Local Experts, Global Expertise

SMOOTHING THE MOVING PROCESS
Rubin Lewis O'Brien has recently strengthened its conveyancing team with the addition of a newly-qualified Licensed Conveyancer. Following her qualification after three-and-a-half years' studying, Cheryl Preece from Pontypool will be responsible for all aspects of conveyancing for clients who are re-mortgaging or moving, and ensuring that the legal process with estate agents and solicitors is as smooth as possible. Cheryl has 15 years experience at Rubin Lewis O'Brien as both conveyancing secretary and conveyancing supervisor and teamleader. She is now also a commissioner for oaths, enabling clients to swear statutory declarations and oaths in relation to wills or grants of probate in her presence.

RUBIN LEWIS O'BRIEN MOVES TO LLP STATUS
With effect from April 1st 2008, Rubin Lewis O'Brien has moved to a limited liability partnership (LLP) status to aid future growth.

Offering the full range of legal services, the Firm is following a route favoured by many of the country's top law practices. The move to switch from a traditional mode of law firm partnership to a LLP, will enable us to meet the growing needs of our private and commercial clients.

Not only does this move have positive implications for our clients, as it provides a more robust and transparent structure, but it also allows us to continue to attract and retain the best people in our industry, which will aid our growth plans.

The move also proves that we ar a progressive Firm that doesn't rest on its laurels. While we continue to enjoy strong growth, we're committed to developing the Firm, and the range and quality of the services available, further.

This move is more important than ever for us. It represents the start of a new era for Rubin Lewis O'Brien in our ambition to be the best law firm in South Wales.

RUBIN LEWIS O'BRIEN GETS MODERN MAKEOVER
Rubin Lewis O’Brien has had a makeover thanks to a £30k modernisation of its offices in Cwmbran and Cardiff.

Its offices in Cwmbran were fitted with two new meeting rooms, carpets, and a brand new conference room, complete with oval table, chairs, and an LCD television. The layout of the office was also redesigned to make better use of the space on offer, with improved access from the reception area to adjoining rooms.

The refurbishment was carried out by Barry-based COS – the Complete Office Solution – who also modernised Rubin Lewis O’Brien’s Cardiff offices by fitting new carpets and tiles, as well as redecorating. COS was also responsible for increasing the amount of light in the offices and creating an extra office by splitting an existing one in half.

Jerome O’Brien, managing partner at Rubin Lewis O’Brien, said: “As we continue to grow as a firm, it is important that we have the facilities in place to cater for this. Previously, we only had three designated meeting rooms. The refurbishment increases this facility to 5 rooms and enables us to get some back office operations out of public view.

“Is it is important to get the reception right in an office as it gives people a first impression of the firm. The new reception now adequately reflects what we are and that is a professional, forward thinking firm. Our client’s have already commented on the new look and it offers a much more welcoming space for those visiting us.

“Both our offices at Cwmbran and Cardiff have been refurbished to give them a modern, fresh feel, with an improved layout and better access created. COS has done a fantastic job, and we’ve all been given a lift by the new look.”

James Emery, managing director of COS, said: “Rubin Lewis O’Brien was keen to give its offices a facelift and make better use of the space that was available to them. By repositioning the reception area at Cwmbran we were able to create the extra space needed for new meeting rooms, as well as allow for dual access by fitting an extra door. At the Cardiff offices we had to ensure that the floors, walls, and lighting were improved to give Rubin Lewis O’Brien the enhanced facilities it needs to thrive as a firm.”

CHILD CUSTODY
Relationship breakdown is a particularly difficult time, more so if there is a disagreement over where children should live. Here, Lisa Davies, family law partner at Rubin Lewis O’Brien Solicitors, looks at the issues surrounding child custody cases.

“Unfortunately, with around 40% of UK marriages ending in divorce, relationship breakdown is a common occurrence. It’s a time when important and long-lasting decisions need to be made about the future, particularly if there are children involved.
“In terms of child custody, sometimes families can reach an agreement. However, others may need help and this is where mediation may assist - a meeting where a trained person assists parents/potential carers reach an agreement.

“Alternatively, legal advice may be sought to apply for a Residence Order under Section 8 of the Children Act 1989 (previously known as Custody Orders). A Residence Order states where a child should live usually until the age of 16, sometimes the Court can make Interim Orders pending final decision. The Court may request the help of a report from a Family Court Reporter from the Children and Family Court Advisory Support Service (CAFCASS) to reach a decision.
“Sometimes the Courts are able to make shared Residence Orders which states that children spend specified times with each carer (though these are unusual). A Residence Order also gives the carer Parental Responsibility for the child. Parental Responsibility means the legal rights and duties for a child that a parent would have. If other people already have Parental Responsibility in relation to the child then the residence holder shares Parental Responsibility with them.

“If an agreement cannot be reached, then the Court will decide. The welfare of the child is paramount but the Court also considers:-

· Wishes and feelings of the child
· Childs needs
· Effect of change in circumstances
· Children’s age, background
· Any harm suffered or risk of suffering
· How capable are the parents of meeting the
child’s needs
· Any other powers the Court may have.”

Rubin Lewis O’Brien employs more than 70 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

HEALTH & SAFETY ON THE AGENDA UNDER NEW LEGISLATION
The introduction of the new offence of corporate manslaughter will come into force in April this year, making it easier to prosecute larger firms that neglect their workers’ safety. For the law abiding majority, this change will be of little significance, but Angela Protheroe, partner at Cwmbran and Cardiff-based Rubin Lewis O’Brien, warns that now is the time for companies to review their health and safety regulations before it’s too late.

“Globally, more people are killed at work each year than are killed in wars. And according to statistics from the health and safety executive, last year in the UK the number of workers fatally injured rose to 241. Obviously, this is an area of great public concern, and the Government has attempted to address this matter in the Corporate Manslaughter and Corporate Homicide Act 2007.

“The main parts of this new legislation will come into force on 6th April 2008 creating a new offence of ‘corporate manslaughter’ in England, Wales and Northern Ireland and of ‘corporate homicide’ in Scotland.

“The new legislation will overcome the key problem with the current law. This is the need to show that a single individual at the very top of a company is personally guilty of manslaughter before the company can be prosecuted.

“Now, if a fatality can be proved to have resulted from a ‘gross failure’ in the way health and safety precautions were managed or organised, the firm can be convicted of corporate manslaughter.

“The offence applies to all companies, partnerships and other corporate bodies operating in the UK in the private, public and third sectors. It also applies to Government departments and police forces, thus lifting previously held crown immunity. The offence does not apply personally to directors, senior managers or partners although individuals can still be prosecuted under gross negligence manslaughter and other health and safety laws.


“The new law will lead to proper accountability and justice for victims where serious management failings lead to people being killed, and is seen as a method of encouraging businesses to have proper procedures in place to manage health and safety.

“The best way for an organisation to act responsibly and legally is for it to appoint someone at senior level who is responsible for corporate heath and safety. If these officers need to sent on training courses, then this should be actioned immediately as otherwise the organisation will be responsible for any failures. Then, even if an incident occurs, if they have acted reasonably and responsibly, neither they nor their company will be prosecutable for manslaughter.

“This new legislation is intended to alarm companies. Those that are taking a responsible and thorough approach to manage their health and safety policies have nothing to worry about. This legislation means that those companies who shun their health and safety responsibilities and are truly culpable will have to answer for their reckless behaviour through tough penalties.”

Rubin Lewis O’Brien employs more than 70 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

INHERITANCE TAX & CAPITAL GAINS TAX - PRE-BUDGET REPORT
INHERITANCE TAX


As from 9th October 2007 the Inheritance Tax threshold has been altered so that the two allowances (currently £300,000 per individual) are transferable between spouses and civil partners. The effect of this is that a husband and wife will have, between them, a £600,000 allowance to be utilised on both deaths. As such, where perhaps you have a husband who has the majority of assets in his name and dies second any unused part of his wife’s allowance can be transferred to his estate. Previously, he would only have his own threshold of £300,000. If a will leaves everything to a spouse it passes tax free anyway. As such the first to die has not used his or her threshold at all. It means that the individual threshold is not lost. The survivor will therefore have a full £600,000 to set against the value of his or her estate.

There are still risks, in my opinion. If no lifetime planning is undertaken including the correct drafting of a will then there are possibilities that cash assets could be lost in other ways.

Trusts are still useful to retain maximum flexibility for the survivor and the children. For instance, if the survivor requires nursing home care then allowing all the estate to simply pass to the survivor would be unwise as it could all be used to pay fees.

Many people are marrying more than once. Consequently Inheritance Tax is only one consideration. Many people will want to ensure that the surviving spouse has access to the house and perhaps the funds in a trust fund but want to put in place protection for children from an earlier relationship together with children from the marriage. If no planning were undertaken then there is nothing to stop a surviving spouse forming a new relationship and changing his or her will and leaving everything contrary to the wishes of the deceased.

Trusts will still remain a sensible choice where there are children with learning difficulties or mental health issues where it would be unwise for that child to inherit outright or a risk of losing entitlement to benefits.

If at the date of death of the first spouse there was no reason to set up a trust then the trustees would have the discretion to appoint all or some of the assets to the surviving spouse within the first two years following death.

If some assets were passed to children on first death then the remainder of the unused allowance would still be available on second death.

The use of the threshold in will planning is also vital for those who are not married and living together and for same sex couples who have not formalised their relationship by entering into a Civil partnership. If the “tax free” threshold is not utilised on first death then it is lost and Inheritance Tax will still bite as before.

The Chancellor has indicated that the transferable threshold will rise to £700,000 in 2010. He has also indicated that the threshold will be linked to house prices.

Finally the transferable threshold will be available to widows or widowers who had not undertaken any tax planning. Consequently if a spouse has died prior to 9th October leaving all the estate to the survivor then that survivor dies post 9th October then the estate will now have a full £600,000 allowance for the remainder of this tax year and rising to £700,000 in 2010.


CGT

Taper relief has gone with effect form the new tax year April 6th 2008. For the average person speculating with buy to let properties or holiday homes they should be paying less tax. Annual exemptions will still exist but there will be no relief for the length of time the assets have been hold. The tax will be charged at a flat rate of 18% as opposed to being paid at the individuals prevailing income tax rate.

