In this issue of the Real Estate Technical Bulletin we look at the latest round of regulations relating to energy performance of buildings, proposed new legislation that will change the way listed buildings are dealt with, two significant cases for property developers and a stamp duty ‘holiday’ for residential properties.
ENERGY PERFORMANCE CERTIFICATES - LETTING OF RESIDENTIAL PROPERTIES
In this issue, we look at the much anticipated Opinion of the Advocate General in the Heyday case; consider how bonus schemes can be discriminatory when they are not regularly assessed on their effectiveness; discuss how employers should be careful when wording adverts to avoid age discrimination claims; and review the Information Commissioner’s ruling that identities of Respondents in tribunal cases should be made public.
CLIENT ALERT - VAT Windfall for Hotels and Conference Organisers
A recent ruling by the European Court of Justice (ECJ) means hotels, conference organisers and other affected businesses in the UK can now reclaim VAT that the ruling determines they have overpaid, as well as improving their VAT position in the future.
The ruling applies where a customer pays a deposit, and the deposit is retained when the
customer cancels or fails to show up.
CLIENT ALERT - TAX CHARGE ON RENT HIKES
From 1 December 2008 unusually large rent increases on some leases may for the first time be liable to a new stamp duty land tax (SDLT) charge.
REMOVING OBSTACLES TO REGENERATION
A provision in the new Planning Bill is aimed at removing an obstacle to regeneration.
The Current Law
Section 237 Town and Country Planning Act 1990 - where land is acquired or appropriated by a Local Authority for planning purposes, any construction or maintenance works (”Works”) done on the land by the Local Authority (or its successors in title) may proceed even if they involve:
• interference with any easement or right (such as a right of way over the development site for the benefit of adjoining land); or
• breach of a contractual restriction on the use of the land (such as a restrictive covenant preventing use of the land for a particular purpose).
Rights or apparatus belonging to statutory undertakers or operators of electronic communications networks are not affected.
Compensation is payable under Section 237 for any such interference or breach.
From 1 October 2008, an EPC will be needed for the construction, sale and rent of all remaining buildings that are not dwellings.
By way of reminder, since 6 April 2008, EPCs have been required for the construction, sale or renting out of non-dwellings with a total useful floor area over 10,000m² and since 1 July 2008, EPCs have been required for the construction, sale or renting out of non-dwellings with a total useful floor area over 2,500m².