(With thanks to our work experience guy Liam)
In the past five years, the growth of social media has been impossible to miss. From individual bloggers through to large well-known sites such as Facebook, YouTube and Twitter, social media has now become a large part of today’s society. With such growth in such a short period of time, any legal issues raised are bound to be thin on case law. However, like the internet beforehand, whilst there are risks to social media outlets, the benefits can be great if it is regulated sufficiently.
What is Social Media?
For those unaware of the term ‘social media’, it is any way in which information of any kind can be shared across the globe in short periods of time. Whilst industrial media (newspapers, television and film) is set in stone as soon as it is made and aired to the public, social media is a current, ever-changing and truly global phenomenon. Largely based on the internet, social media encompasses many forms; from social networking sites such as Facebook or MySpace, to information collaboration sites such as Wikipedia, and to literally thousands of blogs all across the internet, worldwide. Social media aims to get information out to as many people as quickly as possible.
Risky Business
However, herein lies the problem. With the advent of up-to-the-minute news outlets and forums for any person to speak their mind, the business world has viewed social media as a potential legal hazard.
Confidentiality is an important aspect of any business. Nowadays, there is a risk that confidential data could (inadvertently or otherwise) be posted online. However, what constitutes as public or private? On LinkedIn (a business social networking site), any user who can view an employee’s account could potentially see other clients or customers contacted from that LinkedIn account. The question is, ‘if the information is online, does this fall into the public domain?’ The answer is ‘yes’ and, as a guideline, it is suggested that ‘if you shouldn’t talk about it to somebody not involved in it, you shouldn’t post it online.’
Most of the risk affecting the business world though deals with the employer’s relation to its (potential) employees. On a CV, few people (if any) note their sexual or religious orientation. However, social networking sites can make it easy to find such matters, leading to possible problems of discrimination. In employment, unless the company outlines all practicable steps to avoid harassment, then in the case of an employer accusing another (regardless of whether it happened outside the workplace), then the company is liable. In recruitment, although it is easy to deny that candidate was overlooked because of their personal views, if the candidate was to find out the real reason, successful claims are very likely to be made.
Potential for good
Despite this, there is the prospect of social media becoming the next major development in the business world. In the 1990s, the internet was viewed with suspicion as a prospective deterrent from work and causing a drop in productivity. Today, however, millions of people are dependent upon the internet to do their jobs. With social media something similar could happen, from promoting the positive image of the business in a blog, to targeted advertising campaigns to interested consumers on social networking sites, or even to opening up business opportunities with new clients found through social media outlets.
Solution
For now, the big problem of confidentiality and privacy is most applicable to many companies. It should be made clear to all employees of the potential damage of posting on the internet particularly as it is a public forum rather than a private one.
Wednesday, 28 July 2010
Wednesday, 21 July 2010
Checklist of key issues for small and medium-sized enterprises (SMEs) in the 22 June 2010 Budget by Louise Engel, Corporate Department
This checklist highlights the key issues for small and medium-sized enterprises (SMEs) in the 22 June 2010 Budget.
Key tax measures in the Budget
Corporation tax rates reduced from 2011-12
The main rate of corporation tax will be reduced to 27% (from 28%) for the year commencing 1 April 2011. This will apply to companies and groups whose annual profits exceed £1.5 million. Further annual reductions of 1% each subsequent year will also be made, culminating in a rate of 24% for the year commencing 1 April 2014.
The small companies rate of corporation tax will be reduced to 20% (from 21%) for the year commencing 1 April 2011. This will apply to companies and groups whose annual profits do not exceed £300,000.
Capital gains tax (CGT) rises to 28%
For gains arising on or after 23 June 2010, the rate of CGT increases to 28% for higher and additional rate taxpayers, trustees and personal representatives. Basic rate taxpayers will continue to be liable at 18%. The new rate will apply equally to any deferred gains that come into charge on or after 23 June 2010.
To a limited extent, a planning opportunity exists for the directors of owner-managed companies, who are able to control the amount of income that they receive in a given year. If such directors are planning to realise capital gains (for example, on the sale of a second home or an investment portfolio), they may be able to reduce their income levels for the year of the disposal in order to pay CGT at the lower rate.