There are disadvantages for family businesses where they have been held for many years and taper relief was a very useful relief when the business was sold. There will be a flat rate of 18% so they may pay more tax. This may well mean that prudent speculators, already considering a sale of a business asset, may wish to make that decision sooner rather than later?

It should not be forgotten, however, that any business which attracts 100% Business Property Relief, on death, can still be passed through the generations attracting an automatic uplift for CGT purposes and no IHT to pay on the value of the business asset!

This is yet another reason to continue to sing the praises of detailed and specialist estate planning and perhaps too early to announce the death of trusts in wills?

PUNISHMENT OR PREVENTION TIPS TO AVOID SURGE OF RUGBY 'SICKIES'
Angela Protheroe, employment law specialist at Rubin Lewis O'Brien, gives advice for employers during the 'rugby season'; she says there is a possibility of an increased number of employees calling in sick or attempting to take late holidays. Angela says employers should 'tread carefully' in tackling these problems, to avoid falling foul of employment legislation, such as claims for unfair dismissal or breaches of the Human Rights Act, 1998. 'While there are rights for employees to take time off for dependents in an emergency, for example, to take parental leave to care for young children, or to serve on a jury, there is no statutory right to take time off to watch rugby. Employers need to ensure that a policy is in place for this period, which sets out the correct parameters for taking leave and addresses how unauthorised absence will be dealt with under the Disciplinary Procedure. This policy needs to be communicated to all staff regardless of age, sex, or responsibilities - for example, if you make different rules for male members of staff there is a risk you will face sex discrimination claims. Employers should tell staff that attendance would be monitored and sickness absences investigated if they coincided with matches. If faced with an abunance of annual leave requests, ensure that employees are giving the correct notice under the Working Time Regulations. Where an agreement is not in place, the notice a worker must give should be at least twice the period of leave to be taken. Furthermore, an employer may refuse to grant leave requested within a period equivalent to the period of leave. This does not mean that employers cannot be flexible - late requests for holiday could be considered, subject to the needs of the business, on a first come, first served basis. Given that there is likely to be a nationwide frenzy, especially if Wales do well, think about some practical steps to keep staff motivated and encourage attendance. Consider arranging for widescreen televisions to be made available in staff canteens to try to accommodate matches, or introducing a temporary policy about flexible hours. If there has been an evening match, the policy could allow employees to start work an hour later. This may encourage attendance for those who have been out celebrating the night before.

NEW EMPLOYMENT LAW SOLICITOR AT RUBIN LEWIS O'BRIEN
Rubin Lewis O’Brien has appointed a new specialist solicitor to strengthen its commercial department.

Catrin Williams from Cardiff will handle all aspects of employment law including age and sex discrimination issues, unfair dismissal, redundancy and pension claims.

Catrin speaks French and Spanish, has a masters in International Relations and studied French and Philosophy at Oxford University. She went on to complete a law conversion course at City University and a legal practice course at the University of the West of England.

After completing a training contract at London based Nabarro Nathanson, where she spent a four month secondment in the legal services department of Oxford University, Catrin has more recently worked in the employment and pensions department at Eversheds LLP.

“Rubin Lewis O’Brien offered me a new challenge to expand the company’s employment law offering,” said Catrin. “They are a well-respected firm in Gwent with a strong client base and I am delighted to be joining the team.”

Jerome O’Brien, managing partner at Rubin Lewis O’Brien, said: “We have built a strong and experienced team at Rubin Lewis O’Brien, so it is important for us that we recruit the right people to allow the firm to continue its progression and deliver excellent service to our clients. The commercial law team has been further strengthened by Catrin’s appointment and she will build on our employment law offering.”

DRAGON BOAT RACE
Having been postponed due to the bad weather and dangerously high river levels in July, the Dragon Boat Race finally took place on August 5th at Monmouth; this was a sponsored event in aid of St David's Foundation Hospice and the Firm raised around £550.00 towards the total.

9 Rubin Lewis O'Brien employees made up the Firm's team - calling themselves 'The Pirates of the River Wye' and dressed in appropriate pirate attire they took part in 3 heats and came 10th out of 13 overall. The team were: Rhys Warren, Richard Evans, Andriy Buniak, Chris Baker, Maurice Thompson, Joanna Morgan, Vicky Marshall, Rebecca Hounsell and Lyndsey McDonald (drummer).

A great day out was had by all and the Firm was pleased to support such a worthy cause.

NEW TRIO AT RUBIN LEWIS O'BRIEN IN CARDIFF
Rubin Lewis O’Brien has appointed three new staff members to its busy Cardiff office in St Mellons, to strengthen its offering in the locality and build on core departments within the firm.

Tessa Thomas, (pictured left) from Miskin, takes on the role of elderly client advisor to replace award winning legal executive Caroline Greathead who retired earlier this month.

Having worked within the family law department at Rubin Lewis O’Brien for two years, Tessa’s new role will strengthen the private client department and will see her focus on the wellbeing of elderly clients including advising on wills, dealing with probate, challenging social service’s assessments of elderly clients and making applications for continued care.

Catherine Wheeler (centre), 29, from Cardiff, joins the St Mellons office to strengthen the residential conveyancing team where she will be specialising in conveyancing transactions such as house sales and purchases, right to buy transactions, transfer of equities and remortgage work. Having completed the Legal Practice Course at Glamorgan University, Catherine has worked for the past three years at one of the major Practices in Cardiff.

Amanda Wood, (right) 30, from Barry, joins the team as family law solicitor from Cardiff-based Hartland Watkins Solicitors. Having gained a distinction in her Legal Practice Course at the University of Glamorgan, Amanda has built up extensive experience within the field of family law and her case load will involve divorce and ancillary relief, injunctions, contact and residence matters.

Jerome O’Brien, managing partner at Rubin Lewis O’Brien, said: “We have already built up a strong reputation in Cardiff as a well respected law firm and these new appointments will further strengthen our position in the locality. Private client, family and residential conveyancing are strong areas of our business that will welcome the expertise of these recruits. We’re delighted to welcome them to our growing team.”

Rubin Lewis O’Brien employs over 70 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

IN TUNE WITH COMMUNITY - OPERA IN THE PARK
In June 2007, Rubin Lewis O'Brien has proved that it’s in tune with the local community by lending its support to this year’s Opera in the Park.

The stage based concert, which took place in Pontypool Park on Saturday 23rd and Sunday 24th June, provided local music lovers with a spectacular weekend of classical entertainment.

Rubin Lewis O’Brien was one of the main sponsors of this year’s event held to showcase musical talent from around Wales and the local area.

The event included performances from singers and musicians from the Welsh National Opera, including headline act the ‘Three Other Tenors’, and featured the Risca Male Voice Choir and other local choirs bringing the magnificent surroundings to life.

Jerome O’Brien, managing partner at the firm, said: “As a company with a strong heritage in Cwmbran and the Gwent area, we are proud to lend our support to this fantastic concert and ensure that music lovers in the community are treated to the very best of Welsh musical talent.”

“The Opera in the Park, which was a sell out last year, is a fantastic opportunity for both opera buffs and newcomers to enjoy classical entertainment in the beautiful surroundings of Pontypool Park.”

BUDGET 2007
BUDGET 2007



PERSONAL TAXATION

INHERITANCE TAX

There was no surprise announcement this year and the threshold was simply raised in accordance with last years staggered increase. The rate will rise to £300,000 from 6th April 2007. any estates worth more than the threshold will face a potential charge to Inheritance Tax at 40% above this figure on death or upon transferring of assets into relevant Property settlements as defined by the Finance Act 2006 (This is basically any lifetime transfer into trust where assets or property exceed the threshold where there will be an immediate charge to tax at 20% above the threshold).

It is therefore still important for everyone to consider their personal position and whether or not appropriate wills could mitigate their estate’s liability to IHT?

The Chancellor also announced the rate for 2010-2011….£350,000 rising from £325,000 for 2009-2010.

CAPITAL GAINS TAX

The annual exemption will rise to £9,200 per person. This equates to £18,400 for husband and wife.
Although the 10p rate is removed for income Tax from 6th April 2008 it will remain available for savings income and capital gains.


INCOME TAX

The much heralded drop of 2p in the basic rate of tax from April 2008 will mean that the basic rate will be 20p. However countering that “gift” is the removal of the starting rate of tax of 10p. This means that overall the tax reduction is pretty neutral. Indeed for those on very low incomes of approximately £5000 - £17,000 the tax bill will rise.

In addition the tax alignment of National insurance contributions to the rates of Income Tax will mean that moderately high earners will face an increase in their NI again negating any tax reduction offered by the 2p!

There is the usual increase in the personal allowances:
2006-2007 2007-2008
Age under 65 5,035 5,225
Age 65-74 7,280 7,550
Age 75 and over 7,420 7,690

Married Couple’s Allowance
Age less than 75 and born
Before 6th April 1935 6,065 6,285
Age 75 and over 6,135 6,365

Income limit for age related
Allowances 20,100 20,900

Blind person’s allowance 1,660 1,730


ISA’S

From April 6th 2008 the ISA annual investment limit will rise to £7,200 with a maximum of £3,600 in cash.

STAMP DUTY LAND TAX

As expected there was no increase in the property values upon which SDLT is charged.
However, the budget did announce a small glimmer of hope in that a measure will be introduced from the Royal Assent which will reduce the amount of SDLT paid in many cases where property is exchanged between connected persons by no longer treating these exchanges as linked transactions.





BUSINESS MEASURES


CORPORATION TAX

The headline cuts in the main corporation tax rate to 28% from April 2008 are undoubtedly in the right direction to help boost the international competitiveness of the UK's tax system. However, once again although this appears to be a reduction the changes to the capital allowances system - to a standard 20% plant & machinery allowance, phasing out of the industrial buildings allowance, slightly balanced by the 10% long life asset rate - will be revenue raising.
Smaller companies face a counter-productive increase in small companies rate in stages to 22% (to parallel the existing basic income tax rate reducing the self-employed/incorporated differential), balanced by an increase in R&D allowance and the new £50,000 'investment allowance'. Once again the package is revenue neutral.

EMPTY PROPERTY RELIEF

This relief is available for non domestic rates and will be reformned from April 2008 so that office and retail premises receive 100% relief for three months instead of the current six months. Industrial and warehouse premises will continue to receive relief at 100% for six months.
Charities will be exempt form these charges.


