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PUBLISHER Ian Fletcher Benham Publishing Second Floor 3tc House, 16 Crosby Rd, Crosby, Liverpool L22 0NY Tel: 0151 236 4141 Facsimile: 0151 236 0440 email: admin@benhampublishing.com web: www.benhampublishing.com
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List of officers 2013/14 President’s Jottings CEO Report Local Issues
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Local news Property
ADVERTISING AND FEATURES EDITOR Anna Woodhams
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STUDIO MANAGER Fern Badman
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ACCOUNTS Joanne Casey
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MEDIA No. 1307
Will Help to Buy create a housing bubble and see the return of gazumping? Horsell homes spared from ancient law which makes them liable for church repairs Electronic official searches - Risk reduction as standard A quarter of buyers in the South in the dark over their purchase Feature
PUBLISHED December 2013 © The Surrey Law Society - Benham Publishing
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Management
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DISCLAIMER The Surrey Law Society welcomes all persons eligible for membership regardless of Sex, Race, Religion, Age or Sexual Orientation. All views expressed in this publication are the views of the individual writers and not the society unless specifically stated to be otherwise. All statements as to the law are for discussion between member and should not be relied upon as an accurate statement of the law, are of a general nature and do not constitute advice in any particular case or circumstance. Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice.
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Professional firms - the future? Set yourself apart from the competition as a qualified and competent will draftsman Drooms outlines 3 reasons why external data rooms are essential for law firms Welcome to a very special partnership… Welcome Cottages and Dogs Trust Virtuoso Assistant: Professional Legal Virtual Assistants Finance
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HMRC Crackdown on Tax Avoidance Capital allowances – property reviews The path to recovery continues... Gift card warning for Christmas CPD
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Surrey Law Society CPD Programme Education
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Fiona Woolf CBE announced as ‘Chancellor Designate’ of the University of Law Employment
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Are You Ready for Auto-Enrolment? Health
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The Heart of Cardiac Care in Surrey Review
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High Impact Fee Negotiation and Management for Professionals Surrey Lawyer 3
Officers
PRESIDENT
COMMITTEE MEMBERS
LAW SOCIETY COUNCIL MEMBERS
MAREK BEDNARCZYK
WIN CUMMINS
Hart Brown
Mackrell Turner Garrett
DAVID STEED Harold Bell & Co 174 Kingston Road, Ewell KT19 0SD Tel: 0208 393 0231 Fax: 0208 393 0155 Email: ds@haroldbell.co.uk
21-25 Church Street West, Woking, Surrey GU21 6DJ
Resolution House, Riverview, Walnut Tree Close, Guildford, GU1 4UX DX 2403 Guildford 1
Tel: 01483 755609 Fax: 01483 755818 Email: win.cummins@mtg.uk.net
Tel: 01483 887704 Fax: 01483 887758
ELIZABETH EYRE Barlow Robbins LLP
Email: msb@hartbrown.co.uk
Church House, 30 Church Street, Godalming, Surrey, GU7 1EP
VICE PRESIDENT
DX 58351 Godalming 2
SUSHILA ABRAHAM
Tel: 01483 417121
S Abraham Solicitors
Fax: 01483 426836
290A Ewell Road, Surbiton KT6 7AQ
Email: elizabetheyre@barlowrobbins.com
Tel: 020 8390 0044 Email: office@sabrahamsolicitors.co.uk
MARK GOUGH Solicitor 22 Woodlands Road, Little Bookham,
DEPUTY VICE PRESIDENT
Surrey KT23 4HF
DANIEL CHURCH
Tel: 01372 230786
TWM Solicitors LLP
Email: mark@markgoughlaw.com
123 High Street, Epsom KT19 8AU
JOHN PERRY Palmers Solicitors 89-91 Clarence Street Kingston upon Thames, KT1 1QY DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: john.perry@palmerssolicitors.co.uk CHIEF EXECUTIVE & MAGAZINE EDITOR Sue Seakens Surrey Law Society 18 Station Approach, Virginia Water GU25 4DW Web: www.surreylawsociety.org.uk DX 94652 Virginia Water Tel: 01344 860830 Fax: 01344 428511 Email: sueseakens@surreylawsociety.org.uk
GLORIA MCDERMOTT
DX 30710 Epsom
18 Station Approach, Virginia Water GU25 4DW
Tel: 01372 729555
SUB COMMITTEES
DX 94652 Virginia Water
Fax: 01372 742101
Email: gloria.mcdermott@virginmedia.com
Email: daniel.church@twmsolicitors.com JULIE ROWE HON SECRETARY
Palmers Solicitors
KIERAN BOWE
89-91 Clarence Street
QUO VADIS (Strategic Planning) Marek Bednarczyk (Chair) Sushila Abraham Nick Ball Daniel Church Ken Seakens
Kingston upon Thames KT1 1QY
Russell-Cooke Solicitors Bishops Palace House, Kingston Bridge, Kingston upon Thames, Surrey, KT1 1QN DX 31546 Kingston upon Thames
DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: julie.rowe@palmerssolicitors.co.uk
Tel: 020 8541 2041
CONVEYANCING & LAND LAW Win Cummins (Chair) Gary Score* Maralyn Hutchinson* Ken Seakens Matthew Truelove*
KEN SEAKENS
Fax: 020 8541 2009 Email: kieran.bowe@russell-cooke.co.uk
Seakens Solicitors 18 Station Approach, Virginia Water GU25 4DW DX 94650 Virginia Water
HON TREASURER
Tel: 01344 843666
NICK BALL
Fax: 01344 844584
Howell Jones Solicitors
Email: ks@kseakens.co.uk
75 Surbiton Road, Kingston upon Thames, MELANIE WILLIAMS
Surrey, KT1 2AF
Senior Lecturer
DX: 57715 Surbiton
The University of Law, Braboeuf Manor,
Tel (Office): 020 8549 5186
Portsmouth Road, Guildford, Surrey GU3 1HA
Tel (Fax): 020 8549 3383
Tel: 0800 289997
Email: nick.ball@howell-jones.com
Email: Melanie.Williams@law.ac.uk
FINANCIAL Nick Ball (Chair) Kieran Bowe Mark Gough Ken Seakens David Steed* SOCIAL Sarah Thomas* (Chair) Daniel Church Gloria McDermott John Perry* Julie Rowe Ken Seakens *Non-Committee Member.
membership details Annual Subscriptions:
£85 per person, per year.
Corporate Subscriptions:
(20+ fee earners) £1,700 per year
Solicitor
(not in private practice) £55
Solicitor
(not practising) £30
Honorary Membership:
free
Associate Membership:
free - no voting rights
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To apply for membership please contact: Sue Seakens, Chief Executive Surrey Law Society, 18 Station Approach, Virginia Water GU25 4DW Web: www.surreylawsociety.org.uk DX 94652 Virginia Water Email: sueseakens@surreylawsociety.org.uk Tel: 01344 860830 Fax: 01344 428511
Editorial
President’s Jottings Why did I choose law as a second career? It was chiefly because a friend, a local solicitor, suggested that I observed her at work. I saw that people came to her with problems needing good, helpful and constructive advice. My friend was an excellent solicitor. She listened and advised and sorted out her client’s problems. Those clients were grateful and respected her. My friend’s desire to help individuals as well as her ability to do so in very practical terms really impressed me and led me to pursue the law as my second career. I have worked for Hart Brown since leaving the College of Law. The changes in Hart Brown to a great degree mirror the changes that have affected all Surrey firms over the last 20 years. At one stage, I believe, we were in the top tier of legal aid firms in terms of income. Now, apart from legal aid for a limited number of clinical negligence cases, we do no legal aid work at all.
The Surrey Law Society’s AGM in Kingston on 27 November was a well attended and lively affair and we were fortunate to have an excellent guest speaker namely Jonathan Smithers the Deputy Vice President of the national Law Society. We also said goodbye to Kieran Bowe, our President for 2012/2013. The Society was fortunate to have had Kieran at the helm as he is a decent, fair minded and well respected individual who also brought with him the benefits of youth. We are doubly fortunate in that he has also agreed to continue to help the Society by taking on the role of Honorary Secretary. The AGM, I am honoured to say, confirmed my appointment as President of the Surrey Law Society for 2013/2014. I hope to emulate Kieran as far as I can although sadly I am unable to bring the benefits of youth to the presidency – my hair has too much grey in it these days! I have been involved with the SLS Committee for more than a decade and I have worked as a lawyer in Surrey for the whole of my career, although in another life I was involved in education for a decade before a career change.
In Surrey the numbers of legal aid practitioners have declined rapidly as repeated government reforms have eroded clients’ financial eligibility for legal aid and the scope of legal aid has also been cut back. Legal aid is now a pale shadow of what it was when I started work as a lawyer. Those lawyers who remain in the system are faced with more changes and more reductions to their already modest levels of remuneration. Our colleagues who work in criminal law inevitably feel beleaguered and as evidenced in the calling of an SGM on 17 December 2013 emotions are running high. The main Law Society has been accused of “appeasement” in the face of the coalition government’s attack on the legal aid budget. Some Surrey lawyers may think that as they do no legal aid none of this matters. However, we should not forget that it is not just a small legal sector that suffers when legal aid is eroded. How will vulnerable members of the public cope in the future? The judiciary has issued warnings about increasing numbers of litigants in person causing chaos in the courts. The profession faces numerous challenges across all areas not just legal aid practice. What happens now and in the future will affect all of us and it will affect the public too. We must all try and get involved and sitting on the side lines is not a reasonable option. Whatever your area of law and whatever motivates you this is the time to get involved. Join us in the Surrey Law Society – have your say and listen to others too – come on in, get involved and get active! I appreciate that I have had the benefit of working for a supportive firm whose help and forbearance have allowed me to take up the mantle of president. I know from being on the SLS Committee for many years that not every single firm may be that supportive, but I believe that most are. There are many ways to get involved in the Surrey Law Society. Contact me and I can tell you more. Involvement in the SLS is not just an opportunity to focus on the serious issues of the day – it can be great fun too. The annual Walking Conference organised with members of Ireland’s legal profession has gained mythic status. The recent conference in Malta will certainly enhance that reputation. Committee members were given a fantastically warm welcome by Malta’s lawyers and the island itself was delightful. We hope that some of the lawyers from Malta may visit Surrey next year – further details to come! I have to finish on a more serious note. Each president has to nominate a charity for their presidential year. I nominate AvMA (Action against Medical Accidents). Members of the public who have been bewildered by the medical world and need help when things go wrong have gone to AvMA for free advice. AvMA is a very worthwhile charity that deserves our support and I am very pleased to be able to nominate them as my charity for my presidential year. n Marek Bednarczyk 01483 887704 msb@hartbrown.co.uk
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Editorial
CEO Report Winter 2013/14 One major event in the SLS calendar is the return of the Annual Gala Dinner which will be held on Thursday 3rd April at the Radisson Hotel in Guildford. In response to feedback from members we have decided that although formal this will not be a black tie affair, so business suits and posh frocks will be the order of the day. We also plan to keep the ticket price to a more attractive £50pp plus VAT thanks to generous sponsorship for this event. So do please get the date in your diary and start thinking about who you will invite.
