Chat With Chebseys Newsletter - February
February Newsletter
Introduction From Keith Chebsey Click To Read
Benjamin Franklin said that “by failing to prepare, you are preparing to fail”. Certainly this is the case in the legal world. When a solicitor goes into negotiations on behalf of a client or goes to court much of the final outcome is based on the preparation that goes into the case. If you are not prepared then you are on the back foot to start with even though you may have the stronger case.
However, it is not just in the legal world that you need to prepare. The same should apply in your every day life. I have always thought that it is vital that from time to time you look at your situation and make sure that you are prepared for certain circumstances. For example, in these difficult times when there is much uncertainty around the lifespan of business survival or employment it makes sense to plan for the worse case scenario. Have you thought about re-structuring your affairs to transfer assets into the more suitable ownership? Could a corporate restructure assist you? Have you got all your insurance policies up to date and to hand? If you are aware that something may be on the horizon it makes sense to take some advice in order to make sure that should it happen you are properly prepared and minimise the impact on you (or even eliminate it).
Similarly preparation applies to other aspects of your life. If you are getting married could a pre-nuptial agreement make sense to prepare for the worst? Is your will up to date and is it easy to find? Do you have a schedule of assets already drawn up? Both of these will make any inheritance easier.
Of course in February we have Valentines Day and this is no different from any other preparation. A bunch of flowers hastily bought at the petrol station on the morning of 14th February will simply not cut it with many people, so prepare in advance if you need to be doing something on that day. With all the mentions of that day in this edition there can be no excuses for forgetting. Now if you excuse me I just need to pop down to the shops quickly…..
M. Keith Chebsey
Director and Chairman
February 2011
Office News Click To Read
New Look Chat With Chebseys
It is now a year since we launched Chat with Chebseys as a way of keeping our clients and contacts up to date with not only what is happening in the legal world which may be of interest to them but also what is happening with Chebsey & Co.
We have been tweaking the look of Chat with Chebseys over the last year to improve it but to mark the occasion of it’s 1st anniversary we thought that a subtle makeover was required. We hope that the resulting look is not only an improvement over previous editions but that it is just as easy to read. We would be interested to hear what you think about the new format; email your thoughts to newsletter@chebsey.com
Litigation Click To Read
Avoiding Bad Debt
Corporate insolvencies and individual bankruptcies are likely to be the highest on record this year. Company closures have knock on effects both on suppliers and customers and on employees. The solution – avoid aged debt! Sounds simple but most companies can benefit from tightening up on their credit control and debt collection procedures.
- Take credit references on your major account customers
- Ensure that personal guarantees are also taken for limited company clients
- Seek the authority of any individual customers to do a personal credit search or obtain a bank reference
- Make sure that you take money up front wherever possible
- Get your terms and conditions signed on opening up an account or dealing with new customers
- Review your terms & conditions to ensure that they offer you the maximum protection possible at law
If the softly, softly approach fails you could give us a call and we can take over. We will offer a choice of approach depending on the amount due and the financial position of the debtor.
There are two main approaches - the threat of insolvency proceedings and the threat of court proceedings
These two approaches are very different and can, for the unwary, have some unintended consequences. Of course the majority of debtors do pay up once they receive a solicitors letter! We can operate an effective debt recovery service for you when your initial approaches have failed. We can also provide effective terms & conditions of trading and review existing.
For further information on these or other issues contact Sue Bean (smb@chebsey.com), Mandeep Chima (mcc@chebsey.com) or Amy French (amf@chebsey.com) on 01494 670440.
Entertainment Licensing Click To Read
Romance is in the air…….
On 29 April 2011, the nation will celebrate the Royal Wedding of Prince William and Kate Middleton. To mark the occasion, the government has declared the day a public holiday.
Many pubs and other licensed premises may wish to open later over that weekend to take advantage of the celebrations and the long weekend.
