COVID-19: Taking holiday

Although a lot of employees are working from home at the moment, they are still entitled to take time off as holiday (even if at the moment, there may not be anywhere nice for them to go!).

Under statute, a full time employee is entitled to a minimum of 28 days holiday a year. The contract of employment may allow for more, but 28 days is the minimum. Subject to some specific exceptions, an employee must use their holiday entitlement in their holiday leave year or, unless the employer agrees otherwise, it will be lost.

As a result of the Coronavirus crisis, there has been a change in the law regarding the taking of holidays. Now, an employee can carry over up to 20 days holiday per holiday leave year into the following two holiday leave years.

However, an employee will only be able to do this if it was not reasonably practicable for them to take their holiday as a result of the effects of Coronavirus. This could be, for example, because the employee is self-isolating and too sick to take holiday, or, say, because they work in a hospital and are not able to take leave. An employer may prevent the carrying over of leave if they have “good reason” but so far it is unclear what this would be.

From an employer’s point of view, they may not want employees to be accruing too much holiday in the current crisis, only for lots of employees to then start requesting to take holiday once the crisis subsides and people stop working from home.

An option for an employer to deal with this is to require an employee to take holiday at a particular time (even if the employee is working from home).

The employee must be given notice of this, and the notice must be twice as long as the length of holiday the employer would like the employee to take. So, for example if an employer would like an employee to take 5 days holiday, it must give the employee 10 days’ notice of this.

If you have any employment law queries, please do not hesitate to contact David Nathan at [email protected] or on 020 7822 2247.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

Budget 2020 – Entrepreneurs Relief and International (SDLT surcharge and Property)

CGT: changes to entrepreneurs’ relief lifetime limit

The government has confirmed that the entrepreneurs’ relief (ER) lifetime limit is reduced from £10 million to £1 million, with effect for qualifying disposals made on or after 11 March 2020 and certain disposals made before 11 March 2020.

Legislation, which will be included in the Finance Bill 2020, will:

  • Provide that the lifetime limit must take into account the value of ER claimed in respect of historical qualifying gains;
  • Introduce provisions that apply to forestalling arrangements entered into before 11 March 2020 with the result that the new lower lifetime limit will apply to such arrangements unless the parties demonstrate (via a statement made by the transferor in a claim, which is stated in a technical note to be in addition to the normal ER claim) that they did not enter into the arrangements with the purpose of obtaining a tax advantage by reason of the timing rule in section 28 of CGTA 1992 and, where the parties are connected, that they entered into the arrangements for wholly commercial reasons.

In addition, where shares have been exchanged for those in another company on or after 6 April 2019 and before 11 March 2020 and an election is made under section 169Q of TCGA 1992 on or after 11 March 2020, the disposal will be treated as taking place at the time of the election for ER purposes (meaning that the new lifetime limit of £1 million will apply), if either of the following applies:

  • Both companies are owned or controlled by substantially the same persons;
  • Persons who held shares in the first company hold a greater percentage of shares in the second company than they did in the first company and, on 11 March 2020, the personal company test, the trading company and the employee/officer test are met in respect of the second company (section 169I(6), TCGA 1992).
 2% SDLT surcharge for non-UK resident buyers of English and Northern Irish residential property

A stamp duty land tax (SDLT) surcharge of 2% will be introduced for non-UK resident buyers of English and Northern Irish residential property with effect on and from 1 April 2021.

A refund of the surcharge will be due to buyers who become UK resident after their purchase.

Transitional measures will be introduced for contracts that have been exchanged before 11 March 2020 but are completed or are substantially performed after 1 April 2021.

The measures will be included in the Finance Bill 2021. The government will also publish a summary of responses to its consultation on the measure in due course.

For further questions in relation to tax-related issues in general or on the above article, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Coronavirus & Tax Planning: Exceptional Circumstances

One of the key aspects of tax residence is the days an individual spends in the UK in the tax year combined with the number of ties (namely, family tie, accommodation tie,  work tie, 90-day tie and country tie) that that individual has.