Other events to be planned include the regulars - Legal Brain of Surrey Quiz and the President’s Area Lunches - plus an open-air musical evening, a shooting day at Bisley, a visit to Watts Gallery, a theatre trip, a boat trip on the Wey and a treasure hunt! Keep an eye on our website for details as they become available.
One of the most popular events this year was the Five-A-Side Football tournament, which was ‘masterminded’ by Daniel Church from TWM in Epsom. We will have a full report of the tournament in the next issue, and on the SLS website, but we can report that the team from SLS sponsors Property Search Group (PSG) beat Russell-Cooke in the finals 13 to 3. We would like to thank everyone involved in the tournament and especially Dan for his hard work in making it all happen. You will probably have spotted the news that Dan was voted in at the recent AGM as Deputy Vice President of the Society. We will
The Party Season is in full swing and it doesn’t stop with Christmas because there are loads of reasons to party on into the New Year and beyond. I have been working with the Social Sub Committee and our new President Marek Bednarczyk to put together an exciting programme of events for 2014.
definitely be adding the Five-A-Side to our list of regular annual events for 2014… so time to get out there and get in shape.
As always our CPD programme will start up again in January with Chris Whitehouse on Wednesday 15th January at Denbies. The full programme is available on our website at www.surreylawsociety.org.uk/cpd or you can email Elaine Jacobs in the membership administration office elaine@surreylawsociety.org.uk for a list of dates, topics and a booking form. n
2013 Client Interviewing Competition The aim of the competition is to promote the development of lawyers’ soft skills and to enable law students to practise them at a high level. Law students, working in teams of two, interview and advise two different “clients”, in each case a different scenario with a role-playing actor. The students are judged according to criteria which take into account interpersonal skills as well as their ability to handle a legal problem.
Once again this December teams of students from Kingston University, the University of Law in Guildford and Surrey University took part in the annual Client Interviewing Competition. The competition was held in the impressive new Business Centre on the Richmond Hill Campus of Kingston University. 6 Surrey Lawyer
The winning team this year were Stuart Rose and Hannah Sims from Surrey University. They are pictured here receiving their prizes from David Steed, Past President of Surrey Law Society and one of our Law Society Council Members for Surrey and from Sarah Towler, a partner at Russell-Cooke Solicitors. As well as the cash prize of £200 offered by Surrey Law Society, members of the winning team were each offered an interview for a training contract with Russell-Cooke. SLS are really pleased to have this additional reward to the students for their hard work and commitment in entering the competition. The runners up were Andrea Corr and Damian Hajnus (2nd) and Daniel Burridge and Rachel Mulvany (3rd) all from the University of Law, Guildford. So congratulations to all three teams. I would also like to add my grateful thanks to the 18 SLS members who gave up their Saturday morning to judge the teams. Well done everyone… see you next year! n
Local Issues
Council Member’s Report August 2013
There are so many things on the agenda at the moment that it is difficult to pick out the highlights, but I will mention the Office of the Public Guardian’s consultation on digitalisation. I chaired the Law Society Working Group reporting to the Wills and Equity Committee to formulate the Law Society’s response and I hope many of you responded as well. The idea that an elderly client in the early stages of dementia would not only be completely computer literate but could manage to set up their own encrypted password instead of a wet signature is simply ludicrous. Other people can do it on their behalf, of course, and a clearer open door to mass fraud I cannot conceive. Please be alert for further consultations! These consultations come thick and fast from all quarters, including the Law Society but the responses that the various agencies receive really do make a difference and it should not be left to the Law Society alone to meet the deadlines just because they have the staff to do so. If you feel strongly about something, please say so and reply in your own name or the name of your firm, if it is a common response. I recently attended the West London University Law School Dinner and was pleased to sit next to the Attorney General who was at the end of a somewhat hectic week, having given an authorised interview to a Daily Telegraph reporter which then appears to have been, shall we say, somewhat embellished. He is actually a very keen supporter of the rule of law in every respect and I sometimes wonder if he is fighting a lone battle in the corridors of power against some of his illustrious colleagues. Have a read of his actual speeches rather than reports of them and you will see what I mean. He also, of course, has local connections as he is the recently appointed Honorary Recorder of Kingston for which he receives the traditional stipend of two sugarloaves. I fear there may be some criminal Legal Aid practitioners who would be grateful for them in the New Year.
As you will have gathered, these are exciting times at the Law Society. Jonathan Smithers at the Surrey Law Society AGM set out clearly the history of the Special General Meeting which, by the time you read this, will have taken place. Suffice it to say that my personal view is that those calling This is a bumper issue and I am short of space, but please keep the questions coming. It the SGM were misguided in their was refreshing to see so many at the AGM and talking afterwards. It is probably too late to thinking and the way in which they chose not to engage with the wish you Happy Christmas but I do hope 2014 brings everything that you would wish for Law Society at all despite offers of yourselves and your practices. n meetings from the President, the Chief Executive and others. john.perry@palmerssolicitors.co.uk
Charles Russell LLP strengthens its Intellectual Property capacity with new partner hire Law firm Charles Russell LLP is pleased to announce the appointment of Jonathan Radcliffe, who has joined the London office as a Partner in the Intellectual Property team. Jonathan has extensive experience of acting for international clients on multinational matters, and has worked in New York and Abu Dhabi. He is an expert in patent litigation with particular expertise in the life sciences sector. His work covers a wide range of technologies, with a particular focus on cases with a high scientific/technological content in the pharmaceutical, life sciences, medical devices, and high-tech sectors. Patrick Gearon, Head of the Intellectual Property group at Charles Russell commented: “We are delighted that Jonathan is joining us as his arrival brings additional firepower to our busy and growing team. His
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industry experience perfectly complements our sector focus, offering our clients the additional benefit of not only being a great lawyer, but a real in-depth understanding of their industries. This appointment reflects the growing demand for these services, both in the UK and further afield.” Jonathan has been involved in a number of leading cases on matters such as the patentability of software, added matter, post-revocation patent amendment, obviousness, importation as an act of infringement under the Patents Act, the trade mark classification system and the registerability of shape trademarks. He is one of only two English solicitors to have
had both a patent appeal and a separate trademark appeal to the UK Supreme Court. Commenting on his appointment, Jonathan Radcliffe said: “I am excited to be joining such a dynamic and high calibre firm with an excellent client base. The team’s reputation for providing an excellent professional service is what attracted me to the firm, and drawing on my own experience I look forward to contributing to the firm’s strategy to be a client-valued practice.” Jonathan qualified in 1986 and joins Charles Russell LLP from Mayer Brown LLP. He has practised for many years at Hogan Lovells and previously worked for Nabarro. n
Local Issues
Service, service, service..... It’s all well and good seeking out the cheapest premiums year after year. With unrated insurers entering the market with very low priced terms, then subsequently withdrawing after a couple of years this has led to a turbulent market. However the hidden cost of servicing could well outweigh many savings. Choosing your professional advisor is something you should do wisely when seeking the most competitive terms. Spending your valuable time on the phone chasing documentation from your insurers or brokers, chasing claims experience for CQS, checking and amending any spelling errors on documentation; the list is endless. So how can you minimise your exposure and subsequent time spent in this area? Many insurance brokers work on a commission or fee basis, it’s worth checking to see the extent of services they include for their fee. It’s certainly surprising how many potential clients we speak to who are unaware of what their brokers will do for them regarding servicing of their policies. A good quality insurance broker may even have a customer service charter which not only promotes a quality service but should also outline the standards of service their clients should expect and what to do in the event of a complaint.
recommendations or testimonials from their existing clients they can offer you? On the occasions where you have adjustments or queries, is it clear who to call? Do you get a single point of contact? How accessible are they? Are you lost in an automated telephone system? Do they listen to your query and take ownership of your issue? Are they happy to come and visit you to run through your issue in person if required? A broker who can advise you on Risk Management measures that are simple to implement, will help negotiate preferential terms, or avoid future claims. This is of huge value as not only are claims negotiations lengthy but also subsequent premium rises are possible.
Is the documentation written in plain English? Can your broker clearly explain to you any differences in cover or conditions and warranties?
Dealing with Professional Indemnity claims can be very costly and time consuming. Again dedicated claims teams who are easy to communicate with and accessible can save you valuable hours in your day.
Good old fashioned word of mouth can speak volumes regarding a broker or insurer. Hearing that other clients similar to you happily use the services of the broker, and are pleased with the service they receive speaks volumes. Do they have any
If you would like to know more regarding any of the content above please contact Tristan Webb, Managing Director, Aspire Insurance Services Limited, 0845 270 6720. n
Does Alcohol Kill Brain Cells? LawCare staff recently underwent training from Alcohol Concern. Included in this was information about the effects alcohol has on the body. The idea that alcohol kills brain cells is a myth. In fact, alcohol blocks the absorption of three B vitamins which are essential to brain repair. Over time in heavy drinkers this can result Korsakoff’s Syndrome, a form of dementia similar to Alzheimer’s. However, this is easily preventable, and in some cases even reversible, by regular injections of B vitamins. LawCare would encourage all those drinking at hazardous levels to take supplements, especially of Thiamine (Vitamin B1), and seek advice about their drinking. n
New Lord Chief Justice to be LawCare President The new Lord Chief Justice of England and Wales, The Right Honourable the Lord Thomas, has also taken up the role of President of LawCare following the retirement of Lord Judge. Commenting on his new role the Judge said, "It does seem to me an excellent idea that the Lord Chief Justice is President of LawCare during the term of office and I would be honoured to follow in the footsteps of my predecessors. It is good to know that you are able to provide such a comprehensive service for those members of the professions who run into… difficulties.” n
Surrey Lawyer 9
Local Issues
Downs Solicitors LLP Surrey-based, entrepreneurial law firm, Downs Solicitors LLP, are pleased to announce the merger with Cobham-based solicitors, Lowrie & Co. The combined practices will operate under the name “Downs Solicitors LLP” and will be headed by Senior Partner, Chris Shipley. The merger is part of Downs’ continued planned expansion strategy and they will be joined by the specialist residential property firm, Lowrie & Co, from 1 October 2013. Chris Shipley said: “The merger is part of our planned programme of expansion and by growing our practice it puts us in a stronger position to respond to the marketplace by providing clients with the legal services they want. From this new location, we will be able to expand our family, residential property, wills and probate, dispute resolution and employment services thereby benefitting families and individuals in the Cobham area. Businesses will also benefit from the availability of a much broader range of commercial expertise, including corporate, commercial property, employment, litigation and corporate insolvency and recovery. We will also offer a range of notarial services. I strongly believe the merger will bring added value to our clients. Downs Solicitors LLP is a modern, forward-looking law firm with a strong combination of skills and expertise, offering
an extensive range of services to today’s individual and business clients. We believe that Lowrie & Co complements Downs and together we can offer an exciting and fresh approach to legal services in Cobham and the surrounding areas.” The merger will expand Downs’ presence in Surrey and bring the number of offices the firm has across the County to three. As a result of the merger, Julia Lowrie will become a Consultant and will continue to operate from her current office in the High Street, Cobham. Julia added: “The news has given a huge boost to the team, who are delighted to now be part of such a progressive and successful larger practice. The merger allows us to provide a wider range of services to clients, who we would normally have to refer on to others if we did not have the relevant specialist to be able to advise them. Joining with Downs gives us the ability to offer our clients the complete service, whatever their legal matter may be.” n
rhw to provide ‘pro bono’ legal clinics to clients of Surrey domestic abuse charity ‘yourSanctuary’ As of December 2013, rhw solicitor’s Family Team will be providing free ‘legal advice clinics’ to the clients of ‘yourSanctuary’. rhw have been admirers of the much needed work ‘yourSanctuary’ carry out in the Surrey area, providing information, support and accommodation to people experiencing domestic violence. rhw are delighted to be able to provide access to legal advice for the Charity and their clients by way of regular free clinics starting in December. Samantha Jago (pictured here) of rhw’s Family Law Team commented, “rhw have a long tradition of providing pro-bono support to local charities such as ‘Challengers’ and the ‘YMCA’, and now we are looking forward to assisting individuals who may not usually be able to benefit from the services of an experienced solicitor” Beverley Pass, Chief Executive of ‘yourSanctuary’ said “Access to legal advice is very hard to come by for most of the individuals and families affected by Domestic Abuse that we support at ‘yourSanctuary’. We are therefore delighted that rhw are stepping forward in this way offering legal support and advice to our clients at a difficult time in their life and when they need clear advice the most. I am very grateful to the rhw team and look forward to introducing this new service and working with them for many years to come to making a difference in the community in Surrey”. yourSanctuary, formerly called Surrey Women’s Aid, is a local charity that provides a range of services which offer emotional and practical support to people and their children who are experiencing or have experienced domestic abuse. Visit their website at www.yoursanctuary.org.uk and 24 hour helpline 01483 776822. n
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Local Issues
Legacy of Care: The Royal Star & Garter Homes The Royal Star & Garter Homes is an independent Charity which offers pioneering therapeutic and nursing care to disabled ex-Service people. Gifts from our supporters are vital in enabling us to continue our work. In recent years, the Charity has embarked on a programme to build new state-of-the-art homes, to meet modern care standards and ensure it can continue to care for ex-Service people long into the future. The award-winning Solihull Home opened in 2008 and the Home in Surbiton opened in August 2013 to replace the original building on Richmond Hill. A third home is planned in Buckinghamshire. The Charity has identified a site in High Wycombe and is in the process of negotiating a contract for purchase conditional on obtaining planning consent.
