Norfolk Law 25

Norfolk Law Magazine of the Norfolk & Norwich Law Society - www.nnls.org - Autumn 2015

Inside...

Pictures from our visit to NCFC, all the latest CPD events in the calendar, a new quiz event for the Autumn (don’t worry Countdown is just moving to January!) plus details from the AGM and our new officers...

Norfolk Law - Contents - 3

This issue...

Thank you to all those who have renewed membership of the society for 2015 - 2016, numbers are once again up and at a record high. Inside this issue you can catch up with our summer NCFC event and read all about the events confirmed for the busy Autumn and Winter period ahead. We hope to see you at an event soon...

Norfolk L

Membership 4 Committee

Magazine

President’s Report 5 James Hunter Event 6 7 8 10 10 12

Reviews AGM Review On the Ball City!

CPD - Legal and Real Duties of a Director CPD - Court of Protection Update 2015 CPD - Wills & Probate NNLS Quiz Night crams in the teams!

Event 14 14 15 15

Previews CPD - Local Land Charges Update CPD - Energy, Planning and Japanese Knotweed CPD - “I din’t know I’d have to be a salesperson too!”

Norfolk Lawyers Do Countdown

Articles 16 Ministry of Justice - Court Fees and Closures 18 Accountants’ Reports – the journey continues…

19 News from The Law Society

of the Norfo lk & Norwi ch Law So ciety - www.n nls.or

aw

g - Autumn 2015

Inside...

Pictures fro mour visit to NCFC, all the calenda the latest CP r, a new qu iz event for D events in Countdown the Autum is n (don’t wo AGM and ou just moving to January rry r new office !) plus detai rs... ls from the

20

Drainage and Water - Are you getting the full picture?

22 24 27 28

The perils of a poorly drafted Will Book Review - The Company Director Book Review - The Golden Age of Arbitration Dispute Resolution Under Elizabeth I Retirement Age

Disclaimer

Norfolk Law is published for the Norfolk & Norwich Law Society by east Park Communications. All rights reserved. Reproduction without consent is prohibited. Any comments or views expressed in any article are not necessarily those of the Society or Publisher. All times, prices and event details were correct at time of publication.

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may or may not reflect the opinions of East Park Communications Ltd. Correct at time of going to press.

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4 - Norfolk Law - Membership

Norfolk Law - President’s Report - 5

President’s Report I am very proud to have been elected as President of the Norfolk and Norwich Law Society for the coming year.

It is almost exactly 22 years since I arrived in Norwich as a trainee solicitor and it is 26 years since I began my law degree at UEA - which feels like quite a long time but pales in comparison to the 123 years since NNLS was incorporated. So while I have this opportunity to work with the committee and take things forward for 12 months, our overriding objective will be to make sure the Society stays in good shape and able to continue for many more years, providing the support, training, campaigning and focal point for professional camaraderie from which we all benefit.

funding for the legal system is being squeezed but there are huge numbers of people who need to get affordable access to justice.

I am extremely grateful to Christopher Cubitt for all that he has done as President in the last year, progressing the many initiatives being undertaken by the Society. Christopher continues on the NNLS committee as Immediate Past President and I am already very grateful for the support and guidance he has given to me, along with Jeanette Wheeler who was President immediately before Chris and also stays on the committee. Christopher and Jeanette have done a brilliant job raising the profile of the Society and ensuring that all of our members get great value from membership. They are extremely tough acts to follow.

James Hunter, President NNLS

David Richards will be Vice President during the year and I really look forward to working with him as well as Ben Ward (Honorary Treasurer), Sue Bailey (Honorary Secretary) and the rest of the committee members (insert names). All of them give up their time for the sake of NNLS but their enthusiasm and good humour means we enjoy doing it! A special mention should also go to the NNLS Administrator, Claire Clarke, whose support and hard work is immensely important and who makes sure the events, training, meetings and publications all happen on time.

