HMRC clamp-down on IHT show importance of accurate property valuations

Author: Move with Us16 Jun 11, 12:01 PM

Recent investigations conducted by UHY Hacker Young into over 9000 probate cases by the HMRC show that they are clamping down on inheritance tax payments and fining estate agents as well as beneficiaries for not valuing the property correctly.

The enquiry continues to say that timeframes remain tight for executors to get an accurate picture of the estate for tax purposes as they need to submit this information within the year, and have time to answer any queries that the HMRC may have. After six months, the estate is also charged interest on the value so it’s in the best interests for each party to ensure this process is as smooth as possible. 

This means that the ability to show duty of care to all parties involved is becoming more and more important for everyone involved in selling a probate property. It also highlights the fact that there are a few things that can be done at the very beginning of a probate case, where there is property involved.

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Outcome focussed regulation

Author: Move with Us11 Apr 11, 11:52 AM

Unless you have been living under a stone for the last 12 months you will know that the CLC, SRA and ILEX are all transforming their approach to regulation for the benefit of consumers.

By 6 October this year the SRA expect to have introduced outcome focussed regulation (OFR) to the industry. The OFR aims to change the approach to supervision and enforcement and this will be their first Alternative Business Structure. Above all, their aim is to be a “fit for purpose” regulator ready for the new legal landscape brought in by the Legal Services Act 2007.

Their consultation on OFR, which closed in July last year, explained the perceived need as follows:

• The current rule book is detailed and prescriptive. It tends to lead to the use of resources which could better be deployed on higher-risk areas and doesn’t help us to get the best out of our relationship with the profession. Even in the current marketplace it becomes increasingly difficult for detailed rules to keep pace with change. This will be even more apparent with the liberalised legal landscape starting in October 2011. A rule book needs to be fit for purpose;
• Our regulatory approach needs to be more effective, proportionate and targeted so we can consistently regulate a greater range of legal service providers with a targeted, risk-based approach.

And their intentions are:

• To offer a better focus on making sure firms offer good standards of service to consumers; and
• To give good firms more flexibility in how they operate their businesses.

All well and good, but what does outcome focussed regulation mean to your business?  A staggering percentage of solicitors think very little, but if we look at another OFR regulated industry close to home, the financial services industry, we can see there is real cause for concern. 

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What does the introduction of Alternative Business Structures mean for solicitors?

Author: Move with Us2 Mar 11, 11:50 AM

The arrival of Alternative Business Structures (ABS) is due this year. But what does this mean for law firms?

ABS introduces legislation that allows non-legal service providers to move into what is traditionally the territory of solicitors. We believe that while this may increase competition in an already busy marketplace, it’s just another competitor that solicitors need to be aware of.

In the Wills and probate property sector alone, the average UK property is now worth £165,000 and with over 14 million households currently owner occupied. A recent survey conducted by us revealed that 52% of homeowners were without a Will, leaving over £1 trillion worth of property at the whim of the intestacy laws. This means that there is market demand for solicitor services, in this sector alone, to ensure the estate is taken care of.

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