February 2017

Avoiding trouble at the end of a commercial lease

Posted on 24 February 201720 March 2025 by Sarah O'Sullivan

We are regularly contacted by landlords and tenants about business lease problems. This is often related to a breach of an obligation relating to the condition of the property and often comes to light at the end of a lease.

What can go wrong?

A landlord and tenant enter into a lease for ten years and throughout that period the condition of the property deteriorates. The landlord does not inspect the property during this time so doesn’t know about the deterioration. The tenant, who sees the property every day, does not notice the gradual deterioration. The term expires and the tenant leaves.

For the landlord: When the lease expires the landlord must incur significant costs in instructing a solicitor and surveyor to set out their claim against the tenant for the tenant’s breach of repairing obligations. What if the tenant cannot pay? The landlord may be left meeting the cost of the repairs themselves if they are to re-let the property. Or they may receive a reduced price in the event of the property being sold. Statutory limitations on lease-end claims also mean that landlords can be left out of pocket.

For the tenant: They are likely to receive the landlord’s claim and they too have little option but to incur significant costs instructing professionals to assess the landlord’s claim, to make sure it is not overstated. They may then be liable for the cost of repairs, consequential losses that the landlord suffers (for example loss of rent), plus the costs incurred by the landlord in bringing the claim, as well as their own costs.

What could they do differently to reduce the risk of all this?

On the landlord’s side – there are usually a number of options provided for in the lease to ensure that the property is not allowed to deteriorate during the term. However, all of them require the landlord to be proactive during the term of the lease. This means the landlord should instruct an appropriately qualified surveyor to inspect the property at regular intervals (for example every two to three years).

Options available to the landlord during the term of the lease

Specific performance / injunction: a claim at Court to seek an Order that the tenant carries out specific works, takes steps to remedy defects which threaten to cause further damage or refrain from acting in a way which is causing damage to the property.

Forfeiture: a process by which the lease may be brought to an end if the tenant remains in breach of the lease. It involves giving a notice specifying the breaches followed by a Court hearing.

Notice of breaches: a process which involves giving a notice to the tenant specifying the breaches and giving a period within which the tenant must complete the works. If they fail to do so the landlord may enter and carry out the works themselves and claim the costs back.

Correct procedure

These remedies are subject to many statutory hurdles and restrictions so it is important to seek advice and follow the correct procedure. Failure to do this can result in the notices being invalid, the claim being unsuccessful, or a claim by the tenant against the landlord or indeed mean that some or all of the costs incurred by the landlord are not recoverable against the tenant.

What can the tenant do during the lease?

A tenant ought to take surveying and legal advice before entering into the lease in order to understand the full extent of their obligations.

Given the potential impact on the tenant’s business of the landlord taking one of the steps available to them in the event of a breach, the tenant is also well advised to be proactive during the term of the lease. Where there are obligations which are periodic (such as an obligation to decorate in the fifth year) the tenant should make sure they remember to do this when the date comes around.

The tenant should also have the property inspected by a professional during the lease and again around a year before the end of the term. This is to review whether there has been any deterioration and what works are required to bring the property up to the required standard.

Another good idea is to set up a fund into which regular payments are made to ensure that money is available to carry out required works.

Be proactive is the message

Early advice and proactive repair management is the best way for both landlord and tenant to protect themselves from the misery that breaches of repair obligations can bring.

Investment in British film or a tax avoidance scheme?

Posted on 24 February 201720 March 2025 by Sarah O'Sullivan

HMRC’s crackdown on tax avoidance schemes: What you need to know

HM Revenue and Customs (HMRC) has released a list of over 1,000 tax avoidance schemes it believes are deliberately designed to reduce tax liabilities. This move is part of a wider government effort to combat tax evasion and ensure fair contributions from all taxpayers.

Accelerated Payment Notices: What Are They?

Once granted new legal powers, expected to come into effect this week, HMRC will issue Accelerated Payment Notices (APNs). These notices require taxpayers to pay disputed taxes upfront, without waiting for a court ruling. HMRC has up to two years from the Finance Bill’s Royal Assent to issue APNs. It is estimated that approximately 33,000 individuals will receive these notices, resulting in billions of pounds in tax demands.

Recipients will have 90 days to pay, unless they formally dispute the validity of the notice. Refunds will only be issued if the court later rules in the taxpayer’s favor.

Understanding Scheme Reference Numbers (SRNs)

Each tax avoidance scheme on HMRC’s list has a designated Scheme Reference Number (SRN). Taxpayers must include the relevant SRN in their tax return. If your tax return contains an SRN, you may be subject to an accelerated payment demand.

Spotlight on Ingenious Film Partners 2

One high-profile scheme on HMRC’s list is Ingenious Film Partners 2. Marketed as a legitimate investment in British cinema, Ingenious Film Partners 2 reportedly generated excessive tax relief for its investors. While investors backed well-known films like X-Men: The Last Stand, Sunshine, and Hotel Rwanda, HMRC claims the scheme was structured primarily to reduce taxable income.

How the Scheme Worked:

Investors committed a minimum of £36,000.
Ingenious loaned an additional £64,000, increasing the total investment to £100,000.
Losses from the films were declared, resulting in approximately £90,000 in tax relief.
High-income taxpayers could offset these losses against their tax liabilities, securing quick tax refunds.

The legality of Ingenious Film Partners 2 is set to be reviewed by a tax tribunal in November.

Industry Response and Ongoing Disputes

Ingenious maintains that it genuinely supports the British film industry and claims its investment schemes have generated over £1 billion in taxable income. The company argues that the government’s actions are unfair and a blatant attempt to boost tax revenue. Investors have also expressed concerns about what they perceive as retrospective taxation.

