Author: pwwsolicitors

Private Client

Following the newly released Budget by the Chancellor in November, among several of her new fiscal policies is a series of updates to the Private Client sector. These current and future government implementations are expected to impact clients in this legal practice area through changes ranging from capital gains tax and inheritance tax to Cash ISAs.

Starting off with the capital gains tax (CGT) changes:

• There has been a reduction in relief on qualifying disposals to employee ownership trusts (EOTs) from 100% to 50%
• Incorporation relief will no longer be automated and will need to be actively claimed from April 2026; and
• Anti-avoidance rules for CGT and corporation tax on certain share exchanges and company reconstructions have been tightened following the Budget.

With regard to inheritance tax:

• Relief will be frozen another year, now until 2031. This will apply to the inheritance nil-rate band of £325,000, the resident nil-rate band of £175,000 and the combined £1 million allowance for the 100% rate of agricultural property relief and business property relief.
• The latter £1 million allowance will now be transferable between spouses or civil partners.
• Charges for inheritance tax relevant property trusts will be capped at £5 million for historic trusts settled by former non-domiciled individuals from April 2026.

Other notable changes are:

• Cash ISA allowances are also being lowered from April 2027. For people aged under sixty-five this will reduce from £20,000 to £12,000, with the overall ISA allowance remaining at £20,000.
• The rate of tax on dividend income will increase from 8.75% to 10.75% for basic rate taxpayers and from 33.75% to 35.75% for higher rate taxpayers from 6 April 2026.
• Finally, in terms of new London Stock Exchange listings, the government has agreed there will be a three-year exemption from the 0.5% Stamp Duty Reserve Tax (SDRT) for transfers of securities of companies whose shares are newly listed.

At PWW we have over two hundred years of experience in the private client sector and can offer independent and specialist advice to those looking to navigate not only the latest updates following the Budget but those needing guidance on the wide array of matters relating to private client.

Our Partners; Katrina Jackson and Ian Bowyer who specialise in these matters are highly experienced individuals and keen to help with issues or queries you may have in this area of legal practice.

Residential Property

Amongst the Chancellor’s many new policies, one of the greatest implications of the budget for the housing and property sector is the new mansion tax.

• The Chancellor introduced this high value council tax, which will come into effect in April 2028, for properties over the value of £2 million. This government policy details the plans to apply a four-band council tax surcharge to properties ranging from £2 million to the top band, £5 million.
• These high value properties will be required to pay between £2,500 to £7,500 a year in added tax, equating to roughly £400 million annually according to the Office for Budget Responsibility. Properties will be assessed based on 2026 valuations provided by the government’s Valuations Office Agency. The current council tax system is based on the values of properties in 1991. While council tax bands are not going to change, the government will look at properties in the three highest bands of F, G, and H to see if they are valued above £2m.

The Chancellor also included in her budget restrictions to cash ISA allowances.

• This change will limit people’s annual tax-free savings from £20,000 to £12,000 a year as the government looks to encourage people to invest their money in stocks and shares to help boost growth.
• The government are also looking at plans to phase out the lifetime ISA which will likely impact first time buyers looking to save their earnings towards purchasing their first property.

As aspirational first-time buyers feel the impacts of the new ISA changes, they will likely not be the only homeowners to notice the changes.

With the rise in tax comes a higher financial burden on landlords and in turn, renters.

• The basic, higher, and additional rates on savings UK-wide, and property income in England, Wales and Northern Ireland, will increase by two percentage points (to 22%, 42%, and 47% respectively) from 6 April 2027.

These increases on both landlords and tenants will likely push up prices in the private rental sector as landlords look to offset increased losses and conversely renters find it harder to get onto the first rung of the property ladder.

Commercial Property

The government’s stance on commercial property, particularly high street businesses, in the Budget was one of preserving and supporting the industry. Providing relief for retail, hospitality and leisure (RHL) properties below the rateable value of £500,000 was a main headline for businesses in the Budget.