DUTIES ON CIGARETTES, DRINK ETC

The 'sin tax' increases were inflationary, with 11p on cigarettes, 7p on sparkling wine, 5p on wine, 1p on a pint of beer (and, this year, cider) but the usual freezing of duty on spirits. Duty on petrol and diesel is due to increase by 2p a litre, but not until October this year.



This summary does not cover all areas of the Budget which ran to some 326 pages! However, in summary the overall effect of the Budget was less aggressive than it might have been. Is it Gordon’s last Bidget before he takes over as Leader? Was he trying to woo the public before he departs?
We should count ourselves “lucky” that he has not hit gifting as part of lifetime tax planning or, as rumoured, reduced the availability of Agricultural Property relief and Business Property relief available of death. In addition the tax advantages of investing in the AIMS market as part of lifetime planning also seem to be intact.

However, don’t hold your breath as these could be attacked sooner rather than later!

Claire Davis
Partner Private Client Department

This information is based on our understanding of present law and Inland Revenue practice. We do not guarantee that the information will not alter based upon further parliamentary discussion, the Finance Bill or Act 2007.

The value of any tax benefits depends on individual circumstances.

TIME RUNNING OUT FOR ENDURING POWERS OF ATTORNEY
TIME RUNS OUT FOR ENDURING POWERS OF ATTORNEY


Q. Have you signed an Enduring Power of Attorney (EPA)?

A. Everyone over the age of 18 should make one if they have a trusted person or people in their lives.

Q. What does it do?

A. It is a legal document which allows you to choose a trusted person or persons, known as an Attorney(s) to act on your behalf in relation to your financial affairs and property.

Q. Can it be used straightaway and whilst I have full mental capacity?

A. If you wish it to – yes. It can be very useful, for example if you were in hospital for a while your Attorneys, at your request, could use your bank account to pay your bills. Once you are better you could take full charge again.

Q. What if I lose mental capacity and I can no longer deal with my financial affairs?

A. Your Attorneys will be able to act for you once the EPA has been registered with the Court of Protection, which is a straight forward procedure.

Q. What if I haven't signed one and I am no longer able to deal with my financial affairs?

A. Many people believe that a close family member can act, but this is not true! Without an EPA there is NO-ONE legally in place to act and someone will have to apply to the Court of Protection to be appointed as Receiver. It is expensive, time consuming and long winded - not to mention the emotional cost and so it is best avoided if at all possible.

Q. But time is running out?

A. Yes -from Autumn 2007 no new EPAs can be made. Only those who have already signed an EPA will be able to keep and use them.

Q. Why?

A. The Mental Capacity Act 2005 will come into force and replace EPAs with Lasting Powers of Attorney (LPAs). LPAs have positive and negative sides. On the positive side it will be possible to appoint attorneys to act not only in relation to finance and property, but also health, welfare and end of life decisions. On the negative side they will be a more complex document than EPAs to make. They are expected to be at least 25 pages long and must be registered with the Public Guardian before use. It is expected they will cost significantly more than an EPA to make. EPAs are less complex and can be used in many situations without the involvement of the Court of Protection or the payment of additional fees.

Q. What should I do?

A. Don’t wait! Get legal advice now from Claire Davis (a member of Solicitors for the Elderly (SFE))
At Rubin Lewis O’Brien, Gwent House, Gwent Square Cwmbran NP44 1PL
Telephone: 01633 867000
Email: clairedavis@rlob.co.uk.

70 staff for Rubin Lewis O’Brien
Cwmbran-based solicitors Rubin Lewis O’Brien has reached 70 staff members for the first time with the appointment of four solicitors.

Paul McCarthy joins as civil litigator from a Cardiff-based law firm after nine years with the firm. A law graduate of the University of Wales, Aberystwyth, Paul went on to study for his LPC at Guildford College of Law.
With extensive commercial and property litigation experience, Paul will join the litigation department with a case load including property, employment, landlord and tenant law and debt collection.

Annette Lawrie joins the company as wills and probate solicitor working alongside Claire Davis in the private client department.
Following a career change in 1990, Annette studied law at Cardiff University before completing the LPC at Cardiff Law School. Since qualifying, she has gained extensive experience and her new case load will include wills, probate, inheritance tax and enduring powers of attorney.
In addition, two of the firm’s trainee solicitors qualified at the beginning of the year and have been offered permanent positions. Maurice Thompson, a graduate of the University of Glamorgan, will work in the firm’s conveyancing department, while Rhys Warren will specialise in childcare law in the firm’s family department.

Jerome O’Brien, managing partner, said: “We are delighted to welcome Paul and Annette to our growing team – it’s a great start for 2007. Our litigation and private client services are strong areas of our business that will welcome the expertise and wealth of experience the pair bring with them. Furthermore, both Rhys and Maurice have shown a great deal of dedication to the firm and the legal profession over the past two years so we are naturally very proud to have them among our ranks.”

Rubin Lewis O’Brien employs over 70 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

Elderly at risk from financial abuse by own children
Children are more likely to rob their elderly parents of their valuables, money, and even their homes than anyone else, according to a recent report from charity Action on Elder Abuse.

The findings, which came from an analysis of almost 500 calls to the charity’s helpline, revealed that 53 per cent of theft, fraud and deception was committed by the victims’ children. More than £2 million was reported as stolen or coerced from them in the last year and on top of that 18 houses were reported as having been sold or given away without the owner’s consent, with a further13 homes given away under emotional pressure including blackmail.

Many pensioners are victims of their close relatives’ greed and are regarded as easy targets if they have disabilities or suffer dementia. While this may seem inconceivable to most, it is a sad truth that needs to be accepted, not least by older people themselves.

It is essential that proper legal advice is sought. Solicitors for the Elderly (SFE) are a national association of lawyers providing legal advice to older people, their family and carers. Solicitors who are members of this association have expertise in dealing with legal services typically required by older people, including wills and powers of attorney.

Claire Davis, Private Client Partner at Rubin Lewis O’Brien Solicitors and a member of Solicitors for the Elderly says: “It causes me great concern that older people are at risk of financial abuse. By seeking appropriate advice from a specialist solicitor, they should feel confident that adequate precautions will be taken to ensure that their wishes are followed and that the risk of financial abuse as a result of lack of capacity, coercion or otherwise is minimised.

“As a member of SFE, I appreciate how vulnerable some older clients feel. As a result, we ensure that the elderly client is a willing and capable participant in his or her instructions and has the requisite capacity and level of understanding to make the decisions he or she wants, while realising the risks and benefits of such choices. Most importantly, we deal with matters tactfully and sensitively to ensure that the older person is not being forced or influenced to make choices that he or she would not really wish to make.”

Formal systems such as a will - which will ensure valued assets are protected and passed to the beneficiaries of choice - or an Enduring Power of Attorney - whereby a person can grant another person the power to act on his or her behalf with regard to his or her property and financial affairs - will go someway in offering protection to elderly people. Sadly family members won’t always ‘do the right thing’ despite what we think. Disputes over assets are not uncommon and therefore protection is vital.

Continues Claire: “From October of this year it will be possible to make a ‘lasting power of attorney’ under the new Mental Capacity Act. This will enable individuals to choose a person to make decisions regarding their health and welfare, as well as their finances. As this piece of legislation has yet to formalised, a big question mark still hangs over its effect and benefits.

“Although no system is 100% foolproof, seeking the appropriate specialist advice will go some way to helping protect the older person from the risk of such abuse as highlighted by the survey.”

Claire Davis, Private Client Partner at Rubin Lewis O’Brien, is a member of the national association ‘Solicitors for the Elderly’ (SFE) that specialises in advising older people. For further information visit www.solicitorsfortheelderly.com or contact Rubin Lewis O’Brien on 01633 867000.

Rubin Lewis O’Brien employs 70 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

Gwent law firm appoints legal high flier
Cwmbran-based solicitors Rubin Lewis O'Brien has strengthened its commercial property department with the appointment of an award winning solicitor.

Sam Strong, 31, from Usk, won a two year training contract with the firm in 2004 after gaining the highest grade possible at Glamorgan University for her Legal Practice Course (LPC) and scooping the prestigious Law Society Prize for Top Student 2004.

Having successfully completed her training contract, the newly qualified solicitor will take up her role alongside managing partner Jerome O'Brien and partner Sam George. Her case-load will involve the acquisition and disposal of commercial and industrial properties, agricultural land, hotels, pubs, restaurants and other licensed premises, and she will also assist with planning law and landlord and tenant issues.

Speaking about her appointment, Sam said: "From the outset Rubin Lewis O'Brien has taken into consideration my preferences when structuring my training contract. I'm absolutely thrilled to have been given the chance to specialise in commercial property law which will allow me to take my career to the next stage.

"The diversity of the work means that I deal with a variety of properties and businesses so that in any one day I could be dealing with a purchase of a local café, a lease of a property in London, or the sale of a public house."

Jerome O'Brien, managing partner, said: "Sam has already shown a great deal of dedication to the legal profession, so we are naturally very proud to have her among our ranks. With a firm knowledge of the Gwent community, I am confident that Sam is well-placed to help build on the department's strong position in the local market and develop her own legal career."

Rubin Lewis O'Brien employs over 60 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

Solicitors take to the water for charity
Eleven staff from south Wales law firm Rubin Lewis O'Brien recently took to the water to raise money for Newport-based charity St David's Foundation Hospice Care.



The team of solicitors and partners, dubbed 'Mission Impossible', rowed in the annual Dragon Boat Race at Monmouth Rowing Club raising over £ 700 for the charity that provides hospice care to over 2,000 people in south east Wales.



Taking to the water in a series of heats the team eventually finished in the bottom half of the field, after a promising first heat.



Says Mal Bramhall, Practice Manager: 'We're delighted to be able to support St David's Foundation, which carries out such invaluable work within the local community. The rowing event provided us with a great teambuilding opportunity and enabled us to raise some money for a really worthwhile cause. We're all novice rowers so we didn't take to the water too well but this did not dampen our spirits on what was a great day out.'



Emma Saysell, Chief Executive of St David's Foundation Hospice Care, adds: 'This year's event was a great success with a record 31 teams taking part. We're truly grateful to the staff at Rubin Lewis O'Brien for giving up their time to raise money so that we can provide hospice care - and we're pleased that they enjoyed the day so much.'