Entrepreneurs’ relief increases to £5 million
With effect from 23 June 2010, the lifetime limit for entrepreneurs’ relief rises from £2 million to £5 million. This means that a tax rate of 10% will apply to the first £5 million of qualifying gains.
The increased lifetime limit will apply in relation to disposals on or after 23 June 2010. To the extent that any gains realised by the taxpayer before that date exceed the old £2 million lifetime limit of entrepreneurs’ relief, CGT will remain payable at the full rate of 18% on the excess, but only the £2 million of relief claimed will be set against the increased limit for future qualifying disposals.
Standard rate of VAT increased
The standard rate of VAT will increase (from 17.5%) to 20% with effect from 4 January 2011. The 20% rate will apply to supplies made on or after 4 January 2011 and acquisitions or importations taking place on or after that date. This measure does not affect supplies subject to other rates of VAT, such as the zero-rate or reduced rate.
Business
Corporate tax reform
The government announced a “roadmap for corporate tax reform”, with further details to follow in the autumn. The reform will be based on the government’s view that a broad tax base, a low corporate tax rate and a more territorial approach will make the UK’s tax system more competitive. The Budget Report states that “the manufacturing sector as a whole will pay less corporation tax as a result” of the government’s reforms.
Capital allowances: writing down allowances and annual investment allowance reduced
From 1 April 2012 (for corporation tax) or 6 April 2012 (for income tax), the annual rate of writing down allowances for both new and unrelieved expenditure on plant and machinery will be reduced to 18% (from 20%) and the annual rate for special rate pool expenditure will be reduced to 8% (from 10%). In addition, also from 2012, the maximum annual investment allowance will be reduced to £25,000 (from £100,000).
Small business tax review
The government has announced that it “remains committed” to a review of IR35 and small business tax, and that it will release further details “shortly”.
Zero-emission goods vehicles: 100% first year allowance
There will be a 100% first year allowance, subject to certain conditions, for the purchase of new and unused (not second-hand) zero-emission goods vehicles has been introduced. The allowance will have effect for a five-year period beginning on 1 April 2010 for companies (6 April for unincorporated businesses) until 31 March 2015 (5 April 2015 for non-corporates).
Employment and pensions
Enterprise management incentives (EMI) changes
The June 2010 Budget confirmed that a previously announced change to enterprise management incentives (EMI) legislation will go ahead. The change will enable companies with a permanent establishment in the UK to grant EMI options (currently, only companies which carry out a qualifying trade wholly or mainly in the UK can grant EMI options).
PAYE, workplace canteens and employer-supported childcare
The June 2010 Budget Report included the following announcements regarding PAYE and income tax measures:
• A commitment to explore ways of improving the PAYE system, starting with a consultation with employers and payroll providers on ways of capturing more frequent or even real-time PAYE data.
• A consultation on introducing powers for HMRC to require financial security where PAYE and NICs are at serious risk of non-payment. The consultation will also consider the proposed criminal penalty for failure to provide a financial security.
• Legislation to restrict tax breaks for workplace canteens will take effect from April 2011.
• Confirmation of changes to employer-supported childcare such as nursery vouchers, including the restriction of the tax benefits for higher and additional rate taxpayers, which will take effect for new joiners to a scheme on or after 6 April 2011.
NIC employer contributions
Employer NIC contributions will increase (from 12.8% to 13.8%) from 6 April 2011. The secondary (employers’) threshold will be increased by £21 above the Retail Price Index, also from 6 April 2011. At the same time, the upper earnings limit will be reduced to align it with the higher rate threshold.
Regional employer NICs holiday for new businesses
The government will shortly announce details of a scheme to promote the creation of new businesses in those parts of the UK that are most reliant on public sector employment. Those areas are Scotland, Wales, Northern Ireland, the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands and the South West.
