“Applicants applying under the access to funds scheme are reminded that applications in which an incapable adult’s income consists solely of Department of Work and Pensions (DWP) benefits, is likely to be returned.

This is because the least restrictive option, as per of the Adults with Incapacity (Scotland) Act 2000 is to manage an incapable adult’s funds through DWP appointeeship. Sections 1(2) and 1(3) of the the Act provide further guidance to support this.

However, in those circumstances where there is income over and above DWP benefits, such as the individual being in receipt of:

• a private pension,
• savings above the lower capital limit, or
• a lump sum required to pay accrued expenses or debts,

an access to funds application can be completed, if required. This applies to all applicants wishing to make an application to access the adults funds.”

More on this can be found here.”

HMRC has added new guidance to its inheritance tax manual regarding the entitlement of a farmhouse to agricultural property relief under the character appropriate test.

The guidance reflects the taxpayer’s victory at the First-tier Tribunal in Golding v HMRC [2011] UKFTT 351 (TC)). 

More on this can be found here.

An interesting case concerning an attempt to have a Will set aside.

The deceased’s children attempted to overturn their father’s Will on the basis that their father was delusional.  Their father left almost £6.7 million largely  to a charitable trust.

The Court of Session however was “not satisfied that the pursuer [the children] have established that there were periods when the testator’s paranoid personality disorder was of such delusional intensity as to deprive him of testamentary capacity. ”   In other words, although the testator was paranoid he still had mental capacity

The case report can be found here and a report from the Herald here.

The UK Government has launched the Charities Online system allowing charities and sports clubs to claim gift aid repayments via HMRC‘s website.

The Gift Aid Small Donations Scheme has also gone live, allowing charities to claim top-up payments on cash donations of up to £20 without donor declarations.

More on this can be found here.

Excellent Scottish Government booklet that provides practical advice at a time of bereavement.

The booklet can be found here.

“Substitute Attorneys

We have now received the further, clarifying advice referred to in recent communications in regard to the position of substitute attorneys. The result of that advice is such that the Office of the Public Guardian has retracted the original policy decision which required evidence of a substitute attorney’s preparedness to act at the point of initial registration.

In summary, the status quo remains in that only principal attorneys have to confirm their preparedness to act at the point of initial registration. As is now, where there is a substitute attorney, OPG will seek such confirmation only where the principal attorney fails.

We sincerely apologise for any inconvenience that this may cause you.”

More on this can be found here.

4 March 2013

Power of Attorney (PoA) Update – Manual Submissions

There is currently a 6 week waiting period before your PoA can be processed and returned to you. This week we will be working on PoAs received on and around 23rd January 2013.

Last week we processed:

• 343 PoAs – those received between 18th December and 22nd January; and
• 147 PoAs which were required urgently. Please note that this service may be requested if there is a genuine urgency to process a PoA and the reason is provided.

More on this can be found here.

The Public Guardian has announced that from 1st April 2013, substitute attorneys will be required to confirm by way of signature, that they are willing to act at the point of registration.

This change in practice will impact on the Schedule 1 certificate, which is incorporated in the power of attorney document, as it will be necessary to state the names of any substitute attorneys in Section 4 of the certificate.  These requirements will apply to continuing and/or welfare powers of attorney signed after 1st April 2013.

The power of attorney registration form that we currently provide is being modified and will include a facility for substitute attorneys to confirm their willingness to act.

This form will be available from the “Power of Attorney Registration Forms and Guidance Notes” section of the website by the end of this month.  This version of the form may be used prior to 1st April 2013.

More on this can be found here.

The latest addition to our website is our “Know How” page.

This page not only includes our popular “Property and Conveyancing Casebook” but a “Training and Practice Notes” section.

This includes VAT and inheritance tax slides with notes.  These are aimed at a LLB or Diploma in Legal Practice class.  The format and content can though be easily altered to suit a different audience.

There are also Practice Notes on landfill tax and aggregates levy.  These Practice Notes provide a comprehensive introduction to these taxes.

If you would to know more about these materials please feel to contact us.  See the “Who we are” section of our website.

Pawson deceased v HMRC 2012 UKFTT 51 (TC)

The executors of the late Nicolette Pawson are launching a fighting fund to take their case to the England and Wales Court of Appeal, following their defeat by HMRC at the Upper tax Tribunal last month.

The case turns on whether furnished holiday lets are eligible for business property relief from inheritance tax.

“Mr Justice Henderson decided that the services provided ‘were all of a relatively standard nature [with] nothing to distinguish it from any other actively managed furnished letting business of a holiday property’.”

The Upper tax Tribunal decision can be found here, my earlier blog on this can be found here and an excellent piece from the STEP journal on this can be found here.