Author: Zhanna Sutton

What is the latest position regarding possession procedures for landlord & tenants? GSC’s Head of Commercial Litigation & Dispute Resolution Michael Shapiro has the details:

 

Whether you are a landlord or a tenant, if you have any concerns or issues, please contact Michael Shapiro directly on: [email protected] or 0207 822 2246.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

The government will introduce a new “time to pay” (TTP) scheme, to help businesses and self-employed individuals manage their cash flow in light of financial difficulties caused by COVID-19.

There will be a dedicated helpline and bespoke arrangements will be offered to enable taxpayers to defer tax liabilities for a time-limited period.

Interest and penalties arising from the late payment of tax as a result of COVID-19 or from administrative difficulties in contacting HMRC will be waived.

For further questions in relation to tax-related issues in general or on the above article, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

The signing of wills can now be witnessed by solicitors through the windows of clients’ homes and their cars, as the legal profession responds to the Covid-19 pandemic.

Michele O’Boyle, president of the Law Society, issued new guidelines following a significant increase in the number of people looking to get their affairs in order by making a will as part of contingency planning as the number of COVID-19 infections in the United Kingdom rises.

Ms O’Boyle urged solicitors to take additional health precautions when executing wills during this period of social distancing.

Ms O’Boyle said solicitors attending a client’s home can witness the client signing a will through a window instead of entering the home, The Times reports. If the client is sitting in a car, “they can sign on the dashboard of their car witnessed by you and the other witness” from outside, she added. Ms O’Boyle also recommended that clients be asked to bring their own pens for signing wills at solicitors’ offices.

Patrick Moylan, president of the Clare Law Association, said that there has been a “massive” increase” in the numbers making wills.

https://www.thetimes.co.uk/article/solicitors-allowed-to-witness-wills-through-the-window-dcl5206gj

For further questions on wills please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Following the restrictions on personal movement arising from the continued spread of COVID-19 and the Prime Minister’s broadcast, the Lord Chief Justice reviewed the conduct of court hearings in England and Wales.

In respect of hearings in County and Family Courts the LCJ has stated the following:

“No hearings which require people to attend are to take place in any County or Family Court until further notice, unless there is a genuine urgency and no remote hearing is possible. All cases currently being heard should be adjourned part heard so that arrangements can be made, where possible, to conduct the hearings remotely”.

The Lord Chief’s directions did not address the Court of Protection but, in the opinion of The Honourable Mr Justice Hayden Vice President of the Court of Protection, exactly the same measures should be extended to it. Accordingly, no hearings which require people to attend are to take place unless there is a genuine urgency and it is not possible to conduct a remote hearing.

The extremely complex case that Mostyn J has recently conducted entirely by Skype conference illustrates the fact that even cases of “genuine urgency” may be heard remotely.

The case is a serious medical treatment application brought by a clinical commissioning group (CCG). A dispute had arisen as to whether or not it was in the best interests of A, a man in his 70s who had suffered a stroke in 2016, to continue to receive clinically assisted nutrition and hydration (CANH).

In itself, this would be an unusually sensitive case for the Court of Protection (CoP), and Keehan J listed it for four days, including a day of judicial reading time. What makes this case even more unusual is that the judge listed it to start on Tuesday 17 March 2020, less than 24 hours after Boris Johnson had told the nation to avoid all non-essential contact in the bid to stem the rising tide of COVID-19.

Mostyn J called an urgent telephone hearing with the parties on the morning of Tuesday 17 March to discuss whether the hearing could realistically go ahead in Nottingham Civil Justice Centre, and if not, whether conducting the trial remotely was permissible. He determined that the hearing should go ahead and asked the lawyers to find a way of doing so over Skype.

One of the parties’ solicitors set up a Skype for business meeting which everyone could join via laptop or tablet. With a very slight extension to the court day (starting at 10am and finishing on two days at 5.30pm), the hearing was finished in three days, and the judgement is now being awaited.

As a result, judicial time was not wasted, nor a hearing listed for four months lost. The sensitive and difficult case was not adjourned, possibly for months and months. No one had to compromise their health; before and during the hearing, some involved were self-isolating, with no impact on the trial. No one had to travel or stay overnight, saving significant costs, public money in this case. Even with an extended court day, all the lawyers involved saved a huge amount of travelling time.

This may well be the way forward for the next few months. Skype for Business looks to be on the way out for Microsoft, to be replaced by Teams, but it is clear that the judiciary are also prepared to consider other ways of conducting remote hearings such as Zoom: guidance just published for the Civil courts refers encouragingly to a ‘non-exhaustive’ list.