During a three-year period, new businesses in these areas will be exempt from the first £5,000 of Class 1 employer NICs due in the first twelve months of employment. This will apply for the first ten employees hired in the first year of business. Subject to meeting the necessary legal requirements, the scheme is intended to start from 6 September 2010 but this has yet to be confirmed. Most kinds of business (including property and investment businesses) will be eligible for the scheme.
Research and development tax relief: abolition of IP ownership condition for SMEs
The government has announced that legislation will be introduced to abolish one of the conditions that a SME must satisfy in order to claim the enhanced tax relief for research and development (R&D) expenditure. Companies that are SMEs may claim an enhanced tax relief at the rate of 175% for qualifying expenditure on R&D.
One of the conditions that a SME company must satisfy in order to claim this relief is that the company owns any intellectual property (IP) deriving from the R&D to which the expenditure is attributable. The government has announced that this condition will be abolished. The change will have effect for any expenditure incurred by a SME company on R&D in an accounting period ending on or after 9 December 2009.
Enterprise Investment Scheme: investment in businesses “in difficulty” will not qualify
The Enterprise Investment Scheme (EIS) can be a valuable source of capital for SMEs: investors are entitled to tax reliefs, provided a number of conditions relating to the investee company are satisfied. The government announced in the Budget that EIS relief will not be available for investments in businesses that are in financial difficulty. This change will take effect from a date to be announced, irrespective of when the money was raised under the EIS investment. This means that the existing investments may be affected. The same change will also apply to investments by Venture Capital Trusts.
Key tax measures in the Budget
Corporation tax rates reduced from 2011-12
The main rate of corporation tax will be reduced to 27% (from 28%) for the year commencing 1 April 2011. This will apply to companies and groups whose annual profits exceed £1.5 million. Further annual reductions of 1% each subsequent year will also be made, culminating in a rate of 24% for the year commencing 1 April 2014.
The small companies rate of corporation tax will be reduced to 20% (from 21%) for the year commencing 1 April 2011. This will apply to companies and groups whose annual profits do not exceed £300,000.
Capital gains tax (CGT) rises to 28%
For gains arising on or after 23 June 2010, the rate of CGT increases to 28% for higher and additional rate taxpayers, trustees and personal representatives. Basic rate taxpayers will continue to be liable at 18%. The new rate will apply equally to any deferred gains that come into charge on or after 23 June 2010.
To a limited extent, a planning opportunity exists for the directors of owner-managed companies, who are able to control the amount of income that they receive in a given year. If such directors are planning to realise capital gains (for example, on the sale of a second home or an investment portfolio), they may be able to reduce their income levels for the year of the disposal in order to pay CGT at the lower rate.
Entrepreneurs’ relief increases to £5 million
With effect from 23 June 2010, the lifetime limit for entrepreneurs’ relief rises from £2 million to £5 million. This means that a tax rate of 10% will apply to the first £5 million of qualifying gains.
The increased lifetime limit will apply in relation to disposals on or after 23 June 2010. To the extent that any gains realised by the taxpayer before that date exceed the old £2 million lifetime limit of entrepreneurs’ relief, CGT will remain payable at the full rate of 18% on the excess, but only the £2 million of relief claimed will be set against the increased limit for future qualifying disposals.
Standard rate of VAT increased
The standard rate of VAT will increase (from 17.5%) to 20% with effect from 4 January 2011. The 20% rate will apply to supplies made on or after 4 January 2011 and acquisitions or importations taking place on or after that date. This measure does not affect supplies subject to other rates of VAT, such as the zero-rate or reduced rate.
Business
Corporate tax reform
The government announced a “roadmap for corporate tax reform”, with further details to follow in the autumn. The reform will be based on the government’s view that a broad tax base, a low corporate tax rate and a more territorial approach will make the UK’s tax system more competitive. The Budget Report states that “the manufacturing sector as a whole will pay less corporation tax as a result” of the government’s reforms.
Capital allowances: writing down allowances and annual investment allowance reduced
From 1 April 2012 (for corporation tax) or 6 April 2012 (for income tax), the annual rate of writing down allowances for both new and unrelieved expenditure on plant and machinery will be reduced to 18% (from 20%) and the annual rate for special rate pool expenditure will be reduced to 8% (from 10%). In addition, also from 2012, the maximum annual investment allowance will be reduced to £25,000 (from £100,000).
