THE LEADING LEGAL ISSUES FOR 2011
2011 is here. The new coalition government is bedding in, VAT and fuel prices are up, interest rates are likely to follow and the green shoots of recovery may have to weather more icy conditions before they can be thought of as flourishing.
In amongst all of this, life goes on with businesses and individuals having to grapple with existing and new legislation on top of market forces. But it’s not all bad news; opportunities abound and the surest way of keeping out of trouble and ensuring a smooth pathway to your desired result is to take legal advice at an early stage. Here are our predictions of some of the areas you should pay particular attention to in 2011:
Employment law: Regrettably, job cuts will probably continue particularly in the public sector although small privately owned companies are forecast to be an energetic source of job creation. This year, the abolition of the default retirement age of 65 will be adding to the regular issues surrounding contracts of employment, disciplinary proceedings and unfair dismissal. On top of this the 2010 Equality Act will be bedding in with employers having to review policies and procedures against the provisions of the new legislation. Increasing restrictions on immigration may cause difficulties for some sectors. Jane Laidler
Inward investment: Inward investment levels in terms of relocation and expansion at both the business and individual level should continue to be fuelled by the comparative ease of starting up in business in the UK, relatively low property prices in London (in historical terms), and the UK’s ongoing role as a gateway to the rest of Europe. The impact of the 2012 Olympics cannot be overlooked with the opportunities it represents for businesses of all sizes to showcase their expertise on a global platform. Forecasts are that outward investment and trade will also continue to rise as UK businesses seek new markets. Jane Laidler
Commercial law: Companies should be examining their bribery and corruption prevention policies now before the new Bribery Act comes into force in April, with corporate hospitality under the spotlight as well as more obvious danger areas. A good time too to revisit standard terms of business and standard contracts to make sure they are up-to-date and robust in what looks set to continue to be a challenging business and regulatory environment. Chris Bannister
Private client: The power of the media means that the early part of the year may see a surge in interest in wills. In January business guru Sir Gerry Robinson launches a new BBC TV series Can’t Take It with You which tackles the subject of the emotional dilemmas people face in writing a will. This will undoubtedly lead many people to consider their own position – particularly those in complex family situations. That aside, the government is unlikely to raise the inheritance tax threshold in 2011 so this will be the second year it has been frozen. Ian Bowyer
Property: Rumours are rife that HMRC is going to get tough on Stamp Duty Land Tax (SDLT) saving schemes. The Government is short of money and things are getting tighter all the time. There are various schemes designed to save SDLT involving sales and sub-sales. In June 2010, HMRC published an article stating that sub-sale arrangements do not work. The article stated that HMRC will challenge such arrangements. Expect various reports from the Tax Tribunals in 2011 on this. Neil Spurrier
Property litigation: Lord Justice Jackson’s report “Review of Civil Litigation Costs” has perhaps caused more stirring than some consider justified but nevertheless we can expect changes in the way litigation is conducted. The cost of litigation can be huge and this is very evident in property disputes. Dilapidations claims can be expensive and 2011 is likely to see attempts not only to restrict the costs of such claims but to restrict the amount of costs claimed and to penalise parties who adopt intransigent attitudes that create expense for others. We can expect amendments to the Civil Procedure Rules relating to offers to settle to make continued litigation more risky on costs. Some may say that this is restricting the basic right to have one’s dispute adjudicated before the Court. Neil Spurrier
Family law: The consultation period of the Law Commission Report on Pre and Post Nuptial Agreements closes in April, after which we should expect to see legislative changes. It is anticipated that there will be further Judicial guidance in the area relating to disclosure. The landmark decision in Immerman, which restricted spouses intercepting and relying upon documents of the other has yet to tested. In October last year the warning was out that there could be civil and criminal penalties, but how far the Courts will go is open to question. The Rules governing the conduct of Family proceedings are set for change with the anticipated date for introduction of 6 April 2011. Jacqueline Fitzgerald
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