Membership is at record high levels and still growing, we have a fantastic programme of technical and skills-based training in place which are kept up to date online and we are able to promote the views of members and the profession on a range of important topics, most recently in connection with planned court closures and court fees. The 800th anniversary of Magna Carta was a great opportunity to remind the community about the importance of the rule of law in our daily lives and Christopher was instrumental in organising ‘From Magna Carta to the Bill of Rights - Why your Human Rights Act Needs you’ and other events such as the pre-election hustings and The Magna Carta Debate. I shall try to continue that work as well as reaching out to practices in the county outside Norwich (after all, this is the Norfolk & Norwich Law Society) and seeing if we can get more publicity in local media for the vital role being played by the profession in the community, especially at a time when public

One of the important things which NNLS can do is bring us together as a profession. It has been a year of very successful and enjoyable social events, including Lawyers Do Countdown, the Treasure Hunt and of course the Annual Dinner. We will be looking at ways to enhance our communications to members around these events, including making more use of Twitter and other social media. A highlight for me this year was seeing our first ever Awards for Excellence being handed out to Denise Traube (newly-qualified lawyer of the year) and Jessica Piper (trainee lawyer of the year) and we shall be running those categories again, with presentations being made at the 2016 Annual Dinner. More details of the Dinner and the Awards will follow during the year.

I am looking forward to serving as the President in the coming year and would encourage all of you to support the Society, attend its events, make use of the training and other support available and speak-up in the campaigns which we run. It is a profession and an organisation of which we should be proud to be part.

Professional communications for professionals www.epc.gb.com

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6 - Norfolk Law - Event Review

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Norfolk Law - Event Review - 7

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8 - Norfolk Law - Event Review

Richard Clegg (left), Andrew Clarke (right) & associate

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14 - Norfolk Law - Event Preview

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16 - Norfolk Law - Articles

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18 - Norfolk Law - Articles

Accountants’ Reports – the journey continues…

I have never been convinced that the provision of an accountant’s report is the most valued part of the business relationship between a law firm and its accountant. After all, compliance or otherwise is a matter of fact. With the exception of the narrowly defined ‘trivial’ breaches, if instances of non-compliance have been found by the reporting accountant, the report should be qualified.

Given that the majority of accountants’ reports are qualified, the SRA had quite a task sifting through all the qualified reports to identify those which give rise to the greatest cause for concern.

In other words they were in danger of not being able to ‘see the wood for the trees’.

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So when the SRA embarked on the Regulatory Reform Programme early last year, one of the aims was to reduce this burden on the SRA and enable them to direct their resources more effectively to identify risks to client money as opposed to reviewing hundreds of qualified reports dealing with minor breaches.

The first stage of this process saw the removal of the requirement to obtain an accountant’s report for those firms which receive all their client money from Legal Aid Agency work, and to remove the requirement to submit an Accountant’s Report which was unqualified.

The next stage of this process, effective from November this year, is far more radical by comparison, as it involves reporting accountants exercising professional judgement in

deciding whether or not to qualify their report. Reports should now only be qualified where breaches are material and therefore likely to put client money at risk.

The accompanying guidance will provide a steer on what constitutes: • Best practice • Adequate practice • Below adequate practice This should provide reporting accountants with an opportunity to provide a more proactive and constructive outcome to the role of reporting accountant, rather than being forced to issue qualified reports for relatively minor administrative transgressions.

That can only be a good thing.

It will also help the SRA develop a more focused approach to identifying risks to client money.

The

exemption

from

the

requirement to obtain an accountants’ report where the average client balance is under £10,000 in a year and does not exceed £250,000 will also be widely welcomed by those firms falling into that category.

In the meantime we look forward to the overhaul of the rules themselves and we should then all feel more comfortable that we have a client money regime that is fit for purpose in the 21st century.

Disclaimer: Please note that this article is provided for your information only.

