by Allan Phillips | Oct 31, 2024 | Business, Conveyancing, General, Litigation
Following the UK Autumn Budget on 30 October 2024, significant changes to stamp duty have been introduced, impacting landlords, second-home buyers, and potentially reshaping the housing market.
Key Changes to Stamp Duty in the 2024 Budget
1.
Increase in Stamp Duty on Additional Properties
From 31 October 2024, the surcharge on stamp duty for purchasing additional properties (such as buy-to-let investments and second homes) increased by 2 percentage points, raising it to 5%. This change affects the overall stamp duty rates on additional property purchases across different price brackets. For example, homes valued between £250,001 and £925,000 now incur a total stamp duty of 10%, up from 8%. This move primarily targets property investors and second-home buyers to generate revenue while supporting homeownership among first-time buyers.
2.
Impact on First-Time Buyer Threshold
While the first-time buyer relief thresholds remain unchanged, the current stamp duty thresholds introduced under the previous government (no stamp duty on homes valued up to £250,000, or £425,000 for first-time buyers) are set to revert to their previous levels in March 2025. The Labour government has not committed to extending these higher thresholds, which could result in increased tax obligations for all buyers next year if the relief is not renewed.
3.
Revenue and Market Implications
The stamp duty increase on additional properties is expected to generate significant revenue, which the government aims to reinvest in affordable housing. The new policy may reduce competition for first-time buyers, especially in areas with high levels of investment in buy-to-let properties. However, the increased rates could potentially slow down investment in rental properties, impacting rental availability and affordability.
For prospective landlords and buyers of additional properties, understanding the updated tax implications is essential for financial planning. At Khan Mather, we can help navigate these changes and advise on optimal strategies for property investments.
For more details, please contact us directly to discuss how these changes may affect your property decisions.
by Saqib Khan | Oct 31, 2024 | Business, Conveyancing, General, Litigation
At KhanMather, we are committed to helping our clients navigate the complex landscape of financial regulations and compliance. Two terms that often come up in discussions about financial crime are “smurfing” and “structuring”. Understanding these concepts is crucial for businesses of all sizes to ensure they are not inadvertently facilitating illegal activities. In this blog, we will explain what smurfing and structuring are, how they work, and what steps you can take to protect your business.
What is Smurfing?
Smurfing is a money laundering technique that involves breaking down a large sum of money into smaller, less suspicious amounts. These smaller amounts are then deposited into various bank accounts or used to purchase financial instruments, making it difficult for authorities to trace the origin of the funds. The term “smurfing” comes from the analogy to the cartoon characters called Smurfs, who are small and numerous, just like the transactions in this technique.
How Smurfing Works
- Splitting Funds: A large amount of illicit money is divided into smaller sums.
- Multiple Transactions: These smaller amounts are deposited into multiple bank accounts or used to purchase money orders, traveler’s checks, or other negotiable instruments.
- Avoiding Detection: By keeping transactions below the reporting threshold, typically £10,000, the individual avoids triggering automatic reporting to authorities.
What is Structuring?
Structuring is essentially the same as smurfing but is often used in a broader context. While smurfing specifically refers to breaking down deposits, structuring encompasses various methods of breaking down and spreading out transactions to avoid detection.
How Structuring Works
- Deposit Structuring: Similar to smurfing, large deposits are broken into smaller amounts and spread across different accounts.
- Withdrawal Structuring: In some cases, the process is reversed, with large sums being withdrawn in smaller increments.
- Complex Transactions: Structuring can also involve moving money through a series of transactions that make it difficult to trace, such as using shell companies or offshore accounts.
Legal Implications and Penalties
Both smurfing and structuring are illegal under UK law. The Proceeds of Crime Act 2002 (POCA) and the Money Laundering Regulations 2017 set out strict requirements for reporting suspicious activities and maintaining robust anti-money laundering (AML) controls.
Penalties for Involvement
- Fines: Businesses found to be involved in smurfing or structuring can face significant financial penalties.
- Criminal Charges: Individuals may face criminal charges, leading to imprisonment.
- Reputational Damage: Even unintentional involvement in such activities can severely damage a business’s reputation.
Protecting Your Business
To safeguard your business against involvement in smurfing or structuring, it is essential to implement comprehensive AML policies and procedures. Here are some key steps:
- Know Your Customer (KYC): Establish robust KYC processes to verify the identity of your clients and understand their financial activities.