Resident Daphne Conway and Moving-in Co-ordinator Colette Hammond outside the new Home in Surbiton. The Charity first opened its doors on Richmond Hill in 1916 to sailors and soldiers wounded in the First World War. Airmen were admitted after the formation of the Royal Air Force in 1918 and, many years later in 1986, ex-Service women became eligible. Today, the admissions policy includes the spouses and partners of ex-Service people. The original home was established in the old Star & Garter Hotel on Richmond Hill and Queen Mary was the first Patron. It soon became obvious that the building was unsuitable for longterm care and a new purpose-built home was opened by King George V and Queen Mary in 1924.
For almost 100 years, The Royal Star & Garter Homes has provided the very best of care for the disabled ex-Service community. The Charity receives no direct government funding and relies heavily on voluntary support in the form of donations, fundraising activity and, of course, legacies. Gifts in Wills have played a crucial part in financing the new Homes strategy. The new Surbiton Home, with its excellent facilities, will ensure the Charity continues to provide its exceptional care within Surrey for many more years to come. n
John Ingram is The Royal Star & Garter Homes’ Legacy Manager. John has been with the Charity for 15 years.
The Charity was there to provide innovative care and rehabilitation for a new generation of injured service personnel during the Second World War. Group Captain Sir Douglas Bader (who lost both legs in a flying accident prior to the War) said in a BBC Radio appeal in 1945: “Surely there is none of us who would not be eager to give what he can to help to alleviate the desperate plight of these gallant fellows to whom, with their dead comrades, we owe a debt that all the money in the world cannot repay.” The Charity has always provided the very best in medical and nursing care and pioneered innovative therapies and care practice. In 1916, the average age of the residents was 22, but with today’s emphasis on care in the community, residents are coming to the Charity much later and the average age is now 87. This age profile reinforces the current need for 24-hour nursing, respite and specialist dementia care within a safe and homely environment. However, the Charity’s priority remains to promote independence and the enjoyment of an active lifestyle, ensuring individuals are supported in living life to the full whilst retaining strong military links. In the Homes, all residents have a large bed sitting-room with en-suite facilities and enjoy a wide range of therapies and activities in comfortable, accessible surroundings, supported by care staff and volunteers. Regular outings and events are provided too. Each Home includes a cutting-edge dementia facility for which there is an increasing demand. The modern facilities also enable the Charity to provide care for young disabled members of the Armed Forces while they are waiting for long-term care arrangements to be put in place.
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Local Issues
The Royal Star & Garter Homes’ WW1 Centenary Battlefield Trek October 2013 - The Royal Star & Garter Homes is proud to announce its WW1 Battlefields Trek to commemorate the Centenary of the start of the First World War. The three-day sponsored trek takes place in September 2014, walking through Northern France and Belgium. It is a physical challenge and also provides participants with a unique perspective of prominent battle-sites of the Ypres Salient, often tracing the line of the Western Front itself. The Charity’s Regional Fundraising Manager, Mia Patterson, who will be taking part, said: “The Trek will be a poignant experience as well as physically demanding – and provides a memorable and meaningful way to raise funds to help disabled ex-Service men and women to live full, active lives.” The historian and broadcaster, Dan Snow, is endorsing the Trek and commented:
The Royal Star & Garter Homes is a charity founded in 1916 to provide care for the severely injured young men returning from the battlegrounds of WW1. Back then the average age of residents was 22, today it is 87. Although the care needs have changed, the Charity’s mission remains to provide brilliant nursing and therapeutic care for the whole military family, in comfortable, state-of-the-art homes. “What a fitting way to commemorate the outbreak of the First World War by visiting Ypres and other key areas in Northern France and Belgium for The Royal Star & Garter Homes. The Charity provides brilliant care for disabled ex-Service men and women, and their partners. Over the years, it has looked after veterans of both the First and Second World Wars so it’s an appropriate way to remember those who gave up so much while raising money for a very good cause.”
The Trek participants will be supporting The Royal Star & Garter Homes in its mission to continue caring for those who bravely served, in their own time of need. This bespoke trip is organised for The Royal Star & Garter Homes by Discover Adventure Ltd and will be led by an experienced guide. n www.starandgarter.org
LSB recommends Lord Chancellor to give CILEx lawyers further independent practice rights The Legal Services Board (LSB) has today announced its approval of ILEX Professional Standards’ (IPS) applications to enable it to authorise members of the Chartered Institute of Legal Executives (CILEx) to practise independently in Probate and Conveyancing, paving the way for CILEx members to practise independently in all areas of law. way for CILEx members to run their own businesses. CILEx members are specialists who are trained on the job and regulated to a robust standard. They have already been doing this work for years. IPS’ regulation will continue to develop in line with these changes in a risk-based and outcomes-focused manner, promoting the interests of consumers.”
The decision now goes to the Lord Chancellor, Chris Grayling, and for subsequent parliamentary approval, anticipated during the course of 2014. If approved, members authorised by IPS will be able to practise independently in their chosen specialism, benefitting thousands of law firms and consumers. IPS Chair Alan Kershaw said: “This is a special day for IPS and CILEx. We have cleared a significant hurdle and now we hope the Lord Chancellor and Parliament will move swiftly to approve these changes, opening the
12 Surrey Lawyer
CILEx President Stephen Gowland welcomed the announcement: “The LSB’s recommendation brings us closer to cutting the red tape that prevents CILEx members from serving the public to the utmost of their abilities. Allowing our experienced lawyers to practise independently in their area of specialism will stimulate the consumer legal services industry, create a more innovative market, and better meet consumer needs.” Stephen Gowland added: “In order to set up my own firm I had to dual qualify as a solicitor, despite being qualified already through CILEx. When approved, these changes will help create new businesses, offering good value for consumers and serving communities.”
The decision announced today specifically relates to Probate and Conveyancing practice rights, and will allow IPS to regulate entities operating in these areas. Consequent decisions on rule changes for Litigation and Immigration services are expected shortly. Currently, CILEx members are able to conduct many reserved legal activities only under the ‘supervision’ of an authorised person, most commonly a solicitor. If approved by the Lord Chancellor and Parliament, IPS will be ready to approve applications for authorisation for both individuals and entities in early 2015. IPS will apply in due course for CILEx to be able to license alternative business structures managed or owned by nonlawyers. That application, like the present one, will need to be approved by the LSB. n
Property
Will Help to Buy create a housing bubble and see the return of gazumping? UK house prices have been rising at the highest annual rate since June 2010. The rise coincides with the government’s Help to Buy scheme, introduced to boost the housing market. But will the scheme create a new housing bubble? UK house prices have risen by 5.4% in the year to August, according to the Halifax’s latest house price survey. The government’s Help to Buy scheme, which began in April, allows buyers to put down a deposit of just 5%, and take out an equity loan from the government for up to 20% of the property’s value, up to a maximum home value of £600,000. It is designed to help first-time buyers get on the property ladder and enable existing homeowners to “trade up” to larger properties by giving banks greater confidence to lend. The scheme got off to a “flying start”, according to the Home Builders Federation (HBF) in June. But Help to Buy has also been criticised for having the potential to artificially raise house prices, with Business Secretary Vince Cable warning of “serious inflationary pressures”. Gazumping and other nasties that flourished in the last property boom are making a return, as competition for homes increases with the bringing forward of the second phase of Help to Buy.
Finlay Associates is a unique provider of conveyancing reports to the property industry. By closely working with every Local Authority we are able to provide Regulated and Council Local Searches as well as all other reports and products required by Solicitors and Conveyancers. We have developed a simple business philosophy that is centred around providing an old fashioned personal service, whilst utilising the latest technology. This enables us to provide fast, efficient and accurate information allowing our clients to save time, effort and money. We understand the specific needs of the conveyancing professional, and accordingly provide a bespoke service, tailored to the individual's requirements. We believe in creating a true partnership with our customers, ensuring that they in turn, can provide a more efficient and cost effective service to their own clients. n Richard Norman 01276 451074
The second phase of the scheme was brought forward to October – three months ahead of schedule. Traffic to Zoopla, the property search website, immediately jumped 17% compared to a week earlier. Yet supply is not matching this surge in demand, with 14% fewer homes for sale than this time last year, according to the property analysts Home.co.uk, and 19% fewer in London. There are fears that buyers could be caught in a bidding frenzy fuelled by bullish sellers and eager estate agents keen to talk up the market. Around 10% of the adult population – 5.1 million people – say they are likely to buy in the next 12 months, up from 8% (or 3.7 million) in January 2012, according to Santander Mortgages. It’s every buyer’s nightmare – your offer on a property is accepted and you spend hundreds, or even thousands, on a survey, mortgage and legal fees, only to have another buyer make a higher offer and snatch the place from under your nose. While still relatively rare, agents say gazumping is making an unwelcome return in pockets across the country.
