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Update on employment payments and rates for 2024-2025
Update on employment payments and rates for 2024-2025

This page outlines the revised employment payments and rates for 2024-2025, from compensation limits to the Vento bands for injury to feelings awards.

Compensation limits

These sums apply where the dismissal took place

On or after 6 April 2023

On or after 6 April 2024

A week’s pay for statutory purposes

£643

£700

Maximum unfair dismissal basic award 

(30 weeks)

£19,290

£21,000

Maximum unfair dismissal compensatory award

Lower of 52 weeks’ gross pay or £105,707

Lower of 52 weeks’ gross pay or £115,115

National minimum wage hourly rates

Type

From 1 April 2022

From 1 April 2023

From 1 April 2024

National living wage (aged 23 and over)

£9.50 £10.42 £11.44

Standard rate (aged 21 to 22)

£9.18 £10.18 £11.44

Development rate (aged 18 to 20)

£6.83 £7.49 £8.60

Young workers rate (aged 16 to 17)

£4.81 £5.28 £6.40

Apprentices rate (under 19 years of age or those aged 19 and over but in first year of apprenticeship)

£4.81 £5.28 £6.40

Statutory weekly payments for leave

Type

Length of time

From 10 April 2023

From 7 April 2024

Sick pay (after three qualifying days’ absence)

for up to 28 weeks in period of incapacity

£109.40

£116.75

Maternity pay and adoption pay (first six weeks)

for 6 weeks

90% of normal weekly wages

90% of normal weekly wages

Prescribed rate for other statutory family leave 

Maternity pay and adoption pay

for up to 33 weeks

£172.48 or 90% of normal weekly wages, if lower

£184.30 or 90% of normal weekly wages, if lower

Ordinary paternity pay and parental bereavement pay

for up to 2 weeks

£172.48 or 90% of normal weekly wages, if lower

£184.30 or 90% of normal weekly wages, if lower

Shared parental pay on birth

for up to 37 weeks

£172.48 or 90% of normal weekly wages, if lower

£184.30 or 90% of normal weekly wages, if lower

Maternity allowance and shared parental pay on adoption

for up to 39 weeks

£172.48 or 90% of normal weekly wages, if lower

£184.30 or 90% of normal weekly wages, if lower

Other maximum payments

Type

From 6 April 2023

From 6 April 2024

Guarantee payment (per day)

£35

£38

Guarantee payment (in any three month period)

£175

£190

Failure to inform or consult on collective redundancies

90 days’ gross pay

Failure to inform or consult on TUPE transfer

13 weeks’ gross pay

Breach of contract claim in employment tribunal

£25,000

Unlawful deductions and discrimination claims in employment tribunal

Unlimited

Presidential Guidance on Vento bands for injury to feelings awards

For claims presented 

On or after 6 April 2022

On or after 6 April 2023

On or after 6 April 2024

Lower band

£990 to £9,900

£1,100 to £11,200

£1,200 to £11,700

Middle band

£9,900 to £29,600

£11,200 to £33,700

£11,700 to £35,200

Upper band

£29,600 to £49,300

£33,700 to £56,200

£35,200 to £58,700

 

If you’re interested to learn more about how these rate changes may affect your organisation – and how we can help – get in touch with our employment solicitors today.

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How many indecent image cases get dropped – and why?
How many indecent image cases get dropped – and why?

In a world where technology and the internet have become deeply embedded in our daily lives, cases involving the possession of indecent images of children have unfortunately become more prevalent. The legal system seeks to safeguards the vulnerable and prosecute those responsible for such offences. Nevertheless, not all cases culminate in convictions, as some indecent image cases get dropped.

Written by specialist solicitor, Jacqui Callan, this blog first explores how many indecent cases get dropped. It then delves into the intricacies of indecent image cases, the reasons behind their discontinuation and the importance of achieving a fair and just resolution within the legal framework.

Use the links below to navigate to a particular section:

What is an indecent image?

An indecent image is any sexual image of a child (anyone under the age of 18). To be classed as an indecent image in UK law, it must feature nude or partially clothed children, or any child posing sexually in self-generated images.

What are indecent image offences?

It is illegal to produce, distribute, or possess indecent images of children. These crimes carry heavy sentences, including prison time. The exact nature of the punishment will vary based on the category of the indecent images case, with all cases being placed into category A, B, or C depending on the nature of the image, the age of the child depicted, and the volume of the images.

Visit our indecent image solicitors page for further information on the law surrounding indecent images in the UK.

 

How many indecent image cases get dropped?

The exact number of indecent image cases that get dropped vary from year to year. These numbers are typically not widely publicised due to the sensitive nature of the cases and the potential impact on those depicted in the images and the accused. However, for various reasons, a significant number of indecent image cases do get dropped each year.

Understanding the factors leading to the discontinuation of such cases sheds light on the complexities of our legal system. From insurmountable hurdles in evidence, to issues surrounding the protection of the accused’s rights, it’s a multifaceted issue that touches the lives of both those facing accusations and the victims involved.

The CPS and the police will examine each indecent image case on its own merit. They will analyse the number of images, the nature of the images as well as the technical nature of the evidence, the authenticity of the images and the credibility of the evidence overall. Like all criminal cases, indecent image cases tend to be dropped where there is no realistic prospect of conviction.