For further questions in relation to the above article, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Given the unprecedented times we are facing due to the Coronavirus pandemic, your thoughts may be ‘how can my financial affairs be dealt with if I am ill or isolating?’ The solution is a power of attorney.

What is a general power of attorney (“GPA”)?

A general power of attorney (GPA or ordinary power of attorney) allows you to appoint one or more people to deal with your financial affairs at your direction and sign on your behalf. You must have mental capacity for a GPA to be used.

Unlike an LPA you do not need to register a GPA with the Office of the Public Guardian (OPG) before it can be used. Therefore, it is effective as soon as you sign it. You can stop the GPA being effective through a deed of revocation or it will automatically end if you lose mental capacity to make your own decisions.

A lasting power of attorney (LPA) allows you to appoint one or more people to make or help make decisions on your behalf if you have an illness or accident which result in you being unable to make your own decisions, i.e. you lose your mental capacity. In practice, this means you and will have more say over what will happen to you.

There are two types of LPA:

1) Health and welfare: can only be used when you do not have mental capacity and may cover decisions concerning your medical care, moving into a care home, life-sustaining treatment, your daily routine etc.

2) Property and financial affairs: can be used with your permission as soon as registered with the OPG and may cover decisions concerning payment of bills, access to bank or building society accounts, selling your home or collecting benefits or a pension.

Here is a comparison of some key points for you to consider when choosing between a GPA and an LPA:

	Lasting Power of Attorney (LPA)	General Power of Attorney (GPA)
Timeframe	At least 12 weeks to: • Choose your attorneys • Complete the relevant paperwork • The OPG to register so that it is effective.	Approximately 1 week to: • Choose your attorneys; • Complete the document • The GPA will be effective when you have signed.
When can the power of attorney be used?	Health & Welfare can only be used when you are unable to make decisions due to mental incapacity. Property & Financial affairs may be used, at your direction, once registered with the OPG.	As soon as you sign the document and it is witnessed.
Am I eligible to make the power of attorney?	Yes if you: • Are aged 18 or older; and • Have mental capacity	Yes if you are: • Are aged 18 or older; and • Have mental capacity
Do I need mental capacity for the power to be used?	No	Yes

For further questions in relation to the above, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Although a lot of employees are working from home at the moment, they are still entitled to take time off as holiday (even if at the moment, there may not be anywhere nice for them to go!).

Under statute, a full time employee is entitled to a minimum of 28 days holiday a year. The contract of employment may allow for more, but 28 days is the minimum. Subject to some specific exceptions, an employee must use their holiday entitlement in their holiday leave year or, unless the employer agrees otherwise, it will be lost.

As a result of the Coronavirus crisis, there has been a change in the law regarding the taking of holidays. Now, an employee can carry over up to 20 days holiday per holiday leave year into the following two holiday leave years.

However, an employee will only be able to do this if it was not reasonably practicable for them to take their holiday as a result of the effects of Coronavirus. This could be, for example, because the employee is self-isolating and too sick to take holiday, or, say, because they work in a hospital and are not able to take leave. An employer may prevent the carrying over of leave if they have “good reason” but so far it is unclear what this would be.

From an employer’s point of view, they may not want employees to be accruing too much holiday in the current crisis, only for lots of employees to then start requesting to take holiday once the crisis subsides and people stop working from home.

An option for an employer to deal with this is to require an employee to take holiday at a particular time (even if the employee is working from home).

The employee must be given notice of this, and the notice must be twice as long as the length of holiday the employer would like the employee to take. So, for example if an employer would like an employee to take 5 days holiday, it must give the employee 10 days’ notice of this.

If you have any employment law queries, please do not hesitate to contact David Nathan at [email protected] or on 020 7822 2247.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

CGT: changes to entrepreneurs’ relief lifetime limit

The government has confirmed that the entrepreneurs’ relief (ER) lifetime limit is reduced from £10 million to £1 million, with effect for qualifying disposals made on or after 11 March 2020 and certain disposals made before 11 March 2020.

Legislation, which will be included in the Finance Bill 2020, will:

• Provide that the lifetime limit must take into account the value of ER claimed in respect of historical qualifying gains;
• Introduce provisions that apply to forestalling arrangements entered into before 11 March 2020 with the result that the new lower lifetime limit will apply to such arrangements unless the parties demonstrate (via a statement made by the transferor in a claim, which is stated in a technical note to be in addition to the normal ER claim) that they did not enter into the arrangements with the purpose of obtaining a tax advantage by reason of the timing rule in section 28 of CGTA 1992 and, where the parties are connected, that they entered into the arrangements for wholly commercial reasons.