• The tax rate for small RHL properties will be the lowest since 1990/91, falling by nearly 12p next year.
• The tax rate for all other RHL properties below £500k will be the lowest since 2010/11, representing a 12.5p tax rate cut next year.
• About 750,000 properties will benefit from these discounts.
• This cut in tax will be paid for by levying higher rates on the top one per cent of the most valuable properties e.g. large distribution warehouses used by online retailers, who will pay around £100 million more in 2026/27, with this going directly to lower bills for in-person retail.

Many small and medium sized business (SMEs) owners feel some satisfaction from these drops in rates. However, many larger companies, particularly those with a large online presence or a portfolio of higher rateable value RHL properties are concerned that the increase in rates will financially overburden them at an already tough time for the industry.

The hope is that SMEs in particular will be able to drive an increase in commercial property transactions as either they expand or new players enter the sector with greater ease than in previous years. Conversely, the larger companies may well begin to divest themselves of some of the more valuable properties in their respective portfolios so more offerings to the commercial market in 2026.

For consumers, this may mean a greater variety and choice in SME level RHL businesses, opening the door to more independent retailers and the growth of other SMEs. It may also mean a “shortening of the chain” for some of the larger RHL conglomerates.

PWW has an expanding property department acting in both the residential and commercial property sectors for individuals and organisations in the private, public and charitable sectors. Christopher Perkins, a Next Generation Partner in the Legal 500, heads up the department, benefitting from the excellent wisdom and guidance of recently retired partner, now consultant, Alexa Beale.

Who can step in to administer your estate in the event of the death or incapacity of the Executor(s) is dependent on what stage the probate process has reached when your executor passes away or becomes incapacitated and if there are any surviving executors.

What happens if an executor passes away or becomes incapacitated before probate is granted?

If your executor survives you but passes away, or becomes incapacitated and cannot act, before obtaining a grant of probate, then their right of executorship dies with them.  What happens next depends on your Will.

• If your Will appoints several executors, the remaining executors continue in their role as executor and carry on the administration of your estate.
• If your Will appoints a substitute executor(s), they will step-up and assume the role as executor of your estate.
• If there are no co-executor(s) or substitute executor(s) named in your Will, then the Non-Contentious Probate Rules 1987 (NCPR 1987) applies. In most cases, your residuary beneficiaries become entitled to apply for ‘Letters of Administration with Will annexed’ and assume the role as personal representatives of your estate. If your sole or last surviving executor has appointed an Attorney under a Lasting or Enduring Power of Attorney, that Attorney can choose to act as the personal representative and administer your estate on behalf of your executor.

What happens if an executor passes away or becomes incapacitated after probate is granted?

If your executor has taken out a grant, this is where things can become a little more complex. Again, what happens is dependent on your Will, and it can even become dependent on your executors Will.

• If your Will has appointed several executors, one of your executors passes away or becomes incapacitated after taking out a grant, and the estate administration is incomplete, then again it is the surviving executors named on the grant who continue to act in the administration of that estate. (It is important to note that if your Will names a substitute executor(s), they cannot step in to act where a grant of probate has already been taken out).
• If your sole or last surviving executor loses capacity after the Grant of Probate has been issued, a new personal representative is established in accordance with the NCPR 1987. The original Grant naming your incapacitated executor is not revoked, but the new personal representative will have to apply for a new Grant of Probate, with power reserved to the incapacitated executor. They will then have the authority to administer your estate.
• If your sole or last surviving executor passes away, this is where their own Will may become relevant. Section 7(1) of the Administration of Estates Act 1925 provides that the executor of your sole or last surviving executor becomes the executor of your estate. This is known as the chain of representation. Where it applies, the chain of representation is automatic, and no further grant is needed for the successive executor(s) to complete the administration of the earlier estate(s)

What breaks the Chain of Representation?

The chain of representation is broken where there is no succession of executors, such as:

• If your sole or last surviving executor did not leave a Will. The chain of representation can only pass from proving executor to proving executor. Therefore, there is no chain of representation where an individual dies intestate and a grant of letters of administration is taken out by an administrator.
• If your executor leaves a Will, but their executor passes away before obtaining a Grant of Probate.