 

Common reasons for discontinued cases

  1. Lack of evidence: In any criminal case, the onus of proof rests with the prosecution. If there is insufficient or unreliable evidence to establish guilt beyond a reasonable doubt, the case may be discontinued.
  2. Violations of the defendant’s rights: The legal system necessitates that law enforcement and the prosecution adhere to the defendant’s rights. If these rights are infringed, such as through an unlawful search or seizure, the case may be dismissed.
  3. The defence provides evidence that causes the CPS to reconsider their evidence: This could include digital forensic evidence. 
  4. Technical errors in the investigation: Mistakes or technical errors during the investigation can jeopardise the integrity of the evidence. Defence lawyers may challenge these errors, leading to the police not charging or the CPS dropping the case.
  5. Prosecutorial discretion: Prosecutors possess the authority to decide which cases to pursue. They may discontinue a case if they believe it lacks merit, is unlikely to result in a conviction, or if other legal or practical considerations apply.

 

One significant factor in the outcomes of indecent image cases is the quality of legal representation. Criminal defence solicitors often play a vital role in challenging evidence, procedural errors, and the credibility of witnesses. Skilled solicitors ensure that the defendant’s rights are protected and that the legal process is fair.

Get in touch today for a confidential discussion of your case.

 

Challenges faced by prosecutors

Prosecutors encounter their own set of challenges when pursuing indecent image cases. The burden of proof is high, and they must provide strong and compelling evidence. In some cases, they may struggle to meet this standard, resulting in discontinued charges.

 

Balancing justice and fairness

The legal system strives to strike a balance between delivering justice, protecting the rights of the accused, and ensuring the safety of children. This delicate balance necessitates continuous improvement in the legal process to reduce wrongful accusations while safeguarding those who are vulnerable.

In conclusion, indecent image cases that are discontinued are the result of a complex interplay of factors. While some may perceive these outcomes as a failure of the legal system, it is essential to remember that justice requires a meticulous and fair process. 

 

Indecent images case study

Jacqui Callan was instructed to represent a client who was faced allegations of possession of indecent images and possession of prohibited images. The  client entered not guilty pleas and the case was set down for a crown court trial. Forensic experts were instructed on the clients behalf to examine whether there were any  search terms indicative of searching for indecent images and to examine if the files identified by the prosecution expert had relevant file names that would have been apparent to the client. 

With the skilful analysis of the evidence by trusted  forensic experts a detailed report was served on the CPS that  not only showed  the file names would not have been accessible to the client  but that the images had  been wrongly graded and were in fact not  indecent. This resulted in not guilty verdicts being entered. The client was in employment and sought the advice of  Jacqui Callan, who heads up our criminal defence team at Richard Nelson LLP and also our employment team who were able to advise on his employment rights following  a threatened suspension. The client remains happily in employment.  

 

How we can help

If you would like more information or assistance regarding an investigation or prosecution relating to indecent images, please contact us as soon as possible for a confidential discussion with a member of our expert criminal defence team.

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Declaration of Parentage: A Comprehensive Guide
Declaration of Parentage: A Comprehensive Guide

A Declaration of Parentage or Non-Parentage may be required if the paternity of a child is called into dispute – often in relation to child arrangements and inheritance. In some cases, a DNA paternity test is necessary.

In this comprehensive guide, experienced family lawyer Hardeep Dhillon explains how long a Declaration of Parentage takes, the process involved, associated costs, and more, offering expert insights and advice.

There are many nuances and complexities to consider with regard to Declaration of Parentage. Use the links below to navigate to a specific section.

 

What is a Declaration of Parentage?

A Declaration of Parentage declares that a named individual is the legal or biological parent of another person under English law.

The court can also make a Declaration of Non-Parentage, stating that a named person is not the parent of another.

As well as being used in paternity disputes, these declarations can also be used in problems with the completion of patient HFEA consent forms at UK fertility clinics and disputes regarding a child’s birth certificate and whether it should be re-registered.

Can a Declaration of Parentage affect a birth certificate?

A Declaration of Parentage or Non-Parentage can result in changes to a child’s birth certificate. In practice, this could mean that the father’s name is added based on the Declaration; alternatively, an incorrect name could be removed.

If you apply for a Declaration of Parentage and are declared to be the parent by the court, no further action is required on your part – the court will re-register the birth via the General Register Office.

Does a Declaration of Parentage provide Parental Responsibility?

A Declaration of Parentage does not confer Parental Responsibility – it only confirms that a father is the parent of their child.

 

Paternity disputes and the Child Maintenance Service

The Child Maintenance Service (CMS) is a service used to calculate, and in some instances manage payments towards, a child’s living costs between parents. The CMS also holds the power to take action if payments are not made.

The Child Maintenance Service has its own processes to determine paternity if there is a paternity dispute that revolves around the paying of child maintenance. It is possible to apply to the court for a Declaration of Parentage if you are unhappy with the conclusion reached by the CMS.

 

The Declaration of Parentage process

Whether you wish to confirm parentage in relation to a paternity dispute or for a child’s birth certificate, you can apply for a Declaration of Parentage under Section 55A of the Family Law Act 1986. The sections below outline the process involved and answer key questions you may have.

Form C63: applying for a Declaration of Parentage

To apply for a Declaration of Parentage, you must complete a C63 application form. Our team has an excellent track record of supporting clients in making successful applications – contact us today.