In addition, where shares have been exchanged for those in another company on or after 6 April 2019 and before 11 March 2020 and an election is made under section 169Q of TCGA 1992 on or after 11 March 2020, the disposal will be treated as taking place at the time of the election for ER purposes (meaning that the new lifetime limit of £1 million will apply), if either of the following applies:

• Both companies are owned or controlled by substantially the same persons;
• Persons who held shares in the first company hold a greater percentage of shares in the second company than they did in the first company and, on 11 March 2020, the personal company test, the trading company and the employee/officer test are met in respect of the second company (section 169I(6), TCGA 1992).

 2% SDLT surcharge for non-UK resident buyers of English and Northern Irish residential property

A stamp duty land tax (SDLT) surcharge of 2% will be introduced for non-UK resident buyers of English and Northern Irish residential property with effect on and from 1 April 2021.

A refund of the surcharge will be due to buyers who become UK resident after their purchase.

Transitional measures will be introduced for contracts that have been exchanged before 11 March 2020 but are completed or are substantially performed after 1 April 2021.

The measures will be included in the Finance Bill 2021. The government will also publish a summary of responses to its consultation on the measure in due course.

For further questions in relation to tax-related issues in general or on the above article, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

One of the key aspects of tax residence is the days an individual spends in the UK in the tax year combined with the number of ties (namely, family tie, accommodation tie,  work tie, 90-day tie and country tie) that that individual has.

Broadly the more ties that an individual has, the fewer days they can spend in the UK before being treated as tax resident. For this purpose, a day is defined as ‘any midnight’ spent in the UK and so days of arrival will count as a day, whereas days of departure will not. There is an exception to this rule which disregards a number of days spent in the UK that relate to ‘Exceptional Circumstances’.

Within their guidance, HMRC has provided examples of what constitutes an exceptional circumstance. This list is non-exhaustive but includes national or local emergencies and sudden or life-threatening illness or injury.

According to HMRC’s updated guidance note, the list of exceptional circumstances has been extended to cover a number of certain Covid-19 related circumstances, such as if an individual:

• is quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus;
• find themselves advised by official Government advice not to travel from the UK as a result of the virus;
• are unable to leave the UK as a result of the closure of international borders; or
• are asked by their employer to return to the UK temporarily as a result of the virus.

These will only constitute exceptional circumstances if the individual had previously intended to leave the UK at an earlier date, and the individual retains the intention to leave as soon as it is possible to do so.

Given the additional unprecedented restrictions that have been put in place at the start of this week, one (or more) of the above circumstances may apply to individuals. It is useful to note though that if the exceptional circumstances apply, then the maximum number of days that may be excluded is 60 days per tax year.

This could affect an individual’s UK tax residency for either the 2019/20 or 2020/21 tax year. The most immediate tax consequence of becoming tax resident in the UK is that individuals are subject to tax on their worldwide income and gains, save for specific rules for non-UK domiciled individuals. Non-UK tax residents are only subject to tax on their UK source income and gains related to UK residential property. This may lead to exposure to a large (and unexpected) UK tax liability, as well as a filing requirement in the UK.

For further questions in relation to tax-related issues in general or on the above article, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

كورونا

يواجه العديد من الزوار الذين من المقرر أن تنتهي تأشيراتهم أو انتهت صلاحيتها بالفعل الوضع حيث لا يمكنهم السفر إلى بلادهم بسبب قيود السفر أو العزلة الذاتية المرتبطة بفيروس كورونا.

نشرت وزارة الداخلية توجيهات تؤكد عدم معاقبة هؤلاء الزوار باتباع قيود السفر وتمديد تأشيرتهم الحالية حتى 31 مايو 2020

ومع ذلك ، لن يتم منح هذه الامتدادات تلقائيًا ويجب على المتضررين إخطار وزارة الداخلية عن طريق الاتصال بقسم متخصص يسمى فريق Coronavirus.

قد يواجه أيضًا العديد من حاملي تأشيرات المملكة المتحدة الموجودين حاليًا في الخارج وغير القادرين على العودة إلى المملكة المتحدة مشكلة تتعلق بتلبية متطلبات إقامتهم في المملكة المتحدة ، ولكن إرشادات وزارة الداخلية غير واضحة في الوقت الحالي. نوصي بمواصلة التحقق بانتظام من موقع وزارة الداخلية للحصول على إرشادات جديدة أو الاتصال بالمحامين في GSC.

لمزيد من التفاصيل يرجى زيارة Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents أو الاتصال بالسيد حاتم علي عبر عنوان بريده الإلكتروني [email protected]

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.