both get half of what they actually wanted and could have had if their needs had been expressed and discussed openly.

The lawyers of the Kent and Sussex Collaborative Family Law Group are able to represent clients immediately. For further information please contact Stephen Smith.

Rix & Kay puts its shirt on youngsters - Mar 2007
Rix & Kay are backing efforts to get young people in Sussex involved in sport by sponsoring shirts for two teams at Ockylnge School in Eastbourne.

The firm presented the young players with their new kit at a ceremony attended by Brighton & Hove Albion Youth Squad members Joel Lynch, Scott Chamberlain and Chris Winterton, all former pupils at the school.

Rix & Kay is a sponsor of the First Division club’s pioneering ‘Seagulls Specials’ community football programme, which aims to give every child and young person in Sussex the chance to play football, whatever their need or ability. The firm also has strong links with other sports clubs and initiatives at both grassroots and professional levels.

Managing partner and keen sports enthusiast Bruce Hayter was joined by the Albion’s commercial manager Kevin Keehan, headteacher Mark Trott and Debbie Dunn, who oversees the schools links with local businesses.

Residential Tenancy Deposit Schemes [TDS] - Mar 2007
Assured Shorthold Tenancies
Historically some residential tenants have encountered difficulties at the end of their tenancies in recovering deposits paid to their landlords.....[read more]

February 2007 Residential Property: trends and developments - Mar 2007
Church of England sells its mortgage loans.....[read more]

January 2007 Residential Property: trends and developments - Mar 2007
Internet sales v Estate Agency
Reports suggest that in the US 60% of properties sell privately, most via internet sites, without any estate agents being involved.....[read more]