- Transaction Monitoring: Implement systems to monitor and flag unusual or suspicious transactions.
- Staff Training: Regularly train employees on AML regulations and how to recognize suspicious activity.
- Reporting: Ensure that any suspicious activity is reported to the National Crime Agency (NCA) promptly.
Conclusion
Smurfing and structuring pose significant risks to businesses, both legally and reputationally. At KhanMather, we understand the importance of maintaining compliance with financial regulations. Our team of experts is here to provide you with the guidance and support needed to protect your business from financial crime. If you have any concerns or need assistance with AML compliance, please do not hesitate to contact us.
For more information on financial crime prevention and compliance, visit our website or contact our team at KhanMather on 0161 850 9911. We are here to help you navigate the complexities of the legal landscape and safeguard your business.
by Saqib Khan | Sep 18, 2024 | Litigation, Personal injury
Introduction: In a recent landmark decision, the Supreme Court delivered a judgment with far-reaching implications for thousands of personal injury claims across the UK. The case of Hassam and another v Rabot and another [2024] UKSC 11 has provided clarity on the assessment of damages for pain, suffering, and loss of amenity (PSLA) in instances where both whiplash injuries (WLI) and non-whiplash injuries (NWI) are sustained in a road traffic accident.
Background: The Civil Liability Act 2018 introduced significant reforms to the compensation process for WLI caused by negligent driving. Under these reforms, the amount awarded for PSLA related to WLI was fixed at a tariff amount, which differs only based on the duration of the WLI and is notably lower than traditional common law damages.
In the cases of Mr. Rabot and Mr. Briggs, both claimants suffered from WLIs and NWIs in separate car accidents. The District Judge initially assessed damages for PSLA caused by both types of injuries, leading to appeals and cross-appeals regarding the appropriate method of calculating compensation.
Judgment: The Supreme Court unanimously dismissed the appeals and cross-appeals, affirming the approach adopted by the majority of the Court of Appeal. Lord Burrows, delivering the judgment, outlined the correct method for assessing damages for PSLA concurrently caused by WLIs and NWIs.
Reasoning: The Court rejected the “first approach,” which sought to limit PSLA damages to exclusively NWIs, as it would require unrealistic precision from claimants and could result in lower compensation for both types of injuries. Similarly, the “second approach,” which ignored overlapping PSLA, was deemed inadequate as it would lead to overcompensation.
Instead, the Court endorsed the “third approach,” which involves assessing the tariff amount for WLIs and common law damages for NWIs separately, adding them together, and making adjustments to avoid over- or under-compensation.
Conclusion: The decision in Hassam v Rabot provides clarity on the assessment of damages for PSLA in cases involving both WLIs and NWIs. By affirming the third approach, the Supreme Court has upheld the principles of fairness and consistency in compensation awards while respecting the legislative intent behind the Civil Liability Act 2018.
This judgment serves as a crucial guide for legal practitioners, claimants, and defendants navigating personal injury claims involving mixed injuries. It underscores the importance of a balanced approach to compensation that considers the unique circumstances of each case while ensuring fair redress for the injured parties.
by Saqib Khan | Sep 5, 2024 | General, Litigation
Introduction
In the realm of civil litigation, legal professional privilege stands as a cornerstone principle safeguarding the confidentiality of communications between solicitors and their clients. As a fundamental aspect of the legal landscape, understanding the nuances of this privilege is imperative for both legal practitioners and their clients. In this guide, we delve into the intricacies of legal professional privilege within the context of civil litigation, shedding light on its importance, scope, and exceptions.
Understanding Legal Professional Privilege: Legal professional privilege, embodies the confidentiality inherent in the relationship between a solicitor and their client. This privilege serves to protect communications exchanged between them from disclosure to third parties, including courts, tribunals, and opposing parties.
Types of Legal Professional Privilege:
- Legal Advice Privilege: This privilege extends to confidential communications between a client and their lawyer for the purpose of seeking or receiving legal advice. It covers not only advice given but also any documents created with the dominant purpose of seeking or providing legal advice.
- Litigation Privilege: Unlike legal advice privilege, litigation privilege comes into play when litigation is either ongoing or reasonably anticipated. It shields communications between a client, their lawyer, and third parties, provided they are made for the dominant purpose of preparing for or conducting litigation.