Broadly the more ties that an individual has, the fewer days they can spend in the UK before being treated as tax resident. For this purpose, a day is defined as ‘any midnight’ spent in the UK and so days of arrival will count as a day, whereas days of departure will not. There is an exception to this rule which disregards a number of days spent in the UK that relate to ‘Exceptional Circumstances’.

Within their guidance, HMRC has provided examples of what constitutes an exceptional circumstance. This list is non-exhaustive but includes national or local emergencies and sudden or life-threatening illness or injury.

According to HMRC’s updated guidance note, the list of exceptional circumstances has been extended to cover a number of certain Covid-19 related circumstances, such as if an individual:

  • is quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus;
  • find themselves advised by official Government advice not to travel from the UK as a result of the virus;
  • are unable to leave the UK as a result of the closure of international borders; or
  • are asked by their employer to return to the UK temporarily as a result of the virus.

These will only constitute exceptional circumstances if the individual had previously intended to leave the UK at an earlier date, and the individual retains the intention to leave as soon as it is possible to do so.

Given the additional unprecedented restrictions that have been put in place at the start of this week, one (or more) of the above circumstances may apply to individuals. It is useful to note though that if the exceptional circumstances apply, then the maximum number of days that may be excluded is 60 days per tax year.

This could affect an individual’s UK tax residency for either the 2019/20 or 2020/21 tax year. The most immediate tax consequence of becoming tax resident in the UK is that individuals are subject to tax on their worldwide income and gains, save for specific rules for non-UK domiciled individuals. Non-UK tax residents are only subject to tax on their UK source income and gains related to UK residential property. This may lead to exposure to a large (and unexpected) UK tax liability, as well as a filing requirement in the UK.

For further questions in relation to tax-related issues in general or on the above article, please contact James Cohen directly on [email protected] or 0207 822 2257.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

كورونا (Immigration Considerations – COVID-19)

كورونا

يواجه العديد من الزوار الذين من المقرر أن تنتهي تأشيراتهم أو انتهت صلاحيتها بالفعل الوضع حيث لا يمكنهم السفر إلى بلادهم بسبب قيود السفر أو العزلة الذاتية المرتبطة بفيروس كورونا.

نشرت وزارة الداخلية توجيهات تؤكد عدم معاقبة هؤلاء الزوار باتباع قيود السفر وتمديد تأشيرتهم الحالية حتى 31 مايو 2020

ومع ذلك ، لن يتم منح هذه الامتدادات تلقائيًا ويجب على المتضررين إخطار وزارة الداخلية عن طريق الاتصال بقسم متخصص يسمى فريق Coronavirus.

قد يواجه أيضًا العديد من حاملي تأشيرات المملكة المتحدة الموجودين حاليًا في الخارج وغير القادرين على العودة إلى المملكة المتحدة مشكلة تتعلق بتلبية متطلبات إقامتهم في المملكة المتحدة ، ولكن إرشادات وزارة الداخلية غير واضحة في الوقت الحالي. نوصي بمواصلة التحقق بانتظام من موقع وزارة الداخلية للحصول على إرشادات جديدة أو الاتصال بالمحامين في GSC.

لمزيد من التفاصيل يرجى زيارة Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents أو الاتصال بالسيد حاتم علي عبر عنوان بريده الإلكتروني [email protected]

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Coronavirus Act 2020 – What does it mean to Residential Landlords & Tenants?

The Coronavirus Act 2020 brings into law some changes to the Landlord & Tenant legislation, and in particular the ability of a landlord to seek possession of both Commercial & Residential Premises.

These provisions will remain effective until at least 30 June 2020 for commercial Premises and 30 September 2020 for Residential Premises (“the Relevant Period”), but could be extended if the current situation does not improve.

