The Office of the Public Guardian (Scotland) is not currently able to meet its target turnaround time of registering Powers of Attorney within 30 working days from receipt.

Not surprisingly the OPG is receiving a significant amount of telephone calls from customers seeking confirmation that it has received their Powers of Attorney for registration.

The OPG currently estimate that registration should be notified within two months of the Powers of Attorney being sent to the OPG.

Edwin Morgan, who died last year aged 90, is thought to have left the SNP a significant part of his estate.

He became the Scotland’s first national poet – or Scots Makar – in 2004 by then First Minister Jack McConnell.

The report from the BBC can be found here and the Sunday Herald here.

Golding v HMRC May 2011  

The First-Tier Tax Tribunal recently ruled that a farmhouse is entitled to full agricultural property relief (APR)  from inheritance tax even though the aged occupant only sold a few eggs to a handful of customers.

HMRC accepted the claim for APR on the land and other buildings but they did not accept that the 3 bedroom farmhouse, which was in a poor state of repair, was eligible for the relief.  The deceased had farmed a 16-acre smallholding in Staffordshire since 1965.

HMRC argued that the three-bedroom farmhouse was not eligible for APR because it was not of a “character appropriate” for APR purposes.  A Notice of Determination that the farmhouse did not qualify for APR was subsequently issued by HMRC.

The Tribunal heard that the level of activity on the smallholding had decreased over the years and, in the period leading up to his death, Mr Golding had grown vegetables mainly for his own consumption and sold a few eggs to some 15-20 customers.  Whilst the level of profits was below the National Minimum Wage, it was concluded that the deceased was still working his holding, as a farm, when he died.

On the main issue of whether the farmhouse was or was not of a “character appropriate” for APR the Tribunal concluded that on the basis of the historical facts of the holding, the type of property, as well as the taxpayers’ intentions and actions, the house should qualify for APR.

The Tribunal also stated that it would be unreasonable to expect the activities of an 80-year old to be extensive in nature. It was also clear from the taxpayer’s actions that he intended to carry on farming. This was shown by the purchase of new equipment by Mr Golding shortly before his death.

HMRC have until mid-July to appeal this decision.

HM Treasury has now published its consultation document on the new 36 per cent rate of inheritance tax where at least one-tenth of an estate is left to charity.

The consultation closes on 31 August.  The legislation is not likely to come into effect until the 2012-13 tax year.

The consultation paper is available here.

The Sunday Herald reported yeserday that Erskine’s Edinburgh care home had received a critical report from Social Care and Social Work Improvement Scotland (SCSWIS).  It was also reported that the Chief Executive Officer of Erskine, Major Jim Panton has resigned.   A spokesman for the care home stated that the resignation was not connected to the critical report.

The inspection report found prescription drugs had not been administered properly, and fluid and food intakes had not been recorded.

The article is available here.

Visitors to Parisian cemeteries will soon be greeted by touchscreens helping them to find the graves or tombs of relatives and notable residents.   Given the increase in burial charges at a number of Scottish Councils over the last few months it would be nice to see our Councils coming forward with their own forward thinking proposals.

The Guardian newspaper reported today that there are 1600 fewer registered charities in England & Wales than there were a year ago.

HMRC launched 9,368 investigations into Inheritance Tax valuations over the last year and is actively targeting estates and beneficiaries say tax advisers UHY Hacker Young.

In instances where additional tax was payable, this averaged £24,600 per case.  Based on HMRC figures, approximately £70 million of additional tax was raised as the result of HMRC challenging the valuations of properties included in the estate of a deceased person in 2010.

HMRC has previously advised estate beneficiaries to obtain several property valuations and strongly recommends the engagement of a professional valuer or chartered surveyor.

Southern Cross, which operates across the UK, has announced that it is reducing its rent payments and cannot afford to meet its annual rental costs of £230million. Southern Cross has 98 care homes with around 4,000 elderly residents in Scotland.

HM Treasury’s consultation paper on the proposed 10 per cent inheritance tax charity relief is to be published on 9 June.

The UK Chancellor’s Budget proposal, which will come into effect in April 2012, will reduce the rate of inheritance tax from 40 per cent to 36 per cent, if at least 10 per cent of a person’s estate is given to charity.