It is possible to request a paternity test directly from the parent with whom the child lives. You may need the test with respect to a point of contention in the child arrangements, or you may request it simply from the desire to know whether or not you are the parent of a child.

If the parent of the child refuses the paternity test, you can instead apply to the court to obtain a Declaration of Parentage or Non-Parentage under the Family Law Act 1986. In such a scenario, the court is likely to direct the parties and child in question to take a DNA test. If everyone involved is cooperative, the matter should be concluded swiftly.

If, however, a lack of cooperation from parties involved makes it impossible to obtain evidence via a DNA test, the court will take the matter to a hearing and will make their own conclusions from the evidence that is presented. If they make a positive finding in the hearing and decide that one party has behaved unreasonably in the process, the court may make an order for costs.

How much does a Declaration of Parentage cost?

When applying for a Declaration of Parentage, you are required to pay a court fee of £360. Those with low incomes or receiving income-based benefits can apply for an exemption.

How long does a Declaration of Parentage take?

The Declaration of Parentage court process typically takes between 6 and 12 months. However, more complex cases can take longer, and progress is dependent on court availability.

Declaration of Parentage if the father is deceased

In some cases, the father of a child is not named on their birth certificate. This occurs most often when the couple are not married: In England and Wales, an unmarried father must be present at the birth or sign a declaration that he is the father; by contrast, if the couple are married, the father does not need to be present.

Birth certificates can be amended to recognise that a deceased father is the parent of a child, but the process of obtaining a Declaration of Parentage is more complicated:

  • To carry out the paternity test, DNA can be obtained from surviving blood relatives of the deceased. 
  • Alternatively, as in the case of Spencer vs Anderson [2018], the court may order the DNA of the deceased to be taken (for example, if DNA has been stored by the hospital).

Once the DNA has been collected and the paternity test carried out, the court can have the birth certificate amended to include the deceased father’s name.

 

Certified paternity testing companies

If all parties are able to agree to a paternity test without the matter progressing to the courts, it is important to make sure that the testing company you select has been certified by the Ministry of Justice. Doing so will ensure that you can rely on the results if you later require them in court proceedings. The CMS, for example, will only accept paternity test results from certified providers.

At the time of writing this article, this is the list of laboratories that are able to carry out accredited paternity tests:

  • Alpha Biolaboratories (AlphaBiolabs)
  • Biofortuna Limited (NorthGene)
  • Cellmark (Orchid Cellmark Ltd)
  • Complement Genomics (Dadcheck)
  • DDC Laboratories
  • DNA Analysis at King’s College London
  • Endeavor DNA Laboratories
  • Eurofins Forensic Services Limited
  • Eurofins Medigenomix Forensik GmbH (DNA Legal)
  • Genetrack Biolabs
  • Genomics for Life (Paternity for Life)
  • IDna Genetics Limited (Anglia DNA Services)

We always recommend asking the company in question whether they are still an accredited provider when arranging the test.

Please also note that children over the age of 16 must give their permission to be tested.

 

How we can help

You may be unsure about whether applying for a Declaration of Parentage is the right option, or otherwise struggling to make progress with a matter of paternity. The team at Richard Nelson LLP can support you – get in touch today.

If you would like to reach out to me directly, email hardeepdhillon@richardnelsonllp.co.uk or call 0333 888 4040.

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Divorcing a Narcissist: 7 Proven Legal Tactics
Divorcing a Narcissist: 7 Proven Legal Tactics

Divorcing a narcissist can be particularly tiresome. Whilst every divorce comes with a different set of emotions and obstacles, separating from someone with narcissistic personality disorder presents unique psychological and legal challenges. These can, however, be mitigated using proven tactics.

Authored by experienced divorce lawyer, Hardeep Dhillon, this guide explores the difficulties of divorcing a narcissist and seven approaches that will help you to achieve the right outcome. If you require any further support, get in touch today.

There’s plenty of ground to cover here. If you’re looking for a particular section, use the links below to navigate to it:

 

What is a narcissist?

A narcissist is someone with narcissistic personality disorder (NPD). Individuals with this mental health condition are generally characterised by an inflated sense of their own importance and excessive admiration or interest in themselves. There are lots of different extremes of NPD.

Narcissists have been widely studied within psychology. Research has shown traits to include:

  • Being consumed by their own fantasies of success, power, brilliance and love
  • Having inflated egos and feeling the need to be recognised as superior
  • Always believing they are right
  • Exaggerating their own accomplishments and talents, and seeking applause for these
  • Believing that they are best at everything and believe that others should envy them
  • Controlling conversations and belittling others
  • Being unwilling or unable to recognise the needs and feelings of theirs
  • Feeling entitled to succeed without putting in any effort or work
  • Taking advantage of others.

 

Why a narcissist won’t divorce you

A narcissist might oppose divorce initially as it challenges the high esteem in which they hold themselves. They may later see drawn out legal proceedings and custody battles as a means to punish their spouse for perceived misdeeds.

All of this manifests itself in certain common behaviours that are easy to recognise as someone with extensive experience in divorce law:

  • Withholding information during financial settlements
  • Refusing to engage in negotiations or playing mind games
  • Ignoring advice from their own solicitors
  • Attempting to drag out the divorce process
  • Weaponising their children.