With legal battles expected to intensify, taxpayers involved in similar schemes should seek legal advice and prepare for potential disputes with HMRC.

Final Thoughts

HMRC’s publication of tax avoidance schemes and the introduction of Accelerated Payment Notices signal a firm stance against tax evasion. Taxpayers are urged to ensure compliance and stay informed about any schemes they may be part of. For those impacted, legal guidance is recommended to navigate the complexities of tax law.

Making sense of compensation for fatal accidents

Posted on 24 February 201724 March 2025 by Sarah O'Sullivan

Losing a loved one is hard but can be even harder if caused by an accident. Amid the grief and confusion, other issues can surface, such as financial worries. While it might feel awkward to seek early advice on compensation claims it could help you to manage.

The role of post-mortems

An unexpected death may trigger a post-mortem. This is a medical examination to determine the cause of the death. Families can appoint a medical professional to attend. If they are dissatisfied with the findings, they can ask the coroner to arrange an independent examination. After the post-mortem, the coroner usually issues an interim death certificate, which allows the family to deal with financial matters and to bury or cremate the deceased. A final death certificate will be issued only after the inquest has delivered a verdict.

The role of inquests

All suspicious or unexpected deaths are reported to the local coroner. In the case of an accident an inquest will usually be called. This is not to establish fault but to determine who has died, where, when and how. The coroner will invite relevant parties to give evidence. For a family this is an opportunity to understand what happened and to ask questions. Legal representation can be useful, whether you intend to claim compensation or not – but good advice will help you decide if it is appropriate. After hearing the evidence, the coroner gives a verdict. The possible verdicts at an inquest include:

death by natural causes
accidental death
suicide
unlawful killing
lawful killing
industrial disease
an open verdict where the evidence is insufficient or inconclusive.

The rules on who can claim compensation after a fatal accident

The law of compensation following a fatal accident is complicated and includes rules on who can claim and what they can claim. First it has to be established that the accident was caused by some other party’s negligence. The estate of the deceased person can then claim for funeral expenses, pain and suffering if death was not immediate, and more. Everybody who dies leaves an estate even if they had no assets or will. Any compensation is distributed to the beneficiaries of the will or those identified by the intestacy rules.

Certain family members can claim bereavement damages, fixed at £12,980 where the deceased died before 1 May 2020 and at £15,120 where the death occurred on or after that date. The family members who can claim are:

a spouse
civil partner
the mother of a child who was under 18 and had never married or, if they were married, both parents of a child who was under 18 and had never married
If the death occurred on or after 6 October 2020, a cohabiting partner of the deceased will also be entitled to claim the fixed bereavement damages award provided they were living with the deceased for at least 2 years prior to their death.

Other people, including spouses, former civil partners, grandparents and siblings can also bring a claim if they can prove they were dependent on the deceased or could reasonably have expected to benefit in future. Their claims might include loss of income or free services such as childcare and domestic help.

All claims have strict time limits, so it is always best to seek specialist legal advice as soon as possible. At Tees we have an experienced team of experts who specialise in fatal accidents and are able to advise on Wills, probate, and financial worries; as well as supporting families with specialist advice through the inquest process and fatal accident compensation claims.

Call us on 080o 015 1165 for a free initial chat, at no obligation, or fill out our enquiry form and a solicitor will get in touch.

Tees settles three birth injury cases, winning £400k for clients

Posted on 24 February 201729 March 2025 by Sarah O'Sullivan

In the last twelve months, Janine Collier, Partner at Tees in Cambridge has settled three medical negligence cases concerning a failure to identify and repair perineal tears resulting in injuries to the anal sphincter complex following childbirth.

What is a perineal tear?

It is not uncommon to sustain a tear between the vagina and the anus during childbirth. First degree tears are so small and superficial (involving just the skin and the tissue surrounding the vagina) that few, if any, stitches are required. Sometimes, the tear extends further, into the muscles beneath the skin (a second degree tear) and this will need to be stitched and closed layer by layer. Around 4% of women suffer a more serious tear which extends to or through the rectum (third and fourth degree tears).

Why should perineal tears be repaired at the time of delivery?

Healthcare professionals generally accept that tears are most important to be identified and repaired at the time of delivery to reduce the risk of infection, recto-vaginal fistulae and various rectal symptomology, including faecal and flatus incontinence.

Obstetricians now undergo a rigorous training programme to minimise the chances of clinicians missing these tears after delivery; to ensure a good quality repair; and to maximise the chances of good continence following primary repair.

What are the consequences of missing a third or fourth degree tear at delivery?

Unfortunately, however, sometimes, these tears are still missed and notwithstanding a delayed repair (sometimes primary, sometimes secondary), the women suffer persistent and debilitating rectal symptomology which may include incontinence of flatus, faecal incontinence, passive soiling etc. Understandably, this has a significant effect on their lifestyle, their relationships with friends, family and Partners and, in some cases, their ability to work.

These women may be entitled to compensation to help them adapt to their situation; to fund future treatment; and to compensate them for any financial losses arising from their injuries.

How can we help you?

If you suffered a third or fourth degree tear; if this was not identified and repaired at the time of delivery; and if you suffer continuing problems as a consequence, please contact our Obstetric Anal Sphincter Injury expert, Janine Collier, for some initial advice. Janine is an expert in this field of medical negligence law. For an initial chat, you can call Janine on 01223 702303 or email janine.collier@teeslaw.com

Tees is proud to support The MASIC Foundation – a charity formed to support mothers with 3rd and 4th degree tears. Visit their website to find resources for support.