Where the chain is broken, a new Personal Representative is again established in accordance with the NCPR 1987. Your new Personal Representative will need to apply for what is called a Grant de Bonis Non Administratis (or “Grant of goods not yet administered”).

If you would like help or advice on any of the points raised in this article please please do not hesitate to contact our Private Client department today. 

There are over 150,000 sports clubs in the UK, each promoting new experiences and participation in a huge range of amateur sports. These clubs provide fantastic opportunities for adults, children and young people to exercise, socialise and have fun! Sports clubs also play a vital role in local communities, providing spaces for celebrations, life events and community fundraisers.

Structure & Governance

All sports clubs should be aware of their governing documents and legal structures. The most common types of structure adopted by sports clubs are:

• Unincorporated Associations;
• Trusts; and
• Companies limited by guarantee.

Unincorporated Associations – these sports clubs will typically be governed by a constitution or club rules with a small group of trustees and a wider voting membership.

Trusts – historic sports clubs were often established as trusts. These clubs will be governed by a trust deed or declaration of trust which can sometimes form part of a Will or conveyance of land. These organisations also have a small board of trustees and, usually, a wider membership with voting rights.

Companies – in more recent years, sports clubs have been established as companies limited by guarantee (CLG) or Community Interest Companies (CICs). These organisations are governed by Articles of Association and will be run by a board of directors.

Other – some clubs may have more than one type of structure within their group, for example, there may be a trust over a cricket ground and a CLG which operates the pavilion bar. It is important that trustees and members of these sports clubs are aware of their club’s structure and governing documents. If you are unsure about your club’s structure or would like to make changes to your governing document, please get in touch with us.

Status

Most sports clubs operate as not-for-profit organisations, re-investing any profits made into the club and its facilities.

Some sports clubs are registered as charities with the Charity Commission for England and Wales (the ‘Commission’) for the charitable purpose of the ‘advancement of amateur sport’. These clubs are then eligible for all of the benefits associated with being a registered charity (e.g. charitable business rates relief, VAT relief, eligibility for grant funding, gift aid etc). However, they are also required to comply with the regulator’s requirements, submitting annual returns and accounts to the Commission and abiding by rules governing trustees and charitable organisations.

Some sports clubs are registered with HMRC as Community Amateur Sports Clubs (CASCs). These organisations benefit from some of the tax reliefs available to charities (e.g. gift aid, inheritance tax relief, business rate relief etc) but are not required to register with the Commission or comply with its regulatory requirements. CASCs may be required to submit  tax returns to HMRC. It is not possible for a sports club to be registered as a CASC and as a charity in the UK.

Sports clubs which are not registered as a CASC or a charity and which are set up as trusts will likely need to register with the Trust Registration Service (TRS). The TRS is run by HMRC and seeks to identify all registrable trusts within the UK to better identify and manage beneficial ownership of assets held in  trust. If your sports club is a trust and you’re not sure whether you need to register with the TRS, please get in touch with us.

Land

Most sports clubs in the UK own freehold or leasehold land. This can be one of the club’s most valuable assets. It is therefore important that the land is properly registered, protected and maximised to its full potential. If you are in the middle of a sale or lease negotiation and need additional advice, please speak to a member of our Property Team who would be happy to help.

Most sports club land is registered with HM Land Registry however some historic sports clubs may have unregistered land. The Land Registration Act 2002 made it compulsory to register land with HM Land Registry whenever a registrable disposition occurs (e.g. sale, lease, or appointment of new trustees). At PWW we have a wealth of experience in registering unregistered land and would be happy to provide you with a fee estimate. 

Grants

A number of sports clubs receive grants from government bodies and other grant making bodies. We know that this funding can be a lifeline for sports clubs and it is therefore essential that clubs comply with the terms of any grant agreement or contract entered into with grant making bodies.

If there are any changes in the services provided by your sports club or in the status of the club, you should notify the grant making body as soon as possible to avoid any breach of the agreement. The terms of these agreements can often be re-negotiated or novated.