Whilst every effort has been made to ensure its accuracy, information contained herein may not be comprehensive and you should not act upon it without seeking professional advice.

Paul Briddon Partner, Lovewell Blake 01502 563921

Norfolk Law - Book Review - 19

Law Society News The future of Britain in Europe: legal services If the UK’s relationship with the rest of the European Union (EU) were to change as the result of significant renegotiations or the UK choosing to give up its membership, the effects would be felt throughout the legal profession. The Law Society has published a detailed report looking at the relationship and potential impact of changes through the legal lens.

Law Society president Jonathan Smithers said: ‘With a referendum on the future role of Britain in Europe on the horizon, we want to provide our solicitor members with the opportunity both to assess what impact Brexit might have on their own area of legal practice and their firm as a whole and to contribute to the debate. Solicitors have a wealth of insight to offer.

‘This report opens the discussion on the future of the legal sector in Europe. The ramifications of a change in the UK’s position in Europe span every aspect of legal services, from civil and criminal justice to the environment, taxation and intellectual property rights. It is important that solicitors working in law firms and in-house consider the issues that could

affect both their firm, the legal sector and their clients.’

The report also explores the issues solicitors and the legal services sector as a whole will face, should the European political landscape change. In compiling the report, the Law Society has interviewed solicitors in the City and other London firms, the regions and Wales to gather views on the impact of an exit from the EU on the UK legal sector.

Working closely with the Society’s specialist committees, the research team has carried out an analysis on the effects withdrawal would have on different areas of law and the rights granted under EU law.

The report covers: • the impact on specific areas of law • the impact on the business of law and England and Wales as a global legal services centre and jurisdiction of choice • the impact of alternatives to membership of the EU if the UK were to leave, for example, participation in the ‘internal market’, being subject to rulings from the Court of Justice of the European Union and contribution to the EU budget

Intelligence shortcomings render anti-money laundering report findings misleading, warns legal sector Anti-money laundering (AML) supervisors across the UK legal sector have warned that a new report published by the Home Office and HM Treasury on the risks of money laundering and terrorist financing lacks balance and, by its own admission, is not backed up by robust intelligence.

Responding to the National Risk Assessment (NRA) - a government evaluation of money laundering risks in the UK - legal professionals across England, Scotland, Wales and Northern Ireland said the level of engagement with the legal sector by those charged with drafting the report was not as thorough as the government had hoped.

Anti-money laundering experts in the UK legal profession have called for better engagement between the government and the legal sector so that future versions of the NRA articulate a more balanced view of the professions, supervisors and law enforcement.

The services provided by lawyers involving high value transactions can expose them to money laundering risk. Legal professionals working on the coal face of money laundering prevention require law enforcement agencies to be more active in sharing intelligence so that they can keep abreast of ever-changing criminal scams to manage that risk and prevent attempts to abuse legal professional services for financial gain.

According to the National Crime Agency (NCA), the legal sector has made more information available to its members with respect to tackling money laundering than any other sector. However, representative bodies for lawyers are warning that spotting scams is a continual challenge.

Commenting on the NRA report, Law Society president Jonathan Smithers said: ‘The UK Anti Money Laundering regime is one of the toughest in

the world, offering clients high levels of protection. We are therefore disappointed that this misleading report has designated the legal sector as high risk. Shortcomings in the intelligence gathering in preparing this report has resulted in what we believe is a misleading assessment. We want to work with the intelligence agencies to address this. We also want to work with the government to ensure future versions of the National Risk Assessment represent a more balanced view of the professions, supervisors and law enforcement.’

He added: ‘While the identification, arrest and prosecution of legal professionals complicit in money laundering is crucial, it is difficult to avoid the conclusion that the role of lawyers is overstated both in this report and in the government’s Organised Crime Strategy. The claimed impact of ‘professional enablers’ is not supported by arrest or prosecution statistics.’

