Entrepreneur teams and director’s loan agreements Prior to 19 November 2015, entrepreneur applicants were not required to evidence the transfer of funds to their business bank accounts. The Statement of Changes HC535 dated 29 October 2015 brought in stricter requirements to prove investment by director’s loan, but it was not until the rule change on 15 January 2018 (Statement of Changes HC309) that the Home Office clarified that these rules would only apply to investments made after 19 November 2015, regardless of the date that the entrepreneur entered the category. Paragraph 45(d)(ii) of the Appendix A to the Immigration Rules, states that an applicant must provide: ‘…where the investment was made after 19 November 2015, the investment must be shown through readily identifiable transactions in the applicant’s business bank statements, which must clearly show the transfer of this

Section 24(1) of the Limitation Act 1980 (LA 1980) provides that an action cannot be brought on any judgment after the expiration of six years from the date on which the judgment became enforceable, unless an extension is granted on application by the judgment creditor. However, the enforcement of charging orders does not appear to be affected by this provision and may be enforced after it is made despite a lapse in time. Such enforcement can be way of applying for an order for sale and seeking possession for the purposes of a sale. Third party debt orders similarly appear to have no limitation in terms of enforcement. Charging orders also appear to be immune from LA 1980,

This Q&A refers you to the following content you may find helpful in your research • Practice Notes: ◦ Missing beneficiaries and intestacy with

Under Part 2 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), long leaseholders of flats in mainly residential buildings (subject to certain exceptions) have the right to take over the management of the building: • irrespective of fault on the part of the landlord • without having to pay compensation Following a successful right to manage (RTM) claim: • the landlord’s ‘management functions’ (which include services and service charge) are transferred to the RTM company (CLRA 2002, ss 95–96) • the

The position of the executor(s) The tenanted property would devolve on the executors pursuant to the grant of probate (see section 1 of the Administration of Estates Act 1925 (AEA 1925)). The grant of probate confirms the executors’ authority to act and it is then the duty of the executors to ‘collect and get in the real and personal estate of the deceased and administer it according to law’. See Practice Note: Personal representatives—powers, duties and remuneration and AEA 1925, s 25. In effect, the executors become the landlord as the representatives of the deceased. It is therefore the executors who have the right to receive the rental income pending the completion of the administration of the estate which is normally envisaged to be within the executors’ year. For the purposes of AEA 1925, ‘income’ specifically includes ‘rents and profits’ (AEA 1925, s 55(1)(v)).

‘Loss on sale of land’ relief for inheritance tax (IHT) is given by section 191 of the Inheritance Tax Act 1984 and is subject to a number of conditions. Relief is claimed by filling out and submitting form IHT38. The personal representatives (PRs) can, if they wish, make a claim for loss on sale relief if they meet the conditions. In particular: • the sale of the land in question must be made by the PRs (since they are responsible for paying the IHT in respect of it) • the loss must be at least £1,000 or (if less) 5% of the land’s value on death • the sale must have happened within three years of death (but see below), and • it

For information on the residence nil rate band (RNRB) and how it applies and is claimed, see Practice Note: IHT—residence nil rate band. We refer you to the following Q&As which consider the position where the personal representatives (PRs) are unsure whether or not to claim the RNRB, although note that our Q&As are not maintained and so are accurate as at the date indicated. It was confirmed at Spring Budget 2021 that the RNRB threshold will be kept at £175,000 until at least April 2026: • Where an estate qualifies for the basic nil rate band (NRB) and the residence NRB (RNRB), do the personal representatives have a choice which relief is claimed on the first death and which is left unused to transfer to the surviving spouse’s estate? If the RNRB is being

Wrongful distribution of an estate The starting point is that a personal representative has power to assent the deceased’s real and personal interest or estate (see section 36 of the Administration of Estates Act 1925). However, the power is only in general in favour of any person who may be entitled to that interest or estate. While, therefore, a beneficiary is entitled to assume that the personal representative has properly administered the estate, and so if they receive assets or money believing that they are entitled in good faith, the legal title passes and they do not have the burden of trusteeship imposed upon them, that does not prejudice the true beneficiary of a remedy if the estate has been distributed to persons who were not in fact entitled to the

The estate of a deceased person is insolvent if, when realised, it will be insufficient to meet in full all the debts and other liabilities to which it is subject—see the Insolvency Act 1986, s 421(4) (IA 1986). This answer deals only with the case of an insolvent estate, ie one which is discovered to be insolvent after death; it does not cover the situation where a person already subject to a bankruptcy or an IVA subsequently dies (where the position is usually that matters proceed as usual, with some amendments). Similarly, however, the statutory provisions on the administration (ie the vesting, acquisition, control, distribution etc) of a bankrupt's estate (IA 1986, ss 306 – 349) should apply to the administration in bankruptcy of the insolvent estate of a deceased debtor (provided there

Although personal representatives (PRs) have wide powers to manage the estate and sell such assets as they think fit, it is prudent for them to consult with the residuary beneficiaries to ascertain their wishes. Ultimately, the decision on how best to administer the estate rests with the PRs but the wishes of the beneficiaries may be relevant to their deliberations. It is an established principle of English law that while the estate of a deceased person is in the course of administration, no beneficiary, either under the deceased’s Will or on intestacy,

Qualifying trusts for a relevant minor A 'qualifying trust' for a 'relevant minor' may be established under section 35 of the Finance Act 2005 (FA 2005). FA 2005 provided for a special income tax and capital gains tax regime for such 'qualifying trusts'. These trusts pre-dated the introduction of 'Bereaved Minors Trusts' which were introduced in the Finance Act 2006 (FA 2006). Bereaved Minors Trusts are specifically concerned with the inheritance tax treatment of trusts. See Practice Note: Taxation of trusts for bereaved minors—IHT. For more background information, see Practice Note: Taxation of trusts for disabled persons—income tax and CGT. Definition of a ‘relevant minor' Under FA 2005, s 39 a person is a ‘relevant minor’ if:

We refer you to Practice Note: Grossing up and partly exempt estates, and in particular to the section titled ‘Legacies free of tax to non-exempt beneficiaries with residue passing to exempt beneficiaries’, which refers to an Example and deals with the scenario you have described. We also refer you to