You may have experienced some level of this narcissistic resistance to divorce from your spouse. This is naturally frustrating – but you’ll be in a much stronger position once you understand the typical stages of divorcing a narcissist and the tactics that can help you.

 

The stages of divorcing a narcissist

There are unique legal tactics that can help with divorcing a narcissist, but the main stages involved are broadly speaking the same as any divorce: ultimately, you will either negotiate and reach a divorce settlement or require litigation. This can be broken down further as follows.

1. Deciding to divorce

Living with a narcissistic spouse is notoriously tiresome – and the decision to divorce them may be a long time in the making. From mind games and manipulation to outright coercive control, the abusive behaviour of narcissists can have a significant impact on your wellbeing and it is vital to recognise when it is time to get out of the relationship.

2. Getting ready for divorce proceedings

Preparation is key in any divorce, no less so when divorcing a narcissist. Now is the time to collate your own documentation and get your finances in order before making the application. Seek advice from specialist organisations so that you have information on what services you can lean on to help you through this difficult process, for example help with housing, benefits, and emotional support.

3. The negotiation phase

All being well, you should be able to reach a divorce settlement, make financial arrangements, and settle any custody matters through negotiation or mediation.

Narcissists are often challenging to negotiate with, however, and may even withdraw from the process altogether. It can be exasperating at the time, but if your spouse is unwilling to engage in early negotiations this will only weaken their position should further legal proceedings be necessary.

4. Obtaining a court resolution

Divorcing a narcissist is rarely plain sailing. Should negotiation attempts prove unsuccessful, you can then consider whether to make a court application.

Bear in mind that divorce court proceedings are costly, drag out an already lengthy process, and often create further animosity, so should be considered a last resort. Even when dealing with the most extreme of narcissists, you should always seek legal advice and attempt to reach a peaceful resolution out of court first.

 

How to negotiate a divorce settlement with a narcissist

When you are separating from a narcissist it can be incredibly difficult to make progress on matters as every little matter will be fought as a big issue. This can have cost implications and increase the timeframe within which you resolve matters.

There are various legal tactics you can employ to work towards smoother and more cost-effective proceedings.

1. Focus on the issues

In the legal process, and whether you are considering the divorce grounds, finances or arrangements to the children, it is important to remain focused on the issue and not be drawn into tit for tat allegations. This is because a narcissist loves to engage in arguments.

A narcissist will not accept their own fault in the breakdown of the marriage/relationship; therefore, it is important to walk away without the need to explain yourself and not feel the need to respond to every allegation/ paragraph in their correspondence which is solely sought to antagonise you.

Do not get drawn into their tactics. Be proactive as opposed to reactive, and focus on working towards the key things that you wish to resolve. This will help you manage your legal costs and the stress associated with the whole proceedings.

2. Create a barrier between you and your narcissistic spouse/partner

It will be very difficult for you to negotiate directly with a narcissist as they will seek to exert a level of control over you. It is, therefore, important to step away and seek a professional to create a barrier between you and the narcissistic spouse/partner.

3. Do not let them get a reaction from you

It is very important to keep them at arm’s length because if they see that their behaviour is impacting you then they will continue with their harmful behaviour. A narcissistic person will be driven by the desire to win however, family proceedings seek to act fairly and therefore do not get intimidated by their aggressive attitude with comments like ‘you will not get anything!’

Narcissists are particularly difficult when children are involved and will seek to utilise the children as a means of control. Therefore, it is important that the children are made to feel that they can talk to you freely without feeling that they are taking sides so that any red flag behaviour can be picked up. When deciding matters for the children, again, do not get drawn into unnecessary arguments.

There will be times when the narcissistic partner/spouse will not adhere to times or arrangements with the sole aim to exert their control. Do not get drawn into this and learn to let small issues go for the overall goal of peace of mind (provided always that the issues do not impact the safety of your children). Keep your conversations and communications to a minimum.

4. Be mentally prepared

It is important to be able to identify when a narcissist is deflecting from their own actions and is seeking to lay the blame at your door. It is important to be mentally prepared for everything to be your fault.

5. Document everything

A narcissist will make you doubt yourself. With that in mind, it is important to keep a diary of key incidents or situations so that you know what you are feeling is not a one-off but has a pattern of behaviour. It is also important to save every email and message so that you can rely on this. Prepays even keep a diary or journal to detail your emotions as a way of healing for yourself.

6. Pick your battles

A narcissist is unlikely to fully comply with court directions or procedures and in childcare arrangements, they are likely to flout the rules to exert their control. Therefore, when separating/divorcing from a narcissistic, decide which battles you wish to spend your time, money and energy on.

Divorcing a narcissist can be very exhausting emotionally and financially therefore be prepared for a long battle. However, your focus should also be to remain on track and not to let the process get the better of you.

7. Research

A narcissist will often want to be in control so be prepared with information relating to your own financial position. Gather as much information from online resources so that you are aware of the process and do not get intimidated by them to believe that you will not succeed in the divorce/separation process.

 

We can help you with divorcing a narcissist

If you are struggling to make progress on matters then we would be happy to assist. With many decades of combined experience, the divorce law team at Richard Nelson LLP has achieved the right outcomes for many clients who have divorced narcissists in the past.

Get in touch online or visit our divorce lawyers page for more information.