Scott Devine, chair of the Legal Sector Affinity Group of the UK AML Supervisors’ Forum said: ‘Our ability to keep our members well equipped to battle money laundering depends on quality and timely AML intelligence from law enforcement. We are therefore pleased that the NCA has agreed to implement our proposal of a ‘Legal Sector Engagement Group’ designed to discuss practical issues and coordination of Suspicious Activity Reporting related matters in the legal sector, as well as better sharing of money laundering typologies and intelligence with the sector.

‘Constructive engagement with the NCA, HM Treasury, the Home Office and all other relevant government and law enforcement agencies is essential, as an Action Plan to address the genuine risks facing the legal sector is developed ahead of the FATF Mutual Evaluation Review of the UK’s AML regime due to take place in 2017. ‘

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20 - Norfolk Law - Articles

Drainage and Water Are you getting the full picture?

When considering a property, home buyers don’t usually give the highest priority to drainage assets and water pipes. Hidden below ground and out of sight, it’s really easy to overlook their importance. A property’s value, title and maintenance costs, however, can be directly and in some cases, adversely, impacted by issues relating to these assets.

Geodesys offers the CON29DW for all properties in England and Wales, so we are well aware of the costly oversights that could have been identified, had purchasers used a CON29DW search instead of alternative water and drainage searches, commonly known as Personal or Regulated Drainage and Water Searches.

CON29DW: setting the standard The Law Society introduced the CON29DW to provide a nationally uniform approach to the provision of property-specific water and drainage information. With 23 standard questions it is the only drainage and water search mentioned by the Law Society in its handbook and is supported by a robust and underwritten guarantee that protects home purchasers and their legal advisor(s).

CON29DW: key benefits • Unlimited liability on residential property transactions • Updated as soon as drainage and water legislation changes • Regular legislation and product updates keep users up to date with improvements and legislation changes • Monitored by the Drainage and Water Searches Network alongside The Law Society • Swift turnaround – Personal Searches can take up to five days longer!

• Drainage and water expertise provided at no extra cost to investigate issues arising from a CON29DW, both pre- and post-sale Should I choose a CON29DW or a Personal Search?

Can your clients afford the cost, time and disruption to deal with drainage and water issues. Personal Searches do not tend to include answers to all 23 of The Law Society questions, and instead offer insurance to cover unanswered questions. As issues only tend to come to light once the buyer has moved in, the new owner then has all

the difficulties of dealing with the problem retrospectively.

the issue and connection to the public sewer cost the owner around £10,000.

In contrast to other drainage and water searches, choosing the CON29DW gives the FULL picture. You have all the facts up-front ensuring that transactions can proceed in the full knowledge that any risks have been properly identified.

At Geodesys we had a similar situation where the CON29DW had indicated a connection, where none actually existed.

The home owner had the same issue when waste from the septic tank flooded his landscaped garden but, in this case, Geodesys arranged and paid for connection to the public sewer, as well as for removal of the old tank and waste.

What’s the risk?

This recent case study illustrates what can to wrong and gives an idea of the costs involved.

Would you want an overflowing septic tank in your garden?

A Personal Drainage and Water search was ordered in place of a CON29DW and this search indicated that the property was connected to the public sewer. In reality, there was no sewer connection and sewage drained into an old septic tank. This was only discovered when the tank backed up causing nasty leakage into the homeowner’s garden! Resolving

Call in the Geodesys experts!

At Geodesys, our internal experts are dedicated to producing the most accurate picture they can for you and your clients.

If questions regarding the location of assets are raised either during our checking process or after you receive the search, we do our utmost to find out what’s really going on, including visits to the property.

Above image: Underground cameras are just one example of the equipment we have at our disposal.

Geodesys offers the CON29DW throughout England and Wales, turn around 98% of CON29DW (Anglian Water area) within 24 hours and offer in-house training / CPD on drainage and water.

