Breaking News
Time to Gain Some Capital
Capital Gains Tax and the Pre-Budget Report
The Chancellor of the Exchequer stands up on 9 December to deliver his Pre-Budget Report for 2009. We all know the gist of it; the country is heavily laden with debt so we need to cut back on our spending and somehow increase our revenue.
As we are all painfully aware, revenue is generally raised through taxation. One area in particular is widely tipped for special attention - Capital Gains Tax (CGT).
Ian Ody, WJM’s Head of Financial Planning, and Brendan Kelly, WJM’s Tax Manager, have prepared a short Briefing Note on CGT which can be downloaded here.
Briefing Note: CGT & the Pre-Budget Report
More information from Ian Ody: .(JavaScript must be enabled to view this email address)
Bank Charges Case - Commentary from WJM
Banks Win Overdraft Charges Test Case in the UK Supreme Court
In recent years, thousands of bank consumers in the UK have been reclaiming their bank overdraft charges through the County and Sheriff Courts. However in order to resolve the issue, the Office of Fair Trading (OFT) and the UK’s eight main banks raised a test case in the English High Court in July 2007; to determine whether the OFT would be allowed to investigate the fairness of charges for unauthorised overdrafts. All the court cases were frozen pending the decision, although some cases were allowed to proceed in Scotland as the OFT decision would not necessarily address Scots common law.
The OFT was victorious in both the High Court and Court of Appeal but to the shock of many commentators, consumer action groups and general public; the banks won the test case in the UK Supreme Court. Many people will find the decision difficult to comprehend as surely charging customers £39 for exceeding their overdraft limit when it only costs the bank £2.50 is unfair?
Well unfortunately it’s not quite as simple as that. The banks argue that the charges amount to 30% of their revenue (some £2.6 billion) and the charges are an essential part of the bargain between a consumer and the bank when a contract is made. The banks further argue that the charges were the consumers’ side of the bargain, and in return, they were provided with a package of banking services.
The UK Supreme Court was asked to decide whether overdraft charges were exempt from assessment of fairness by Regulation 6(2) of the Unfair Terms in Consumer Contracts Regulations 1999. The regulation says that the assessment of fairness shall not relate to whether the price is reasonable when compared to the services supplied in exchange.
The Supreme Court Judges found that the Court of Appeal had not interpreted the regulation correctly and that the charges were an essential part of the bargain, in effect, the price, for the banking services even though they are dependent on the consumer going overdrawn and the majority of consumers do not incur them. The Judges argued that as the charges amounted to 30% of the banks’ income then they clearly were an essential part of the contract between the banks and the consumers.
So that it’s over then? Not quite. Lord Phillips left consumers with some hope when he said that Regulation 5 could apply to a complaint that the banks’ charges overall were excessive in exchange for the package of services the consumer receives.
Consumers who have waited a number of years will be very disappointed by the Supreme Court’s decision but there may yet be more twists and turns in this saga should the OFT pursue the avenue highlighted by Lord Phillips. We shall wait and see.
More information from Neil Morrison: .(JavaScript must be enabled to view this email address)
News in the News
The West Highland Free Press has often led the news but found itself in the unique position of making the news when details of its employee buy-out went public – even featuring in Radio 4’s Today programme.
For Wright, Johnston & Mackenzie’s Ewan Hall, the news was no surprise.
Ewan and his team have been working with Employee Buyout Specialists, the Baxi Partnership, for many years, helping employees buy their own companies. The employee ownership model is currently attracting higher levels of interest as conventional funding for purchases has become more difficult to secure.
Ewan commented, “We have had a specialist practice in this area for some years and have worked with a significant number of businesses to secure their succession. The owners wish to see continuity of the business and jobs in the communities in which those businesses are based, and the employees want to secure their jobs, so an employee buy-out can be a win-win situation all round.”
“The West Highland Free Press is a shining example of where a business knows it’s market and delivers the services which that market wants and needs. It is a local newspaper which hasn’t compromised on its editorial or its journalism and delivers a quality product to its readers. For the business, an employee buy out was a valid and effective choice for succession allowing the company to continue to deliver.”
The West Highland Free Press joins Loch Fyne Oysters, Highland Home Carers and Stewartry Care as just some of the companies that have become employee owned with help from the Baxi Partnership and WJM.
More information on Employee Buy Outs and In’s
House of Lords Decision on Holiday Pay & Sickness Absence
A House of Lords decision on holiday pay and sickness absence means employees can now accrue holiday pay whilst they are sick.