So what can you do to improve your service to your Clients? Finlay Associates are pleased to offer ‘Fall Through Protection’ when you instruct us for a Residential Conveyancing Search Pack. We understand the vital importance of attracting and retaining clients - especially in the conveyancing process when purchases can sometimes fall through. In order to provide you with a clear business advantage, your client will be entitled to a free second ‘Conveyancing Search Package’ on any subsequent purchase, should this unfortunate situation arise. Our standard Search Pack provides the following products:Regulated (Personal) Local Authority Search Water & Drainage Report Environmental Report Chancel Check (Other packages, official searches and individual reports are also available.)
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Surrey Lawyer 13
Property
Horsell homes spared from ancient law which makes them liable for church repairs More than 1500 households in Horsell, Woking have been spared the worst effects of an ancient law, dating back to the time of King Henry VIII, which gives some mediaeval churches the right to demand financial contributions towards repairs from local property owners. The Chancel Repair Liability (CRL), which dates back to the 1530s and was altered by Henry VIII’s dissolution of the monasteries, has been subject to several high profile court cases which have seen home owners in England forced to pay significant sums to effect repairs to their local church, with some even being forced to sell their homes to do so. In a ground-breaking decision, the Parochial Church Council (PCC) of St. Mary the Virgin in Horsell, a mediaeval church which has been serving local parishioners for more than 800 years, has made the decision not to enforce or impose CRL on its parishioners and the wider community, most of whom would have been totally unaware of their financial responsibilities. It felt that its missionary and community objectives far outweighed the potential financial benefits.
years ago to abolish the law, churches that wanted to uphold the right to claim money were given until 13 October this year to register a claim against any liable properties. Derek adds: “I have had confirmation from the Land Registry that even though the deadline of 13 October 2013 has passed, notices from PCCs seeking to protect their ability to collect CRL from home owners may still be accepted. It will then be up to registered home owners to seek to overturn those notices on a case by case basis. Mackrell Turner Garrett can assist any property owners who receive notice of a claim in seeking to overturn it. Owners who have indemnity policies in place may be able to call upon their insurers for help, but they should take care not to inadvertently void the policy by taking any action which would breach the terms of the indemnity policy.”
About Chancel Repair Liability Woking-based solicitors Mackrell Turner Garrett (MTG), which has extensive experience of property legal matters, applauded the Horsell PCC decision. MTG Partner, Derek Austin commented: “Chancel Repair Liability is a controversial law which has been under much scrutiny in the past few years. PCCs in England and Wales had until 13 October to register a notice of claim with the land registry against individual properties to preserve their rights – or potentially lose them. “However, there are still some cases where PCCs can register a notice after 13 October and homeowners could still face liability, for example where a property is gifted to someone or left in a will. There are conflicting views within the legal profession as to the extent of continuing and future liability which may still need to be resolved by the courts.” “If only more church councils would follow the lead of Horsell PCC, property owners would know they can bury this ancient liability where it belongs in the annals of history, and avoid having to take out expensive insurance policies to cover the risks associated with Chancel Repair Liability. In recent years we have had to place indemnity policies on risk with premiums ranging from less than £50 to over £5,000 on some local properties. The recent changes in the law means this should no longer be necessary in most transactions in England and Wales, and as a result of the Horsell PCC decision we can say with certainty it will no longer be required for any properties located in the Horsell parish.” The rights of mediaeval churches to claim money for repairs from households built on land that it once owned was confirmed in the Land Registry Act passed in 2002 and in various cases before the courts. However, in a move by the government ten
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Chancel repair liability relates to the historic responsibility for the upkeep of a church being divided between the rector and parishioners. Parishioners’ responsibilities were eventually transferred by legislation to the church. Rectors have historically remained responsible for the upkeep and when their lands were sold, responsibilities were transferred to the new landowners. These lands need not necessarily be adjacent to church property. Under the Chancel Repairs Act 1932 a Parochial Church Council (PCC) has the power to serve a demand for the cost or contributions for repairing the church chancel. In the event that the owner fails to pay then the PCC can enforce the demand through the courts. There are currently 15,000 parish churches across England and Wales, with 5,200 of them potentially having nearby residents responsible for funding repairs of the chancel of the church. Currently, the government advises new land purchasers to carry out checks as to whether they would be held responsible for repair costs. Due to a change of law on 13th October 2013, chancel repair liability will now only bind buyers of registered land if it is referred to on the land register. However, according to a the Legal Advisory Commission of the General Synod, churches may be able to make claims even if they have not registered liable properties. It states: “But even if the liability is not registered within the ten-year period (Oct 2003-Oct 2013), it will still be enforceable after the expiration of that period against the owner of the land until he or she disposes of it.” n by Mackrell Turner Garrett
Property
Electronic official searches Risk reduction as standard Law firms, licensed conveyancers and legal services businesses are under ever greater scrutiny to meet strict compliance standards and reduce exposure to risk. It has often been the basics or routine processes that are taken for granted. Perran Moon, Marketing Director of SearchFlow, discusses how property searches shouldn’t be an area where your guard drops. Information is the lifeblood of the client relationship to the lawyer or conveyancer – it is what drives the understanding and direction in a property transaction. This isn’t just a conversation about progress. It is about the clarity of the property information and the quality and accuracy of the advice given by the solicitor or conveyancer. This is what will drive informed decisions and reduce risk for the client and the practice. The need to manage down risk is manifest, not least to satisfy the scrutiny of lender panels, but also to secure professional indemnity renewals at an affordable rate. To meet CQS and SRA compliance, you must have effective measures in place to control fraud and minimise error, together with a clear client care charter and documented processes that ensure you treat clients fairly and transparently. The natural assumption with searches is that the information comes from the same source – the local authority, and that there is recourse for non- local authority search providers through the provision of the Search Code. However, it is dangerous to assume that all search companies gather, record and reproduce the same information as each other, or follow the same processes in a consistent way. Too many traps await the unwary solicitor or conveyancer on matters such as rights of way, adopted roads, private or shared drains. It is important to understand the origins and the assumptions made with the data you receive from your current search company. Translating the information received from the Local Authority so that it fits the operational efficiencies of the search companies is a key risk area. Are search companies getting all of the information that they should be? If not, what assumptions are they making? In order to meet turnaround times, are they shortcutting processes because there is a pressure to return something, even though Environmental Information Regulations mean that a Local Authority has up to 20 days to provide information which may not be readily available? Local Authorities across England and Wales are increasingly looking to maximise efficiencies and reduce processing costs, in the light of ongoing austerity measures imposed by central Government. Many are now looking again at the benefits of
16 Surrey Lawyer
curating this information increasingly on an electronic basis to maintain the highest quality standards. The good news for solicitors or conveyancers is that the existing, highly scalable National Land Information Service (NLIS) platform supports Local Authority requirements to disseminate source data electronically in an efficient and highly secure manner. Every Local Authority in England and Wales is connected to the NLIS Hub. By simply connecting from a PC via one of the NLIS channels, of which SearchFlow is the largest and an original partner, conveyancers can be assured that the electronic CON29 data they receive is pure, complete, current and direct from an authoritative source. Sue Dixon, local land charges manager at Wakefield Council, who have won three awards over the past five years for local land charges customer service and performance, commented: “NLIS is an excellent example of a publicprivate partnership working efficiently to serve the conveyancing market. Blending timely and authoritative data from local authorities and other data providers, with specialist client management expertise from the NLIS Channels, gives conveyancers a unique and reliable route to qualitative data.” NLIS was established to create efficiencies in the conveyancing information chain from the source at the Local Authority to the conveyancer and on to the client – to create faster, smoother and more certain property transactions. 13 years since launch, it has delivered more than 21 million searches with minimum fuss and maximum quality and accuracy. Wrapped around the NLIS operation is the further security and reliance of regulation, managed by Land Data. They work closely with The Local Land Charges institute (LLCI) on quality standards and enhancements to service and security, managing data and updates through the NLIS Hub to the channels. The regulations and strict licence agreements which the NLIS channels operate under protect the conveyancers, clients and data providers. This goes to the heart of what a regulated search really means. The CON29 Official Search has a defined Law Society standard which is unambiguous, consistent and reliable. By structuring answers into the CON29 format, Local Authorities can be sure that the information they release is best represented to the consumer – without
manual intervention, interpretation or transcription, which could give rise to costly human error. Land Data regulation also extends to how the NLIS channels operate, advise and maintain service standards. Boundary plot accuracy is also crucial here. SearchFlow uses Ordnance Survey Mastermap as standard for all of its search requests into Local Authorities. This is the baseline standard for Land Registry plans and the accepted standard by local land charges team to identify plots, land parcels and the essential detail needed to deliver back accurate search data. You need to question whether your search provider meets these standards. Other searches purport to be regulated and there is strong reliance and consumer protection from The Search Code, but the difference is in the level of reliance. Local authorities carry unlimited liability and are the known source whereas smaller search businesses could mean a step into the unknown – a key risk for solicitors or conveyancers concerned about risk reduction and treating clients fairly and equitably. Maintaining a high, consistent degree of data accuracy and currency, sourced with no manual intervention can only be good to mitigate exposure to risk and flak from your client after completion. To ensure the CON29 meets changing due diligence needs, consultations are ongoing about updates to required questions and data sources. The new format will require more area specific information and Local Authorities are looking to how to combine these registers electronically as an obvious management route. NLIS will play a central role in how this is disseminated in the market, as greater requirements for more search data will ensure that more information held by Local Authorities will be more efficiently exported. So, given all of the compliance pressures, competitive threats and indemnity risks circulating around conveyancing – one readily available safeguard comes in the form of the official local authority search. It really is protection by design – delivering consistent quality every time, so you can focus on your client and your practice management to secure ongoing business growth. n www.searchflow.co.uk
Feature
When silence It has been the case since 2004 that an unreasonable refusal to participate in mediation can be regarded as unreasonable conduct of litigation such that the court can impose cost sanctions. What happens, however, where one of the parties puts forward
It is clear that the Government is encouraging separating
a positive suggestion to mediate, repeats it three months later, but
couples to try to resolve issues over children and finances without
is then met with complete silence from their opponent.
using the traditional court process.
As a result of the recent case of PGF II SA –v- OMFS Company 1 Limited we now know the answer.
This must be a good thing for separating couples. Although there will always be those cases where either or both parties will insist on “having their day in court” this should be an option of
The Court of Appeal decided that whilst it should not compel parties to mediate, it should actively encourage them to do so. However, since there is no presumption in favour of alternative dispute resolution (“ADR”), the burden is on the losing party to show that the successful party’s refusal to mediate is unreasonable.
last resort, given the high cost and unpredictability which is an inevitable consequence of proceedings. Mediation is a proven option for clients where they are able to put to one side their personal feelings toward the other and focus on a process where they both have a direct and equal say in how matters can be sorted. If there are children of the family, the mediation process (like collaborative) seeks to minimise the
The Court of Appeal said that the time had finally come for it to
impact of what is happening on the children. It is by no means an
endorse the position that silence in the face of an invitation to
easy option but can be one of the most gratifying ways for couples
participate in ADR is, as a general rule, of itself unreasonable
to move forward separately with a strong framework being put in
regardless of whether an outright refusal might have been
place for a workable financial arrangement and to continue as
justified by identifying reasonable grounds. It said that this was a
parents.
general, but not invariable rule. The court took the view in this case that looking at successive offers the parties were coming together at such a rate that mediation, or some other form of ADR, would be highly appropriate. The case did settle before trial when a defect was found in the claimant’s case, which one of the lawyers candidly admitted required a fresh mind to spot it. As the court said “that is precisely the sort of insight which a trained and skilled mediator, experienced in the relevant field, can bring to an apparently entrenched dispute”. So, if you are involved in a dispute and are asked to mediate just say yes.