For more information contact Matt Bowles, Geodesys Client Account Executive on 07764986563 or matt.bowles@geodesys.com and start getting the full picture! www.geodesys.com/con29dw

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22 - Norfolk Law - Articles

The perils of a poorly drafted Will Why spend money on something which will not come into effect until you die? After all, you won’t be here to worry about it.

Unfortunately, two-thirds of adults in the UK do not have a Will when they die. Perhaps more seriously, of the one-third who do make a Will, a high proportion of these documents are invalid, not drafted correctly, or are inappropriate for the situation.

Take the recent case in the High Court of the late Mr Aregbesola. In 2007, he instructed Barclays Bank Will-Writing Service to prepare him a low cost Will for £90, dealing with substantial assets, including several properties, some of which were overseas. The Will left half of a London property, which Mr Aregbesola owned with his wife, to be given to his daughter Tinuola Aregbesola.

would have received her half share of the home, as her father had wished. Instead, she is involved in a High Court battle.

It is not commonly known that will writing companies, including the will-writing division at Barclays, are not regulated. Will writers are not required to have any legal training or qualifications. They do not even have to be insured.

As Miss Aregbesola found, cheap does not always end cheerfully.

Whilst a professionally drawn Will may cost more initially, it is important in the long term to ensure that your estate is shared exactly in accordance with your wishes. It also makes life easier for those that you leave behind. You also have peace of mind knowing that all solicitors are appropriately regulated and insured.

Mr and Mrs Aregbesola owned the London property in such a way which meant that the property passed automatically to the surviving owner, regardless of what the Will provided. On Mr Aregbesola’s death, in direct conflict with his wishes in his Will, Tinuola’s stepmother inherited the whole property.

At Steeles Law, we have a team of experienced and professionally qualified lawyers who will be more than happy to help you with advice about making a Will and other estate planning issues.

Please contact us for further details.

If Barclays Will-Writing Service had carried out the simple formality of severing the joint tenancy when Mr Aregbesola made the Will, Tinuola

Angela Ireland (Chartered Legal Executive)

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24 - Norfolk Law - Book Reviews

Book Reviews It is only a little over three years since the last edition appeared and significant changes from the Companies Act 2006 have taken place, as the three authors, Peter Loose, Michael Griffiths and David Impey remind us.

Also, Parliament has just passed the Small Business, Enterprise and Employment Act 2015 which adds a new dimension to corporate governance. Now established as a definitive work in this field, “The Company Director” presents in one convenient volume a detailed explanation and clarification of the powers, legal responsibilities. And, yes, the liabilities of executive and non-executive company directors within a continually changing legal landscape, where, as the authors also point out, some uncertainties remain as to what the law really means!

The book covers a number of other significant changes. The provisions of the Small Business Enterprise and Employment Act are thoughtfully discussed, together with the recently revised rules on corporate security… the new mechanisms for making complaints to the Company Names Adjudicator… and the most recent changes to the company buy-back regime. The most recent case law is also examined in detail.

THE COMPANY DIRECTOR Powers, Duties and Liabilities 12th edition

By Peter Loose, Michael Griffiths and David Impey ISBN: 978 1 84661 971 7 Available as an ebook JORDANS PUBLISHING LIMITED www.jordanpublishing.co.uk AN ESSENTIAL REFERENCE ON THE ROLE AND RESPONSIBILITIES OF THE MODERN COMPANY DIRECTOR An appreciation by Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers If you are a company director or a practitioner in company law or a director, here’s a book you should make a point of purchasing. Recently launched in a new twelfth edition from Jordan Publishing, ‘The Company Director’ is a long established, classic work, which at the same time, is bang up to date.

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Indeed, the book excels as a work of reference to virtually everything a company director needs to know. The first two chapters outline the history and nature of companies past and present, including commentary on ‘the corporate veil.’

Subsequent chapters deal in detail with such matters as the appointment, powers, duties and liabilities of directors, plus shareholder relations, terms of service and meetings.