Small business tax review
The government has announced that it “remains committed” to a review of IR35 and small business tax, and that it will release further details “shortly”.
Zero-emission goods vehicles: 100% first year allowance
There will be a 100% first year allowance, subject to certain conditions, for the purchase of new and unused (not second-hand) zero-emission goods vehicles has been introduced. The allowance will have effect for a five-year period beginning on 1 April 2010 for companies (6 April for unincorporated businesses) until 31 March 2015 (5 April 2015 for non-corporates).
Employment and pensions
Enterprise management incentives (EMI) changes
The June 2010 Budget confirmed that a previously announced change to enterprise management incentives (EMI) legislation will go ahead. The change will enable companies with a permanent establishment in the UK to grant EMI options (currently, only companies which carry out a qualifying trade wholly or mainly in the UK can grant EMI options).
PAYE, workplace canteens and employer-supported childcare
The June 2010 Budget Report included the following announcements regarding PAYE and income tax measures:
• A commitment to explore ways of improving the PAYE system, starting with a consultation with employers and payroll providers on ways of capturing more frequent or even real-time PAYE data.
• A consultation on introducing powers for HMRC to require financial security where PAYE and NICs are at serious risk of non-payment. The consultation will also consider the proposed criminal penalty for failure to provide a financial security.
• Legislation to restrict tax breaks for workplace canteens will take effect from April 2011.
• Confirmation of changes to employer-supported childcare such as nursery vouchers, including the restriction of the tax benefits for higher and additional rate taxpayers, which will take effect for new joiners to a scheme on or after 6 April 2011.
NIC employer contributions
Employer NIC contributions will increase (from 12.8% to 13.8%) from 6 April 2011. The secondary (employers’) threshold will be increased by £21 above the Retail Price Index, also from 6 April 2011. At the same time, the upper earnings limit will be reduced to align it with the higher rate threshold.
Regional employer NICs holiday for new businesses
The government will shortly announce details of a scheme to promote the creation of new businesses in those parts of the UK that are most reliant on public sector employment. Those areas are Scotland, Wales, Northern Ireland, the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands and the South West.
During a three-year period, new businesses in these areas will be exempt from the first £5,000 of Class 1 employer NICs due in the first twelve months of employment. This will apply for the first ten employees hired in the first year of business. Subject to meeting the necessary legal requirements, the scheme is intended to start from 6 September 2010 but this has yet to be confirmed. Most kinds of business (including property and investment businesses) will be eligible for the scheme.
Research and development tax relief: abolition of IP ownership condition for SMEs
The government has announced that legislation will be introduced to abolish one of the conditions that a SME must satisfy in order to claim the enhanced tax relief for research and development (R&D) expenditure. Companies that are SMEs may claim an enhanced tax relief at the rate of 175% for qualifying expenditure on R&D.
One of the conditions that a SME company must satisfy in order to claim this relief is that the company owns any intellectual property (IP) deriving from the R&D to which the expenditure is attributable. The government has announced that this condition will be abolished. The change will have effect for any expenditure incurred by a SME company on R&D in an accounting period ending on or after 9 December 2009.
Enterprise Investment Scheme: investment in businesses “in difficulty” will not qualify
The Enterprise Investment Scheme (EIS) can be a valuable source of capital for SMEs: investors are entitled to tax reliefs, provided a number of conditions relating to the investee company are satisfied. The government announced in the Budget that EIS relief will not be available for investments in businesses that are in financial difficulty. This change will take effect from a date to be announced, irrespective of when the money was raised under the EIS investment. This means that the existing investments may be affected. The same change will also apply to investments by Venture Capital Trusts.
Wednesday, 14 July 2010
More charity mergers ahead? by Julian Rampton
Recently, Third Sector magazine reported that City Parochial Foundation and Trust for London were merging in an effort to become more flexible and to end confusion for grant applications.