Trading subsidiaries

Many sports clubs operate a club house or pavilion bar as a means of providing a space for socialisation with members and as way of generating additional income for the club. Frequently clubs create a trading subsidiary to manage the pavilion or club house including taking out a liquor licence, employer’s liability insurance and creating a profit for the club. This provides additional protection to the sports club and its trustees in what is considered riskier trading activities.

If you would like help or advice on any of the points raised in this article or have any other questions about sports clubs and the law please get in touch with us or call us on 0207 821 8211 to speak to one of our expert legal advisers.

The Sale and Discovery

In May 2019, Iya Patarkatsishvili and Yevhen Hunyak (the “Buyers”) purchased a luxury mansion from high-end developer William Woodward-Fisher (the “Seller”). Shortly after moving in, the Buyers encountered a persistent moth infestation. Despite extensive treatments, the problem continued.

In 2020, the Buyers learned that the Seller had previously engaged pest control services in 2018 to address the same infestation, which had been found to be linked to the property’s wool insulation. Reports from that time recommended the insulation’s complete removal – a remedy the Seller declined. Crucially, none of this was disclosed in the Seller’s replies to the Buyers’ pre-contract enquiries.

The Legal Claim

The Buyers sued for rescission of the sale contract, return of the £32.5 million purchase price, and damages. They claimed the Seller made fraudulent misrepresentations by stating he was unaware of any vermin infestation and that there were no defects or reports to disclose.

The Seller’s Defence

The Seller denied the allegations, asserting that he had not knowingly misrepresented the condition of the property and that the Buyers had not relied on his replies. He further argued that any right to rescind had been lost due to delay in bringing the claim.

Court’s Findings

The court found that:

• The Seller’s responses were knowingly false and amounted to fraudulent misrepresentation.

• The moth issue constituted a “vermin infestation,” and the Seller’s failure to disclose prior pest control reports was a material omission.

• The infestation was not readily apparent on inspection, contradicting the Seller’s representations.

Despite a delay of over seven months between the Buyers discovering the issue and initiating proceedings, the court ruled that this did not bar rescission. It ordered:

• The return of the property to the Seller;

• Refund of the purchase price, adjusted for the Buyers’ use of the house;

• Damages of approximately £4 million, including stamp duty and costs related to ruined clothing and other belongings.

The court also clarified that written reports, not oral advice, must be disclosed when replying to pre-contract enquiries.

Key Takeaways

• Sellers must provide full and honest disclosure. Fraudulent or misleading replies can lead to the reversal of even high-value transactions.

• Caveat emptor is not a licence to mislead. While buyers must exercise due diligence, sellers are not permitted to give false assurances or omit known issues.

• Vermin includes moths. The definition extends to any animals or insects capable of infesting a residence, potentially broadening disclosure requirements.

• Act promptly if rescission is sought. Delays can undermine a claim, though in this case, the court found the Buyers’ timeline acceptable.

An appeal may follow, but the ruling already marks a significant development in property law, reinforcing that honesty in pre-contract disclosures is non-negotiable.

From 6 April 2025, the taxation of non-UK domiciled individuals and the “domicile-based system” which has formed part of the UK’s tax system for over 200 years, will change to a “residence-based” regime.

For many years a person’s tax status was determined by their domicile of choice. Individuals were only required to pay UK tax on income earned within the UK and were not obligated to pay tax to HMRC on income generated in other countries, unless those funds were remitted to a UK bank account. Wealthy individuals and estate planners were therefore able to apply the rules to maximise savings.

Historically, “non-dom” status has garnered significant attention due to being frequently cited in newspapers, particularly in relation to High-Net worth individuals (HNIs), who were often perceived as evading the taxman by relocating to countries or jurisdictions with lower-tax regimes. According to HMRC, 74,000 people claimed non-dom status in 2022-23.

New 4-Year FIG Regime

For those considering relocating to the UK, from 6 April 2025, qualifying new residents in the UK will benefit from a 100% tax relief on eligible foreign income and gains during their first four years of UK tax residence. The new regime is designed to attract globally mobile individuals to the UK by offering a tax-efficient environment for their overseas earnings.

