The tax you pay when you sell a business: Entrepreneur Relief Tax

Entrepreneurs' relief, often referred to as business asset disposal relief is a specific capital gains tax (CGT) break that you may be eligible for if you're selling a business you own. When I see a business, do I have to pay CGT? The entrepreneurs' relief—recently renamed business asset disposal relief—may enable you to pay a lower CGT rate of 10% on the first £1 million in proceeds if your business qualifies. How does the entrepreneurs' relief work? The relief means you will be charged 10% (the basic rate) on the first £1 million your business makes. For those who are additional or higher rate tax payers (e.g. those who pay 20%), you will have been charged around half of the usual rate. £1 million is the maximum amount that can be claimed per person, so the…

New Year, New Start, New Job: An Employer’s Guide to Hiring Employees

This short article is aimed at the businesses who are looking to employ new staff.  It is important to take the correct legal steps when hiring new employees. Though it may seem simple to some, there are mandatory steps that any employer must take when looking to take on a new employee – and that doesn’t mean just showing them where the tea and coffee is located! Right to work in the U.K. First thing’s first, every employer MUST ensure that their new employee has a right to work in the U.K. Right to work checks can be carried out manually by obtaining documents from an approved list (see Home Office website for this). If an employee is unable to show their documents or status, you may be able to use the free Employer Checking Service…

Think twice before using social media during a family dispute

It is forecast that, by the end of this year, 90 per cent of the UK adult population will use a social media account at least once a month.  This is a remarkable statistic, but perhaps even more remarkable is that the average user is estimated to spend more than two hours per day on social media.  There is no doubt that we are putting more of our lives online than ever before.  We are more comfortable with posting about our family celebrations, our personal dilemmas and our relationship status.  ‘Unfortunately, social media can bring its own set of problems when it comes to a family breakdown,’ says Robert Bellhouse family law expert at Ware & Kay in York & Wetherby ‘Once you may have told only your closest friends about your relationship problems, but…

Gifts and inheritance tax in the season of goodwill

Christmas is the season of goodwill and, aside from choosing what presents to wrap and place beneath the Christmas tree, you may also be wondering if you can make some more substantial gifts to take advantage of tax reliefs such as agricultural relief and lifetime gift exemptions. Emma Elwess, Director of Private Client at Ware & Kay in York & Wetherby, explains the different ways farmers can use tax reliefs to give away gifts without incurring inheritance tax. General lifetime gifts During your lifetime you can give away any of your possessions worth up to a total value of £325,000 without being liable to inheritance tax. Gifts given over this amount will usually be subject to inheritance tax when you pass away (unless you live longer than seven years after the gift is given). There…

Reconciliation; can we change our minds about getting a divorce?

You are likely to have spent some weeks, months or perhaps even years contemplating getting a divorce before you decided to apply, and even then, you may still wonder if it is not too late to save your marriage, particularly if you have children together. ‘Issuing or receiving a divorce petition can be the spark that awakens feelings or renewed efforts and could lead to a reconciliation,’ says Robert Bellhouse, a Family Solicitor with Ware & Kay. ‘It is not uncommon following a divorce petition for a couple to talk more openly to each other, perhaps supported via counselling or mediation.  This can be the start of working together to address the cause of unhappiness and could lead to a route forward together again.’ While the decision to divorce is a big step, there is…

Can a fraudster really steal a house?

A solid building, made of bricks and mortar, seems an unlikely target for thieves. For most of us our homes evoke a powerful sense of security; ‘safe as houses’ as the old saying goes. But the facts tell a different story, as there has been an exponential growth in property fraud which now accounts for 70 per cent of all frauds. Media reports of a Luton vicar discovering his locks changed and a stranger in his home, is an extreme example.  However, there is no room for complacency and there is a lot that you and your solicitor can do to prevent you becoming a victim of property fraud. What happened in Luton Reverend Mike Hall made the headlines when a fraudster targeted his modest terraced house in Luton. Working away from home, he was surprised…

The problem with work Christmas parties

Christmas parties are a great chance for employees to have fun together and for employers to treat their staff as a ‘thankyou’ for their hard work during the year. An unintended consequence can be that employees take this as a chance to behave badly or share uncomplimentary opinions about colleagues and managers that they have kept under wraps during the rest of the year. An employment tribunal is likely to see the Christmas party as falling within the ambit of employment, bringing the risk of the employer being liable for discrimination and other claims. This can also land you with grievances and damaged relationships. ‘No team is harmonious all the time, but sometimes working relationships can deteriorate to such an extent that employers may need to take drastic steps to resolve the situation. A breakdown in…

Discharge of restrictive covenants for childminding business

In a recent decision by the Upper Tribunal (Lands Chamber) Johnson, Re [2022]), it was ordered that two restrictive covenants that burdened a detached two-storey house be modified under section 84(1) of the Law of Property Act 1925, to allow it to be used as an Ofsted registered childminding business. The title to Mr and Mrs Johnson’s house at 44 Knights Hill, Aldridge, Walsall was burdened by two restrictive covenants: one prevented use of the house for most trades and businesses and the other required it to be used as a private dwellinghouse only. The Johnsons applied to the Upper Tribunal requesting modification of both restrictions to allow it to be used for a childminding business. Despite service of publicity notices, it had not proved possible to identify the beneficiary of the covenants. The local planning…

Ware & Kay Christmas and New Year opening times

We would like to send you our best wishes for the festive season and a safe and healthy 2023. We look forward to working with you and continuing to deliver the best possible service. Christmas and New Year opening times Our offices will be closed from 4.00pm on Friday 23rd December and will reopen at 9.00am on Tuesday 3rd January, 2023. If you would like to contact us outside of these hours please use our “contact us” form and someone will get back to you on the next business working day. Best wishes The team at Ware & Kay

Farmers – are you on top of your EPC obligations?

It is common for farmers to supplement their incomes by renting out buildings on their land. All well and good, but in April 2020 new rules were introduced making it illegal, subject to some exemptions, to let a private rented property with an energy performance certificate (EPC) rating of less than E. So, what are the implications of this for farmers and are there any exemptions that they can take advantage of? Andrew Little, agricultural law specialist at Ware & Kay in York & Wetherby, reports. The Minimum Energy Efficiency Standards (MEES), under which an EPC is assessed, require anyone with a private rented property with a rating of F or G to undertake improvements to bring it up to an E rating before they can rent it out. The rules only usually apply to buildings…