When people think about charity mergers, it is usually with regards to the really large ones – for example, when Cancer Research UK was formed in 2001 through the merger of Cancer Research Campaign and Imperial Cancer Research Fund to create the biggest cancer research charity in the world. Or more recently in 2008, when Help the Aged and Age Concern combined to form Age UK.
Impact of the recession
In March 2009, the BBC reported on Charity Commission research that showed 52% of those charities questioned had been affected by the economic downturn which was an increase from 38% the previous year. Almost two thirds of charities within incomes over £1m said at that time that they were worried their work would be hit. At that time only 3% said they had considered collaborating with or merging with a charity.
In March 2010, The Charity Commission’s fourth Economic Survey of Charities demonstrated the continuing effect of the recession on charities in England and Wales. The key findings of the survey of 1,010 charities showed 59% of charities reported having been affected by the downturn, up from 38% in September 2008 and 56% in September 2009. Of those affected, 62% had experienced a drop in income. The research also found that larger charities were hit hardest, with 79% feeling the impact of the downturn and a third seeing an increase in demand for services. This disparity is also reflected when looking at the steps that charities took in response to the downturn, with 79% of the largest charities putting measures in place, compared to 31% of small charities.
Charity Commission encourages mergers
However, the Charity Commission actively encourages mergers – particularly amongst the smaller charities. As the regulatory burden has increased for charities who must grapple with both company law and charity law a merger can be an attractive way to reduce the cost of administration, save money on premises, facilities, marketing, legal and accountancy costs and improve governance. It published two toolkits for charities in September 2009 – Choosing to Collaborate and Making Mergers Work.
Charity merger issues
Sometimes there is considerable restructuring to do within a charity before it can consider a merger – and this can be demanding work where a charity has grown organically and rapidly over many years in response to demand for its services without a more strategic overview of the charity’s structure and tax efficiency.
Aligning charitable organisations requires careful consideration of complex legal issues regarding objects, operations and governance as well as obtaining permission from the Charity Commission for the new entity assuming a new entity is being formed and then registering the new organisation. Some of the old style trusts don’t even have the power to merge.
Yet in addition to the legal and financial work involved in a charity merger there are a host of personality and political issues to contend with that require careful attention by professional advisers who must be sensitive to the issues involved in aligning the vision and values of the range of stakeholders involved in each charity – its management, trustees, patrons, staff, volunteers and the groups it aims to help. There may also be major interest (and opposition) on any talk of mergers by the media and the public where the detail and complexity are not fully understood.
There is likely to be considerable concern about how the new trustee and management teams will be selected. Typically, there needs to be a key individual at each of the potential merging charities who can see the big picture benefits (and the likely stumbling blocks) and who can drive the merger discussions at a sensible pace – in a corporate environment this would be the chairman’s role. Even in a straightforward situation a charity merger is likely to take six months, so it is not a quick fix.
However, as the cost of the Government’s crackdown on public sector spending and the public further tighten their belts to deal with the austerity measures there is likely to be further pressure on charities with increased demand for services and further reduction in funds from the public purse and donations. I expect to see an increase in interest in mergers as a way for charities to reduce administrative costs and pool resources to achieve their goals.
When people think about charity mergers, it is usually with regards to the really large ones – for example, when Cancer Research UK was formed in 2001 through the merger of Cancer Research Campaign and Imperial Cancer Research Fund to create the biggest cancer research charity in the world. Or more recently in 2008, when Help the Aged and Age Concern combined to form Age UK.
Impact of the recession
In March 2009, the BBC reported on Charity Commission research that showed 52% of those charities questioned had been affected by the economic downturn which was an increase from 38% the previous year. Almost two thirds of charities within incomes over £1m said at that time that they were worried their work would be hit. At that time only 3% said they had considered collaborating with or merging with a charity.
In March 2010, The Charity Commission’s fourth Economic Survey of Charities demonstrated the continuing effect of the recession on charities in England and Wales. The key findings of the survey of 1,010 charities showed 59% of charities reported having been affected by the downturn, up from 38% in September 2008 and 56% in September 2009. Of those affected, 62% had experienced a drop in income. The research also found that larger charities were hit hardest, with 79% feeling the impact of the downturn and a third seeing an increase in demand for services. This disparity is also reflected when looking at the steps that charities took in response to the downturn, with 79% of the largest charities putting measures in place, compared to 31% of small charities.