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Richard Nelson LLP in the Chambers UK Legal Guide 2024

On 19th October, the Chambers UK Legal Guide 2024 rankings were published. This is an established guide to the legal market’s best law firms and lawyers, released each year by Chambers and Partners – a leading independent professional legal research company operating across 200 jurisdictions.

Richard Nelson LLP has once again been ranked by this guide across several areas, including professional discipline and criminal defence. In addition, several of our solicitors and Partners have been recognised on an individual basis.

 

Criminal team retains Band 1 ranking for the East Midlands

Having already been recognised by the Chambers and Partners in previous years, our criminal defence team this year retained its ranking in Band 1 for the East Midlands

Chambers describes the team as being known for offering “a wide range of criminal defence services, with notable strength advising professionals facing criminal allegations. The team can advise in very serious criminal cases including those alleging murder, rape and historic sexual offences.”

The head of our criminal defence team, Jacqui Callan, is the only person to rank as a leading criminal defence lawyer for the East Midlands, which is a fantastic achievement and evidences her wealth of knowledge, experience and reputation in criminal defence.

Quotes about Jacqui from this year’s Chambers guide include:

  • “Jacqui Callan is head of the criminal defence team at Richard Nelson. She specialises in defending professional clients facing sexual offence allegations, with additional experience in drugs and murder cases.”
  • “Jacqui is very good in what she shares with counsel and is quite focused and direct.”

To learn more about her standing in the guide, visit Jacqui’s Chambers profile page.

Nationwide recognition for professional disciplinary law

Our professional discipline has also been ranked as excelling nationwide. Chambers describes the team as follows:

“Richard Nelson is a multidisciplinary practice that offers representation to individuals in the healthcare and legal sectors. Its team regularly advises solicitors facing SRA investigations for a range of matters including serious misconduct. It is also adept at assisting healthcare professionals such as nurses, social workers, doctors facing misconduct allegations and fitness-to-practice hearings as well as other regulatory issues.”

The Chambers guide for 2024 features a wide range of other favourable quotes about our professional disciplinary team, including:

  •  “The Richard Nelson team is excellent with great strength in depth.”
  • “They look after clients really well. The team is very commercial and aware of client needs.”
  • “Their lawyers are always responsible and helpful.”

Individual recognition for our senior partner, Richard Nelson

Our senior partner, Richard Nelson, is ranked individually in the 2024 guide. Richard’s profile on Chambers describes him as follows: “Richard Nelson of Richard Nelson represents solicitors in SRA investigations. He is noted for his proficiency in serious misconduct cases.”

Other praise for Richard includes:

  • “He has vast experience.”
  • “Richard is extremely experienced and a superb advocate.”
  • “Richard is excellent.”


Partner, Steve Roberts, recognised by Chambers

Our Partner, Steve Roberts is also ranked individually by Chambers, describing him as “a regulatory lawyer with considerable experience representing solicitors facing SRA investigations and proceedings before the SDT. He is particularly adept at defending lawyers against allegations of dishonesty, sexual misconduct and theft.”

Quotes in Chambers about Steve include:

  • “Steve has exceptional client-handling skills and is very pragmatic in his approach.”
  • “Steve is excellent and really good with difficult clients. He’s very patient yet still firm and is very diligent too.”
  • “Steve is a very thorough lawyer.”

Next steps

For more information about the guide and its ranking system, head over to the Chamber and Partners website. If you’re in need of legal support from some of the nation’s top solicitors, get in touch today to see how we can help.

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Richard Nelson LLP recognised in The Legal 500 for 2024

On 4th October 2023, the Legal 500 UK Solicitors 2024 rankings were published. The Legal 500 is renowned as a guide to law firms and solicitors in the UK, ranking law firms and individuals who have been recommended for inclusion by clients and peers.

Criminal defence team ranked for East Midlands crime

Our criminal defence team are ranked for East Midlands crime, with our Head of Crime, Jacqui Callan, being ranked as a Leading Individual.

The testimonials for the crime team are:

  • “Jacqui Callan leads a great team who go the extra mile in defending their clients.”
  • ‘The team at Richard Nelsons LLP are very professional and knowledgeable in all areas of law, particularly fraud and white collar crime. They are very accommodating, friendly, approachable and easy to deal with. I know that several personnel will go the extra mile for their clients, Jacqui Callan being the prime example.”
  • “Jacqui Callan is the stand out individual. Her experience in criminal defence is unmatchable. She also has a great support team.”
  • “First class client service with a genuine specialism in defending individuals accused of sexual offences.”

Professional discipline team rise up a tier

Our professional discipline team went up a tier this year. Richard Nelson, Steve Roberts, Marie Dancer, Victoria Rees and Sarah-Jane Varley are all mentioned, with Richard Nelson being categorised as a Leading Individual.

The team represents regulated professionals such as solicitors, doctors, teachers, accountants and healthcare professionals before their regulatory bodies in proceedings such as fitness to practise matters where the regulator is deciding if the professional is fit to continue to practise in their profession.

“The ‘very experienced and knowledgeable’ senior partner Richard Nelson is a widely-recognised SRA expert, while Marie Dancer specialises in defending healthcare and education professionals in fitness to practise investigations. Over in Cardiff, Steve Roberts is a ‘great case manager’, who predominantly acts for solicitors being investigated by the SRA. Also key to the group, senior legal assistant Victoria Rees and senior legal adviser Sarah Jane Varley (both also in Nottingham) handle a broad range of cases for healthcare professionals and teachers.”

