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Autumn 2007

Time, energy and money

The Energy Performance of Buildings Directive (EPBD) is likely to affect a significant number of UK commercial properties in the next few years. Furthermore, many people are not fully prepared for it.

Investors, owners, landlords and tenants involved in commercial property should note four key provisions of the Directive:

As part of the Energy Performance of Buildings Regulations 2007, Energy Performance Certificates (EPCs) are being introduced for all new build and existing commercial property over 500m² from 6 April 2008.

The purpose of EPCs is to contribute towards reduced emissions from the built environment and its users and to provide a way of standardising property products between member states.

The EPC will show the amount of carbon used by the energy demand of a building, on a scale of A-G. The calculation of the energy use is based on the asset rating of the structure of the building. It will be accompanied by a Recommendations Report, which sets out ways in which the energy efficiency of the building can be improved.
The provision of an EPC will be the responsibility of:

The cost of getting surveys done for EPCs could range from £130 for new-build to £1790 for large commercial premises, or more.
Although some of the detail in the regulations remains unclear, those involved in property should consider the effect that they could have on their properties and what actions they might need to take.

For further information contact Rod Campbell on 01483 887766 or click here

Proposed timetable
6 April 2008 - EPCs required on the construction, sale or rent of commercial buildings over 10,000m²
1 July 2008 - EPCs required on the construction, sale or rent of commercial buildings over 2,500m²
1 October 2008 - EPCs required on the sale or rent of all remaining commercial buildings
DECs required for all public buildings over 1,000 m²
4 January 2009 - First inspection of all existing air-conditioning systems over 250kW must have happened by this date
4 January 2011 - First inspection of all existing air-conditioning systems over 12kW must have happened by this date


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Careful what you write!

The importance of ensuring that terms in a contract are defined clearly and fully was highlighted in a recent court case where the contract definitions were in dispute.

The case concerned the definition of ‘additional residential payment’ which one party contended was £900,000 based on the definition in the contract, while the other argued that it was £4.6 million.

Usually, the courts will not take into account any evidence as to what was said, written or implied in any pre-contract negotiations that may have taken place.

Nigel Maud adds, “There has been a slight shift in the court’s attitude recently, where the meanings of disputed words have been determined by the parties’ pre-contract negotiations, under what has been referred to as the ‘private dictionary inroad’.

“However, in this particular case the court held that the ‘private dictionary inroad’ should not extend to cases where the word, phrase, clause or term in dispute is expressly defined.”

For further information please contact Nigel Maud on 01483 887766

 

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Dangers of insolvency

It is not unusual for directors to make loans to their companies when that company is experiencing cash-flow difficulties. Be warned, however, that if the company becomes insolvent it might not be possible to get the money back!

Nigel Maud explains, “This is because, where a company becomes insolvent, the director is not able to simply pay back the money he has lent the company in preference to other creditors. If he does, the liquidator may be entitled to reclaim any money that has been paid in preference.”

In a recent case, a director of a pub had made a loan to his company during a period of financial hardship. He later repaid himself the money when the company was sold. In addition to this, he had authorised a payment of £5000 to his co-director.

The administrator claimed against the director for £5000 to £10,000. In negotiations with the administrator, the director made an offer to repay £5000, but there was no formal agreement.

The court held that in the absence of an agreement, the administrator was entitled to claim the entire sum from the director that he’d repaid in preference to the other creditors, together with the £5000 paid preferentially to his co-director.

For further information please contact Nigel Maud on 01483 887766


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The ‘Age Old’ problem…

The new age discrimination laws have had their ‘first birthday’ and the results of a recent poll by the The Employers Forum on Age (EFA) suggest that ageism in the workplace is still endemic.

The new rules relate to recruitment, promotion, retirement, pay, promotion, redundancy and pension provision.
Employees can work past the age of 65, but only if their employer grants permission to do so. Of course, there is a caveat and it is not as simple as this. If employers refuse to grant permission, the refusal must be based on ‘objectively justified’ reasons.

If your company has a compulsory retirement age, this may be something that will need to be reviewed in the future, as the EFA is calling on employers to remove mandatory retirement ages.

The EFA also found that young workers are also affected because older workers were being paid more than them for doing the same job.

Elsewhere, the British Youth Council also contends new ageism laws are being broken by the three-tier minimum wage system.

For further information please contact Gerard Gibbs on 01483 887766


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Welcome news on Inheritance Tax

“The changes to IHT announced in Alistair Darling’s Pre-Budget Speech will be a boon to married couples and civil partners,” said Paul Tobias, Head of our Trust & Investment Department.