Key Points:

• The relief applies only to individuals who have not been UK tax residents in the 10 tax years immediately before their arrival.
• To qualify as a new resident in the UK for tax purposes, you generally need to spend 183 days or more in the UK during a tax year or meet specific conditions outlined in the Statutory Residence Test (SRT). 

Temporary Repatriation Facility (TRF)

For those with investment portfolios or foreign bank accounts, a new TRF will allow individuals who have previously been taxed on the remittance basis to bring pre-6 April 2025 foreign income and gains into the UK at reduced tax rates. This is a significant area that may suit HNI considering moving assets to the UK. 

Key Points:

• The TRF will be available for three tax years, starting from 2025–2026.
• Tax rates will be 12% for the first two years and 15% for the third year.
• Individuals must be UK residents in the relevant tax years to access this facility.

Inheritance Tax (IHT) Reforms

For individuals who hold assets across different countries (e.g. a holiday home in Europe) you need to review your exposure to the new UK inheritance tax regime. The domicile-based system for Inheritance Tax will be replaced with a residence-based system. This change will affect the scope of property brought into UK estate calculations for individuals and settlements.

Key Points:

• Non-UK assets will be subject to IHT if the individual has been a UK resident for at least 10 out of the last 20 tax years preceding the chargeable event (including death).
• NB. You may also be considered a ‘resident’ under the automatic UK tests if you spent 183 or more days in the UK in the tax year. There are additional criteria you need to be aware of such as whether your only home was in the UK for 91 days or more in a row, whether you worked full time in the UK at any point in the tax year or have proven ties to the UK such as work or family.

Conclusion

The new residence-based tax regime represents a significant shift in how non-UK domiciled individuals will be taxed in the UK, and is particularly important when considering estate planning arrangements such as making a Will or reviewing inheritance tax liability.

If you have any queries about the implications of the new residence-based tax regime, please do not hesitate to contact our Private Client department today.  

HMRC are due to publish detailed guidance on all these changes at the end of April 2025 and it is prudent for individuals and estate planners to start preparing for the transition to the new regime.

Whether your query relates to transferring assets to the UK or making estate planning arrangements, Ian Bowyer (Partner) specialises in dealing with complex inheritance tax arrangements and cross-jurisdictional matters. Our firm also has close relationships with financial advisors able to assist where necessary.

The Charities (Annual Return) Regulations 2024 (the Regulations) came into force on 1 January 2025 and set out the information that must be included in your charity’s annual return from 1 January 2025 onwards. It is important for registered charities to stay up to date with their filing requirements, so we have prepared a simplified breakdown of the effects of the Regulations.

Who do the Regulations apply to?

The Regulations apply to all registered charities who are required to file annual returns.

Regulation 3 states that they do not apply to common investment funds of charity authorised investment funds, while Regulation 4 states that common deposit funds established or regulated by a common deposit scheme are not required to prepare an annual return.

What does my charity have to file?

For the purposes of 169 (1) and section 169 (2) of the Charities Act 2011 every CIO and any registered charity with an income over £10,000 must prepare an annual return for each of its financial years as required by the Commission. Depending on the income of your charity, the following parts of the Schedule to the Regulations must be completed. This has not changed:

What has changed?

Part A now includes questions on Income Donations, to be answered by all charities with an income over £100,000. These include the value of the charity’s single highest value donation from a corporate donor, from an individual and from a related party during the financial period.

It also now includes a question for unincorporated charities on whether their charity property is held by a holding or custodian trustee on behalf of the charity (this excludes the Official Custodian for Charities).

It also includes slightly varied wording on the appropriate level of DBS Checks required and an additional question on the reporting of serious incidents.

Regulation 5 makes it clear that the Charities (Annual Return) (Amendment) Regulations 2023 and The Charities (Annual Return) Regulations 2022 have been revoked, save that they still apply to annual returns for years ending before 1 January 2025.

Need Advice?

Our Charity Department is on hand to answer any questions you may have, as well as assist with the filing of any annual returns, so do not hesitate to get in touch today with any questions about the recent updates.

The changes to Stamp Duty Land Tax (“SDLT”) announced in the Autumn Budget of 2024 has had an impact on both individuals and companies purchasing properties from 31 October 2024.