It takes a certain kind of couple and special kind of lawyer to produce this outcome. Throughout the mediation process, solicitor mediators will have an eye on what will be acceptable to a court. They recognise the important role of the couple’s own lawyers and will work to ensure that they are kept up to date with the progress of the mediation. With the right approach of the couple, using a solicitor mediator, mediation is likely to provide a fair and cost-effective
Mediation for family issues
way of resolving issues on the breakdown of the relationship.
It looks as if most couples, from next year will be required to attend a mediation assessment before being able to issue family proceedings.
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Hart Brown has a team of mediators, each with many years of legal experience.
Feature
means no The Dispute Resolution Team Paul Grimwood is partner and Head of the Dispute Resolution Team, he is an ADR
The Family Team Sharon Powell and Julian Waldon are Resolution members and each practising
accredited mediator specialising in mediations
solicitors as well as fully trained mediators.
relating to professional negligence (including
Between them they share more than 40 years’
clinical negligence), personal injury, insurance
family law experience and are able to assist
claims as well as all types of contentious trust
couples in coming to solutions which are both
and probate cases and Inheritance Act claims.
practical and comprehensive.
Paul has been an accredited mediator with the ADR group since 2001.
Sharon and Julian have extensive contacts with experts who can help couples in specific
Simon Wood is a barrister in our dispute resolution team. He qualified as a mediator with the ADR Chambers in 2012. He specialises in all aspects of dispute resolution relating to property interests. He is a firm advocate of mediation as a cost-effective and productive
areas including pensions experts, accountants and financial advisors as well as family
consultants. n
To find out more about Hart Brown’s mediation services, visit www.im-mediate.co.uk or call 01483 887766.
means of resolving differences between parties to a dispute before they become embroiled in the expense and delay of formal proceedings.
Surrey Lawyer 19
Property
A quarter of buyers in the South in the dark over their purchase RICS launch free guides to assist buyers and sellers House prices in the South East jumped once again last month as interest from would-be buyers dwarfed the amount of properties coming onto the market*. The proportion of chartered surveyors reporting price rises in the region hit a four year high, as the net balance of respondents reporting rises rose to 80 percent. Surveyors are optimistic that the currently flourishing market in the region is set to continue, with expectations for future transaction numbers still high with 69 percent of chartered surveyors predicting a rise rather than fall in sales in the next three months. First time buyers are especially at risk not having gone through the process before after all, this will be one of their largest ever financial transactions and there are lots of difficult things to understand at what can be a stressful time. The RICS Consumer Guides include: Buying a home; selling a home; home surveys; renting a property; letting a property; property auctions; and boundary disputes.
Peter Bolton King Director Global Residential rics.org/consumerguides contactrics@rics.org RICS Contact Centre 02476 868 555 At a time when the property market is seeing demand rapidly increase, RICS has launched a set of free, consumer-friendly guides to help buyers and sellers understand exactly what to do and how to avoid any pitfalls. In recent research commissioned by RICS it was discovered that, astonishingly, a quarter of home buyers in the South of the UK did not agree that they had a good understanding of the overall purchase process at the time of buying, meanwhile almost a third of first time buyers across the country as a whole (29 percent) admit that they do not understand the processes involved when purchasing their first home. Significantly, over a quarter of regular buyers in the South didn’t admit to knowing the difference between a market valuation (the property’s actual worth), an agent’s appraisal (an estimate as to what it can sell for) and a survey (a surveyor’s assessment as to the condition of the property). Failing to grasp the fundamentals could create big problems for buyers and sellers alike and, in some cases, could lead to unexpected costs and even potential transactions falling through. It is not surprising to see buyers looking to enter the market through the new initiatives the Government has introduced, and with the continued increase in activity in the housing market in the South, it is highly concerning that buyers are not getting enough advice and help to buy and sell their homes.
20 Surrey Lawyer
The guides set out in clear, easy to decipher sections and explain where each expert can help and what areas they will cover for the buyer and seller. The guide to buying a home, for example, takes people through the process starting with choosing a property, to agreeing a sale and finance, arranging a survey and then Instructing a solicitor/conveyancer – suggesting that the Law Society is a good place to start. The Law Society is mentioned in a few guides as the first point of call for appointing the experts you require. For example:
Instructing your solicitor/conveyancer When buying your property you will need to employ a solicitor or conveyancer to help you obtain the documents required for the completion of your sale. Once you have found someone to undertake the legal work ensure that you have agreed the fee. This can either be fixed or dependent upon the work to be undertaken - costs vary considerably so it pays to get estimates. Once they’re happy with the legal aspects of the property, and you have the finance in place, you can sign and exchange contracts. Discuss with your legal adviser any requirement to pay a deposit as this can be up to 10% of the purchase price. Your solicitor will get involved in the contract negotiation, exchange contracts and ensure completion by transferring the title deeds and funds.
Exchange of contracts After all the enquiry forms and contracts have been signed and returned, this is the point at which it is time to exchange. The buyer and the seller will agree a date for completion, i.e. the date that the seller will need to move out of the property. This is the stage at which the sale becomes legal and binding. Your solicitor or conveyancer will need you to sign the contract before they can exchange.
Completion You complete on the date agreed in the contract, where the rest of the money is transferred to the seller. This is usually two to four weeks from exchange of contracts. Collect keys from the seller’s estate agent and then you can move into your new home.
Legal fees Solicitors/Conveyancers These vary from place to place. It’s worth asking if your solicitor will offer a no buy, no charge deal and check the range of services they’ll provide for the fee. It’s often worth choosing a solicitor on the recommendation of a friend or colleague or otherwise contact the Law Society. It’s no secret that buyer numbers are on the up and more and more sales are going through as the market begins to find its feet again. With this in mind, it’s a big concern that there isn’t enough advice out there to help people buying and selling their homes and the guides we produced are designed to help those who’re looking to buy, sell or rent a home and, hopefully, will go some way to making sure the growing number of transactions across the UK go smoothly. This will benefit all concerned in the process. n
Surrey Lawyer 21
Management
Professional firms - the future? The climate is changing for many professional firms. Historically the legal profession has been largely immune to the rapid technological and commercial changes experienced by the banking and accountancy worlds and has operated in it’s traditional structure. Information made available by the Solicitors Regulation Authority (“SRA”), indicates that currently 44% of legal firms are sole practitioners and 41% have between two and four partners. This has resulted, as borne out by the above statistics, in the legal profession not experiencing the consolidation that has happened in other professions; in fact the number of law firms has increased since 2007-08 in contrast to accountancy firms, which have seen a decrease in excess of 10% in the same period. However, this is likely to change as firms consider exit and succession planning and the challenging market conditions. It is clear that the UK legal market is experiencing upheaval. There has been a gradual increase in competition via alternative business structures with the SRA having authorised in excess of 150 firms and the Co-op being the first major consumer brand to receive approval in July 2012. The reduction in the legal aid budget by £350 Million from 1 April 2014 and the implementation of Lord Jackson’s cost reforms effective from 1 April 2013 which introduce a number of changes to the UK litigation costs regime resulting in a change to the recoverability of success fees in conditional fee arrangements and the banning of referral fees in personal injury cases as well as the usual squeeze on fees from clients and the perceived oversupply of lawyers.
Historically, banks have always been keen to lend to law firms due to the large client account balances coupled with the fact that there were no large law firm failures following the 2007-08 financial crisis. The failure of Halliwells in 2010 was seen by many lenders as purely a property issue as opposed to there being any deep underlying problems with the firm or the legal market in general. The perception that law firms do not fail was challenged again in February 2013, when Cobbetts, an old established respectable law firm with 70 partners across 4 offices went into administration resulting in certain lenders recognising that if a law firm such as Cobbetts can collapse, there will be a large number of other firms facing similar problems and solicitors entering into Individual Voluntary Arrangements. There has already been an increase in the number of firms being placed into intensive care units at banks and worryingly, 1,300 firms have recently been put at risk following the collapse of the Latvian insurer Balva. A number of firms has also struggled to obtain insurance this year or seen a significant increase in premiums. This is combined with a sharp increase in the number of SRA interventions in 2013 with the SRA intervention cost in 2013 likely to increase from its budget by circa £7 Million. In the first quarter alone the SRA closed 15 practices including Blakemores and Atteys. The SRA has also revealed that more than 30 of the top 200 UK law firms are in financial difficulty and they are in intense engagement with 160 firms at risk of failure. From 2014, the ever increasing cost of intervention will be met from the Compensation Fund. It is estimated that the fund was circ. £45 Million at the end of 31 October 2013. The level of Compensation Fund contributions will be set at the end of 2013 no doubt resulting in increased contributions from regulated solicitors and firms. Succession is also becoming an issue where funding is not available for younger partners to buy out a retiring partner and many retiring partners unable to afford expensive run-off cover or find a successor practice. Whilst all of the above statistics and information may point to challenging times ahead, it is clear that there are many legal firms that are trading successfully and have reviewed their operating practices, reducing overheads and as a result increasing profitability. Market pressures are also leading many law firms to seek mergers in order to boost market share and make cost efficiencies which may well re-shape the legal services industry with a less fragmented market emerging. There is also an increase in UK law firms seeking to merge with large international firms.
Jo Rolls Partner – Opus LLP 07813 216406 Jo.rolls@opusllp.com www.opusllp.com
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Effective mergers can lead to innovative and more efficient new business models for the law firms involved. To ensure this is successful, this process requires careful management, due diligence and planning. A merger of two failing firms with no change will result in one larger failing firm which will be more difficult to turn around. We are aware of a number of firms that are currently acquisitive and are actively looking to grow which indicates there are realistic options to partners and firms that are experiencing difficulties. With January traditionally resulting in a low-point in cash collections and a tax bill we strongly believe that more firms will seek advice to restructure their businesses or merge to enable growth and to properly plan for the future. n
Management
Set yourself apart from the competition as a qualified and competent will draftsman The last couple of years have seen the tide come in and go out again on the regulation of will writing. Regulation of Will Writing (alongside Probate and Estate Administration) seemed a certainty but, in May 2013, the recommendations of the Legal Services Board were rejected by the Lord Chancellor and the Ministry of Justice. Most stakeholders in the will writing world felt a sense of injustice. While the quality of provision will undoubtedly continue to be scrutinised, the future for the regulation of will writing is currently unclear. Amidst this uncertainty, and in the absence of regulation, what is there to differentiate the quality provider of will writing services from the incompetent in the eyes of the client? The answer has to be training, qualification, expertise and professionalism. Now, more than ever, clients need properly qualified and capable will draftsmen to prepare their wills. Family structures are increasingly complex and private wealth continues to grow significantly. Clients require high quality technical wills from professionals who understand the law. They require a service which meets the highest levels of competence and professional standards. But is technical competence alone enough?