Paul added, "The new "transferable nil rate band" for spouses and civil partners will enable the personal representatives of a surviving spouse or civil partner to claim not only that person’s IHT nil rate band exemption but also a proportion of a second exemption, equivalent to the proportion of the exemption that was not used by the first spouse or civil partner to die.

"Potentially, therefore, an IHT exemption of £600,000 could be claimed by the personal representatives of a surviving spouse this tax year and this maximum will increase to £700,000 by 2010."

This will greatly simplify IHT planning for many couples, who will no longer need to make complex and costly trust arrangements simply to ensure best use of their IHT allowances.

Paul added, "The announcement that existing widows/widowers and surviving civil partners may also benefit from the transferable nil rate band whenever their partner died is an unexpected bonus."

Hart Brown will shortly have a factsheet on these IHT changes. For a copy, please contact Shaun Parry-Jones on
01483 887733

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Family team move

With Surrey reputedly being the “divorce capital of England”, it is important for solicitors offering a family law service to gear up suitably. With that in mind, Hart Brown has moved its Family law team to one, central location in Godalming and has expanded it.

The Godalming office – at 1 Lower South Street – is conveniently located within easy walking distance of the mainline station (services to and from Waterloo about 45 minutes) and is readily accessed from the A3. It has on-site parking for clients.

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Profile - Family Law

This issue we are pleased to focus on Sharon Powell, a Senior Solicitor who joined our Family department in Godalming in October.

Sharon Powell

Sharon has practised family law for over 20 years and is experienced in all types of matrimonial work, with particular expertise in the financial implications of divorce.

After graduating from Leicester University, Sharon studied at Guildford College of Law. She qualified as a solicitor in 1986 and, more recently, worked for a number of years as a Partner in a large Surrey law firm.

She has qualifications in both mediation and collaborative family law and is also a Resolution accredited specialist.
Sharon says, “I feel clients benefit particularly from collaboration when negotiating over family issues. During collaboration the parties and their respective lawyers sit in the same room and work together to find solutions.

Clients have often said they feel that this puts them back in control and really helped with the negotiations, without the need for court intervention.”

When not at work, Sharon’s attention is focused mainly on her family.

 

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Appointments update

As well as Sharon Powell (see page 3), Ursula Martiniussen joined the firm in October.

Ursula is an Employment lawyer at our Guildford offices. She trained with a firm in Hertfordshire before qualifying this September. During her training, Ursula was awarded the prize for the best trainee solicitor in Hertfordshire by the Hertfordshire Law Society.

Promotions
Hart Brown is pleased to announce that the following people have been promoted for their performances, commitment and hard work.

Emily Wiggins to Associate - Trust & Investment Department
Sam Dodd to Associate - Commercial Property Department
Rajani Beeharry to Associate - Residential Property Department
Peter Wickwar to Senior solicitor - Trust & Investment Department


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Fit to work

The Hart Brown Business Squash League (in association with the University of Surrey (UniSport) and Varsity Centre) is in its third year and thriving.

20 teams have now signed up to try and wrestle the trophy from last year’s surprise winners, John Pidgeon & Co.
Favourites again this season are Bessler Hendrie and the Surrey University team but anything can happen, with up-and-coming teams from Baker Tilly, PKF, Philips and of course the organisers, Hart Brown.

It’s not all about the squash, it is also an excellent networking opportunity to meet and socialise with other like-minded individuals from local businesses in the Surrey area over a buffet lunch.

If any businesses have three players who would be interested in joining the squash league please contact Debra Tester on 01483 887502


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In Brief

As this year draws to a close I am pleased to be able to look back over many successes.

Hart Brown has welcomed many skilled and valuable new members of staff this year and continues to grow and develop across all departments. Our Family Law department, in particular, has gone from strength to strength, with new joiners bringing a fresh approach to their roles.

In addition to providing a high quality service to individuals and businesses, the firm has been able to provide clients and members of the public with several informative seminars on a range of subjects throughout the year. These have been very well attended, as was our popular and high-profile Hart Brown Economic Forum which attracted over 350 delegates.

As we approach Christmas, giving is on all of our minds and I am delighted to report that Hart Brown’s continued efforts for its charities, The Esther Benjamins Trust and Surrey Air Ambulance, have been well supported at a number of popular events, including, recently, our Haunted House dinner at Loseley Park. Since April, we have raised a total of £30,510 which has been donated to a number of charities, including those mentioned here.
I hope you have enjoyed this issue and our earlier issues and I wish you all a very Happy Christmas and New Year.

Bettina Brueggemann – Managing Partner


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