Further changes are also coming into effect from 1 April 2025.  

What are the Key Changes?

• Increased rates for additional residential purchases: the SDLT rate for individuals purchasing additional properties has risen from 3% to 5% above the standard residential rates. This came into effect on the 31 October 2024. This will impact individual or investors purchasing buy to let properties.

• Increased rates for company or corporate entity purchase: the SDLT rates for company or other corporate entities (not individuals) purchasing residential properties has increased from 15% to 17% for residential properties over £500,000. This came into effect on the 31 October 2024.

• Decrease in ‘first-time buyer relief’: the first-time buyer relief will reduce from £425,000.00 to £300,000.00, which comes into effect from 1 April 2025. This will no doubt impact first-time buyers wanting to step onto the property ladder.

• Decrease in the maximum property value for first-time buyers: the maximum property value that the ‘first-time buyer relief’ can be claimed on, has been reduced from £625,000.00 to £500,000.00.      

• Change of ‘nil rate band’: the nil rate band has been reduced from £250,000 to £125,000, effective from 1 April 2025. This means that anyone buying a property up to £125,000 can only claim 0% rate and those buying between £125,000 to £250,000 will be liable to 2% rate.

If you are looking to purchase your first property or any additional properties in the UK, there will be critical SDLT considerations to take into account.

Our Residential Property department is available to assist with any questions you may have regarding implications of the SDLT changes as a result of the Autumn Budget. Please do not hesitate to get in touch with us today.  

This publication is for general information only and does not seek to give legal advice or to be an exhaustive statement of the law. Specific advice should always be sought for individual cases.

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Inheritance Tax (IHT) Planning

What do we know?

Inheritance Tax thresholds

The IHT thresholds remain fixed at their current levels until April 2030:

• Nil-rate band at £325,000
• Residence nil-rate band at £175,000
• Residence nil-rate band taper, starting at £2 million

From 6 April 2026, the first £1 million of combined business and agricultural assets will continue to attract no IHT at all. For assets over this threshold, IHT will apply with 50% relief meaning an effective IHT rate of 20%. The cap will also apply to Trusts holding assets which qualify for business relief (BR) and/or agricultural relief (AR).

Also coming into effect from 6 April 2026, AIM shares will now receive 50% relief from IHT uncapped (effective IHT rate of 20%). Changes will be made to the IHT regime based on a new residence-based system from April 2025.

How does this affect me?

If you have a family business, valued at over £1m, that is currently 100% protected from IHT.

However, from April 2026, the first £1m will be free from IHT but, thereafter, an effective IHT rate of 20% will apply. So, for a business valued at £3m, that could mean an IHT liability of £400,000. You will need to review your existing strategy for intergenerational wealth transfer and review your future succession strategies.

• You have previously established a Trust and are thinking about setting up another Trust.
  
  Trusts already established which hold assets that qualify for BR and/or AR will continue to qualify for 100% relief on assets up to £1m. For trusts set up by the same person on or after the 24 October 2024, the government intends to introduce rules to ensure this allowance is divided among the trusts. You may need to consider alternative options and review your succession planning.

• You hold an AIM portfolio as part of your IHT planning strategy.
  
  You may need to review your overall strategy and reasons for holding an AIM portfolio. Although no longer exempt from IHT if held for at least 2 years, with an effective tax rate of 20% rather than 40%, AIM stocks may still pay an important role in your overall financial planning.

• You plan to move and live abroad when you retire.
  
  From 6 April 2025, if you leave the UK, there will be a ten-year tail of IHT exposure. For those that plan to leave by April 2025, they will be subject to a 3-year IHT tail. Domicile will no longer have any relevance.

Capital Gains Tax

Speculation around substantial increases to capital gains tax (CGT) was rife, but the reality was essentially an equalisation with the rates charged on residential property. So, for a basic rate tax payer CGT moves from 10% to 18% and for a higher rate tax payer from 20% to 24%. This was effective from October 30th.