Charity Commission encourages mergers
However, the Charity Commission actively encourages mergers – particularly amongst the smaller charities. As the regulatory burden has increased for charities who must grapple with both company law and charity law a merger can be an attractive way to reduce the cost of administration, save money on premises, facilities, marketing, legal and accountancy costs and improve governance. It published two toolkits for charities in September 2009 – Choosing to Collaborate and Making Mergers Work.
Charity merger issues
Sometimes there is considerable restructuring to do within a charity before it can consider a merger – and this can be demanding work where a charity has grown organically and rapidly over many years in response to demand for its services without a more strategic overview of the charity’s structure and tax efficiency.
Aligning charitable organisations requires careful consideration of complex legal issues regarding objects, operations and governance as well as obtaining permission from the Charity Commission for the new entity assuming a new entity is being formed and then registering the new organisation. Some of the old style trusts don’t even have the power to merge.
Yet in addition to the legal and financial work involved in a charity merger there are a host of personality and political issues to contend with that require careful attention by professional advisers who must be sensitive to the issues involved in aligning the vision and values of the range of stakeholders involved in each charity – its management, trustees, patrons, staff, volunteers and the groups it aims to help. There may also be major interest (and opposition) on any talk of mergers by the media and the public where the detail and complexity are not fully understood.
There is likely to be considerable concern about how the new trustee and management teams will be selected. Typically, there needs to be a key individual at each of the potential merging charities who can see the big picture benefits (and the likely stumbling blocks) and who can drive the merger discussions at a sensible pace – in a corporate environment this would be the chairman’s role. Even in a straightforward situation a charity merger is likely to take six months, so it is not a quick fix.
However, as the cost of the Government’s crackdown on public sector spending and the public further tighten their belts to deal with the austerity measures there is likely to be further pressure on charities with increased demand for services and further reduction in funds from the public purse and donations. I expect to see an increase in interest in mergers as a way for charities to reduce administrative costs and pool resources to achieve their goals.
Friday, 9 July 2010
Wish you were here - Judgments by the sea (Privy Council in Mauritius) by Richard Woodman
Both the Sunday Telegraph (http://findarticles.com/p/news-articles/sunday-telegraph-the-london-uk/mi_8064/is_20100627/judgments-bench-beach/ai_n54216294/) and Private Eye have recently had a bit of fun at the expense of some of the UK’s most senior Judges. The subject of the journalists’ mockery was the latest in a series of overseas sittings by the Judicial Committee of the Privy Council.
The Privy Council is the final Court of Appeal for a number of smaller Commonwealth jurisdictions including countries in the West Indies, as well as Mauritius. Historically, hearings for the Privy Council have taken place in Downing Street (although this venue has now moved to the Supreme Court in Parliament Square). The idea that final Appeal Hearings might take place locally first arose in connection with the Bahamas. Since then there have been two further sittings there and, now, two in Mauritius.
Royds has the great privilege of acting as Privy Council agents for the Government of Mauritius and in that capacity I have had the fortune to witness the sittings in September 2008 and April 2010 first hand. On both occasions the informal feedback was that the visit of the Law Lords was generally welcomed. The sittings were well attended by the public (on a number of occasions there being standing room only). The local legal profession has been particularly enthusiastic, clearly relishing the opportunity to witness the decision making process at first hand.
All this though clearly comes at a cost, and it will no doubt be a matter of personal opinion as to whether the cynicism of the journalists is justified. It has to be said that the Telegraph article hardly hits the heights of moats and duck houses and, indeed, fairly acknowledges that by far the largest part of the cost was picked up by the Mauritian Government. Some may just feel that it is inappropriate for public servants to reside at such apparent luxury whilst carrying out the job for which they are paid, regardless of who is picking up the tab.