New partners strengthen law firm
South Wales law firm Rubin Lewis O'Brien has made two key promotions in its Cwmbran office as part of the firm's ongoing expansion plans.

Lisa Davies, Childcare solicitor and Angela Protheroe, Personal Injury and Employment solicitor, have been internally promoted to partners.

Lisa Davies joined the team in 2003 with over 10 years experience in childcare law. Lisa is a member of the Law Society's Children Panel, which enables her to represent children and parents in Public Law Proceedings.

After graduating with a Commendation, Angela Protheroe qualified at a leading Cardiff law firm before joining the practice in September 2001. A member of the Association of Personal Injury Lawyers, College of Personal Injury Law and the Welsh Personal Injury Lawyers Association, Angela joined Rubin Lewis O'Brien to expand and develop the Personal Injury Department and now processes hundreds of claims including road traffic accident claims, accidents at work, claims for people injured on the highway, and claims for innocent victims of crime. Angela also practises in Employment law and provides advice and representation for both employees and employers.

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said; 'As the firm continues to grow and increase its client base, we feel we need a larger, even stronger team of partners to take us forward.

'Lisa and Angela both have a vast array of experience within their respective teams and I am delighted that they are on board to take the firm forward as we continue our ambitious plans for the future.'

Rubin Lewis O'Brien now employs 62 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

Local solicitors warn of national homes swindle
Cwmbran-based Rubin Lewis O'Brien is urging the local Gwent community to check national criteria before paying for nursing care accommodation following the BBC current affairs programme, Panorama highlighted the scandal of the 'national homes swindle'.

According to the programme aired last week thousands of families across the country are being forced to sell their homes to pay for long-term care of a sick relative - care that should, legally, have been paid for by the NHS.

Claire Davis, Private Client Partner and member of the national association 'Solicitors for the Elderly' (SFE) that specialises in advising older people, says:

'Healthcare in the UK by the NHS is, by law, free and financed out of tax money, yet many of our country's most vulnerable people are forced into selling their homes to pay for long-term care in a nursing home. Why? Well quite simply because the current NHS criteria for assessing whether patients are entitled to free care is flawed.

'For over a decade the system for funding long-term care has been in disarray - in fact, during that time there have been four special reports all of which have been critical of the current system.

'It is not soon enough that Panorama has once again raised the issue uncovering thousands of people in care homes with long-term illnesses who have unlawfully had their homes and most of their savings used to pay for their care.

'As it currently stands the NHS has a set of guidelines to assess who is eligible for free care. These guidelines should respect a key legal test case, the Coughlan judgement of 1999 in the Court of Appeal.

'The Coughlan judgement determined that if the patient's need for medical care was secondary to their need for accommodation in a care home then their care could be the responsibility of the local council and means-tested. But if the patient's needs are primarily of health then the NHS should pay for all care.

'I know of several cases where the law is being wrongfully applied and I am in the process of reviews and appeals for those clients or their estates. No one should move into a nursing home without checking that they qualify, as many people are not told that they might be eligible for funding or the process for reviewing the decision. With care fees costing anything between £ 450-£ 1,500 each week, it is vital that residents, their families and their carers get advice.

'Following the shake up by the BBC it is hoped now that the government will address the shortcomings in the present system.

'There is clearly a need for a widescale review of criteria used by the health authorities across Wales. As all the criteria draw on the guidance issued by the Department of Health it is likely that there are failings across the country where thousands of old and ill people have been refused care. The government has indicated that it will undertake a review in Spring and we will wait with anticipated breath its outcome.'

Rubin Lewis O'Brien is a member of the 'Solicitors for the Elderly' association that specialises in legal services for older people and their carers. The firm employs 60 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services. To contact Claire or a member of her team please call Rubin Lewis O'Brien on 01633 867000.

The National Homes Swindle
The Government is once again under pressure as the BBC current affairs programme, Panorama has highlighted the scandal of thousands of families across the country being forced to sell their homes to pay for long-term care of a sick relative - care that should, legally, have been paid for by the NHS. Claire Davis, Private Client Partner at Cwmbran-based Rubin Lewis O'Brien, is a member of the national association 'Solicitors for the Elderly' (SFE) that specialises in advising older people. Here, Claire takes a closer look at the injustice in the current system.

'Healthcare in the UK by the NHS is, by law, free and financed out of tax money, yet many of our country's most vulnerable people are forced into selling their homes to pay for long-term care in a nursing home. Why? Well quite simply because the current NHS criteria for assessing whether patients are entitled to free care is flawed.

'For over a decade the system for funding long-term care has been in disarray - in fact, during that time there have been four special reports all of which have been critical of the current system.

'It is not soon enough that Panorama has once again raised the issue uncovering thousands of people in care homes with long-term illnesses who have unlawfully had their homes and most of their savings used to pay for their care.

'As it currently stands the NHS has a set of guidelines to assess who is eligible for free care. These guidelines should respect a key legal test case, the Coughlan judgement of 1999 in the Court of Appeal.

'This case involved a paralysed woman called Pamela Coughan who challenged her local health authority as she faced the prospect of responsibility for her care being transferred from the NHS to the local authority. She won her case and the judgement set out a test for all future cases.

'The Coughlan judgement determined that if the patient's need for medical care was secondary to their need for accommodation in a care home then their care could be the responsibility of the local council and means-tested. But if the patient's needs are primarily of health then the NHS should pay for all care.

'Locally, the NHS publishes 'eligibility criteria' setting out, in each area, who is and who is not eligible for free care, although there is concern that most, if not all, of those currently in operation are unlawful and not Coughlan compliant. Most people should qualify but are being told that they are not eligible as their care needs are social and, as such, something which they must pay for.

'The programme interviewed a number of people who had been turned down for funding despite having care needs similar or more than Pamela Coughlan.

'Since this original case, there has been another test of the same kind, the Grogan case, which described the NHS criteria as 'fatally flawed' and an ombudsman in 2004 deemed the guidance as 'unhelpful' and 'unclear'.

'I know of several cases where the law is being wrongfully applied and I am in the process of reviews and appeals for those clients or their estates. From the outset it is made apparent that this is not a straight forward route for those involved. I ask those that think they've got a claim to come in for guidance before they start pursuing anything to make sure they have all the relevant information and records. I can then assess the strength of the case and provide assistance in drafting any arguments. The final procedure is to appeal to the NHS Ombudsman of through the court - but this can take years, and in the meantime, the elderly person being cared for often has sold their house to fund their own care.

'No one should move into a nursing home without checking that they qualify, as many people are not told that they might be eligible for funding or the process for reviewing the decision. With care fees costing anything between £ 450 - £ 1,500 each week, it is vital that residents, their families and their carers get advice.

'Following the shake up by the BBC it is hoped now that the government will address the shortcomings in the present system.

'The most serious being the absence of a unified set of criteria that clarify what constitutes health care and social care. Until we have one national set of criteria, the highly controversial issue of which patients qualify for fully funded NHS care, and which have to contribute some or all of the costs of care, will remain. Even then, there is no guarantee that a single set of criteria would make the situation any clearer. But one thing is for sure, it can't get any worse.

'The current system is confusing for all involved and it is very difficult for carers and patients to know where they stand. There is clearly a need for a widescale review of criteria used by the health authorities across Wales. As all the criteria draw on the guidance issued by the Department of Health it is likely that there are failings across the country where thousands of old and ill people have been refused care. The government has indicated that it will undertake a review in Spring and we will wait with anticipated breath its outcome.'

Rubin Lewis O'Brien is a member of the 'Solicitors for the Elderly' association that specialises in legal services for older people and their carers. The firm employs 60 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services. To contact Claire or a member of her team please call Rubin Lewis O'Brien on 01633 867000.

Budget changes 2006
NHERITANCE TAX THRESHOLDS

The Chancellor delivered a small but welcome tax boost to those of moderate wealth by signalling increases to the Inheritance Tax Threshold (IHT nil rate band) from £ 275,000 to £ 325,000 over the next four years.

Mr. Brown estimated that 94% of estates would not pay Inheritance Tax. This is a hugely unpopular tax amongst homeowners particularly as house prices have risen steeply over the past few years.

The Chancellor had already announced the thresholds for 2006/2007 £ 285,000, and 2007/2008 £ 300,000. He has now announced that the threshold for 2008/9 will be £ 312,000 and £ 325,000 for 2009/10.

We believe that he could have been more generous in this area bearing in mind the small proportion of the population caught by this tax and the relatively small amounts raised. There will still be significant number of moderately wealthy, hardworking people who will still be at risk if proper advice is not sought.

With efficient will drafting any married couple with assets under £ 570,000 can still avoid this tax and save their families as much as £ 114,000 in tax.

Trust reforms

The IHT exemptions which presently apply to 'accumulation and maintenance' trusts (A&Ms) and/or 'interest in possession' trusts (IIPs) will be available only in certain prescribed circumstances. Otherwise IHT charges will apply in the same way as for all other trusts, preventing them from being used to shelter wealth from IHT. In effect all lifetime transfers into A&M or IIP trusts will be immediately chargeable to IHT and the usual regime of ten-yearly and exit charges will apply, unless the trust is set up for a disabled person. There will be transitional arrangements for existing trusts.

This is a real surprise and another attempt to prohibit any sort of lifetime planning. We do not believe this will affect will drafting using Discretionary Trusts but watch this space!

STAMP DUTY

A very small giveaway in raising the threshold for stamp duty immediately, from £ 120,000 to £ 125,000.

We feel that this is an insignificant increase and will not really assist the property market nor the first time purchasers at whom this is aimed.

INCOME TAX

The threshold for payment of Income tax has been raised form £ 4895 to £ 5035

CAPITAL GAINS TAX (CGT)

Exemptions and rates of tax

The annual exempt amount has been increased in line with inflation for 2006/07 to £ 8,800 (2005/06 £ 8,500) for individuals. The CGT liability is calculated as if the gains in excess of the annual exemption were the top slice of the individual's savings income.

Trusts

The annual exempt amount is increased to £ 4,400 (2005/06 £ 4,250) for most trustees. The exemption is divided where there are several trusts created by the same settlor. Capital gains of trusts are taxed at the special trust rate of 40%. Changes are being introduced to bring the main trust-related definitions and tests for tax on income and chargeable gains into line with each other, mostly with effect from 6 April 2006.

