Obligatory Budget Summary

Not anything you won't have seen elsewhere this, but thought we might as well summarise yesterday's budget, given that it is the first in a generation to make such drastic changes to both taxation and benefits regimes

Corporation Tax will be cut next year by 1% to 27%. Annual reductions will then be imposed until the rate reaches 24%.

The Small Companies tax rate will reduce to 20%.

On 4th January next year, the main rate of VAT will rise from 17.5 to 20% - bad news for shoppers and bad news too for those of us in service sectors who are obliged to charge VAT on our services.

More bad news for higher rate tax payers with capital assets - the rate of Capital Gains Tax rises by 10% to 28% as from midnight last night. Those with investment properties on the market at present will be amongst the first to suffer that hike.

To add to that particular misery, the annual exemption for CGT remains at £10,100.00 but will apparently continue to rise with inflation.

The personal income tax allowance will increase by £1,000.00 in April, taking the amount that you can earn before paying income tax up yo £7,475.00

However, higher rate taxpayers will not benefit from that change, and the higher rate income tax threshold will remain frozen to 2013-14.

James Maxey, head of Dispute Resolution says....

The Sunday Times this week seemed to hit the right note with an article on page 9 of the Business Section headed "Try not to see your customers in court".

For the relatively small claims which make up most of the county court claims issued, the main difficulty lawyers have is delivering a cost effective solution. Factor in the wasted management time and the risk, whatever it may be, of losing, and you quickly see how suing on a modest dispute is often bad news even if you win.

A face to face meeting to try to resolve the dispute consensually is usually the best way forward, says the Times. Quite right. And if that does not work, whether or not litigation follows, consider mediation as a serious option. Yes, it may mean sharing the baby, but if you factor in the savings in risk, costs and time it usually offers a viable outcome.

And if you are a defendant reading this blog, does it mean things have gone soft and you can exploit opportunities to avoid paying? Not really. With the jittery economy we have today, more and more emphasis is being placed credit scoring and so forcing your opponent into suing and ending up with a judgment against you is seriously bad for your financial health. So even if your antics meant you got away without paying your debts on this occasion, was it really worth ruining your personal and business reputations for years to come?

Think about that next time you need to talk to your bank. So either everyone loses, or everyone wins.

I know which I would prefer.

Leaving More Than Your Money

Like millions of other Britons (although not nearly enough!) I regularly donate blood. I'm also on the bone marrow register (bit scary!) and the organ donation register so that in the event of my death my family aren't faced with making a decision about whether I'd want my useable bits and pieces given to someone in need.

But have you ever thought about what happens if you decide you want to donate your whole body to research and not just the organs for transplant purposes? Many people believe that they can simply express that wish in their Will and that their executors will sort it all out.

However, under the Human Tissue Act 2004, which came into force in 2006, anyone who wants to donate their body to medical science must give his or her written consent. Consent cannot be given by anyone else after death - so you cannot give an instruction in your Will (well you can but it may well not be accepted by any medical school or research facility).

A consent form can be obtained from your local medical school and a copy should be kept with your will. You should also tell family, close friends and your GP that you wish to donate your body so that the necessary steps can be taken as soon as possible following your death.

More cheery subjects next time!

Exciting News of the Day

Last night saw the annual Buckles Charity Quiz Night.

7 teams from the various departments in the firm competed for glory but there could be only one winner!

Those winners were the Property Department followed in joint second by Private Client and Dispute Resolution.

The evening's nominated charity was the Children of Chenobyl - so thanaks to everyone from the firm who attended and helped to raise money for an extremely worthwhile cause!

HIP Update

So the new regulations have now been published giving the details of the suspension of the need for a Home Information Pack.

As stated in a previous post, there will still be a requirement to produce an EPC (Energy Performance Certificate - just like the thing you see on the front of fridges and washing machines telling you how efficient they are) but rather than having to have that in place before the property can be marketed, the only requirement will now be that the EPC needs to have been commissioned before the property can be marketed.

Additionally, and in bonus good news for sellers, the EPC will be valid for 10 years rather than the current 3.

More Protection for Vulnerable Homeowners

Sale and rent back (SRB) involves individuals—often those facing financial difficulties—selling their home at a discount in return for the right to remain as a tenant for a set period. Following an investigation by the Office of Fair Trading, which confirmed that many SRB consumers were not being treated fairly, the government asked the Financial Services Authority (FSA) to regulate the market.

Regulation has been in place since last year but the full regulation system will come into force on 1st July 2010.

The key provisions of the new regime are as follows:

SRB customers must be given security of tenure for a minimum of five years, through the use of a fixed-term, assured shorthold tenancy agreement.

Firms offering SRB products must meet capital resources requirements and have professional indemnity insurance.

There will be a 14-day cooling-off period to give consumers more time to make decisions and seek advice on sale and rent back.

A valuation must be carried out by a competent valuer who is independent of the SRB provider.

The valuer will be liable to the customer as well as to the SRB firm.

The firm must carry out an "affordability and appropriateness" check for all SRB sales to make sure that the SRB deal is right for the consumer.

Cold calling and dropping promotional leaflets through letter boxes will be banned.

The use of terms like "fast sale", "rescue" and "cash quickly" are prohibited in promotional literature.

A risk warning must be used in SRB adverts.

This is good news for consumers who are thinking of using these products and may be desperate to stay in their homes at any cost - the system should ensure that the deal isn't entirely in the SRB company's favour.

Anyone considering one of these products should seek legal advice before signing any documentation.

Cause to celebrate!

Common sense has stuck its head above the parapet!

The government has with immediate effect suspended the need for the preparation of a Home Information Pack when selling your house.

So not only will you be able to get your house onto the market sooner (because you won't have to wait for the HIP to be prepared) but the cost of the HIP (averaging around £300.00) will no longer be a consideration for sellers.

The need for an Energy Performance Certificate (EPC) remains.

It's a shame for all the estate agents touting for HIP business, but good news for the rest of us!