Archive for August, 2007
Friday, August 31st, 2007
A newly-built detached property located in the countryside is the preferred archetype of new homebuyers in Scotland, England and the rest of the UK, according to the annual Halifax home improvement survey.
Some 63 per cent of respondents stated that environmentally-aware facilities were desirable, while 56 per cent cited fuel and energy saving measures as sought after.
Key features of desirable homes included central heating, off-street parking, a garage and a home security system.
Head of mortgages at Halifax Phil Jenks commented: "Although many of us live in towns or cities, there is no disputing that a house in the country is what the majority of us aspire to."
"The preference for new build detached properties shows that people want their home to be personal to them and that space and privacy is also important," he said.
According to the BBC, data from the Registers of Scotland Executive Agency states that the average house price in Scotland is currently £149,292.
Posted in Estate Agency | No Comments »
Wednesday, August 29th, 2007
Scottish succession law may be overhauled to better suit recent societal developments such as climbing rates of divorce, the rise in families with step children and civil partnerships, it has been revealed.
The Scottish Law Commission published its paper on reform earlier this month. It focused on the protection of close relatives from disinheritance and the legal position of surviving spouses, civil partners and cohabitants in the case of someone dying without having made a will.
There has not been a major revision of Scots law in this area since the Succession Act in 1964 apart from the Scottish Family Law Act in 2006 that allows cohabitants to apply for a discretionary award should a cohabitant die without making a will.
Estate planning specialist at Standard Life Julie Hutchinson told the Scotsman: "Given the change in the law in 2006, it is an opportune moment to review this whole area of succession rights and consider the most prudent way forward".
Ms Hutchinson also noted that Scots law in this area is particularly complex.
Civil partnerships have been legal in Scotland since December 2005.
Posted in Inheritance Tax | No Comments »
Tuesday, August 28th, 2007
John MacKinnon, president of the Law Society Scotland, has announced that he has relinquished the post in a move expected to be effective immediately.
Mr MacKinnon made his announcement last night, explaining that the pressures of the high profile job combined with his role as a partner in a Fraserborough law firm were beyond his capacity.
Richard Henderson, currently vice-president of the society, has taken on the mantle with immediate effect, while the council is set to elect a replacement to his former role as soon as possible.
The presidential role is one of a figurehead, the Scotsman explains, representing the interests of some 10,000 legal practitioners in Scotland.
Issues which the society has addressed during his premiership include whether to allow major retailers to provide basic legal services and the creation of the Scottish Legal Complaints Commission, intended to increase confidence among the public in the complaints handling process.
Posted in Family Law | No Comments »
Thursday, August 23rd, 2007
Conservative party plans to abolish inheritance tax (IHT) in favour of capital gains tax (CGT) would not mean the end of gifting or creating trusts, one industry body has stated.
Those looking to organise their estate may be interested to read news from the life assurance firm, which states that while inheritance tax has been in place an industry has sprung up around the creation of vehicles which mitigate its impact upon a deceased person’s wealth.
Julie Hutchison, estate planning specialist at Standard Life, asserts: "Considering the impact of [the proposals] on lifetime estate planning, it certainly would not necessarily mean the end of trusts or lifetime gifting.
"Indeed, it would become imperative to consider lifetime gifting earlier since the current seven-year clock for IHT could effectively become a ten-year clock."
Ms Hutchison concluded by saying that any simplification of the current IHT model was to be welcomed, with an integrated approach to taxation lifting some of the burden that affects an increasing number of households.
Recently, independent financial adviser Calculis announced that IHT was beginning to impact even on "modest homes", the occupiers of which were unaware of the levy likely to be required in the event of a death.
Posted in Inheritance Tax | No Comments »
Wednesday, August 22nd, 2007
Consumers looking to purchase homes in Edinburgh should be aware of noisy smokers outside pubs and bars, who have been identified as the cause of an increase in disputes being dealt with by Edinburgh Community Mediation (ECM).
Calls were made recently for an easing of planning regulations to allow more smoking shelters to be built outside bars.
The number of incidents being dealt with by (ECM) has almost doubled since 2005, according to the Edinburgh Evening News.
ECM is made up of trained negotiators, who have organised meetings between bar and pub owners and local residents in an attempt to ease tensions.
Scottish Licensed Trade Association chief executive Paul Waterson told the Edinburgh Evening News: "Landlords do everything they can, but it is very difficult to control people who are outside the premises."
Former councillor and bar-owner Tom Ponton stated that it was an unfortunate situation as it is affecting both landlords and local residents.
ECM is run by community development organisation Sacro and aims to negotiate neighbourhood disputes without involving the police.
Posted in Commercial Law | No Comments »
Monday, August 20th, 2007
Attitudes to a bylaw intended to protect some of Edinburgh’s most well-known beauty spots may be tested following today’s announcement that Edinburgh city authorities are requesting approval to replace West Princes Street’s Ross Bandstand.