Employers need to be aware of the changes to law as a result of this case so we have prepared a Briefing Note on the outcomes which you can download: Holiday Pay & Sickness Absence Briefing Note.
If you require more information, please contact the Employment Team on .(JavaScript must be enabled to view this email address)
WJM and the 2009 Scottish Game Fair
WJM’s Agricultural, Rural & Sporting Property team is delighted to be continuing its sponsorship of the falconry displays at the 2009 Scottish Game Fair. Held at Scone Palace, Old Scone, Perth on Friday 3rd, Saturday 4th and Sunday 5th July 2009, the Scottish Game Fair is an entertaining day out in the country for all.
Come and meet the team at our stand by the Main Ring. We look forward to seeing you. www.scottishfair.com
UK retains Working Time Opt Out
The UK has retained its right to allow workers to opt-out of the 48-hour working week for the foreseeable future. This is good news for many employers, who feared that the opt-out provision was to be phased out over the next 3 years at the request of the EU Parliament. A brief summary of working time regulations is given here
Calling all Innovators - £50,000 to be won
The Royal Society of Edinburgh (RSE) is calling for entries for their innovation Award, which is supported by the Gannochy Trust.
Presented annually to a young innovator, the Award recognises work which has the potential to improve Scotland’s social and economic well-being.
Angus MacLeod, WJM’s technology expert, commented, “Scots have always been great innovators - our roll call of world changing inventions includes now very ordinary items such as postage stamps, vacuum flasks and Bovril alongside ultrasound, microwaves and cloned mammals. This award is recognition of our innovative nature and we would encourage individuals to enter.”
WJM plays a role in helping innovators through helping them protect, commercialise and license their technology. Probably the most famous sheep in the world, Dolly - the world’s first cloned mammal, was a client of the firm.
Details of the Award can be found here. The Innovation Award 2009
More information on WJM’s technology team from Angus MacLeod .(JavaScript must be enabled to view this email address)
Major Intellectual Assets Conference in Glasgow
One of Europe’s leading conferences on the management of intellectual assets is staged next month in Glasgow.
Hundreds of delegates from across Europe will attend the 3rd International Congress, combined with IFKAD (International Forum on Knowledge Asset Dynamics) 2009, organised by the Intellectual Assets Centre, at the University of Glasgow on 17th -18th February 2009.
Among the topics to be covered in a series of masterclass workshops at the business facing Congress on 17th February are how to use effective intellectual asset management to win business through procurement, the links between university IP and research for the benefit of the wider economy and how to manage intangible assets in a recession.
The keynote business speaker is Debra Amidon, Chair and CEO, Entovation International, the global innovation research and consulting network linking 90 countries, a recognised world leader in the fields of knowledge management, customer innovation and enterprise transformation.
Staged for the first time in Scotland, the more academic IFKAD, on the 18th February, offers a wide range of academic sessions led by international experts including Leif Edvinsson and JC Spender, as well as such illustrious speakers as Jacques van der meer of the European Investment Bank, and Rob Huggins from the University of Cardiff.
Delegates attending the event include professional advisers working in intellectual property, economic development, knowledge and technology transfer, accountants, supply chain professionals, software developers, policy makers, international academics and Masters and PhD students.
Iain Russell, chief executive, Intellectual Assets Centre said, “This unique event gives delegates an unprecedented opportunity to hear and interact with international and national speakers and delegates from both business and academia through a highly focussed programme of sessions, designed to address issues of real importance to organisations in these challenging times.”
Delegate places are currently available, ranging from £126.50 (incl VAT) for a single day rate. For further information and to register, visit
More information on WJM’s Intellectual Property and Technology team from Angus MacLeod: .(JavaScript must be enabled to view this email address)
Ewan Hall: Promoted to Partner
WJM’s Chief Executive, David Bone, recently announced the promotion of Ewan Hall to Partner at WJM.
Ewan works in the Corporate team advising clients on a diverse range of legal matters appertaining to running a business.
David said, “I am delighted that we have promoted Ewan. He has been with WJM since joining as a trainee and has now developed into an excellent corporate lawyer with a number of clients who regularly look to him as a first port of call for advice on legal matters.”
Ewan was recently named in Chambers Guide to the Legal Profession 2009 as ‘one to watch’ and his promotion certainly justifies that recommendation.
More on Ewan Hall.
More on the Corporate Team.