Exceptions and Limitations: While legal professional privilege is a fundamental aspect of the legal system, it is not absolute. There are exceptions and limitations that one must be aware of:
- Waiver: Privilege can be waived if the client voluntarily discloses the privileged information to third parties.
- Crime or Fraud Exception: Privilege may not apply if legal advice or assistance is sought for the purpose of committing a crime or fraud.
- Communications with Third Parties: Privilege generally does not extend to communications with third parties unless they are made in furtherance of obtaining legal advice or preparing for litigation.
Challenges and Practical Considerations: Navigating legal professional privilege in civil litigation can pose various challenges and require careful consideration. From determining the applicability of privilege to managing potential waivers and exceptions, legal practitioners must exercise diligence and expertise to uphold their clients’ confidentiality rights while effectively representing their interests in litigation.
Conclusion: Legal professional privilege serves as a cornerstone principle in civil litigation, safeguarding the confidentiality of communications between solicitors and their clients. Understanding its scope, exceptions, and practical implications is essential for both legal practitioners and their clients. By staying informed and navigating privilege with care, parties involved in civil litigation can uphold the integrity of the legal process while protecting their rights and interests.
by Saqib Khan | Aug 29, 2024 | Conveyancing, General, Landlord and Tenant Law, Litigation
At KhanMather, we strive to keep our clients informed about critical legal developments that may affect them, particularly in the property and real estate sectors. Recently, significant concerns have arisen around the Bellway Homes development at Bassingbourn Fields, Fordham, Cambridgeshire. As a leading UK law firm specializing in property law, we believe it is essential to address these issues and offer our legal perspective on the situation.
Overview of the Bassingbourn Fields Development
Bellway Homes, one of the UK’s largest housebuilders, has developed the Bassingbourn Fields estate in Fordham, Cambridgeshire. The project was marketed as a high-quality residential community, offering modern homes designed to meet the needs of a growing population. However, residents and prospective buyers have reported various issues since the development’s completion, raising questions about the project’s quality, safety, and overall compliance with planning regulations.
Structural Defects and Quality Concerns
One of the primary concerns raised by homeowners at Bassingbourn Fields involves the quality of construction. Several residents have reported structural defects in their properties, including issues with the foundations, roofing, and brickwork. Such defects not only diminish the value of the homes but also pose potential safety risks to the occupants.
Under English & Welsh law, builders are required to adhere to strict building regulations to ensure the safety and durability of residential properties. If Bellway Homes has failed to meet these standards, affected homeowners may have grounds to pursue legal action for breach of contract, negligence, or misrepresentation.
Planning Permission and Compliance Issues
Another significant issue at Bassingbourn Fields concerns planning permission and compliance with local authority regulations. There have been allegations that certain aspects of the development did not fully comply with the approved planning consent. This could include discrepancies in the layout, the use of materials, or the overall design of the estate.
If these allegations are proven, they could have serious legal implications for Bellway Homes. Non-compliance with planning permission not only undermines the trust between developers and local authorities but also affects the legal rights of homeowners who purchased properties based on the original plans. In such cases, residents may be entitled to seek redress through the courts, which could result in modifications to the development or compensation.
Environmental and Infrastructure Concerns
The development at Bassingbourn Fields has also sparked concerns about its impact on the local environment and infrastructure. Residents have voiced worries about inadequate drainage systems, which have led to flooding in some areas of the estate. Additionally, the increased traffic and strain on local services have raised questions about whether the necessary infrastructure was adequately planned and implemented.
In England & Wales, developers are often required to conduct environmental impact assessments (EIAs) before starting construction. If Bellway Homes failed to address these concerns adequately, they could face legal challenges from both residents and environmental groups.
What Can Affected Homeowners Do?
If you are a homeowner at Bassingbourn Fields or a prospective buyer facing these issues, it is crucial to understand your legal rights and options. Here at KhanMather, our experienced property litigation team can assist you in navigating these complex legal matters.
1. Review Your Purchase Contract: The first step is to carefully review your purchase contract and any warranties provided by Bellway Homes. These documents will outline the developer’s obligations and your rights as a homeowner.