Also presented is a clear and detailed discussion of the Bribery Act 2010 and the Corporate Manslaughter and Homicide Act 2007; (very topical in view of the recent Volkswagen debacle). And then there’s the final chapter which contains as succinct a summary as you’ll find anywhere on the oft referred to issue of corporate governance. This contains the UK Corporate Governance Code, a very useful checklist for board effectiveness, and more besides, including a comment on corporate social responsibility (CSR).

CSR is described as ‘an up and coming buzz phrase’ in the opinion of many, except possibly avid readers of the Harvard Business Review, for example, who may remember the concept discussed as far back as the 70s and probably before; so, as some might say, less up and coming than old hat.

Be all this as it may, this book is described quite rightly as a highly respected tome… heavy on the practical side of the law’ and therefore an essential research tool for a range of professionals, from barristers and solicitors to company secretaries and accountants, as well as, of course, company directors and corporate law students aiming for a first.

The law is stated as of July 2015.

Norfolk Law - Book Reviews - 27 painstakingly ferreted out and quoted extensively.

It is fortunate for modern historians that those in government at the time of the first Elizabeth were so punctilious about writing almost everything down and keeping records. There is nothing like the study of original source material for gaining a more accurate understanding of the realities of an historical period.

‘The archives of documents for these years relating to arbitration are voluminous,’ says the author, adding that ‘because of the richness of its archives, Elizabeth I’s government arbitration scheme dominates this book’. He also points out, however, that ‘the background to dispute resolution… throughout her reign was private arbitration, arranged by the parties and the chosen arbitrators with no government intervention.’

The book is divided into seven parts; all, you could argue, uniformly interesting. Particularly noteworthy is Part Two on public arbitration which contains a chapter on the Privy Council. ‘The Council was the Queen’s government,’ says the author, ‘travelling with her wherever she went’, usually around London. It also met in Greenwich, Richmond and Windsor and as far afield as Stanstead, Hertford Castle and St Albans.

‘Far’ in those days meant literally that, when the average journey on horseback covered about fifteen miles in a day.

THE GOLDEN AGE OF ARBITRATION DISPUTE RESOLUTION UNDER ELIZABETH I

BY DEREK ROEBUCK HOLO BOOKS/THE ARBITRATION PRESS, OXFORD ISBN: 978 0 95721 530 6 www.holobooks.co.uk www.centralbooks.com

CALLING ALL ARBITRATORS – YOUR PROFESSION IS NOTHING NEW An appreciation by Phillip Taylor MBE and Elizabeth Taylor of Richmond Green Chambers ‘Dispute resolution under Elizabeth I’ is to most readers, including lawyers, a rather startling subtitle for a book about arbitration. But here it is: a meticulously researched and actually un-put-downable discourse on how disputes, arguments and fights between warring parties were resolved in the sixteenth century during the reign of Elizabeth I. Fans of ‘Wolf Hall’ and other works of fiction about the Tudor period will quite possibly be shaken to the core by the facts, as revealed in this quite absorbing book, not to mention the variety of ways in which decisions were made and justice meted out.

What is immediately impressive about the book, is the style and vigour with which author Derek Roebuck writes (which makes the book a rattling good read) and also, more importantly, the wealth of archival material and documentation from the Elizabethan period which he has

The Privy Council comprised nineteen of the Queen’s closest associates, including some familiar names: Sir William Cecil, Robert, Earl of Leicester, Sir Francis Walsingham and the then Chancellor of the Exchequer, Sir Walter Mildmay. Apparently no claim was too large or too small for its consideration.

The claims heard in 1585, for example, included a dispute between town and gown in Oxford, and various other arguments over property and money. The Council even sat on Christmas Day. In 1596 there was a plea to the Lord Mayor in time of famine to moderate his diet so he could afford more poor relief.

