Newsletter Summer 2007
Inheritance tax The rules on the use of the nil-rate band have changed. Click here for a detailed article on these important changes.
Boundary disputes The Courts have a well-known dislike of boundary disputes, and would much prefer them to be dealt with by negotiation (“the Pyramus and Thisbe club” is a group of surveyors who specialise in resolving this sort of dispute). However sometimes this approach fails, and the Court must intervene. Its worth revisiting the basic principles the Court applies. In registered land the boundaries shown on the filed plan aren’t necessarily definitive-they just indicate “general boundaries”. Various presumptions are used to determine ownership, which are:
roadways ownership extends to the middle of the roadway (subject to the rights of the Highway Authority if its adopted). So even if land is described as being bounded by a road, it is presumed to extend to the centre of the road;
hedge and ditch the boundary is along the opposite edge of the ditch from the hedge or bank but only if the ditch is manmade.
non-tidal rivers and streams the boundary is the centre line, and therefore moves as the course of the river moves (unless moved as a result of intervention).
Powers of attorney Lasting Powers of Attorney were introduced on 1 October, and replace Enduring Powers of Attorney. There are two types;
Property and affairs LPA’s empower the attorney to make a variety of decisions including buying and selling property, claiming benefits and operating a bank account
Personal welfare LPA’s allow the attorney to make decisions about where the donor of the LPA should live, giving or refusing consent to medical treatment, and day to day care.
A property and affairs LPA can be used while the donor still has capacity (unless it specifies it can't); a personal welfare LPA can only be used when the donor no longer has capacity. Both still must be registered with the Public Guardianship Office to be effective once capacity is lost.
Restrictive covenants in employment contracts To the surprise of some, the Court of Appeal recently held that a 12 month restrictive covenant was enforceable in relation to a prohibition against dealing with suppliers and customers. However, in the circumstances of the case the Court felt that this length of time was reasonable-indicating an increasing willingness on the part of the Courts to uphold reasonable covenants particularly if they protect confidential information.
Commercial rent arrears The change in economic climate, particularly the increase in interest rate, has caused a wave of tenant default. Landlords of commercial premises should be aware of their options before it becomes a problem! For a detailed article on a landlord’s remedies click here.
The end of wigs As from 1 January 2008 judges and barristers will no longer wear wigs or wing collars but simply a black gown. This has not gone down at all well with some barristers, particularly the bald ones.