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Q&As
This Q&A will consider four issues: • would the tree owner have a claim against the local authority? • if so, on what basis would he be able to bring a claim? • would the tree owner have a defence to any claim from a third party for damage or injury caused by the tree on the basis that he had done all he could to prevent a claim from arising but had been prevented from felling the tree by the local authority? • is there anything he can do to try to protect the public and his family given the local authority’s position that there is no danger posed by the tree? Tree
PRACTICE NOTES
This Practice Note covers the meaning of inherent defect, whether a landlord or a tenant has an obligation to remedy the defect, whether there are any implied obligations to remedy inherent defects and the position where the defect causes damage. Responsibility for repair under the Building Safety Act 2022 (BSA 2022) is not covered by this Practice Note. For content on liability under BSA 2022, see Practice Notes: Building Safety Act 2022—key provisions and issues and Building Safety Act 2022—landlord and tenant issues. Inherent defects in leasehold property Defects in design, faulty installation or the use of inappropriate or inadequate materials when building a property can lead to significant problems later on. In one leading case, defective joints in the basement of an office building let in water so that the basement was unusable. In another, poorly designed double glazing units led to condensation and black mould. Where such problems arise, the question of liability closely follows. Disputes over inherent defects in leasehold property frequently focus on the terms of the landlord’s or tenant’s
Q&As
Inheritance tax on potentially exempt transfer The inheritance tax (IHT) charge on death falls under two headings: • the additional charge—which can arise on chargeable lifetime transfers (CLT) and potentially exempt transfers (PETs) made in the seven years before death, and • the estate charge—which arises on the value of all the property the deceased owned (or was deemed to own) immediately before death Where the deceased has not survived seven years from the date of a PET, the failed PET is treated as a chargeable transfer and IHT arises for the first time. The IHT due on each of the above transfers depends on: • the amount of the chargeable transfer in question, and • the total amount of the gross chargeable transfers (including failed PETs where relevant) made within the period of seven years preceding that chargeable transfer For further
Q&As
It is assumed for the purposes of this Q&A that the tenancy is protected by the Landlord and Tenant Act 1954 (LTA 1954). Liability for removal of asbestos Consideration should be given to who is liable for removal of the asbestos to ensure that liability rests with the landlord rather than the tenant. For further information, see Practice Note: Control of asbestos—duty to manage which states that: 'The dutyholder(s) is every person who is in control of maintenance or repair activities under the terms and conditions of a lease or management agreement, and can therefore be a landlord or a tenant. The dutyholder does not have to be an employer. Single occupiers, under fully repairing and insuring
Q&As
The answer to this question will be dictated by the precise terms of the contract. The position where the Standard Conditions of Sale (5th edition—2018 revision) have been used without amendment is set out in Practice Note: Completion monies—standard conditions of sale (5th edn—2018). This explains that under SC 6.7 the buyer is to pay the money due on completion by a direct transfer of cleared funds from an account
Q&As
There are certain expenses incurred by personal representatives (PRs) which are properly payable as testamentary and administration expenses out of the deceased’s estate. See section 34 of the Administration of Estates Act 1925 (AEA 1925). In particular, the estate must bear the expenses incidental to the proper performance of the duties of the PRs in that capacity. This would include: obtaining the grant; collecting in the assets; discharging debts and liabilities; distributing the estate; usual professional fees; and other fees, costs and expenses as are reasonably incurred by the PRs in order to carry out the proper administration of the estate. PRs have a duty under AEA 1925, s 25 (as amended by section 9 of the Administration of Estates Act 1971) to keep accounts
Q&As
The executors or administrators appointed to administer a deceased’s estate are responsible for collecting and getting in the real and personal estate of the deceased and administering it according to law under section 25(a) of the Administration of Estates Act 1925 (AEA 1925). They must therefore administer the estate according to both statute and the common law with any maladministration or wrongful administration rendering the executors or administrators liable to the legatees or beneficiaries. Commentary: Claims against personal representatives: Butterworths Wills Probate and Administration
Q&As
Subject to available exemptions and reliefs, an agreement to transfer chargeable securities for consideration in money or money's worth will usually give rise to a principle charge to stamp duty reserve tax (SDRT) or stamp duty at a rate of 0.5% of the consideration. SDRT arises on any such agreement (whether written or oral) to transfer chargeable securities, whereas stamp duty arises on physical stock transfer documents. Therefore, in practice, as SDRT usually falls due before stamp duty in respect of a transaction, SDRT is the primary stamp tax on securities transactions. However, the execution and stamping of an instrument with appropriate stamp duty discharges any SDRT liability. Where the trustee of an employee benefit trust (EBT) transfers shares to an employee in order to satisfy his award or option, stamp duty will normally apply
Q&As
Although the Rural Payments Agency: Rural land and entitlements (RLE1) guidance is silent on the point of whether buyer and seller has to sign an RLE1 form, from a practical perspective, the seller will sign a form RLE1 transferring
Q&As
Legionnaires’ disease is a potentially fatal form of pneumonia caused by the inhalation of small droplets of water contaminated with the Legionella bacteria. Systems where water is stored and recirculated such as in water based air conditioning systems can develop colonies of such bacteria whether the systems are large or small. The risks need to be managed effectively. There are various statutes and regulations which impact on the duties to carry out risk assessments and to carry out steps including maintenance of systems to minimise those risks. The duties in this regard are imposed on employers, and those with control of a building. Those with control of a building will include persons falling within the definition of a landlord. A landlord is a person (whether an individual or a corporation), which rents out a property under a lease or licence shorter than seven years. The landlord’s duties apply to a
Q&As
This Q&A considers who may qualify as an occupier under the Occupiers’ Liability Act 1957 (OLA 1957). OLA 1957 contains no definition of an ‘occupier’. The issue of who is an occupier is dealt with under the common law. It is important to recognise that the key issue is of control over, rather than ownership of, the premises. An occupier is any legal entity with a sufficient degree of control over premises such that it can properly be considered to be an occupier (see Wheat
Q&As
What is the claim? Under section 1(1) of the Land Compensation Act 1973 (LCA 1973), where the value of an interest in land is depreciated by physical factors (noise, vibrations, smell, fumes, smoke, artificial lighting and discharge) caused by the use of public works, the interest qualifies for compensation and the person entitled to the interest makes a claim, compensation for that depreciation will be payable by the responsible authority. What are works? In order to make a claim, the value of