On the other hand, is this simply petty jealousy which obscures the real value of an important initiative designed to show the people of the Bahamas and Mauritius that this is very much “their” court and not some remote post colonial hangover? Is it a small price to pay for the opportunity to have a final determination of your case (no matter that the Telegraph may think it trivial) decided by some of the finest legal minds in the world for the cost of a few plane tickets and hotel rooms?
The Privy Council is the final Court of Appeal for a number of smaller Commonwealth jurisdictions including countries in the West Indies, as well as Mauritius. Historically, hearings for the Privy Council have taken place in Downing Street (although this venue has now moved to the Supreme Court in Parliament Square). The idea that final Appeal Hearings might take place locally first arose in connection with the Bahamas. Since then there have been two further sittings there and, now, two in Mauritius.
Royds has the great privilege of acting as Privy Council agents for the Government of Mauritius and in that capacity I have had the fortune to witness the sittings in September 2008 and April 2010 first hand. On both occasions the informal feedback was that the visit of the Law Lords was generally welcomed. The sittings were well attended by the public (on a number of occasions there being standing room only). The local legal profession has been particularly enthusiastic, clearly relishing the opportunity to witness the decision making process at first hand.
All this though clearly comes at a cost, and it will no doubt be a matter of personal opinion as to whether the cynicism of the journalists is justified. It has to be said that the Telegraph article hardly hits the heights of moats and duck houses and, indeed, fairly acknowledges that by far the largest part of the cost was picked up by the Mauritian Government. Some may just feel that it is inappropriate for public servants to reside at such apparent luxury whilst carrying out the job for which they are paid, regardless of who is picking up the tab.
On the other hand, is this simply petty jealousy which obscures the real value of an important initiative designed to show the people of the Bahamas and Mauritius that this is very much “their” court and not some remote post colonial hangover? Is it a small price to pay for the opportunity to have a final determination of your case (no matter that the Telegraph may think it trivial) decided by some of the finest legal minds in the world for the cost of a few plane tickets and hotel rooms?
Landlords and tenants: Changes to the Assured Shorthold Rent Threshold by Michael Smith
Following the Assured Tenancies (Amendment)(England) Order 2010 the rent threshold for Assured Shorthold tenancies ("ASTs") will increase from £25,000 to £100,000. This will take effect from the 1st October 2010.
Currently all tenancies with an annual rent of over £25,000 are not ASTs and therefore are not afforded the protection of the Housing Act 1988. Upon the expiry of the contractual term of the tenancy, the landlord can issue standard possession proceedings to obtain vacant possession. In addition, any deposit paid to the landlord is not required to be placed into a Tenancy Deposit Scheme ("TDS").
Under the new rules, all tenancies with annual rents of upto £100,000 will now be ASTs. This will also apply to residential tenancies granted prior to the 1 October 2010 which meet the other requirements of an AST.
Landlords should make the necessary arrangements to protect any deposits they hold that now need to be within the TDS scheme. In addition, they will need comply with the notice provisions under the Housing Act 1988 when seeking possession of the property. Likewise tenants need to be aware of the change so as to ensure that they are afforded the maximum protection possible in relation to their tenancy and any deposit paid.
The consequences for landlords are that there may be a delay in obtaining possession due to having to comply with section 8 or section 21 of the Housing Act 1988 and the various notice requirements.
For more details please contact me or anyone in the Property Dispute Resolution Department.
Currently all tenancies with an annual rent of over £25,000 are not ASTs and therefore are not afforded the protection of the Housing Act 1988. Upon the expiry of the contractual term of the tenancy, the landlord can issue standard possession proceedings to obtain vacant possession. In addition, any deposit paid to the landlord is not required to be placed into a Tenancy Deposit Scheme ("TDS").
Under the new rules, all tenancies with annual rents of upto £100,000 will now be ASTs. This will also apply to residential tenancies granted prior to the 1 October 2010 which meet the other requirements of an AST.
Landlords should make the necessary arrangements to protect any deposits they hold that now need to be within the TDS scheme. In addition, they will need comply with the notice provisions under the Housing Act 1988 when seeking possession of the property. Likewise tenants need to be aware of the change so as to ensure that they are afforded the maximum protection possible in relation to their tenancy and any deposit paid.