Plans to replace the construction with a 10,000-seat arena are expected to be put into action within days, reports the Edinburgh Evening News.
Other areas protected by the bylaw include Bruntfield Links, Meadows and Calton Hall and Leith Links. It is thought that an attempt to change the regulation will result in opposition.
Edinburgh council director of corporate services Jim Inch commented that granting an exception to the law carries a low risk of objection due to the convincing argument for replacing the bandstand.
However, a move to change the law on protected parks and allow construction on any protected area would likely result in objections, he added.
Leader of the council Jenny Dawe stated: "I don’t think people would understand the reasons for trying to amend the existing bylaw."
The Ross Bandstand is an open-air theatre near Edinburgh castle. Built in 1877, it was a gift to the city from William Henry Ross, chairman of Distillers Co.
Posted in Commercial Law | No Comments »
Friday, August 17th, 2007
Rising property prices are the major reason that inheritance tax (IHT) is impacting upon consumers who would previously be exempt, according to one industry commentator.
Calculis, an independent financial adviser (IFA) specialising in personal planning tax services, states that even those with "modest" homes may find that their estates breach the £300,000 threshold above which IHT is levied at 40 per cent.
Alex Pegley, director of the firm, remarks: "The ones that I think will be increasingly caught are the ones with more modest homes, like three-bedroomed semis, because people with bigger homes come and see their IFA and he does some planning for them."
In contrast, those with more modest homes do not believe they will be affected, he suggested.
Mr Pegley added that civil partners and married couples can take steps to mitigate the impact of IHT if they seek appropriate financial advice.
Recent figures from the Halifax house price index suggest that the average house price in the UK is £196,525, while the average annual price increase stands at 10.7 per cent. When other assets are taken into account, many commentators have suggested that increasing numbers may find their estates overrunning the £300,000 threshold.
Posted in Inheritance Tax | No Comments »
Thursday, August 16th, 2007
Increasing personal wealth and price inflation in the UK property market has resulted in more estates being liable for inheritance tax (IHT), according to Defaqto.
Figures published by The Office of National Statistics show that 4.8 million consumers in the UK own homes worth over £300,000 – with 40 per cent tax payable on assets in excess of this amount – while a further 4.5 million will be required to pay IHT when their personal funds are taken into account.
The 2006 budget saw changes in taxation of monetary transfers into certain types of trust funds, making previously tax-free gifts potentially liable to tax. Defaqto recommends seeking financial advice in the matter.
Kate Marsden, marketing director at Defaqto, commented: "As UK house prices continue to outstrip rises in the IHT threshold, more and more households are falling into the IHT net".
"Advance tax planning is essential if individuals bequeathing assets to their heirs want to reduce the potential IHT bill their beneficiaries will face. Writing a will is a good place to start," she added.
Defaqto is an independent financial product and service research company.
Posted in Inheritance Tax | No Comments »
Wednesday, August 15th, 2007
A scheme to raise awareness about how all consumers can be affected by Inheritance Tax (IHT) has been launched by Yorkshire Building Society.
The Keep it in the Family campaign aims to highlight the numerous lawful means by which individuals can reduce their IHT bill, or avoid it altogether.
IHT is paid at 40 per cent on everything left in a deceased individual’s estate valued over the £300,000 threshold.
Yorkshire Building Society advises that those who believe their family home to be below the threshold should be aware that other assets owned abroad will also be included in the value of an estate.
Spokesperson for Yorkshire Building Society Tanya Jackson said: "Without planning for IHT liability many people are unsuspectingly treating the taxman as an extra child. When the money is divided between loved ones and offspring the taxman will be there to get his share."
Ms Jackson added that consumers should not view IHT as something that only affects wealthier individuals.
In his last budget as chancellor, Gordon Brown announced that the IHT threshold will rise to £350,000 by 2010.
Posted in Inheritance Tax | No Comments »
Tuesday, August 14th, 2007
The number of first-time buyers has fallen, according to figures from the Council of Mortgage Lenders (CML).
The number of loans borrowed by first-time buyers decreased to 35,600 in June, in comparison to 39,800 during June 2006 – the lowest June figure since 2004.
The research also indicated that the five interest rate hikes since August 2006 are continuing to affect the property market as the first-time buyer income multiple reached 3.37.
Commenting on the figures, Royal Institute of Chartered Surveyors (Rics) chief economist Simon Rubinsohn said: "This is further evidence that higher mortgage costs are beginning to impact on borrowers."
Mr Rubinsohn also stated that in the face of a further rate increase, it is reasonable that new buyers are seeking to protect themselves through seeking financial advice when deciding what mortgages may suit them best.
The Council of Mortgage Lenders (CML) is the trade association for the mortgage lending industry. Its membership includes building societies, banks and other lenders of mortgages.
Posted in Estate Agency | No Comments »