Currently, licence holders have to apply for a Temporary Event Notice (TEN) to extend their opening hours for a limited period. However, these are subject to an annual limit of 12 and may be refused if the Police object on the grounds of crime and disorder.
The Royal Wedding is a time of national celebration and the government wants everyone to be able to participate. For this reason, the government is considering temporarily extending the opening hours of licensed premises in England and Wales to 1am on Friday 29 April and Saturday 30 April 2011. Keep up to date with Chebseys Chat to find out whether this extension has been granted by the government in the next issue…
For further information on these or other issues relating to Entertainment Licensing or Training Contact Sally Hills (sjh@chebsey.com), or Helen Woodend (hew@chebsey.com) on 01494 670440
Property law Click To Read
Stamp Duty Land Tax – new rate to be applied for high value properties
Currently the highest rate for the payment of stamp duty land tax (SDLT) on residential properties is 4%. This applies to any purchase of a residential property where the consideration exceeds £500,000.
A measure was included in the Finance Bill 2010 to add a new rate of 5% for purchase of residential property where the consideration exceeds £1 million. This new higher rate will apply to residential purchases where the effective date of the transaction (normally the date of completion) is on or after 6 April 2011.
Capital Allowances Tax Claim
If you own commercial property in the UK or furnished holiday letting property in the UK or the European Economic Area you may be entitled to claim back Capital Allowances. These allowances can often run into tens or even hundreds of thousands of pounds back to you.
We suggest that if you have a property that may be eligible that you speak to your accountant about this possibility. Alternatively contact us and we will be able to put you in contact with a company who specialises in such claims.
For further information on these or other issues relating to Property Law contact
Alistair Bertrand (aab@chebsey.com) on 01628 660077, Helen Woodend (hew@chebsey.com) on 01494 670440, David Wachtel (dmw@chebsey.com) on 01923 775651, or Ashley Perkins (aap@chebsey.com) on 01753 833737
Employment Law Click To Read
Retirement of Retirement Age
The government recently announced that it will abolish the compulsory retirement age of 65 by 1st October and transitional arrangements will be introduced on 6th April.
The government has turned down requests from employers to delay the abolition and at present there are no definite proposals to permit older employees to request flexible working which would accommodate phased retirements. Neither employers nor employees have long to adapt.
Employees after October will no longer face the prospect of being dismissed just because they are 65. However, they may instead face more intensive performance management which might have the effect of dismissal on the grounds of capability before 65, whereas previously employers would have waited for them to retire.
Employers will now have to manage performance more carefully and alter their workforce planning, although already many large UK companies no longer have a compulsory retirement age and USA, Canada and Australia have outlawed mandatory retirement without any apparent ill effects.
Employers can impose their own retirement age providing it can be objectively justified. In practice this will be difficult. It is interesting that the government has excluded the police and air traffic controllers from the new law but, it seems, not ambulance workers or fire fighters. ACAS is to introduce guidance to help employers but no doubt many will wait to follow path finding companies.
For further information on these or other issues relating to Employment Law contact
Laura Poole on (lcp@chebsey.com) on 01494 670440 or Matthew Welch (mrw@chebsey.com) on 01225 401200
Wills, Trusts, Probate and Taxation Click To Read
How much is that really worth?
When somebody dies it is often necessary to obtain a valuation of their assets – even if there is no inheritance tax payable. The valuation may be required for tax purposes but may also be required simply to help with the distribution of the estate.
The temptation is simply to place a value on the property yourself. This is especially the case when there is tax to pay as the value is often thought to be low. “Well, it was worth X a few years ago so if we add a bit more on to take into consideration inflation then that is probably about right” is a common thought with antiques, for example. However, fashions change and something that was valuable a few years ago may not be so sought after now (which means that too much tax may be paid on it). Similarly something that you think is not valuable and do not pay much attention to may actually be more valuable than you think. A recent talk by Amersham Auction Rooms stressed the importance of getting a proper valuation by experts rather than assuming that you know the value of any assets in a probate.
