New code of practice for Commerical Property relationships during COVID-19

As the impact of COVID-19 continues to be felt on businesses despite the gradual easing of national lockdown restrictions, the Government has published a new Code of Practice to set out its guidance focussing on how landlords and tenants should try to work together through any difficulties. The Government's ultimate aim is to get the economy moving towards recovery as swiftly as possible, although it is recognized that tenants across many industries are continuing to face difficulties, in particular with payment of rent.

Pension scheme trustees and conflicts of interest

There is a general rule of equity that trustees, just like all other fiduciaries, must not:

• Place themselves in positions; or
• Enter into transactions…

…where there may be a conflict between their duty as a trustee and their personal interests and other duties.

Legal Health Check

The Covid-19 pandemic has prompted many people to review their situation and to make sure that their personal affairs are in order. If you want to give yourself a personal legal "health check" what should you be looking for?

Will

One of the most important documents that you can put in place to protect your loved ones is a Will. Even if you feel that you don't have a lot to leave or that your situation is straightforward, it pays to have a Will in place. A Will allows you to provide direction and certainty for your family. In particular, a Will can deal with the following:

• Appoint Executors who will have immediate authority to deal with your financial affairs and sort out your estate. Without a Will, your family may need to apply to the Court for Letters of Administration even to deal with relatively straight forward matters.
• Make it clear who is to inherit what from your estate.

Rent Holiday Arrangements – Extension Granted by HMRC

You may recall that in our previous newsletter we mentioned that in order to assist Pension Scheme administrators during the COVID-19 pandemic HMRC had temporarily relaxed their requirements on how lease rent holidays could be arranged between connected parties.  Specifically, they had confirmed that “any arm’s length commercial decisions… including rent holidays, will not give rise to an unauthorised payment charge and can be agreed without independent valuations taking place.”  

HMRC had advised that this updated position would apply until at least June 2020, at which point further guidance would be issued.  They have indeed now issued an update to confirm that the relaxation to their requirements has been extended up to the end of October 2020.

What steps have you taken to ensure that your business is safe for employees to return?

Have you gone far enough in regards to your obligations under the Equality Act 2010?

There is no doubt that over the last quarter of the year you have lost sleep wondering if your business will survive the worldwide pandemic brought on by the spread of covid-19. The Government recently announced relaxation of the nationwide lockdown, partly to enable businesses to begin re-opening, in an attempt to save the UK's economy.

SIPP & SSAS Webinar Recording

The COVID-19 update session covered areas such as:

• COVID-19 and delays in property transactions
• Signing documents electronically whilst the social distancing measures are in place
• Agreeing and documenting rent holidays with a connected tenant company during this time
• Impact of the recent Sippchoice Limited v HMRC ruling relating to “in-specie contributions”
• Follow-up on the Berkeley Burke case relating to Pension Scheme investment

To view a recording of the session please click here.

SIPP & SSAS Q&A Session

Please click here to view the recording of the SIPP & SSAS Q&A session with Adam Bromley, Partner and Head of Commercial Property and Kerry Houghton, Business Development Manager for the SIPP & SSAS Department at Mattioli Woods in Preston.

For further information on any of the topics discussed, please do not hesitate to contact Adam;

Adam Bromley
Partner and Head of Commercial Property
E. adam.bromley@forbessolicitors.co.uk
T. 0333 2071158