HIP house buying?
The process of buying and selling your house is set to change significantly over the next couple of years with the introduction of Home Information Packs (HIPs). From 2007, it will be compulsory for everyone putting their home on the market to produce a HIP which provides prospective buyers with all the basic information they need about a property before they buy.

Richard Lewis, a senior partner and specialist solicitor in residential conveyancing from Cwmbran-based Rubin Lewis O'Brien, gives an insight into the raging debate about whether these packs will hinder or help the home buying process.

'There has been much talk over the last few years about the need to speed up the conveyancing process. Research has indicated that it takes, on average in Wales, eight weeks to complete a sale of a domestic property. The government proposes that these new packs will speed up and simplify the situation and reduce the risk of transactions falling through before contracts are exchanged.

'As it currently stands before exchanging contracts a buyer's solicitor will check the seller's title to the property and carry out various searches and enquiries to ensure there are no problems that may affect the property. Once this is done and the buyer has received a mortgage offer, contracts will be signed. In isolation this pre-contract process takes about four weeks before exchange of contracts takes place.

'Delays can occur, however, when there is a chain of transactions, in which case the sale can only proceed at the speed of the slowest link in the chain. For example, a seller may still be looking for a property to purchase and can't proceed with the sale until they find one, or an application for a mortgage may cause delays if a buyer has a poor credit rating.

'Information traditionally provided during the conveyancing process will now be provided up front in the HIP. The packs will contain documents that include evidence of ownership, local authority searches and a new 'home condition report' detailing the physical condition of the property. The packs are designed to make it easier to sell a home because all the relevant information must be included in them before the property can be advertised for sale.

'However, there are fears that buyers or their lender will not trust the report of a home inspector paid for by the seller and will end up paying for their own independent survey. Further, what if the report is wrong and the buyer, after purchasing in reliance on the report, subsequently discovers problems that were not mentioned in the report. It is doubtful because, as things currently stand, that the buyer could sue the seller or the home inspector who provided the home condition report as it is unlikely that they will have insurance cover. There are also concerns that information in the pack will have to be updated if a home takes too long to sell.

'We welcome any developments that will improve or speed up the conveyancing process but we are concerned that there are certain flaws that should be identified. I'm not convinced that the HIP will achieve any meaningful reduction in the apparent delays in the conveyancing process. A dry run is expected to take place in one or more parts of the country prior to the launch in 2007 so sellers and buyers should watch this space!'

Rubin Lewis O'Brien is a leading regional law practice, employing 57 staff from its offices in Cwmbran and Cardiff. For more information about HIPS or selling your property, please contact Richard Lewis on 01633 626359.

Rubin Lewis O'Brien strengthens Cardiff office
Rubin Lewis O'Brien has strengthened its office in St Mellons, Cardiff, with an appointment to its Family Law department. Tessa Thomas, originally from the village of Maerdy in Rhondda, joins the team from Cardiff-based Morgans Solicitors where she worked for two and a half years. In her new role as a family and matrimonial solicitor her case-load will involve divorce and ancillary relief, injunctions, contact and residence matters.

With a varied and interesting career, Tessa decided to make the leap back into law in her mid thirties to the field she had begun her career in as a Court Officer in both Cardiff and Pontypridd County Courts from 1976 - after the closure of Gresham Insurance Group where she had worked as the first female broker consultant for Wales.

On making this brave decision, Tessa went back to college to study for an additional A-level before embarking on a law degree followed by a LPC at the University of Glamorgan. In order to fund her law society finals, Tessa also juggled her studying with managing two Post Offices in Aberdare and Ely.

Talking about her change in direction, Tessa said: 'Deciding upon a career change later in life was the hardest thing I have ever done. As a single parent with two daughters and school fees to pay, it definitely meant that a sacrifice had to be made, but it was a decision that I knew would benefit my family in the long run. I worked full time and studied in the evenings which was quite tough going, but my family were always very supportive.

'I have been very fortunate in my career. People and the profession have welcomed me and I'm truly grateful. I would say to anyone thinking of a career in Law, that age, gender and background is no bar to success in this country.'

Speaking about her appointment Tessa said: 'There's a great atmosphere at Rubin Lewis O'Brien - the team are friendly and professional, delivering a high quality of service to their clients. I'm delighted to be part of the team.'

Richard Lee, partner, managing the Cardiff office of Rubin Lewis O'Brien, said: 'Tessa has shown a great deal of determination and persistence in pursuing her chosen career. We believe that she will be a great asset to our family law team and her previous experience adds an extra dimension to the service we offer our clients.'

Legal high-flier accredited as member of specialist association office
Introduction

Claire Davis has good reason to celebrate as the Private Client Partner from Cwmbran-based Rubin Lewis O'Brien has been accepted as a member of the national association 'Solicitors for the Elderly' (SFE).

SFE is an association of solicitors, barristers and legal executives who specialise in legal services for older people and their carers. In order to become a member of this national group, candidates must have a wealth of experience within this key legal area and they are required to have spent a substantial amount of time working for elderly clients.

'Laws affecting older people are becoming more complex', says Claire. 'There are a wide range of legal issues affecting elderly people today and this is a field of law which is constantly evolving, as the requirements of the elderly population change. The growth in this area reflects demands from clients to be better informed about these important issues.'

She continues: 'I have been specialising in legal services for the elderly for several years, and am looking forward to continuing my development in this area. Membership of this national association will help distinguish us from other law firms in the area and allow us to expand upon our rapidly growing Private Client Department.'

Claire's work encompasses all areas of elderly client care together with advising clients in matters relating to Wills, Probate, estate Planning, Inheritance Tax, Trusts and preservation of assets. She works closely with social services and other professionals involved in elderly client services.

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said 'This is a great achievement for Claire and the practice. Claire's membership of SFE shows our commitment to providing first class legal advice in this specialist field for older people, their family and carers.'

Rubin Lewis O'Brien employs 57 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

To contact Claire or a member of her team please call Rubin Lewis O'Brien on 01633 867000.

Budget 2005 / Financial Update
Introduction

It appears that Gordon Brown's last budget before the General Election has been targeted to cost the Government very little and appears to offer the selected few 'small titbits'.

For the moderate to wealthy client, the budget will have very little impact in reducing the importance of proper lifetime tax planning and Will preparation to ensure future preservation of assets for the family.

Without undertaking such planning it may still be the case that Gordon becomes a major and substantial beneficiary of your estate.

IMPORTANT CHANGES FOR THE PRIVATE CLIENT

1. Inheritance Tax Threshold

Raised from £ 263,000 to £ 275,000 for 2005/2006.

Rates fixed for 2006/2007 - £ 285,000

2007/2008 - £ 300,000

Our comment

Although this rise is above the rate of inflation it is still likely to ensure that many people are still caught by the inheritance tax trap unless appropriate advice is taken to prepare tax efficient Wills.

Ie: If a husband and wife have capital and property of less than £ 550,000, an inheritance tax saving of £ 110,000 can be achieved such that the estate will pass free of inheritance tax.

2. Capital Gains Tax

Annual exemption increased from £ 8,200 to £ 8,500 for the tax year 2005/2006 for individuals and £ 4,100 to £ 4,250 for Trusts.

3. SDLT

Stamp duty land tax will be charged on properties over £ 120,000 (£ 150,000 in designated disadvantaged areas) from 17 March 2005.

Our comment

This move is seen to assist first time buyers and is therefore welcomed with some reservation bearing in mind the lack of properties available under the limit of £ 120,000.

4. I.S.As

Individual savings accounts will continue in their same format until 2010, ie:- £ 7,000 limit for ISAs; £ 3,000 limit for cash ISAs

This replaces a previous announcement that cash ISAs were to fall to £ 1,000 and ISAs to £ 5,000.

Stocks and Shares mini ISA limit has been increased to £ 4,000 from April 2005

Our comment

This move has to be broadly welcomed as it continues to encourage saving with a tax free element. However, the Government removed the tax credit on dividends last year which reduced the appeal of ISAs to higher rate tax payers.

5. Civil Partnerships

The Civil Partnership Act will come into force on 5 December 2005 enabling same sex couples to establish legal status for their relationship. For tax purposes from 5 December 2005, civil partners will be treated in the same way as spouses.
i.e: Inheritance Tax

Tax free transfers between partners
A number of anti avoidance provisions which already apply to marriage

Capital gains

Private residential property relief for any one property will be available to a couple Transfers between couples will be on a no gain/no loss basis

Pensions

Will be treated in the same way as spouses under the current regime and will comply with the new regime due to come into force on 6 April 2005.

Settlements

Anti avoidance measures preventing husbands and wives transferring income to the spouse who pays no or lower tax will include civil partners Joint property

Income from joint property will be divided between civil partners 50/50 for income tax purposes unless an election is made for the income to be taxed on the basis of their actual interest.

Connected persons

Civil partners will be connected persons in the same way as husbands and wives.

SDLT

Exemptions on divorce will apply to civil partners

Personal allowances

Where a partner was born before 6 April 1935 the married couple's allowance will be available

A partner receiving a blind person's allowance will be able to transfer any unused allowance to his/her partner.

Our comment

Many of these changes go a long way to improving the position of same sex couples and particularly opening up the same opportunities for taking advice in preparing tax efficient Wills.

6. Trusts

The Chancellor confirmed implementation of two measures announced in 2004 to modernise the taxing of Trusts.

Standard rate band starting 6/4/05 - trusts paying tax at the rate applicable to trusts (40%) will have a standard rate band of £ 500. Income within that band will not be taxed at 40% but at the rate applicable to dividends, lower or base rate income tax, depending on the nature of the income.

Trusts for the vulnerable - such trusts will be back-dated to April 2004. If the beneficiaries fall within the definition of 'vulnerable' (yet to be defined) the trustees will be able to elect for tax treatment which will relieve them from paying tax at 40%.

Our comment

Any moves to simplify taxation on trusts are welcomed. It is worrying that trusts for the vulnerable are to be introduced when there are still many questions yet to be answered.

7. Update

Pre-owned assets tax will come into force on 6 April 2005. This is a new 'income tax' on schemes set up with the sole purpose of avoiding inheritance tax. There is some question as to whether or not the tax will be imposed on equity release schemes though the Revenue have indicated that this is unlikely to be the case. There are provisions for elections to be made for those people who are caught within the potential tax and, as such, specific advice would need to be sought.