Even well drafted wills may not reflect the circumstances or real needs of the individual unless the will draftsman possesses the breadth and depth of knowledge to ask the right questions and to advise the client appropriately. To be a truly “trusted advisor� the practitioner needs a holistic knowledge across a range of technical areas and the client-facing skills to apply that knowledge in the right way. The STEP Advanced Certificate in Will Preparation is the only advanced specialist qualification in the will writing field. Taken by TEPs, solicitors, barristers and professional will writers this qualification is the benchmark for what you need to know and be able to do in order to demonstrate you are the expert, professional quality service provider in this field.
The Advanced Certificate is delivered through a blend of distance-learning and three face-to-face workshops in March, April and June 2014, in London. Assessment is two-fold comprising a workshop-based task and a three hour closed-book examination. The exam will take place on 14 July 2014. n Enrolment is now open at http://www.step.org/step-advancedcertificate-will-preparation-england-andwales
Surrey Lawyer 23
Management
Drooms outlines 3 reasons why external data rooms are essential for law firms London- 2nd December, 2013- Drooms, the first virtual data room (VDR) provider in Europe, today advised law firms on realising the benefits of high speed VDR’s in streamlining operational efficiency, offering industry leading technology and increased data protection for clients. The corporate and financial sector is absorbing a great deal of new legislation at present, with increased regulatory involvement in M&A transactions from a cross border perspective. VDR’s can help supply law firms with the tools to comply effectively with regulatory change, outlining the number of documents required from a specific set of data points to streamline the process of meeting regulatory requirements. One recent example of this is the incoming European Union legislation Alternative Investment Fund Managers Directive (AIFMD) which requires lawyers, fund and real estate managers to handle up to 2,000 documents from 200 data points throughout the lifecycle of a fund. VDR’s such as Drooms are crucial in driving greater focus on due diligence in meeting regulatory compliance.
Industry leading technology Howard Revens UK Managing Director Drooms www.drooms.com
Typically used by lawyers when conducting due diligence, VDR’s ensure that highly sensitive documents are kept secure when making the following transactions: • Corporate- M&A • Property- Sales and leases, restructuring asset backed loans and mortgages • Corporate Finance-Private placement and debt financing • Intellectual Property- Exchange/ share documents on joint ventures, licensing agreements, fundraising, financing • Litigation-Restructuring and insolvency transactions outlining structures buy and sell assets, close financing and raising additional capital. In recent years, the data room process has increasingly been taken in-house by law firms for the perceived purpose of reducing cost. But with the volume of M&A transactions gaining momentum in the market, Drooms outlines three key advantages for law firms in partnering with an external VDR:
Improved operational efficiency Increasingly fixed client budgets are placing even greater pressure on the legal sectors cost base, meaning that the time spent on due diligence is crucial. The high speed nature of external VDR’s and the tools that they offer are fundamentally important in reducing expenditure and driving operational efficiency for law firms . World wide data access 24/7 and centralized document provision ensure compliant distribution of confidential documents during the due diligence process.
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The efficiency of a data room in streamlining transactional processes is wholly reliant on high quality technology. Whilst, law firms have knowledge, project management and human resources at their disposal, VDR’s rely on an industry leading IT function requiring constant maintenance, technical support available 24/7, regular platform backups, daily verification and file histories. Taking into consideration, the nature of global transactions, an in-house IT team would struggle to compete. An example of unique VDR technology includes the indexing and OCR tools that allow parties to use text recognition inside documents to read the right documents and the right parts of documents more carefully and thoroughly, to optimise the risk/efficiency trade off.
Increased data protection A security breach to client documentation is one of the biggest threats to a law firm and the cost of getting it wrong is of paramount importance. In a period of increased data protection threats and hacking allegations, security cannot be compromised. EU data protection laws mean that personal data from EU countries may not be transferred to non-compliant countries such as the US. The “Safe Harbour” principles in theory protect European data but are currently being called into question by European authorities as an adequate solution to this legal dilemma. Under the Foreign Intelligence Surveillance Act, all documents uploaded onto cloud based systems within the jurisdiction of the US can currently be accessed and analysed without a warrant by American security agencies. Therefore, without rigorous control of data in a fully European data room, the risk of data appearing on US servers is particularly prevalent and poses data security issues. VDR’s have a highly important role in supporting governance, compliance and risk management. Most frequently applied through Software as a service (SaaS) instead of cloud based solutions, documents are protected through server locations that are compliant with EU data protection laws. In addition, project managers are assigned to each transaction to ensure ultimate security and protection. The nature of complex transactions handled by law firms mean that vast amounts of highly sensitive information can change hands from 5-20 parties in medium to large cases and up to 100 parties in very large cases. External VDR’s use highly sophisticated tracking services to control and determine access rights to highly confidential information to a range of competitors throughout the transaction lifecycle. Through a “view only” basis, information cannot be used later by unsuccessful bidders and there are no means of copying information Howard Revens, UK Managing Director at Drooms said “The benefits to a law firm of using an external VDR are clear, particularly in light of the Safe Harbour review. Speed and cost during transactional processes are vitally important to time limited lawyers when conducting due diligence processes. They need to rely on best-in-class, high speed technology which ensures absolute data security and allows them to work as efficiently as possible. At Drooms, we are regarded in Europe as the VDR for the legal sector and work tirelessly to ensure our products meet the needs of lawyers.” n
Management
Welcome to a very special partnership… Welcome Cottages and Dogs Trust The UK’s leading canine charity has been working with Welcome for 10 years now and in that time the partnership has generated donations of over £500,000.00! For every booking made through the partnership Welcome Cottages donate 10% of the property rental to Dogs Trust. That’s an average of £40 for every booking made – money that makes a vital difference to the future of all Dogs Trust dogs across the UK. Anyone can book through the scheme and if you visit the website you can discover thousands of wonderful holiday properties all over the UK, France and Ireland that are just ready and waiting for you and your dog. See hand-picked thatched cottages, farmhouses and lodges and many more unique properties all of which are dog friendly. What’s more, the selection is graded to the exacting standards of VisitEngland who ensure your holiday home is as good as its picture looks. To see the full selection of cottages and book securely online… visit www.dogstrust-cottages.co.uk where you can see live availability and lot’s of images. Alternatively call the friendly booking team on 0845 604 3933 (lines are open 7 days a week). Finally if you would like to order a brochure please call 0845 268 7000. Happy holiday searching! n
Surrey Lawyer 25
Management
Virtuoso Assistant: Professional Legal Virtual Assistants “Virtual Assistant”: when I mention this people’s eyes tend to glaze over or they just nod politely because they don’t want to ask, “What is a virtual assistant?”
They’re not a new concept and they’ve certainly taken the US and Australia by storm over the past 10 years. The UK, however, has been comparatively slow to realise the benefits of hiring a Virtual Assistant. They are highly motivated freelancers and run their own businesses as well as working for their clients. They’re a hugely cost-effective alternative to employing a member of staff, particularly for a small business which perhaps cannot afford this expense. Virtual Assistants charge by the hour and work on an ad hoc basis; they cater for all budgets and will work from one hour to 40 hours a week, depending on your requirements. Clients are not required to pay for lunch breaks, sickness or holiday pay, national insurance or for any office space or equipment, thus already saving them a substantial amount of money. Over the past 5 years, and certainly since the start of the recession, a VA has had to
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adapt and become expert in using an everincreasing set of skills including social media profile management, social media marketing, blogging, managing websites, creating slides and animated presentations, using design apps to create business cards and promotional material, managing emails and diaries. At Virtuoso Assistant we offer individuals and SMEs a professional business support service; we also have a specialist team of legal virtual assistants who provide Barristers, Solicitors and Legal Executives who work in civil litigation with an online PA service. Nicky Pasquier heads up this team and has 16 years’ office-based experience as a legal PA/Paralegal. She appreciates the volume of work produced by civil litigation departments and her team is available to type standard but time-consuming documentation such as attendances notes, Statements, Claim Forms, Particulars of
Claim, Allocation and Listing Questionnaires, Instructions, Advices and Indices. They will also input key dates into diaries and arrange telephone hearings. Legal Virtuoso works outside core office hours, if required, in order to meet Court deadlines. What about confidentiality, security and data protection? Over the past two or three years there has been an explosion of apps such as DropBox with which any file, audio or paper document, can be transferred with absolute confidence via a shared folder. Virtuoso Assistant has a privacy policy in place and will sign a confidentiality agreement prior to any work undertaken. Why not give Nicky a call for an informal chat on 07585 337 145 or visit www.virtuosoassistant.co.uk for further information. We have a few animated presentations to keep you entertained! n Nicky Pasquier Founder|Director Virtuoso Assistant
Finance
HMRC Crackdown on Tax Avoidance HMRC is ratcheting up its crack down on people who try to avoid paying tax. It is spreading its net wide. From plumbers, to restaurant owners, to private tutors, to offshore investors, few appear safe as HMRC bids to narrow the so-called tax gap – the difference between tax collected and the tax they believe ought to be collected. HMRC has said it will use “cutting-edge” tools such as web robot software to search the internet and find targeted information about specified people and companies. Using the software, the department will be able to pinpoint more accurately those people who have failed to pay the right amount of tax. The idea of HMRC banging on the door demanding answers is likely to have those concerned waking up in a cold sweat but HMRC’s latest efforts are not just about illegal tax evasion. This time it is investigating tax avoidance. In May 2011, HMRC launched a consultation – “High Risk Tax Avoidance Schemes” – and is proposing to name and shame tax avoidance schemes that are unlikely to deliver the tax savings claimed. Anyone found to be using the schemes might have to pay the tax avoided upfront, plus an extra charge on that tax. This tax avoidance consultation is part of the Government’s end-goal to bring in an extra £7bn through initiatives to tackle tax avoidance, evasion and fraud by the end of the Parliament. So, should individuals be worried? Most people will have little to be concerned about, but now, more than ever it may be appropriate to err on the side of caution on all tax-saving matters. There are a number of tell-tale signs to spot tax avoidance schemes. For example, if a scheme sounds too good to be true, it probably is, and if a confidentiality and secrecy agreement needs signing, you can be pretty sure that there is intellectual property involved which is designed to kept from HMRC. Likewise, if you are required to take out an insurance policy or there is a contingency fund, whether or not at your cost, against the tax benefits of the scheme failing to materialise then give it a wide berth. Tax mitigation should be based on sound principles, statutory reliefs and accepted HMRC practice. Watch out for contrived schemes too and any arrangement which in itself provides no fiscal or economic benefit other than the avoidance of tax should also be viewed with suspicion. HMRC itself recognises that much avoidance of income tax by wealthy individuals has relied upon ‘sideways loss relief schemes’. These are schemes that seek to create trading losses, which are incurred in accounting form but not economic substance, which can then be used to offset an individual’s normal income from
employment. Loss schemes have been the subject of antiavoidance legislation in recent Finance Acts and the remaining schemes are “extremely contrived”, the HMRC warns. However, the tax avoidance crackdown should not stop people from looking at legitimate ways of saving tax, even though the differences between tax avoidance and tax mitigation are less than clear (tax avoidance is deemed to be a use of the tax law not envisaged by Parliament). At a time when our tax system appears to be getting more complicated it makes sense to try and pay HMRC no more than you are legally obliged to do so. It is also worth remembering that there are still many ways that people can legitimately reduce their tax bills. From making the most of family and spouses to maximise allowances, to using offshore bonds to defer tax, to sacrificing part of your salary to bring your tax threshold down. Trust planning together with taxefficient investments can also be thrown into the mix and continue to be beneficial, so it is worthwhile exploring your options carefully with a specialist adviser given the recent Consultation focusing on the use of multiple or pilot trusts. With HMRC sharpening its claws and the boundaries between what is legitimate and what is not becoming blurred, it is vitally important for people to seek expert help. Indeed, Nick Clegg, the Deputy Prime Minister, admits that consumers are ‘perfectly entitled’ to employ an expert tax adviser. It is an entitlement that people should grab with both hands. The value of an investment with St. James’s Place will be directly related to the value of the funds selected and may fall as well as rise. You may get back less than the amount invested. The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances. To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning, produced by St. James’s Place Wealth Management, contact Fiona Davies, of St. James’s Place Wealth Management on 0207 495 1771, by email Fiona.davies@sjpp.co.uk or visit www.sjpp.co.uk/fionadavies. n Fiona Davies represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products.