The consequences for landlords are that there may be a delay in obtaining possession due to having to comply with section 8 or section 21 of the Housing Act 1988 and the various notice requirements.
For more details please contact me or anyone in the Property Dispute Resolution Department.
State schools converting to academies by Julian Rampton
Most people in the education sector – whether private, charitable or state funded – will be aware of the Government’s changes with regards to academies. Though we are awaiting further details, it is likely that a significant number of state secondary schools will convert to academies.
All academies are bound by the same School Admissions Code, SEN (Special Educational Need) Code of Practice and exclusions guidance as all other state-funded schools. There are currently 203 academies open in 83 local authorities and a further 100 are expected to open in 2010 – the Government is committed to establishing at least 400.
All new academies are also required to follow the National Curriculum programmes of study in English, maths, science and ICT. All academies - like the large majority of secondary schools - have specialist school status, and have a specialism in one or more subjects. Each academy is unique because the programme's focus is on fitting each academy to its community and circumstances. The Government sees academies as engines of social mobility and social justice, and there is a growing body of evidence that they are working - NFER research, independent reports from Ofsted, the NAO and PricewaterhouseCoopers - as well as GCSE and Key Stage 3 results.
The National Curriculum has now been made more flexible to accommodate the kind of innovation that academies have enjoyed. Since the summer of 2007, all newly signed academy funding agreements require academies to follow the National Curriculum programmes of study in the core subjects of English, maths, science and ICT. They will retain flexibility beyond this, for example, to address the needs of particularly low achieving pupils.
Academy status effectively releases a state school from local authority control – providing the potential for some flexibility on the curriculum and local authority services such as admissions. Furthermore, staff are released from national pay structures. A contract (funding agreement) is developed between the school and the State and the lands and buildings are transferred to a trust which is run by the members and governors. Teaching and other staff also transfer to the trust under TUPE terms. The Government has since widened the net – a sponsor will no longer be needed and whilst State schools with an “outstanding” Ofsted inspection status can start the conversion process now (which is anticipated to take about three months) those who have “good” or “satisfactory” will need to hear further news from the legislators. The Government provides a grant to cover the legal costs of transferring to academy status.
Further information is available on http://www.standards.dcsf.gov.uk/academies/
All academies are bound by the same School Admissions Code, SEN (Special Educational Need) Code of Practice and exclusions guidance as all other state-funded schools. There are currently 203 academies open in 83 local authorities and a further 100 are expected to open in 2010 – the Government is committed to establishing at least 400.
All new academies are also required to follow the National Curriculum programmes of study in English, maths, science and ICT. All academies - like the large majority of secondary schools - have specialist school status, and have a specialism in one or more subjects. Each academy is unique because the programme's focus is on fitting each academy to its community and circumstances. The Government sees academies as engines of social mobility and social justice, and there is a growing body of evidence that they are working - NFER research, independent reports from Ofsted, the NAO and PricewaterhouseCoopers - as well as GCSE and Key Stage 3 results.
The National Curriculum has now been made more flexible to accommodate the kind of innovation that academies have enjoyed. Since the summer of 2007, all newly signed academy funding agreements require academies to follow the National Curriculum programmes of study in the core subjects of English, maths, science and ICT. They will retain flexibility beyond this, for example, to address the needs of particularly low achieving pupils.
Academy status effectively releases a state school from local authority control – providing the potential for some flexibility on the curriculum and local authority services such as admissions. Furthermore, staff are released from national pay structures. A contract (funding agreement) is developed between the school and the State and the lands and buildings are transferred to a trust which is run by the members and governors. Teaching and other staff also transfer to the trust under TUPE terms. The Government has since widened the net – a sponsor will no longer be needed and whilst State schools with an “outstanding” Ofsted inspection status can start the conversion process now (which is anticipated to take about three months) those who have “good” or “satisfactory” will need to hear further news from the legislators. The Government provides a grant to cover the legal costs of transferring to academy status.
Further information is available on http://www.standards.dcsf.gov.uk/academies/
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