'A' Day 6/4/05

Briefly, Changes to pensions:-

(i) Contributions

No link between salary and contribution. Lifetime limits of fund 1.5 million pounds can contribute up to 100% of salary. If no salary de minimis amount £ 3,600 - limit £ 215k per annum though in the year of retirement this limit is no longer relevant, ie during that year a client could sell his or her business and there is a large investment opportunity there.

There will be a 55% tax charge on money over the 1.5million pound limit once you have vested your pension.

(ii) Permitted investments

- Big change as you can now invest in residential property within the pension fund together with overseas properties. This has the potential of avoiding capital gains tax and income tax on rent too.

- The link between connected persons will be broken, eg you own a property and want to sell it to a pension fund - this will be possible subject to open market rent to the valuation applying in addition, borrowing limit regarding purchase of properties will be reduced (iv) the link between work and retirement is being broken, ie: you can take your pension and continue working.

This is an area requiring specialist and specific advice and, as such, we are happy to recommend independent financial advisors who can ensure that your pension arrangements are both tax efficient and work for you and your family.

Conclusion

Our conclusion is that there is still a large number of people who have not given much thought to the size of their estate and the potential for the Chancellor of the Exchequer being a substantial or main beneficiary of an estate. We are happy to discuss issues regarding preservation of wealth and efficient tax planning for both life and death and, as such, please contact the Private Client Department at Rubin Lewis O'Brien to discuss your personal requirements.

CONTACTS:-

THE TEAM

Claire Davis (Partner) email: clairedavis@rlob.co.uk
Helen Escolme (Assistant Solicitor) email: helene@rlob.co.uk
Tina Newland-Jones (Clerk) email: tina@rlob.co.uk
Telephone us on 01633 867000

Rubin Lewis O'Brien: strong players in the SME market
RUBIN LEWIS O'BRIEN is one of the leading law practices in Gwent, providing a full range of commercial legal services to corporate clients, especially to the SME market.

Head-quartered in Cwmbran, with a further branch in St Mellons, Cardiff, the firm has more than 40 years of experience dealing with commercial property and company and commercial law.

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'The service we offer our corporate clients is second to none. Very few law firms in Wales, outside the large city firms, have the experience and expertise necessary to provide advice in these often complex matters. The team at Rubin Lewis O'Brien offers quality advice and a personal service - at a much lower cost than our competitors. It really is a City service at local rates.'

In terms of commercial property, the firm represents corporate clients in relation to new development projects, joint ventures, the purchase and sale of freehold and leasehold property, planning law and landlord and tenant issues.

As far as company and commercial law is concerned, the practice provides advice on every legal matter arising from the day to day running of a business - from disputes with customers and suppliers to employee relations.

Jerome O'Brien added: 'Having a strong Welsh heritage, we understand the local marketplace well and can often identify potential problems before they arise. Often run on tight budgets, SMEs want access to quality advice quickly that won't cost the earth. We believe we offer this.'

Are employers still reeling from the 2004 legal overhaul?
This year has seen some of the biggest overhauls in law affecting employers for over a decade. Jerome O'Brien, managing partner at Cwmbran-based law firm Rubin Lewis O'Brien, takes a look at the legal side of 2004 and the impact this year's new laws have had on businesses.

'The latter part of 2004 was swamped with massive legal changes keeping businesses on their toes. Of course, the biggest - and most expensive - was the introduction of the third stage of the Disability Discrimination Act in October.

'Despite being well-publicised, the new measures to protect people with disabilities against discrimination still took many organisations by surprise.

'The Act gave them important rights of access to everyday goods and services and meant that some service providers had to make permanent physical adjustments to their premises - such as widening doorways and adjusting the height of switches - to stay on the right side of the law.

'The long-over-due legislation was a significant step forward for people's rights and fears that many small businesses could not cope with the financial strain of making the physical changes have, so far, not come to light.

'There was, in fact, a double whammy for employers in October 2004, as the same month saw major shake-ups in employment law too.

'New statutory disciplinary and grievance procedures brought about substantial changes to the law on unfair dismissal, tribunal claims, as well as general employment, in an attempt to promote the resolution of disputes in the workplace, reducing the need for Employment Tribunals and further litigation.

'Any employer not meeting these compulsory procedures can now face legal action and potentially massive compensation costs.

'But these weren't the only new obligations employers were facing in 2004. In May, the Control of Asbestos at Work Regulations came into force and put a new duty on employers to protect their employees and to have their premises inspected for asbestos.

'As well as the extra cost of inspections, businesses and landlords faced the added legal responsibility of ensuring that their properties were asbestos-free and therefore a safe working environment for their staff.

'These new laws have been reflected in our work at Rubin Lewis O'Brien, particularly in our commercial law department. In fact, the commercial side of the business has been thriving all year, with the addition of a new nursing home client and a major local company in the industrial supplies sector.

'2004 also saw a lot of talk about property; in particular the ups and downs of house prices. Fortunately slowing house prices seem to have had little effect on us or our clients. Our house builder clients are still extremely busy, despite the market conditions, and our residential conveyancing department was expanded over the summer to cope with demand. Our investment property clients are also still very active, both in buying and selling as well as letting and re-financing.

'This year has been particularly significant for Rubin Lewis O'Brien. We now have a 58-strong team and have seen some big developments in the business in 2004. As well as the conveyancing department expansion, we have branched out into new areas of work including childcare law and discretionary trusts and wills.

'There is still plenty of room for growth though and, as well as expanding our work with law for elderly people, we hope to add at least another dozen employees during 2005, partly through acquisition and partly through generic growth.'

Take Three feature
Keith Beard from Rubin Lewis O'Brien

Name, position and company you work for brief description of your job.

Keith Beard, legal executive in the criminal litigation department at Cwmbran-based law firm Rubin Lewis O'Brien.

Brief description of your job.

Rubin Lewis O'Brien employs 55 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services. As part of the criminal litigation team, I prepare criminal cases at the Crown Court, provide clients with legal advice and help to progress cases to trial. I will then attend court with my client.

What did you do before?

I was a detective chief inspector for Monmouthshire and Gwent Police until I left the force in 1990. I joined the police force as a uniformed officer and worked my way through the ranks. As well as extensive service as a detective officer, I was also seconded to the Home Office Forensic Science Service and carried out work for CID including fraud investigation and drug enquiries.

How long were you in that job and why did you go into that line of work?

When I first joined the police force in the 1960s, higher education was not really an option for most people and the police service was well-respected and offered a varied platform of work, as well as the prospect of sensible retirement. In total, I was in the police force for 30 years.

Why did you decide to change careers and become a solicitor?

My job didn't allow me a great deal of time with my family, but I was too young to retire, so I decided I needed a career change instead and was ready to face a new challenge.

After a short break, I went back to education to qualify as a Fellow of the Institute of Legal Executives. It involved four years of study and examinations, followed by a further two years once I was admitted as a member of the Institute. Parallel to this was the requirement to work in a solicitor's office, applying your knowledge and developing experience.

How different is it to what you did before?

People often assume that a move into the legal profession is inevitable for a police officer, but this simply isn't true. In fact, the similarities between the two jobs are limited.

The police force is a public service with very clear responsibilities set by the Government, whereas legal firms are private entities and can only successfully exist if they consider the interest of their clients above all.

Have you been able to use any skills from your previous job in this new one?

The area of criminal law has been made easier because of my police background. My years of experience in the force has provided me with behind-the-scenes knowledge that most people working in criminal law would not have access to. This gives me a distinct advantage when advising clients. However the interpretation of legal and evidential concepts are far more demanding in relation to litigation than its application in police investigation.

What are the best bits of your job?

The feeling of success when you secure a good result for your client. The relief on a defendant's face when they are acquitted by a jury provides me with confidence in the present system that has existed for hundreds of years.

And the worst?

The worst is dealing with families whose loved ones have a custodial sentences imposed on them.

How have people's attitudes to you changed with your change of career?

Many people say I am a gamekeeper turned poacher, but I don't agree. It seems that some people don't appreciate the professional responsibilities and the Codes of Conduct that are placed on the legal profession through the Law Society and the Institute of Legal Executives to ensure that our work is of the highest possible standard.

Do you miss your old job?

My experiences in the police force were a very happy part of my life, but there came a time to move on and I had it in the back of my mind to retire from the force once I had completed my thirty years of service.

Explain a bit about how you went about retraining for your present job?

To retrain, I had four years of intensive study with annual examinations. The first two years covered criminal, civil, family, employment, probate, business and conveyancing. The next two years were even more intense and I specialised in criminal and civil litigation, (law and practice) and evidence. Once I had graduated as a Member of the Institute it was necessary continue for a further two years in legal employment to qualify as a Fellow.

Did you find the retraining easy or hard?

For me, failure or re-sitting examinations was not an option, so each August I had a nervous wait for the postman!

What advice would you give someone looking for a career change?

I think you - and your family - have to be prepared to make sacrifices in time and patience, but it will be worth it as there is a huge sense of satisfaction when you succeed.

I do regret not having started preparing for a change earlier in my career though. I would definitely recommend to those who are thinking of making a similar career move to contact the Institute of Legal Executives, who will put them in contact with a full time professional regional representative to advise and give them direction.

'Claim farmers' threatened with new regulations
Angela Protheroe, a personal injury solicitor with Cwmbran-based firm Rubin Lewis O'Brien, takes a closer look at the myth of the compensation culture in light of the speech delivered by Lord Falconer

'Speaking at the Insurance Times conference last week, the Lord Chancellor called for claims management companies to act responsibly or suffer the consequences in the form of tough new regulation.

'And as he spoke, I am sure that organisations, businesses, institutions and individuals up and down the country were cheering from the side lines. As, for far too long, we have been held in the vice-like grip of a so-called compensation culture, where people are urged to 'have a go', make a claim - even when no-one is to blame.
v 'We are all only too familiar with the sort of advert that Lord Falconer was referring to in his address. You only have to switch on the TV or radio, walk down a hospital ward or visit your local doctors to see them in abundance. One often-quoted example that came in for particular criticism from the government's Better Regulation Task Force shows a patient on crutches with the strap line: 'Did the doctor or nurse make you worse? We can get you compensation'.