Surrey Lawyer 27
Finance
Capital allowances – property reviews The ability to claim capital allowances on qualifying plant and machinery in a commercial property is an opportunity that can result in significant tax relief. The opportunity is available for a wide variety of businesses that have an interest in a commercial property including companies, sole traders, partnerships as well as individuals generating income from commercial property. would be within an income tax return. In view of the fact that there was a 50% income tax rate until 5 April 2013, unincorporated businesses could obtain 50% tax relief by making a claim in such a period. Making a capital allowance claim on a commercial property can result in a cash refund arising from a reduction of taxable profits in an earlier period or a reduction in a tax liability for the current and future tax years. These are not mutually exclusive and a significant capital allowance claim could impact past, present and future tax periods for any type of business. If a freehold or leasehold interest in a commercial property is acquired or already held, capital allowances may be available for fixed plant and machinery contained within the fabric of the property. In all cases entitlement to claim allowances needs to be established. The extent and timing of relief will therefore depend on when the property was acquired and whether or not there has been a previous capital allowance claim, either by the current or previous owner.
Steve Hoare Associate Director at Menzies T: +44 (0)1483 758900 E: shoare@menzies.co.uk
Plant and machinery allowances are available on a wide range of expenditure and the allowances will depend on the nature of the equipment used in the business. For example, in a typical office environment computer equipment and office furniture will be the most obvious examples of qualifying expenditure. However, where the taxpayer has an interest in a freehold or leasehold property less immediately obvious allowances can also be due which are inherent in the property. Specialist expertise in property-related capital allowance claims is required in order to secure such inherent allowances. These allowances are likely to include plant & machinery allowances (attracting an 18% annual writing down allowance) and integral features allowances (attracting an 8% annual writing down allowance). Where the expenditure is incurred on or after 1 January 2013 a £250,000 Annual Investment Allowance (AIA) may be available to give full relief in the year of acquisition up to that limit. Where an accounting period straddles this date the actual amount of AIA can be lower than this. Capital allowance claims can lie dormant in a property. Where a claim can be identified in a property, it may be possible to bring this to life in any open period tax return. For a company this would be within a corporation tax return and for an unincorporated business or individual this
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Capital allowances may be available for fixed plant and machinery such as heating and air-conditioning, sanitary fittings, hot and cold water systems, electrical systems and fire alarm installations. This is not an exhaustive list, but is indicative of the type of equipment that may be inherent within a commercial property but on which capital allowances may not have been claimed. In addition to an outright acquisition, a new build, an extension, an alteration or significant refurbishment are also opportunities to obtain additional capital allowances. The making of a capital allowance claim does not affect the capital gains base cost of the property. However, a claw-back of allowances could arise on a future disposal. Since 1 April 2012 there has been a requirement to fix the value of fixed plant and machinery between buyer and seller and one way of doing this is by entering into a joint election when negotiating the terms of disposal. Both buyer and seller in a commercial property transaction are likely to want to obtain (or retain) the availability of capital allowances and this will influence the negotiations. From 1 April 2014 there will be an additional requirement to ‘pool’ available allowances where a property is sold after that date. Unless a property is to be sold there is no compulsion to pool the allowances but the substantial tax savings that could result from such an exercise would normally make it worthwhile to do so. One or our specialists can discuss the history of the building with you to establish the possibility for making a capital allowance claim. Where relevant and practical, we would arrange a visit to the premises, free of charge, to assess the likely extent of any claim. Where the initial review indicates the likely availability of additional allowances the work can progress to a second stage. This would involve undertaking a more detailed due diligence exercise and preparing a detailed report to support a claim in the tax return. n
Finance
The path to recovery continues... Iain Halket, director of HFS Milbourne and chair of the company’s Investment Committee shares his views on the current economic outlook. USA With the US economy looking more positive than it has done for a long time ie. with minimal inflation, a housing market on the up and low interest rates, it came as a surprise when the Federal Reserve recently announced a further period of quantitative easing (QE). The Fed currently ploughs $85bn per month in to the US economy and instead of a gradual exit from QE as widely predicted, we now face another period of uncertainty as investors try and re-assess when the liquidity tap will be turned off. The decision casts a shadow over the economy and perhaps suggests a lack of confidence in the powers that be to get the US back on a sustainable recovery path. When considered alongside geo-political tension in the US, a still smouldering Euro crisis and disappointment in some high profile emerging economies, such collective thinking could easily make investors more risk averse. On the upside, the US economy has been given a further boost by recent success in the search for natural gas resources through fracking. The nation’s bid to become energy independent will see less reliance on overseas supplies and will result in lower prices for consumers and business users which is to be welcomed. The US deficit is shrinking as the economy strengthens. Private sector jobs are being created and unemployment levels dropping. Stock markets are no longer cheap; they certainly are not expensive and if earnings continue to grow they are capable of outperforming other assets on a risk-adjusted basis. If prices simply rise in line with earnings forecasts, prospective returns are still likely to be extremely pleasing. We expected the dollar to strengthen given the economic outlook, but instead it is back to where it was at the beginning of the year, although we anticipate the sterling to dollar rate will be nearer $1.50 in months to come. Equity returns should also be enhanced by the strengthening currency. Where there is uncertainty there is opportunity, and we are recommending that our clients remain fully invested when the mid to long-term outlook is positive.
It appears that the Japanese may be emerging from their 20 year slump as wages and office rents are rising whilst corporate tax rates are lowered. Equity markets are still reasonably priced, and after the initial equity rally, a more robust recovery for the longer term is expected. We favour this region for the first time in 10 years.
Europe Europe is not without its problems. With unemployment at nearly 11% and rising, high tax rates and restrictive employment laws, France is teetering on the edge of recession. Many of the potential threats to stability across Europe come from political issues. For that reason it will be important to keep the Greek government in power and to prevent major policy changes in Spain or Italy which could send the respective economies into a downward spiral. We are underweight in Europe, however some specific companies offer great value at current prices.
Commercial property The commercial property market appears to have bottomed out and we have reintroduced a bricks and mortar property fund to investment portfolios, having been negative on this asset class for the past two years. The improving economic climate is translating into more positive occupier sentiment and is putting upward pressure on rents.
Outlook The world economy could strengthen significantly in 2014 as inflation remains contained. The central bankers’ monetary promiscuity may not do as much harm as many believe. The purchase of bonds is not a literal printing of paper money; the money created is mostly sitting latent in the banking system. In our jargon, the monetary velocity is low without too much money chasing too few goods, whilst bank credit actually remains low. The economic impact of quantitative easing has been largely limited to its indirect effect of helping keep bond yields, and therefore mortgage rates, low. We do see a little inflation risk in the years ahead, but not an urgent or dramatic worry.
Emerging markets The emerging markets have been somewhat disappointing although experienced investors who are in it for the long haul are prepared to trade short term pain for longer term gain. The new leadership in China has taken rather aggressive steps to drive up consumption rather than see an over reliance on investment and exports and this rebalancing of the economy has been one of the reasons for slower than expected growth. We feel that the bad news has been rather overstated and we expect to see a recovery in sentiment towards the Chinese market in due course. We have not seen any evidence pointing to a collapse in economic growth across emerging markets, although the rate of growth has certainly slowed. Outside of the expected strength of the US economy, we remain encouraged about the growth prospects and low indebtedness of many emerging markets, although differentiation for those with weaker fundamentals, such as India and Turkey, has become apparent. We believe certain markets are oversold and would encourage clients to maintain exposure, but in a more discerning manner.
As always, a carefully diversified portfolio is likely to remain a better investment solution than one dominated by gold or commodities at present. Our portfolios remain balanced towards an on-going economic growth recovery, despite the brinksmanship of US fiscal policy and misplaced fears that Asia is in crisis. The path to eventual monetary normalisation continues. n
Iain Halket Director HFS Milbourne Chair of the company’s Investment Committee www.hfsmilbourne.co.uk
Surrey Lawyer 29
Finance
Gift card warning for Christmas Gift cards and vouchers not guaranteed if outlet goes bust, warns Guildford law firm Hart Brown.
Surrey Law Society CPD Programme from January to April 2014 January Wednesday 15th IHT Update & Capital Tax Planning Chris Whitehouse Tuesday 21st COLPs & COFAs Healthcheck – are you doing it right? Professor Peter Camp Wednesday 29th Conveyancing – New Year miscellancy of hot topics Hannah Mackinley
February Christmas is looming and many have already started their Christmas shopping. Vouchers and gift cards are always a great gift. However, many stores such as Blockbuster, HMV, Comet and Jessops, went out of business last year, and thousands of customers lost out and were unable to spend their vouchers. Most vouchers were eventually accepted, but some people never got their money back. So what happens if you buy a voucher or gift card, and the shop goes into administration? They are not guaranteed and you will not be able to use them. The Administrators or Liquidators have other creditors to deal with, in addition to costs such as loans, staff wages and administration fees. This can appear to be somewhat unfair but the voucher holders rank as unsecured creditors. At present, if you buy a voucher worth more than £100 on a credit card, it is protected as the credit card issuer is jointly liable with the company and so is likely to refund your loss in most cases. The warning is: please think carefully where you buy your vouchers or gift cards this year, and consider buying using a credit card. n
Wednesday 5th Wills & Trusts: the second marriage Elizabeth Webbe Thursday 27th Residential Conveyancing Update – AML, CML & fraud Denis Cameron
March Wednesday 12th Shareholder Disputes Dov Ohrenstein & Shantanu Majumdar Wednesday 26th Risks & Pitfalls in Private Client Practice Professor Lesley King
April Wednesday 2nd OFR, ABS, SRA & LeO: the latest from the coalface Tony Guise Wednesday 30th Data Protection for COLPs Peter Wright & Heather Anson The courses listed above are all half-day courses from 2.00pm to 5.15pm at Denbies Wine Estate in Dorking and carry 3 hours SRA Accredited CPD points.