Business Asset Disposal Relief (BADR) remains in place, giving a 10% rate of tax for now on lifetime gains of up to £1m. However, the applicable rate of CGT will increase to 14% from 6 April 2025, and further to 18% from April 2026.

The CGT rate for Investors’ Relief, which applies in similar circumstances to BADR but where the investor is unconnected with the business, will increase in parallel with the BADR rates. The lifetime limit for the relief will also reduce from £10 million to £1 million for disposals made on or after 30 October 2024, significantly limiting its financial benefit going forward.

Summary

If any of the Budget announcements have raised concerns for you and your family’s tax and succession planning, please contact your usual Pothecary Witham Weld adviser to discuss how you may be affected  and the planning options available to you.

This publication is for general information only and does not seek to give legal advice or to be an exhaustive statement of the law. Specific advice should always be sought for individual cases.

What are the Changes? 

The Act includes a number of new measures to strengthen and protect prospective and existing homeowners, including:

• Banning the sale of new leasehold houses, except in exceptional circumstances.
• Making it cheaper and easier to extend leases (including removing the two-year ownership requirement before leaseholders can exercise their statutory rights to lease extension) or buy freeholds.
• Increasing the standard lease extension term to 990 years for houses and flats (up from 50 years for houses and 90 years for flats).
• Abolition of ‘marriage value’ for leases of less than 80 years. Marriage value is the increase in the value of the property following the completion of a lease extension (reflecting the additional market value of the longer lease).
• Enhancing transparency over service charges by requiring freeholders or managing agents to issue standardised bills.
• Simplifying and reducing the cost for leaseholders to manage their buildings and appoint their preferred managing agents.
• Removing the obligation for leaseholders to cover freeholders’ costs when exercising enfranchisement rights.
• Expanding access to redress schemes for leaseholders to challenge poor practices. Freeholders who manage directly will now be required to belong to a redress scheme, as managing agents already are.
• Accelerating and simplifying the buying or selling of leasehold properties by setting maximum times and fees for necessary information.

What’s not Covered?

The general election and subsequent change of government in July 2024 has, to some degree, interfered with the passage of the Act. Many commentators were expecting a cap on ground rent and a ban on the forfeiture of long residential leases, but this is not included. However, with implementation of the Act not expected until 2025 or even 2026, there may be further changes ahead.

If you have any questions regarding the Act and the proposed changes, our property department is on hand to assist you.

Trustee meetings are an important way for trustees to come together and make decisions about the charity collectively. However, in order for decisions made at a meeting to be valid, the meeting must be held in accordance with the charity’s governing document. This is especially important in a post COVID era where many charities choose to hold their meetings online. Unless your charity’s governing document expressly permits meetings to be held electronically, decisions made at an online meeting will not be valid.

What should you do? 

Firstly, you should certainly double check your charity’s governing document for the charity’s rules about meetings. It is essential that a charity follows the concept of holding a valid meeting, complying with any specific requirements in your charity’s governing document and ensuring that everyone at the meeting can see and hear each other.

Secondly, consider the methods your charity currently uses and would like to use to hold meetings.

There are three ways which your charity can hold meetings.

• a traditional face-to-face meeting.
• a virtual meeting where everyone joins the meeting electronically (i.e. Teams or Zooms etc).
• a “hybrid meeting” where some people meet face to face whilst others join the meeting virtually.

If you want to hold virtual and hybrid meetings, the Charity Commission requires an express power to hold electronic meetings in your charity’s governing document.

Your governing document should include:

• Whether all your charity meetings could be virtual or hybrid
• How you give notice of virtual and hybrid meetings
• How you will hold votes at virtual and hybrid meetings
• How you may adjourn virtual and hybrid meetings

Further, the Charity Commission recommends that the governing document include how people can ask questions, join in the debate and finally, what would happen to the meeting if there were technical problems if the charity chooses to hold meetings virtually.

If your charity’s current governing document does not include any provisions about charity meetings, or  does not include the power to hold electronic meetings, then we strongly recommend that you seek to amend your governing document.

This is something our Charity Department can certainly help with, so please do not hesitate to get in touch today or if you have any general questions on the Charity Commission’s recent update.