2. Seek Legal Advice: If you believe that Bellway Homes has breached their contract or failed to meet the required building standards, it is essential to seek legal advice. Our team can help you assess the strength of your case and advise on the best course of action.
3. Consider Legal Action: In cases where defects or non-compliance issues are severe, you may need to consider legal action. This could involve pursuing a claim for compensation or requiring the developer to rectify the problems.
4. Engage with Local Authorities: If there are concerns about planning permission or environmental impact, engaging with local authorities may be necessary. They can investigate these issues and take action if the developer has violated regulations.
Conclusion
The situation at Bassingbourn Fields highlights the importance of vigilance when purchasing new-build properties. While many developments proceed without issue, cases like this underscore the need for thorough due diligence and, when necessary, legal intervention.
At KhanMather, we are committed to protecting the rights of homeowners and ensuring that developers are held accountable for their obligations. If you are experiencing issues with your property at Bassingbourn Fields or any other development, our team is here to provide the legal support you need.
For more information or to schedule a consultation, please contact our Property Litigation Team today on 0161 850 9911.
by Saqib Khan | Aug 27, 2024 | General, Litigation
In the realm of property ownership, the allure of a brand-new home is undeniable. The crispness of freshly painted walls, the gleam of stainless steel appliances, and the promise of modern amenities often make new builds an attractive option for many homeowners in the UK. However, amidst the excitement of moving into a newly constructed property, there lies the potential for unexpected issues: new build defects.
At KhanMather, we understand the complexities involved in navigating the intricacies of new build defects and the potential claims that may arise as a result. In this blog, we aim to shed light on this often-misunderstood area of property law, empowering homeowners with the knowledge they need to protect their investment and assert their rights.
Understanding New Build Defects
New build defects encompass a wide range of issues that can arise in newly constructed properties. These defects can vary in severity, ranging from minor cosmetic imperfections to more serious structural flaws that compromise the safety and habitability of the home. Common examples of new build defects include:
- Structural Issues: Cracks in walls, subsidence, or issues with the foundation.
- Water Leakage: Leaking roofs, windows, or plumbing systems leading to dampness or mold.
- Poor Workmanship: Defective installation of fixtures, fittings, or appliances.
- Incomplete Construction: Unfinished areas or failure to meet building regulations and standards.
- Electrical and Mechanical Failures: Faulty wiring, heating systems, or appliances.
Identifying these defects early on is crucial, as they can worsen over time and potentially decrease the value of the property. Moreover, certain defects may pose health and safety risks to occupants, necessitating prompt action.
Your Rights as a Homeowner
In the UK, homeowners are protected by various laws and regulations that govern the construction and sale of new build properties. The most notable of these is the Consumer Code for Home Builders, which sets out the standards of conduct that homebuilders must adhere to when selling properties. Additionally, homeowners may have recourse under the Defective Premises Act 1972 and the common law principle of negligence.
Under these provisions, homeowners have the right to expect that their newly constructed home is of satisfactory quality, fit for purpose, and free from defects. Should defects arise, homeowners may be entitled to pursue a claim against the builder, developer, or relevant parties involved in the construction process.
Pursuing a Claim
Successfully navigating a claim for new build defects requires a strategic approach and a thorough understanding of the legal framework. At KhanMather, our team of experienced property solicitors is dedicated to helping homeowners assert their rights and obtain the compensation they deserve.
Key steps in pursuing a claim may include:
- Documentation: Gathering evidence of the defects, including photographs, reports, and correspondence with the builder or developer.
- Expert Assessment: Obtaining expert opinions from surveyors, engineers, or other specialists to assess the nature and extent of the defects.
- Negotiation: Engaging in negotiations with the builder or developer to reach a resolution, which may involve repairs, compensation, or other remedies.
- Legal Action: Filing a claim through the courts if a satisfactory resolution cannot be reached through negotiation.
Conclusion
While the prospect of new build defects may seem daunting, homeowners can take comfort in knowing that they have legal protections and avenues for recourse. By partnering with a reputable law firm like KhanMather, homeowners can navigate the complexities of new build defect claims with confidence, ensuring that their rights are upheld and their investment is safeguarded.
If you believe that your new build property is affected by defects, we encourage you to reach out to our team for a confidential consultation. Together, we can work towards achieving a fair and just resolution, allowing you to enjoy your home with peace of mind.