Course Fees: £126.00 inc VAT (members) or £252.00 inc VAT (non-members)
Season Ticket: £100.80 inc VAT for bookings of 4 courses/delegates paid in advance Course fees include all costs for delegate packs, refreshments and on-site parking and must be paid in advance. Please check the Terms & Conditions on our website www.surreylawsociety.org.uk/terms before booking. For further information about these events please visit our website www.surreylawsociety.org.uk or contact Elaine Jacobs at elaine@surreylawsociety.org.uk. n
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Education
Fiona Woolf CBE announced as ‘Chancellor Designate’ of the University of Law Fiona Woolf CBE, one of the UK’s most respected corporate lawyers and the new Lord Mayor of the City of London, is to become The University of Law’s first Chancellor. Fiona was President of The Law Society of England & Wales in 2006/7 and a member of Surrey Law Society for some years. Many of you may remember the warm hospitality extended by Fiona and her husband Nicholas to Surrey Law Society Members for our annual summer Garden Party at their glorious Surrey home. Lord Mayor Woolf has today been named as Chancellor Designate of The University of Law and she will take office in November 2014 at the end of her one-year term as Lord Mayor of the City of London, which began on 8 November. The University of Law is the largest provider of professional legal education and training in the world with eight UK centres. Formerly The College of Law, in 2006 it became the first independent institution to be granted degree awarding powers and gained university title in November 2012. Lord Mayor Woolf is an alumnus of the University and received an honorary doctorate at its first Graduation Ceremony in 2007. With a 40-year career in corporate practice she is a partner at CMS Cameron McKenna specialising in electricity reforms and infrastructure projects. She has advised more than 28 governments on reform strategy and infrastructure development, establishing a worldwide reputation in a field of law that is embedded in economics and engineering. Much of her recent work has been for the World Bank on regional electricity markets, regulation and infrastructure and she has helped to bring electricity infrastructure to countries emerging from war, including Liberia and Sierra Leone. In 1981, Lord Mayor Woolf was the first woman to make partner at her law firm and in 2006 became only the second woman to hold the office of President of The Law Society of England and Wales. She was also a Member of the Competition Commission from 2005 to 2013. Currently she is a non-executive director of Affinity Water Ltd, a Senior Adviser to London Economics International and an Honorary Bencher of Middle Temple. In the charity field, she is a Trustee of Raleigh International, The Lord Mayor’s Appeal and The Chelsea Opera Group Trust. She is a member of the Council of The London Regiment of the Territorial Army and was on the Women’s Business Council. She is also an Alderman in the City of London and on September 30 was elected to be the next Lord Mayor of the City of London, taking office on 8 November 2013. It is only the second time that a woman has been elected to the office in its 800-year history. Despite her busy career she has still found time over the years to support The University of Law, including its work to widen access to the legal profession and its student pro bono programme, which provides free legal guidance to local communities. Lord Mayor Woolf was appointed as the University’s Chancellor Designate following a nomination process in which students, staff, alumni and members of the legal profession and legal education community were invited to suggest names of suitable people. Her principal duties will include presiding at the University’s Degree Ceremonies, sitting on its Honorary Degrees Committee, which considers proposals for the award of honorary degrees and makes recommendations to the Academic Board, and representing the University at external events.
Speaking about her appointment Fiona Woolf said: “I am delighted and honoured to serve as The University of Law’s first Chancellor. I have followed their success over the years with great pride and I am looking forward to engaging with the students and assisting the University in its role of supporting the success of our law firms in the domestic and global market for legal service provision and responding to the new challenges of creating more flexible routes to qualification.” Professor Nigel Savage, President of The University of Law, said: “Fiona Woolf is a highly distinguished figure in legal practice and will be a great inspiration to students, especially as more than 60% of our student body are female. She is one of the most successful solicitors of my generation and has managed to combine a remarkable career, working in some of the most demanding areas of corporate practice, with extensive service to her profession. She has been very supportive to the University and it is entirely fitting that the person who was serving as President of the Law Society in the year that we acquired powers to award our own degrees and was one of our first honorary graduates should become The University of Law’s first Chancellor.” n Find out more about Fiona Woolf at http://www.fionawoolf.com.
Surrey Lawyer 31
Employment
Are You Ready for Auto-Enrolment? Employers can postpone auto-enrolment for up to three months after a new worker is employed, unless a worker opts in during this period. Auto-enrolled employees must be provided with certain information, including an opt-out notice, but employers commit a criminal offence if they induce staff to opt out. So far, only 9% or eligible workers have opted out.
When does auto-enrolment start? This depends upon the number of people in an employer’s PAYE scheme. There are a series of ‘staging dates’ so that, for example, an employer with 50 to 53 employees has a start date of 1 April 2015. You can find your staging date by entering your PAYE reference on the Pensions Regulator’s website: www.thepensionsregulator.gov.uk If two employers merge and both employers retain their existing employment contracts, the staging date is that of the largest employer.
What about costs?
Geoffrey Bignell Just Employment Solicitors & Advocates Telephone: 01483 303636 Web: www.justemployment.com
Pensions are Coming! Pensions are always in the news: we are not saving enough for retirement; a third of Britons believe they will never fully retire; and auto-enrolment will affect more people than any pension reform since the National Insurance Act 1946. A third of workers currently make no pension provision, but this will change. Auto-enrolment has already created 1.6m new pension savers. Next year, another 2m will be enrolled. Only the 4.2m self-employed will be left out. Additional pension contributions will cost employers and staff about £3.2 billion annually in contributions, with administrative costs on top. Instead of opting into a pension scheme, workers will be enrolled automatically, unless and until they take an active decision to opt out.
Who is affected? All employers (however small) and all ‘workers’, aged between 22 and state pension age, who are not in an existing qualifying scheme and who earn above the basic personal allowance, currently £9440. Self-employed ‘workers’ (those entitled to holiday pay) must be auto-enrolled, but not the ‘genuinely’ self-employed. No application form is required. Other job-holders must be given information, so that they can opt in if they wish.
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Initially, employer and employee each contribute 1% of qualifying earnings (currently between £5,668 and £41,450), although there is scope to use a different definition of pensionable salary. Total contributions for a worker on £30,000 a year will be £600. This will rise in stages to 8% of salary, £2400. Of this 8%, the employer must contribute at least 3%. The employee receives tax relief on contributions. Employers without an existing qualifying pension schemes will incur considerable extra administrative costs.
Which schemes can you use? There are three main alternatives to traditional pensions, designed to be low cost, money purchase schemes: ‘NEST’, ‘the people’s pension’ and ‘NOW Pensions’.
Summary of Action Points for Employers • • • • • • • •
Check your staging date (you can postpone enrolment 3 months beyond this) Identify who you need to auto-enrol (including ‘workers’) If you have no existing qualifying scheme, decide which scheme you will use Set up your scheme and register with the Pensions Regulator Consider salary sacrifice, which is tax efficient for employers and employees Prepare communications with staff and revise employment contracts as necessary Budget accordingly Prepare sooner rather than later!
Don’t underestimate the costs Surprisingly, the cost of administration can exceed the cost of pension contributions, even for larger employers. This is a regulatory burden which is massively disproportionate for smaller firms. You have been warned. n
Health
The Heart of Cardiac Care in Surrey Cardiac conditions are still the most common cause of death in the UK, and due to an ageing population; interventional and surgical procedures are becoming increasingly complex. It is therefore paramount that patients receive treatment at a centre of high expertise. St Anthony’s Hospital, Cheam, specialises in cardiac services and offers first-grade care to those needing diagnostic, interventional or surgical procedures. Whether you are young or old, healthy or unhealthy you can still be at risk from heart problems. Genetic conditions and heart rhythm disorders (arrhythmias) can affect individuals of any age, gender or lifestyle, so it is important to develop a good understanding of different disorders and how they can affect your health. Cardiac arrhythmias are being diagnosed with increasing frequency across the UK, and in years gone by patients had to learn to cope with conditions or take numerous medications to control their symptoms. The associated risks and side-effects from long-term Warfarin have been widely documented and it is therefore advisable to avoid such treatment where possible. With advances in medical technology, Cardiac Electrophysiology has been developed as a first-line alternative to long-term medical treatment for arrhythmia. The service is now available at St. Anthony’s with the support of experienced Cardiac Physiologists.
What is it? Cardiac Electrophysiology involves the diagnosis and treatment of heart arrhythmias. We use a minimally invasive procedure to measure the electrical activities of your heart. We do this by inserting a catheter via the groin which transmits radio-frequency energy to targeted parts of the heart. Dysfunctional areas of the
muscle are either frozen or heated in order to stop and prevent the re-occurrence of heart arrhythmias.
What are the benefits? The advancing field of electrophysiology offers patients alternatives to daily medication or implantable devices. Some patients can effectively be relieved of their previously debilitating symptoms through a single procedure. However, centres where the service is available remain few and far between, so it may be reassuring to know that the service provided at St. Anthony’s is underpinned by a number of highly experienced consultants who specialise in the treatment of Cardiac Arrhythmia. For any further information or appointments please visit our website (www.stanthonys.org.uk) or contact our outpatient department on: 020 8335 4678 / 79. n
Surrey Lawyer 33
Review
High Impact Fee Negotiation and Management for Professionals by Ori Wiener (or how professionals can get paid what they deserve) Growing international competition and the rise of tough procurement practices are putting pressure on professional services firms, leaving many professionals with uncertainty as to exactly what to charge for their services. A new book, High Impact Fee Negotiation and Management for Professionals, has just been published to provide professionals with the skills and techniques to successfully set, negotiate and structure their fees to always get paid what they deserve. High Impact Fee Negotiation and Management for Professionals is the most comprehensive and practical guide to pricing and negotiation available for lawyers, accountants and consultants. By providing a systematic approach, the book helps professionals to turbocharge their careers and master the non-technical skills that will improve both client relationships and profitability.
The author, Ori Weiner, is an experienced strategic business development consultant,
About the author: Ori Wiener is one of the world’s leading
delivering high impact fee negotiation skills training and coaching to top executives. His career has seen him lead global businesses, work as an investment banker and set up
strategic business development
GARA Consulting and Møller PSF Group Cambridge, one of Europe’s leading professional
consultants. He delivers high impact fee
services support firms, giving him a unique combination of perspectives as a client,
negotiation and fee management skills training for executives, founding GARA
consultant and an insider.
Consulting and the Møller PSF Group In High Impact Fee Negotiation and Management for Professionals, Ori Weiner provides
Cambridge, one of Europe’s leading companies specialising in the support of
practical advice on how to apply a powerful, consistent approach to make sure the
professional services firms. He previously
“Golden Triangle” of setting the price, getting the price and keeping the price works in
led global business development and marketing at Linklaters, and worked as an investment banker for S.G. Warburg/ UBS
favour of the professional. Critically, it also explains the key steps leaders need to take in order to embed the right processes and appropriate culture, throughout the organisation.
and Lehman Brothers in London, New York, Ori Weiner is available to provide expert opinion or interviews, including possible by-
Mexico and other locations.
lined below: •
Shades of Black and Red: Factors that determine the difference between loss or profit for professionals
•
Do you have what it takes to negotiate a good fee?
•
Swimming with shark and dolphins: Do you know who you are dealing with?
•
10 costly fee negotiation mistakes
•
Safety in numbers: How professionals can support their partners
•
Alternative fee structures - mirage or the future
High Impact Fee Negotiation and Management for Professionals by Ori Weiner is out now
from Kogan Page, priced £39.99. n
34 Surrey Lawyer