The main points of this new legislation are:
  • Any notice given to Quit premises or give up possession, must give a notice period of 3 months before court proceedings can be issued.
  • The 3 month period will apply to Rent Act tenancies, Secured tenancies and Assured tenancies.

Although it did not make it into the Act, there was consideration given to the courts not permitting new possession claims to be issued or possession orders made or enforced during the Relevant Period.  It remains to be seen how the courts deal with matters on a practical level or if the legislation is changed to deal with this position. Judges have been reminded not to make orders that risk impacting public health and therefore possession orders are unlikely to be made for the time being.

If you have any questions or unsure about your situation, whether you are a landlord or a commercial tenant, please contact Michael Shapiro directly on [email protected] or 0207 822 2236.

2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

Give me a sign

Electronic Signatures

With the vast majority of office workers currently working from home, the use of electronic signatures offers a convenient alternative to the time-honoured printing, signing and scanning of documents.

The signing of contracts electronically has existed for many years, ranging from businesses completing complex commercial agreements, to individuals signing for delivery of goods purchased online.  As is common, legislation has not kept pace with this emerging technology, leaving some doubt as to how and when an electronic signature can be used.

Law Commission – Electronic Execution of Documents

With the above in mind the Law Commission set out to address any uncertainty as to the formalities around the electronic execution of documents.  Their report has concluded that an electronic signature is capable in law of being used to execute a document (including a deed), provided that the signatory intends to authenticate the document and that any relevant formalities, such as the signature being witnessed, are satisfied.

Analysis

The Law Commission reviewed the pragmatic, objective approach taken by the Courts, which have considered all of the surrounding circumstances when determining whether or not a signature is valid.  The Courts have concluded that various non-electronic forms amount to valid signatures, including signing a document with an ”X”, using a stamp of a handwritten signature and even a description (if sufficiently unambiguous), such as “Your loving mother”.  The Law Commission found no reason in principle why the Court should not recognise electronic signatures as valid signatures.  It was noted that the Courts have previously determined that a name typed at the bottom of an email amounted to a valid signature.

Points to consider when using an electronic signature

Electronic signatures are more susceptible to fraud than handwritten signatures, which could put vulnerable people at risk, therefore:

  • you must be satisfied as to the reliability and security of the technology used to create and apply the electronic signature
  • if the signature must be witnessed (as is required in respect of a deed), the witness can apply an electronic signature but must be physically present to witness the signature as the current law does not allow for “remote” witnessing such as by video link.

For further questions please contact Mark Richardson directly on [email protected] or 0207 822 2240

© 2020 GSC Solicitors LLP. All rights reserved. GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

 

新冠病毒(COVID-19) 疫情下英国移民政策须知 (Immigration considerations – COVID-19)

许多签证即将到期或者已经到期的留英访客,都面临着因为旅行限制或者冠状病毒 (COVID-19) 相关的自我隔离,无法回国的状况。

好消息是,英国签证和移民局 (UKVI) 已经在GOV.UK上发布了临时居住指南,确认这些访客不会因为旅行限制或者自我隔离规定而受到处罚,并承若因冠状病毒引起的旅行限制或自我隔离者的签证将延续至2020年5月31日。

但请特别注意,此次不是自动延期。受影响的签证持有者需要主动联系移民局的冠状病毒特别小组进行报备并经过移民局确认后获得签证的延期。

同样,许多持有英国长期签证,由于旅行限制或者自我隔离等规定滞留在英国境外无法返回英国生活的签证持有人,将有可能面临无法满足留英居留条件的问题。移民局对这一点尚未澄清所以请继续留意移民局的官方指南或者联系我们的移民部获去最新信息。

更多详情,请参阅移民局的最新指南Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents 或者通过以下方式联系Carey Xu:邮箱[email protected] 或者 致电 0207 822 2231。

 

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

COVID-19: Иммиграционные рекомендации (Immigration Considerations)

Многие посетители Великобритании, у которых истекает или уже истёк срок действия визы, сталкиваются с трудной ситуацией: они не могут вернуться на родину как из-за ограничений на въезд и выезд из ряда стран, так и в связи с введением режима самоизоляции, связанного с коронавирусной инфекцией (COVID-19).