The published testimonials are:

  • “A bespoke practice that treats clients with real respect and care, whilst offering robust and sage advice.”
  • “The professional discipline team at the firm is excellent.”
  • “Richard Nelson LLP’s team members work in a thorough, effective and collaborative way, both together and with counsel. The consistently excellent results they achieve for their clients is a reflection of significant experience in this field.
  • “Richard Nelson handles serious and complicated SRA cases for defendant solicitor clients, and is very experienced and knowledgeable.”
  • “Marie Dancer – very experienced, excellent client care, and specialises in defending disciplinary and regulatory cases.”
  • “Steve Roberts – a great case manager and tactician who has a great understanding of clients and manages the most difficult with aplomb.”
  • “Steve Roberts goes the extra mile (or more) for his clients. Good advice that is given firmly and with a clear understanding of the client’s needs.”
  • “Victoria Rees – excellent client care, very efficient, and good to deal with.”

Our Head of Immigration, Rita Kotecha is also recognised as being a Rising Star

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Lottery winnings and divorce: do ex-spouses have to share?
Lottery winnings and divorce: do ex-spouses have to share?

The law surrounding lottery winnings and divorce is complex and often contentious. The decision as to whether lottery money is shared as part of a financial settlement is largely based on the timing and circumstances in which the win was cashed in. Written by specialist divorce solicitor, Hardeep Dhillon, this guide explains how the likely outcome varies depending on whether the lottery winnings were claimed before or after the divorce.

 

Do you have to tell your spouse if you win the lottery?

There is no legal requirement to tell your spouse if you win the lottery during the course of your marriage. However, during a divorce, all assets including lottery winnings must be declared so that they can be considered as part of the financial proceedings.

 

Do you have to share your lottery winnings with an ex-spouse?

As more and more people take part in lotteries and prize draws, it is inevitable that many of those who win will either be or become, involved in a divorce – hopefully not as a result of the lottery winnings!

Although it has no legal basis, the generally held belief is that if you are married then, when your numbers come up, your spouse is entitled to half of the winnings. But with regards to lottery winnings and divorce, is this still necessarily the case? Can lottery winnings be considered matrimonial property as part of financial settlements? And what would the difference be if you were to split up either before or after your win?

First, let’s consider the relevant case law.

What does the case law say?

In a landmark case, the High Court held that, where one party to a marriage wins the lottery, the other will not share in those winnings unless they were acting together in the ticket’s purchase – in other words they were effectively acting as a syndicate – or unless the proceeds are invested in joint assets or property such as the matrimonial home.

When considering a syndicate the court set out that the syndicate could be either formal or informal and had to be a situation where both were aware that tickets are being bought and where both have agreed tacitly or expressly to their purchase, then the purchase would be considered a matrimonial property and shall be normally shared equally. However if the ticket is purchased unilaterally, without the knowledge of the other party, then the prize was described to be ‘akin to an external donation’ and therefore non-matrimonial.

This ruling, thought to be the first in the UK on lottery winnings and divorce, is centred around a hotel porter who claimed a proportion of his former wife’s lottery winnings.

The couple had been living in a Council house when his wife won the money without her husband’s knowledge more than 10 years ago. The Judge found that the wife had been playing the National Lottery, without her husband’s knowledge, from her own earned income and thus the starting point was that the lottery prize of £500,000 was ‘non-matrimonial money’. However, the wife then used some of the money to purchase what became the new family home. In doing so, she converted that part of her non-matrimonial asset into matrimonial property.

As a result of this, the Judge decided that this element of the winnings comprised matrimonial property and awarded the husband a lump sum which reflected the short period of time in which he had lived in the property but still more than he would have received had his wife kept the money in the form of cash.

This is an interesting decision – another one that ‘ring-fences’ assets after each party’s needs have been met, rather than applying the so-called sharing principal to all property, rather than just joint matrimonial property.
There is some concern that the court’s decision widens the range of assets that the courts are willing to regard as non-matrimonial property. In turn, this may lead to couples protecting their assets when they could better be used for the benefit of the family as a whole.

One thing which is certain is that this is unlikely to be the end of the matter and that there will inevitably be other cases which test the rule in the future – perhaps ones where the use of the funds is less clear cut than in this case.

Lottery winnings claimed before a divorce

In the case described above, the lottery winnings were used to fund the purchase of a matrimonial home prior to the divorce. This portion of the winnings was therefore regarded as matrimonial property, so the Judge ordered that a lump sum should be paid to the ex-husband to reflect the time he had spent living in the home.

This case highlights that lottery winnings can be considered in financial settlements where they are used to purchase matrimonial assets before a divorce takes place. But what about in situations where the lottery winnings are claimed after the divorce?

Lottery winnings claimed after a divorce

Under most circumstances, lottery winnings claimed after a divorce will not be considered during the settlement process. However, this may differ if an ongoing maintenance agreement is in place.

Certain maintenance agreements without clean beak provisions may entitle an ex-spouse to make a claim if their former partner comes into new wealth at a later date (for example, through a lottery win). Such was the case when Euromillions winner, Nigel Paige, agreed to settle out of court and pay his ex-wife the sum of £2m.