Amersham Auction Room can be contacted at www.amershamauctionrooms.co.uk
For further information on these or other issues relating Wills, Trusts, Probate and IHT to please contact; Julie Tompkins (jat@chebsey.com) on 01753 833737, Brian Wade (baw@chebsey.com) on 01494 670440, Malcolm Tanner (mjt@chebsey.com) on 01628 660077 or Johanna Knott (jlk@chebsey.com) on 01923 775651
Crime and Road Traffic Defence Click To Read
Strict Offences
Most people's understanding of a crime is that a person knows when they are committing an offence e.g. someone knows they are doing wrong when they steal a car.
However, many people commit offences that they did not actually realise they had committed, and they didn't intend to commit them. Such offences are called Strict liability offences, and they are important because there are currently over 5,000 of them in English law.
Most strict liability offences are 'regulatory', e.g. the preparation and sale of food or the provision of pharmaceuticals. These regulatory offences can affect us all, and include a great many road traffic violations e.g. failing to display a tax disc (even if the driver is unaware it has fallen off the windscreen), or speeding without realising it.
Sometimes these offences can seem very unfair, but are justified by the state as necessary to ensure public safety. A possibly unjust example could be where a driver is guilty of driving without insurance even if after decades of his insurance company automatically renewing his insurance, they stop it one year without him realising.
A similarly strict example is where parents commit the offence of failing to secure their child's regular attendance at school. Even if the parents are unaware of the lack of attendance of their child, or have done all that is reasonable get him to school (short of sitting in lessons!) and yet he continues to be truant, they are guilty.
In fact many strict offences are even imprisonable, such as selling a lottery ticket to a child - maximum two years' imprisonment.
Some strict liability offences have a "due diligence defence". In simple terms this means that if the accused can show that they did all they reasonably could to avoid the commission of the offence they will not be guilty e.g. a restaurant showing it used a thorough pest-control system if accused of health and safety violations due to an infestation of vermin.
Despite the difficulties in defending strict offences, if you face prosecution for any offence you should seek advice from a solicitor, who can determine whether you have a defence, or maybe even negotiate an alternative to prosecution e.g. a fixed penalty notice (which is not a conviction). If there is no defence, a solicitor can prepare an articulate argument to attempt to persuade the sentencing court to impose a lesser punishment.
For further information on these or other issues relating to Crime and Road Traffic Defence contact Caroline Dunne (cad@chebsey.com) , Alex Herowych (aah@chebsey.com), Simon Fullerton (sif@chebsey.com), Rachel Adams (rda@chebsey.com) or Graham Tolfts (gst@chebsey.com) on 01628 600850.
Family Click To Read
Valentines Day Reminder
Our family department would like to make their now annual reminder to all of our readers that Valentines Day is shortly coming up. Whilst we are always happy to deal with your divorce we think that a much better idea is to try and avoid the situation at all. A gesture on February 14th can go a long way but can also be the breaking point if missed.
If you still forget to do something don’t say we haven’t warned you – although we promise not to say “I told you so” if you then do end up needing our assistance!
For further information on these or other issues relating to Family Law contact Jeff Thomas (jmt@chebsey.com) on 01494 670440, Niki Christopher (ncc@chebsey.com) on 01923 775651, Manjit Bains (mkb@chebsey.com), Jackie Smith (jas@chebsey.com), Safeena Tufail (sat@chebsey.com) on 01628 660077.
Spain Click To Read
Spanish banks and auctions
A very strange case has recently been reported in Spain recently. The case relates to banks selling properties at auction and what happens if the amount recovered is not enough to satisfy the mortgage.
In this particular case a property in Spain was repossessed by the bank who then went on to sell it at auction. The sale proceeds were used to satisfy part of the mortgage outstanding as owners could no longer pay their monthly obligations.