Хорошей новостью является то, что Визово-имиграционная служба Великобритании (UKVI) на сайте GOV.UK опубликовала информацию о том, что в данной ситуации лица, столкнувшиеся с ограничениями на передвижение и вынужденные соблюдать режим самоизоляции, не нарушают законодательство Великобритании. В информационном письме также сказано, что срок окончания всех истекающих и истёкших виз будет продлён до 31 мая 2020 года.

При этом необходимо отметить, что срок окончания визы не будет продлён автоматически: держателям виз необходимо самостоятельно уведомить Иммиграционную службу по вопросам коронавируса (Coronavirus Immigration Team), учреждённую Министерством внутренних дел Великобритании (Home Office).

Аналогичным образом, держатели британских виз, которые на данный момент находятся за пределами страны, могут столкнуться с проблемой соблюдения требований и условий, на основании которых виза была выдана. В частности, это касается условия о необходимости проживания на территории Великобритании. В информационном письме не содержится разъяснений относительно данного вопроса, поэтому держателям виз следует обратиться в Миниистерство внутренних дел Великобритании (Home Office) для получения более подробной информации. Лица, столкнувшиеся с названными проблемами, также могут обратиться к нашим иммиграционным юристам для получения юридической помощи.

Для получения более подробной информации, пожалуйста перейдите по данной ссылке Gov.uk/guidance/coronavirus-covid-19-advice-for-uk-visa-applicants-and-temporary-uk-residents  или свяжитесь с Жанной Саттон по электронной почте [email protected] или 0207 822 2259.

© 2020 GSC Solicitors LLP. Все права защищены. Юридическая фирма GSC предоставляет разрешение на просмотр этого материала и на печать одного экземпляра на человека для личного ознакомления. Любое иное использование этого материала требует письменного разрешения со стороны представителя юридической фирмы GSC. Данная публикация была подготовлена исключительно для предоставления пользователям общей информации о последних законодательных изменениях. Данный материал не представляет собой официальную юридическую консультацию и не может быть использован в качестве таковой. Вы не должны действовать или воздерживаться от каких-либо действий исходя из информации, которая содержится в этом документе, без получения конкретных официальных рекомендаций от квалифицированных юристов.

Working from home: What do you need to know

Working from home is currently a reality for a lot of us. Whereas some organisations do occasionally allow employees to work from home, the current situation of whole workforces working from home at the same time is unprecedented.

Employers have had no choice but to close down their places of work and tell their staff work from home at short notice. Below are some practical issues to consider in relation to working from home:

  • Confidentiality. Employees have an implied (and if this is dealt with in their contracts of employment, an express) obligation not to disclose an employer’s confidential information. So as to help enforce this, an employer may request that for example a lap top used by an employee to work from home is password protected.
  • Equipment and expenses. Unless a contract of employment says otherwise, there is no obligation on an employer to pay for the equipment needed or expenses incurred by an employee to work from home. However, given the unprecedented nature of the current climate, employers are encouraged to take a flexible approach. Especially as the cost of paying for some equipment for example will most likely be outweighed by the revenue generated for the business by the employee if he or she is able to work from home.
  • Health and safety. So far as is reasonably practicable, and employer has an obligation to ensure that an employee has a safe working environment. For people who regularly work from home, and employer will usually undertake a risk assessment of the home environment for working purposes. Given the speed of the shutdown, such an assessment will not have been possible in most cases. However, an employer should still liaise with employees to check that they are comfortable that they consider that they can safely work from home.
  • Discrimination. Even though the entire workforce is working from home, an employer should still ensure that its employees are treated equally and that employees in a particular group do not feel that they are being singled out. This would include for example making reasonable adjustments for someone who is disabled.
  • Contact. Working from home for a long period of time will be a new experience for most people. Employers should keep in regular contact with their employees and let them know that they are on hand if the employee has any problems. If this is practical, team meetings can be held by video conferencing so that staff feel like they are in regular contact.
  • Looking after others. An employee may have childcare responsibilities or need to look after an elderly relative who is also at home as a result of the current situation. If that is the case, then employers are encouraged to take a flexible approach to the situation such as agreeing that an employee can make up time during non-business hours.
  • Pay. If staff are continuing to do their regular jobs, but are simply doing so from home, then unless a contract of employment states something different, employees should continue to get their usual pay.