Given that a clean break clause would have prevented this from happening, it is advisable to contact specialist divorce solicitors to discuss any ongoing maintenance agreements you put in place following a separation. This also demonstrates the necessity of ensuring that you deal with all matters relating to the finances. Divorce and finances are separate proceedings and the divorce does not end the right to make financial claims.

 

Contact our divorce lawyers for support

If you are currently experiencing matrimonial or family related problems, then you should make sure the financial aspects of your marriage are understood and in order.

Richard Nelson LLP’s divorce lawyers can assist you with making appropriate agreements for dealing with the financial aspects of living together and splitting up. Our family lawyers offer a range of services related to divorce, financial arrangements, childcare and more.

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Capital Gains Tax & Divorce: 2023 Guide With New CGT Rules
Capital Gains Tax & Divorce: 2023 Guide With New CGT Rules

Capital Gains Tax (CGT) in divorce or separation differs compared to how it applies to payments made between spouses during a marriage – and the rules have changed as of April 2023. It is important to keep on top of the current CGT legislation and be mindful of the tax implications of payments and transfers regarding the family home, in particular.

Co-authored by Kelly Grigg, specialist family lawyer at Richard Nelson LLP, and Ross Atkinson-Beaumont, tax manager at Hodgsons, this guide walks you through the nuances of CGT and how it is applied during divorce or separation. Read on to learn all you need to know about the new CGT rules on divorce, as well as how to avoid paying CGT if you are going through a separation.

NB. Where we refer to a spouse within this article, we are also referring to a Civil Partner.

What is Capital Gains Tax?

Capital Gains Tax (CGT) is potentially payable on the disposal of an asset, should that asset have increased in value since it was acquired.

Spousal exemption from CGT

If you are married, you can transfer assets from one spouse to another without any requirement to pay CGT. This is referred to as spousal exemption.

The legislation differs if you divorce or separate from your spouse, with CGT becoming payable under circumstances. Read on to learn about the current rules on CGT and divorce.

The new CGT rules on divorce

As of 6th April 2023, the spousal exemption time period has been extended. Spouses who separate can now transfer assets between them without being subject to CGT for an unlimited time if the assets are the subject of a formal Consent Order. Without an order, there is a time limit of the earlier of:

  • The date on which a court grants a divorce (the annulment of their marriage, the dissolution or annulment of their civil partnership, their judicial separation or, as the case may be, their separation in accordance with a separation order) OR
  • Three years after the year you stopped living together.

The new CGT rules are a positive move for those going through separation, as the previous time limit was to the end of the tax year of separation. There can also be additional benefits if you continue to have a financial interest in your former family home following separation that will apply when your home is eventually sold (more on this below).

CGT on transferral of assets following a separation

The new measures mean that separating civil partners or spouses now have up to three years after they stop living together in which to transfer any assets with the benefit of a “no gain/no loss” ruling (under this ruling, no CGT is applied).

The “no gain/no loss” ruling will also now apply to couples separating or divorcing who transfer assets between themselves and which form part of a formal Consent Order.

CGT on sale of property on divorce

Where the spousal exemption does not apply, there can be circumstances where a tax relief known as Principle Private Residence Relief can apply on the disposal of the family home.  This may result in no CGT liability on the whole or part of the gain.

The rules on CGT and divorce for second homes

The sale or transfer of a second home could incur a CGT liability, just as any other type of asset.

As explained below, for the tax year 2023-2024, you can make tax-free capital gains of up to £6,000. So, if the property hasn’t made more profit than that, you won’t owe HMRC any CGT. If you paid stamp duty when you bought the property, that can be deducted, as well as Solicitors and Estate Agents fee for buying and selling the property.

Further, if you ever lived in the property as your main residence (before renting it out, for example), you may be able to reduce your overall CGT bill by using Private Residence Relief for those years.

The new tax-free allowance for CGT

Whilst the above will be good news for many, it is worth noting that the annual tax-free allowance for CGT changed at the same time as legislation regarding divorce.

The previous tax-free CGT allowance was £12,300. From 6th April 2023 the annual exempt amount for individuals and personal representatives reduced to £6,000 and £3,000 respectively.

How will this affect me?

Any property, land, or other investments you own that are sold as part of the divorce settlement, will attract tax once you have exceeded your tax-free allowance of £6,000 on any profits from that sale.

This change in tax relief is more than half of the previous annual exempt amount and therefore may reduce any residual capital you were expecting to receive on divorce.

How much will I have to pay?

This will depend on your individual assets and the terms of your divorce settlement.

When does the tax become due?

For residential property, there is a requirement to report and pay any CGT to HMRC within 60 days of disposal. For other assets the CGT will be payable by the 31st January following the end of the tax year.

How does HMRC determine the date of Separation?

For the purposes of CGT liability, you are deemed to have “separated” from one another if:

  1. It is expressed in a Court Order;
  2. It is expressed in a Separation Agreement; or
  3. In such circumstances that the separation is likely to be permanent.

Once the date of “separation” has been determined, transfers between married couples beyond the period of spousal exemption will be deemed to take place at market value, which could lead to a liability arising with regards to CGT. This will all depend on what date the disposal is deemed to have taken place on.

How does HMRC determine the date of Disposal?

Alongside your divorce, you will usually be negotiating and concluding a financial settlement too. Divorce proceedings conclude on receipt of Decree Absolute and financial matters conclude on receipt of a Judge approved sealed Consent Order.