'Such adverts are at best trite, at worst irresponsible and misleading. As, while the public is being led to believe that hundreds of people are being awarded thousands of pounds worth of damages every day, the reality is far different. The latest figures from the Association of Personal Injury Lawyers in fact show a 9.5 per cent decrease in the number of accident claims.

'Yet while claims companies are allowed to advertise themselves aggressively so the myth of the compensation is perpetuated - and this affects us all. It brings the industry into disrepute, tarnishes its reputation and undermines the thousands of legitimate claims that exist.

'Personal injury law plays an important role in the protection of individuals within society. Without it, how could the tens of thousands of people who are genuinely injured in an accident each year get the compensation they deserve? Yet these very real cases are left vying for attention with the numerous spurious and bogus claims that proliferate.

'The problem we face is that many people confuse qualified personal injury solicitors with claims management companies when they are at opposing ends of the spectrum.

'Law firms are strictly regulated and most, including ourselves, have rigorous policies in place to assess the risk of each claim we are presented with before we decide whether to proceed with it. If there isn't a case to answer, we won't proceed. Claims management companies, unfortunately, are not so discerning.

'And this is now having an adverse effect on our society. Stories abound of children being made to wear industrial goggles to play conkers at school and of firework displays or organised trips being cancelled. There is even one local authority which has refused to open a beach for fear of people being injured by the sea. It is making the world we live in a diminished place.

'And it is also has an economic consequence. Earlier this year, the government's Better Regulation Task Force found that billions of pounds were being wasted by employers dealing with spurious damages claims that didn't come to anything.

'Something needed to be done and thankfully Lord Falconer seems to be getting the bit between his teeth and is threatening claims management companies with tough regulation unless they sharpen up their act. In the meantime, proposals have been announced to help tackle the problem including tougher codes on advertising in hospitals, more use of alternative dispute resolution and reducing accidents by better health and safety measures. To oversee this, he has established a Ministerial Steering Group.

'He has given the claims management companies one last chance to clean up their act. In my view, they have already been given one chance too many.'

Rubin Lewis O'Brien employs 58 staff from its offices in Cwmbran and Cardiff and offers a complete range of legal services.

Legal high-fliers toast top grades
Sam Strong and Helen Escolme, have good reason to celebrate as the two trainee solicitors from Cwmbran-based Rubin Lewis O'Brien have both scooped the top prizes in their legal exams.

The legal high-fliers received the highest grades in their respective legal courses, which they are studying as part of their training to become fully qualified solicitors.

Sam Strong, who is 29 and from Usk, got the highest grade at Glamorgan University for her Legal Practice Course (LPC) winning the prestigious Law Society Prize for Top Student 2004.

Sam, who works in the commercial property department at Rubin Lewis O'Brien, won a two-year training contract with the firm after picking up the top prize.
Talking about her achievement, Sam said: 'It came as a huge surprise. I had worked very hard for the exam but I never expected to get the highest grade in my year. To receive a prize from the Law Society is a real honour, but the biggest bonus for me was that the top grades secured me the training contract with Rubin Lewis O'Brien, which was my ultimate goal.'

Helen Escolme, 24 from Cardiff, also topped her class picking up the highest grade in her Professional Skills Course & the legal training course that all trainees must complete before they qualify.

Helen, who works in the litigation department at Rubin Lewis O'Brien, studied the course with leading legal training provider Cardiff-based altior during her training contract with the firm. She will qualify as a solicitor in May 2005.

'I was thrilled,' said Helen. 'It was completely unexpected, so when I had the phone call I couldn't believe it. The partners even took me out to lunch to celebrate and I received a bottle of champagne from the course instructors. It was a great achievement for me.'

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'Both Sam and Helen have shown a great deal of dedication to the legal profession, so it's very pleasing to see their hard work being recognised like this.

'They are extremely promising trainees and will make excellent solicitors in the future. We are very proud to have them among our ranks.'

Rubin Lewis O'Brien invests confidence in housing market
The property market in Gwent appears to be still going strong as Cwmbran-based solicitors Rubin Lewis O'Brien has undertaken a £20,000 office re-fit and increased its residential conveyancing team.

As well as investing in larger office space and more IT equipment for the department in Gwent House, Cwmbran, Rubin Lewis O'Brien has also made three new appointments to the team to cope with the increasing demand.
Senior partner and head of conveyancing at Rubin Lewis O'Brien, Richard Lewis, said:

'There may be talk in the press of a crash in the housing market but this clearly hasn't put off house buyers in Gwent.

'Many people may be worrying unnecessarily as it is unlikely that the property market will suffer hugely from the rises in interest rates we've seen. Don't forget the last time we saw problems in the housing market was back in 1990 when interest rates hit a massive 15.25 per cent & no where near the meagre 4.75 per cent we are enjoying at the moment.

'Simple supply and demand also suggests we are unlikely to see a huge drop in house prices. According to the Royal Institution of Chartered Surveyors, the number of properties on surveyors' books is close to its lowest in a year and this lack of availability will ensure a steady demand for the foreseeable future.

'Although we won't see prices rising at the colossal rate of the past year, there will still be a strong demand for conveyancing services in the market.

'Conveyancing is a very successful side of the business and one that we were keen to expand along with demand. The three new staff members bring our team up to eight people and, thanks to a £4,000 grant from Torfaen Borough Council, we've been able to invest even more in the very latest IT equipment to further improve the quality and speed of our client service.'

Maurice Thompson, 23 from Cardiff, joins Rubin Lewis O'Brien as one of the team's new conveyancing assistants. He will deal with sales, purchases and re-mortgages within the department.

Jo Powell, 20 from Pontypool, has also joined the team as a conveyancing assistant. She will be responsible for customer service and file maintenance.

Lianne Shaw, 28 from Cwmbran, has been promoted as conveyancing assistant within the firm. She will be responsible for handling sales, purchases and re-mortgages.'

Rubin Lewis O'Brien adds a continental touch
Cwmbran-based solicitors Rubin Lewis O'Brien is getting into the European spirit this summer with the appointment of a French student to its team.

Emilie Segura, 21 from Leons in France, has joined the firm on a seven week placement as part of her four-year degree course in law, English and German, which she is studying for at the University of Grenoble.

As well as spending time learning about the British legal system with Rubin Lewis O'Brien, Emilie will also be spending next year living and working in Germany.

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'We are always keen to help students with work placements. This is the second year in a row where we have taken a French student under our wing as part of our strategy to build links with law firms across Europe.

'Last year's placement was a huge success so we were only too happy to have Emilie join us. She's very enthusiastic and we hope to be able to teach her about all the different aspects of the legal system here in the UK & and to learn a bit from her about the French system too.'

Emilie said: 'This is a great opportunity for me. Not only can I improve my language skills but I also get to experience life in a Welsh law firm. I'm going to be working across all departments but I'm especially looking

Local solicitors boosts tenants' rights
Cwmbran-based solicitors Rubin Lewis O'Brien has become the first law firm in Wales to serve notice under a new Act that looks set to give power back to flat owners.

The Commonhold and Leasehold Reform Act 2002 came into force in Wales on 30 March 2004 and is being heralded as one of the biggest steps forward in property rights in decades.

Where the Act applies, it allows leaseholders to take over the running of their own block of flats for the first time in an attempt to lessen service charges and minimise opportunities for the exploitation of flat owners. There is now no requirement for the leaseholders to prove bad management and no need for Court action.

Although there are several other law firms in Wales acting on behalf of clients in this area, Rubin Lewis O'Brien prepared the first ‘right to manage' notice under this new Act on behalf of its client Alec Lermon, who is a resident at Kenmare Mews in Pontprennau, Cardiff.

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'This is a big issue for the people of South Wales. With the recent boom in city centre and bay living, the number of trendy apartment blocks has risen dramatically over the past few years and continues to do so. Unfortunately, hand in hand with this comes an increase in landlord and tenant disputes.

'Many leaseholders complain that their landlords or management agencies are over-charging them for routine repair and maintenance work or that the service charges arrive unexpectedly and without any warning.

'This new Act places the power firmly back in the hands of the flat owners. I'm confident that this will become a growing trend amongst tenants in Wales.'

Qualifying tenants with leases over 21 years can form a ‘Right to Manage' company and invite residents to become members. As long as participating tenants hold leases of at least half of the flats in the building the new company can assert rights under the Act. Appropriate notices can then be served on the landlord and the existing agents.
Jerome continued: 'Although landlords will have an opportunity to contest, I expect that, in practice, few will do so.

'Obviously the size of the block of flats or house plays a part in determining how practical this is. If there are only six leaseholders, it shouldn't pose too many difficulties. However, if the block has 100 or more leaseholders, things could get tricky and it would probably be wise to appoint a management company to run the block on your behalf. At least this way you are still in control.

'The right to manage does not replace the leaseholder's rights to purchase the freehold of their building, but it offers a valuable alternative for leaseholders, which could result in tremendous savings for those concerned.

'While I'm sure that the majority of landlords and management agencies don't take advantage of their leaseholders, the Act really does give power back to the little people who can now confidently take on the big management companies in order to protect their rights. It's a case of David winning over Goliath.'

Rubin Lewis O'Brien expands conveyancing department
Sara Part, 35 from Monmouthshire, joins the team as a solicitor and will be responsible for residential sales and purchases as part of the firm's conveyancing department.

She joins the Rubin Lewis O'Brien team from Bristol-based solicitors Gregg Latchams Quinn, where she worked for six years, most recently as an assistant solicitor in the property department.

She completed her training contract after finishing her law degree and Legal Practice Course (LPC) at the University of West England.

Speaking about her appointment Sara said: "As soon as the position came up, I applied immediately. Rubin Lewis O'Brien has built an excellent reputation in the area and has a lengthy client list so I was really keen to be part of the team.

"The housing market in South Wales is still particularly strong at the moment, despite concerns that it might slow down, and there is a constant demand for all types of properties from flats to town houses and country homes. People are always on the look out for their next move, so it's an ever changing, fast moving and exciting environment in which to be working."

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: "Sara has over six years experience in property law and an excellent relationship with her clients. Her arrival will add strength and depth to our current conveyancing team."

Sara's appointment takes the conveyancing department at Rubin Lewis O'Brien to 14. Last year, the firm invested in the latest in conveyancing technology to enable them to conduct local authority searches on line. This has enabled property searches to be carried out and completed in a matter of days as opposed to weeks.