If you have any employment law queries, please do not hesitate to contact David Nathan at [email protected] or on 020 7822 2247.

© 2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.

Coronavirus Act 2020 – What does it mean to Commercial Landlords & Tenants?

The Coronavirus Act 2020 brings into law some changes to the Landlord & Tenant legislation, and in particular the ability of a landlord to seek possession of both Commercial & Residential Premises.

These provisions will remain effective until at least 30 June 2020 for commercial Premises and 30 September 2020 for Residential Premises (“the Relevant Period”), but could be extended if the current situation does not improve.

The main points of this new legislation for Commercial Premises:
  1. A landlord cannot forfeit a lease or exercise a right of re-entry.
  2. A landlord will not waive a right to forfeit unless he does so expressly in writing.
  3. In any proceedings that have already been issued, the courts will not make an order requiring a tenant to give up possession before the end of the Relevant Period.
  4. When determining whether a landlord has made out the ground of persistent delay in paying rent, to oppose the grant of a new lease, the failure to pay rent during the Relevant Period will be disregarded.

In short, Commercial Tenants who are unable to pay rent because of Coronavirus will be protected from eviction, meaning no businesses will be forced out of their premises if they fail to pay rent over the next three months.

Please note, however, that this is simply a deferment and the rent will still have to be paid at some point.

With many tenants facing imminent rent payments, early dialogue and agreeing some form of arrangement between the Landlord and Tenant can often be the best solution.

Things to consider:
  • Landlords could agree that their Tenants pay rent on a monthly basis as opposed to the traditional quarterly arrangement. This would assist Tenants with cash flow issues and ensure that if a debt accrues due to lack of payment, it is minimised.
  • If Tenants cannot pay their rent in full, proposals could be made for a reduced payment. This again minimises the potential losses and takes pressure off of the Tenant to a degree and provides landlords with some cashflow. Please do note the balance will need to be paid later.
  • An agreement could be reached for partial payment of rent and partial Deposit deduction for the balance on a monthly/quarterly basis. However, the reduced Deposit will need to be replenished at some point.

It is important that any arrangements, are documented very carefully. It is also imperative that any arrangements between the Landlord and their Tenant:

  • does not vary the lease or rent deposit deed;
  • are in place for a specific and set period of time;
  • can be terminated at any time by the Landlord;
  • are made as a concession due to Covid-19 and nothing else.

Depending on the business, Tenants should, of course, consider available Government support for businesses such as:

  • cash grants
  • business rates exemptions
  • interest free loans
  • VAT deferral and
  • 80% funding of salaries for furloughed employees up to £2,500.

If you have any questions or unsure about your situation, whether you are a landlord or a commercial tenant, please contact Michael Shapiro directly on [email protected] or 0207 822 2236.

2020 GSC Solicitors LLP. All rights reserved.  GSC grants permission for the browsing of this material and for the printing of one copy per person for personal reference. GSC’s written permission must be obtained for any other use of this material. This publication has been prepared only as a guide to provide readers with general information on recent legal developments. It is not formal legal advice and should not be relied on for any purpose. You should not act or refrain from acting based on the information contained in this document without obtaining specific formal advice from suitably qualified advisors.