But it was in 1588 that the Council had to deal with imminent invasion by the Spanish Armada. On 23 July it issued letters to several counties saying that ‘whereas the Spanish fleet has of late again been discovered on the seas, they are required to put the forces of the counties in readiness’ namely ‘levies, bullets, gunpowder, lances and beer.’ Only a few days later, the Council then found itself arbitrating in a family dispute between one Cecily Inglebert and her son.

So many claims, so little time. One wonders how Elizabeth’s government coped, for the most part successfully, especially in the midst of crisis. ‘Elizabeth,’ says the author, should be given credit for what seems to modern eyes … to be a precocious government scheme for the resolution of disputes.’

Covering every conceivable aspect of dispute resolution, this is a lively and erudite exploration of a fascinating subject in an equally fascinating and well documented period in English history.

The general public will love it – and lawyers in particular will note the links between arbitration (which then encompassed mediation) and the evolution of the English civil justice system. Arbitrators themselves will realise that arbitration as a means of resolving disputes, is certainly nothing new.

The publication date is cited as at 2015.

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28 - Norfolk Law - Articles

Retirement age I have clearly been a forensic accountant too long. When I started out in the field, the firm I worked for was very active in getting articles published, and the first one I wrote, 20 years ago now, was on retirement age and the impact on personal injury claims of claiming retirement post age 65. The Ogden tables were coming in and for the first time solicitors could be scientific about the effect of changing the retirement age claimed by a small amount. The thrust of the article was firstly how to calculate the effect, and secondly the evidence of actual retirement ages for, particularly self employed, claimants. The courts are generally run by employed judges who have the idea of a fixed retirement date, and there was also very little published evidence on actual retirement ages, so the idea was one needing expert opinion. As accountants we could opine on when was normal, and particularly on when for specific industries. Basically we said that the self employed rarely retired at 65, and most continued in some reduced level of working until perhaps 70 or even later.

Five years ago the press started getting very excited about the government plans to raise the state retirement age, and not surprisingly the courts started using the Ogden tables more carefully assuming later retirement ages. This is great for claimants but does

not reflect reality very well. The idea of working 37.5 hours a week until the day of your 67th birthday then never crossing the works’ threshold again is not one that many people these days recognise.

In the last year the pensions field has again been fundamentally changed by the new improved ability to take your pension either as a lump sum or as a ‘drawdown’ from age 55. This is meant to help phase in retirement, and it does this, but how does this affect claimants?

The reality is that you need your expert to give you a projected income that takes into account the phasing in of retirement. It also should perhaps take into account the modern portfolio approach to work. This means that the final retirement age might be later still, but on a reduced level of working for the last few years.

For example take your friendly accountant. He might be planning to work full time until age 60, then retire, but he is planning to work as a consultant for his firm for a further 10 years, and also -like his dad before him and several other previous partners of the firm- he expects to take on a directorship or two of clients or local companies.

He is also might have several clients where he will be executor of their will in the future. So what will the claim look like:

Type of income income period Normal wage

£60,000

Until age 60

Reduced wage

£10,000

Age 60 until 70

Directorships

£2,000

1 from age 55, adding another at 60 until age 75

Executorships £2,000

1 every other year from age 55 until 60, then 1 a year until age 75

Pension taken early

£15,000

From age 57

OR Normal wage

£60,000

Until age 65

Pension £23,000

From age 65

Now this all looks very different to the simple approach of earning £60,000 until age 65 and a higher pension which is what we still too commonly see. Which gives the greater loss? Well doing the multipliers it turns out the new approach is better for the claimant, despite sacrificing 50,00 a year for 5 years of the claim.

The real question is ‘When is this relevant?’, and the answer is that it is very hard to tell, but as forensic accountants we routinely ask clients these sort of questions and you should be using your experts to consider this early on in the claim process to ensure the correct heads of claim are included.

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30 - Norfolk Law - Articles

A Both Mitochondria

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