Rubin Lewis O'Brien appoints head of new department
Cwmbran-based solicitors Rubin Lewis O'Brien has appointed Claire Davis to head its new private client department.

Claire, 42 from Newport, will work from the Cwmbran office, but will also be available for consultations at the firm's Cardiff office. She will be responsible for developing and expanding existing private client workload by setting up a new dedicated department.

She will be dealing with matters such as inheritance tax planning, will preparation, and the effective use of trusts and probate. Claire will also deal with associated issues relating to the care of the elderly and vulnerable in our society, including the protection of their assets and the financial implications of moving into a nursing home.

After completing her LLB in law at Reading University and winning the Maxwell Law Prize for the highest degree score, Claire went on to study for her Law Society finals at Guildford Law School.

She worked with Newport-based solicitors Le Brasseur Davis for 20 years. During her time with the firm Claire worked on many areas of the law. In 1997, she became a partner and began specialising in private client issues.

'Rubin Lewis O'Brien is well known in the area as a modern, proactive firm so when I learnt that it was expanding I was keen to become involved,' said Claire.

'After twenty years with the same firm, I was looking for a new opportunity and the challenge of setting up a new department was one I just couldn't miss.

'Developing the department will be an extremely exciting time and I'm looking forward to putting a strong team together and building up a solid client base.'

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'The private client department was set up in response to market demands. With property prices continuing to spiral upwards, there was an increasing call for inheritance tax advice and with it, a growing demand for us to create a specific department to deal with these sorts of issues.

'We needed someone who had the experience and the understanding to head up the department. Claire has over twenty years of relevant experience and we are confident that she will help us develop the private client area into a thriving and well respected department.'

Stamping down on stamp duty loop holes
The introduction of Stamp Duty Land Tax next month will have major implications for both individuals and businesses. Richard Lee, partner at the Cardiff Office of law firm Rubin Lewis O'Brien, explains.

Gordon Brown has some serious finances to fix. If estimates are to be believed, he has a gaping hole in his coffers to the sum of £11 billion. He needs to raise some cash, and fast.

Last month, the press was alive with speculation that he was thinking of introducing a 40 per cent Capital Gains Tax on the sale of all first homes within the UK & rumours that sent shock waves right through the heart of Middle England.

Whether the government would risk introducing such a controversial tax remains to be seen. But one thing is certain & the government is looking at every way conceivable way to raise finances and taxes associated with property seems to be high on its hit list.
Next month sees the introduction of some dramatic changes in legislation concerning stamp duty which will have far reaching consequences for both residential and commercial property transactions.

From 1 December, stamp duty is being abolished and the tougher Stamp Duty Land Tax (SDLT) will be riding into town to take its place, bringing in an estimated £5 billion extra a year for the government from property sales.

The government claims the changes are a way of clamping down on tax dodgers and closing up loop holes that are currently being exploited. It is likely that individuals and businesses will view the matter somewhat differently.

For homebuyers, the new SDLT means two things. First of all, they will face heavy penalties if they try and avoid paying the full stamp duty on a property through imaginative tax avoidance schemes.

Stamp duty charged on properties currently stands at one per cent for properties priced from £60,000 to £250,000; three per cent on properties priced from £250,000 to £500,000 and four per cent on houses worth more than £500,000.

Crafty purchasers who are buying houses on the threshold of these stamp duty margins often try to avoid paying hefty charges by agreeing a price with the vendor below the threshold and offering to make up the difference by paying for ‘fixtures and fittings'.

For example, agreeing to split the price of a £260,000 house as £250,000 for the house and £10,000 for fixture and fittings would mean a stamp duty bill of £2,500 instead of £7,800 & a whopping saving of £5,300. From 1 December, buyers will have to sign a formal declaration to the effect that this is a just and reasonable representation of the transaction. Anyone caught trying to fiddle the system could face a fine, interest charges and even criminal proceedings with the possibility of jail sentences.

The second implication for home buyers is that the onus is now on them to inform the Inland Revenue of the stamp duty that is payable within a tight deadline & making moving house even more of a headache.

It has been estimated that it will take an extra 30 minutes to complete the new Land Transaction Returns. This eight-page self-assessment has to be completed within 30 days of completion otherwise the purchaser faces a fine of £100. And if the form arrives more than three months late, this fine increases to £200. It is inevitable that this will result in an extra cost to buyers of both houses and commercial properties as well as to certain tenants who are also affected by the changes.

However, the most controversial change heralded by the introduction of SDLT is the increased charges on the grant of leases. From 1 December, stamp duty will be charged on the value of rent over the length of the whole lease, instead of the average rent for one year. It is estimated that this will bring in an extra £200 million a year for the government.

But the new tax has serious implications & especially for those with long leases, such as pubs and restaurants, who could see their stamp duty soar by up to eight times.
For example, a retailer leasing a shop for 20 years at an annual rent of £20,000 plus VAT would now pay duty of £470. Under the new rules, the retailer would pay about £1,840. In the case of a lease for 25 years at an annual rent of £150,000 plus VAT, which would currently attract duty of £3,525, duty would rocket to about £27,550.

Businesses and trade organisations fear that the new SDLT on leasehold properties will significantly limit expansion and will encourage businesses to take out shorter leases. The increase in charges will undoubtedly be passed onto consumers in terms of increased prices on the high street.

There is good news, however, for those purchasing commercial or mixed use properties valued at less than £150,000 as these will be exempt from duty whether or not they are in a designated disadvantaged area.
Like it or not the forthcoming changes as a result of the new SDLT are inevitable. Individuals and businesses should seek expert advice to see how they will be affected by the changes and how best to plan for and manage them.

New childcare solicitor at Rubin Lewis O'Brien
Cwmbran-based solicitors Rubin Lewis O'Brien has appointed a new childcare solicitor as part of the firm's specialist childcare department.

Lisa Davies will be responsible for representing parents and children in all public law cases. As a member of the Law Society's Children's Panel, Lisa will provide advice and support for children and their families and will act directly on behalf of children in court.

Lisa joins Rubin Lewis O'Brien with 10 years experience in childcare law from Aberdare-based solicitors Marchant Harries, where she was head of childcare.

Originally a social policy graduate from Kent University at Canterbury, Lisa went on to complete her law studies at the University of Glamorgan, before starting her training with Marchant Harries.

'Rubin Lewis O'Brien offered me a new challenge,' said Lisa, speaking about her appointment. 'They are a well respected firm with a strong client base and excellent family law department so I am naturally delighted to be appointed.'

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'With a decade of experience in childcare matters, we are confident that Lisa will further strengthen our childcare service and provide our clients with the excellent service they have come to expect from the firm. She has the skills, experience and sensitivity that childcare law demands and will be a valuable asset to our team.'

Lisa Davies joins partner Valerie Banks and solicitor Lisa Pearce in the family law department. Lisa Davies and Lisa Pearce are two of only a handful of about 130 solicitors across England and Wales who have received accreditation from the Law Society's Children's Panel.

French flair for Rubin Lewis O'Brien
Cwmbran-based solicitors, Rubin Lewis O‚Brien has added a European flavour to its team with the appointment of a five-month work placement student from France. 

Valérie Collaudin, 23 and from Aix Les Bains in the French Alps, has just finished a four year degree in Law with English, Spanish and French at the University of Grenoble.  She wrote to a number of solicitors in Britain asking for a work placement to learn more about the British legal system and Rubin Lewis O'Brien were the first to seize the opportunity by inviting her over.

Jerome O'Brien, managing partner at Rubin Lewis O‚Brien, said:  "As soon as we received Valérie's letter, we were keen to have her join us in Wales.  We are always happy to help out students with relevant work experience - but Valérie's request really did stand out from the rest as being something a little bit different". 

We hope that we can teach her about our legal system as well as improve her language skills, while we are also enthusiastic to learn a thing or two about how things happen in France.  It is part of the firm's growth strategy to build links with firms all over Europe - and we are always keen to establish as many international connections as possible.

Rubin Lewis O'Brien has already been on a trade mission to Ireland and plans to visit the Netherlands later this year with the aim of setting up a network of lawyers who refer work to each other across European borders.

Valérie said "Although this is my first time in Wales, everybody has been extremely friendly and welcoming, making every effort to help me feel at home. I have only been here a few weeks and already I have learnt a great deal - not just about law but also about the language, culture and way of life over here. It really is a fascinating experience and I'm thrilled to be given the opportunity to gain such a unique insight".

After leaving Wales, Valérie intends to spend six months at a university in Mexico before returning to Grenoble to study for a Masters in International Law.

Law firm expands litigation team
Cwmbran-based solicitors Rubin Lewis O'Brien is expanding its commercial litigation team with the appointment of a new company commercial solicitor.

Patrick Taaffe, 33 from Mullingar in Ireland, will be responsible for all company-related legal matters, including company contracts, business agreements, share sale agreements, insolvency issues, commercial claims and company formations.

He joins the Rubin Lewis O'Brien team from Swinnerton Moore solicitors in the City of London, with whom he practiced for nearly six years.

Originally a business graduate of the University of Humberside in Hull, Patrick continued his study of business with a Masters degree at Dublin University College. He studied for his LLB Law degree and subsequently obtained his Legal Practice Certificate (LPC) at Cardiff University, before completing his training with Swinnerton Moore.

'Having lived in London for several years, it was time for a change,' said Patrick. 'Rubin Lewis O'Brien has a totally different culture compared to London firms. It is a very warm, friendly and relaxed firm, but just as hard-working and professional as any in the City of London. I'm hoping that Rubin Lewis O'Brien will give me the opportunity to build up a solid client base by offering the high quality service which the practice prides itself on.'

Jerome O'Brien, managing partner at Rubin Lewis O'Brien, said: 'Patrick has a superb knowledge of business as well as law. We are confident that his background in these fields will add strength and depth to our commercial litigation team.'

Rubin Lewis O'Brien employs 49 staff from its Cwmbran head office and offers a complete range of legal services.

Nine to Five Blues By Angela Protheroe
Stress in the workplace hit the headlines recently as the Health and Safety Executive (HSE) threatened legal action against the West Dorset Hospital Trust for failing to protect its doctors and nurses from stress.

Action was taken after staff complai