A Consent Order will say “On Decree Absolute it is Ordered that…” and that the terms of such Order will not be enforceable under the Matrimonial Causes Act 1973 until such time as Decree Absolute has been made. However, as is often the case, transfers do take place prior to the obtaining of Decree Absolute.

If the transfers take place on receipt of Consent Order but prior to obtaining Decree Absolute, then the Court will deem that a Contract has been agreed between the parties to “act” prior to being divorced i.e., prior to obtaining Decree Absolute. In those cases, the date of “disposal” will be the date the Judge approved the Consent Order and not the future date on which the parties will obtain Decree Absolute.

If the parties choose to obtain a Consent Order and wait for Decree Absolute before they implement the transfers, the date of “disposal” will be the date the parties’ obtained their Decree Absolute.
However, if the parties choose to wait to obtain a Consent Order (and to implement it) until after they have got divorced (i.e., already in receipt of Decree Absolute) then the date of “disposal” will be the date the Judge approved the Consent Order.

If the parties choose to make transfers without having a Consent Order prepared, the date of disposal will be the date any contract is signed (i.e., completion day).

How to avoid Capital Gains Tax in divorce

Finalising the transfer of assets within three years of separation will ensure that no CGT is payable due to “no gain/no loss”. If the assets are made subject to a formal Consent Order, they can be transferred at any point in the future with no Capital Gains Tax payable.

Seeking specialist advice during a divorce

If you are going through a divorce or separation and require support with taxes or other financial matters, our team of family lawyers will guide you on how to negotiate the most tax-efficient settlement, working alongside Specialist Tax Accountants, who we as a firm trust to give you the best outcome possible. Get in touch today for a free consultation.

NB. The law and tax allowances referred to above is correct as at 29.08.23. This article is provided for general information purposes only and does not constitute legal or other professional advice. Readers are advised to seek their own specific legal and tax advice.

This article was co-authored by Kelly Grigg, consultant family solicitor at Richard Nelson LLP, and Ross Atkinson-Beaumont, tax manager at Hodgsons, Chartered Accountants and Business Advisors.

Our solicitors have prepared more helpful articles on financial assets and divorce, take a look at our articles on how to protect your pension in a divorce and what am I entitled to in a divorce settlement? 

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Certificates of Tax Position: A Comprehensive Guide
Certificates of Tax Position: A Comprehensive Guide

The Certificate of Tax Position was originally launched by HMRC to ‘draw-out’ or ‘force’ disclosure of previously undeclared offshore income and gains. This guide explains all you need to know about this investigative tool and how it is currently being deployed.

What is a Certificate of Tax Position letter?

A Certificate of Tax Position letter is sent to make you aware that HMRC suspects irregularities in your international tax affairs. The notice will indicate that this is your last opportunity to address any issues before action is taken.

These certificates are sent to you with letters headed ‘Important: Your final opportunity to bring your worldwide tax affairs up to date’, which alludes to tax irregularities on undeclared foreign bank accounts or assets. The body responsible for Certificates of Tax position is the Risk and Intelligence Service, Offshore – a special project team within the Wealthy, Mid-Sized Business and Compliance unit.

Those who receive such a letter may wonder if it is merely a ‘fishing exercise’ by HMRC or whether it is based upon real information and is something to be worried about? The answer to the second question is probably “Yes” and “Yes”.

The requirements of a Certificate of Tax position letter

Certificates of Tax Position result from information shared by foreign banks that HMRC is receiving via Common Reporting Standard (CRS). Since its inception in 2014, this has expanded so that now the vast majority of countries worldwide automatically share significant details of offshore accounts with HMRC.

So, the taxpayer is given a deadline to sign a “Certificate of Tax Position”, without knowing what information HMRC actually has, which is a formal declaration to three options:

  1. I need to bring my tax affairs up to date. I will declare all my UK tax irregularities using HMRC’s Worldwide Disclosure Facility;
  2. I do not have offshore income, assets or gains on which UK tax may be due;
  3. My tax affairs do not need updating. I do not have any additional tax to pay. I have declared all my offshore income, assets and gains which are taxable in the UK.

Options 2. and 3. are straightforward but serious – making an inaccurate (false) declaration is a criminal offence and carries a prison sentence.

Option 1. is more problematic and complicated. It is a red flag of tax irregularities – and if these are not swiftly declared via the Worldwide Disclosure Facility (WWF) then HMRC are bound to investigate.

Ignoring the letter or failing to reply by the deadline will also bring about further action.

Clearly, there are many pitfalls that go with getting such a letter. As well as those spelt out above, there is a danger that it could tempt the unwary or uninformed into an answer that they think will simply get rid of it – but will actually come back and bite them.

As well as the potential for criminal investigation and prosecution for any false statement, it would result in a higher penalty if the response was not completely accurate.

What should I do if I receive a Certificate of Tax Position letter?

Anyone who receives a Certificate of Tax Position letter should remember that HMRC has information which shows that they have tax irregularities. It is likely to be correct but even if it is not, HMRC will think it is and so it will need expert assistance to challenge it.

Obviously, any tax irregularities that have been flagged up will benefit from experienced tax investigation representation to deal with HMRC to disclose and agree on matters in a way that avoids criminal action, and limits so far as possible the tax and penalties involved.

If you have received a Certificate of Tax Position and require assistance in understanding more about what it entails or how to respond, speak to our specialists today.

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