In this particular case the amount received at auction for the property was less than the amount that was owing to the bank on the mortgage, which meant that there was still an amount due to the bank. The question that was being asked in this particular case was "Can the bank go after the balance outstanding?" Naturally you would say that they can - there is a debt secured on the property, the property sale didn't realise enough to pay the debt and so the bank can try and attack other assets (including those in another country) for the difference. This is always the risk of properties in negative equity.
However, in this case, which was held in Navarra, the judge saw things differently. What he said was that when the bank granted the mortgage they had valued the property and that at the time of their valuation they believed that the property was worth more than the loan secured on it. The judge therefore came to the conclusion that as the bank’s valuation was higher than the amount of the loan that them repossessing the property was enough to satisfy the loan and therefore they could not go after their clients for the balance.
For further information on these or other issues relating to Spanish Law contact
Diego Rubio (drm@chebsey.com) or Peter Esders (pje@chebsey.com) on 01494 670 440.
Something Fun Click To Read
Valentines Gas Lamp
By Stella Shepherd, Legal Cashier, Bath Office.
With this being the February issue of Chat with Chebsey I thought I would share a local attraction of my hometown with you: Frome has it’s very own Valentines Lamp! The lamp is dedicated to St. Valentine and is decorated with love hearts and an arrow. The base of the lamp is decorated in the shape of a heart with fresh flowers around it.
The beautiful lamp is located at the top of Catherine Hill in Frome. Apparently the Valentine lamp is the only working gas lamp in Somerset. Nearby to the lamp is a “love seat” for lovers to sit together.
Each Valentines day there is a ceremony and the light is lit.
Feliz Navidad y prospero Año Nuevo!
Staff Profile - Brian Wade Click To Read
Brian Wade
Wills, Trusts, Probate and Taxation
Brian attended Bradford Grammar School and Bristol University where he read Law and rowed in the University first crew. He then trained as a solicitor in Halifax, moving to Beaconsfield with his wife Jackie in 1969 when her parents retired there from North London. Brian was a partner for more than 30 years in another Beaconsfield firm of solicitors, where he first recruited Keith Chebsey, and some time after Keith left to form Chebsey & Co, Brian (and several others) left his previous firm and joined Keith.
Brian enjoys choral singing, being a recent member of Beaconsfield Operatic Society, and now sings with Amersham & Chesham Choral Society, the Newland Singers and Church choir. He enjoys gardening and horticulture - weather pemitting.
Why did I become a solicitor?
One of my friends in 6th form at school mentioned that he was considering training as a solicitor, and I thought that might be a good idea. And I'm useless at DIY and anything practical, so brains before brawn. I could never be a manufacturer of nuts and bolts or other widgets.
What is your favourite lawyer joke?
Some pompous lawyers I have met over the years.
What gets you up in the morning?
When he's staying with us, my three-year-old grandson, wanting to play games or me to read a story to him.
What is your passion?
It has to be cricket, and Yorkshire cricket in particular, to which I was introduced by my grandfather, taking me to Headingley cricket ground. He always sat in the same seat, with the same group of aged cronies around him, munching beef sandwiches and drinking cold tea which he said was the most thirst-quenching drink on a hot day. He and I enjoyed the cheerful banter, as well as Sir Len Hutton and Sir Don Bradman and (later) "Uncle Geoffrey" batting.
Which famous person, dead or alive, would you most like to spend a day with?
Captain James Cook RN, navigator, explorer, discover of New Zealand, the east coast of Australia and Great Barrier Reef and Pacific islands - and fellow Yorkshireman.
Tell us an interesting fact about yourself.
Both my parents, all four grand-parents and most of my great-grand-parents were born within a two mile radius of the small village where I was born. Well, there wasn't much Saturday night entertainment in the Yorkshire colliery village in those days.
Brian is based at our Beaconsfield office and can be contacted on 01494 670440 or baw@chebsey.com
