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National Landlord Day 2018 - Biosphere slides

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Slides from National Landlord Day - main speaker hall

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National Landlord Day 2018 - Biosphere slides

  1. 1. Welcome to National Landlord Day Conference and exhibition 13 November 2018 Sponsors: National Landlord Day
  2. 2. Opening and introductions Scottish Association of Landlords John Blackwood National Landlord Day 2018 Stephen Jardine Conference chair National Landlord Day
  3. 3. National Landlord Day Conference and exhibition 13 November 2018 Tweet #LandlordDay Sponsors: National Landlord Day
  4. 4. Protecting your rental income in the face of changing taxation Paul Macaulay Turcan Connell National Landlord Day 2018 National Landlord Day
  5. 5. Protecting rental income in the face of changing taxation Paul Macaulay, Turcan Connell
  6. 6. • with effect from 1st April 2015 • progressive tax bands, nil band of £145,000 LBTT – residential property rates Land and Buildings Transaction Tax Purchase price LBTT rate up to £145,000 0% above £145,000 to £250,000 2% above £250,000 to £325,000 5% above £325,000 to £750,000 10% over £750,000 12%
  7. 7. • Example:- Buy-to-let purchase - £300,000 LBTT - £4,600 (0% for first £145,000; 2% for the next £105,000; 5% for the next £50,000). Land and Buildings Transaction Tax (contd.)
  8. 8. • with effect from 1st April 2016 • applies to acquisition of additional dwellings of £40,000 or more • additional flat rate of 3% – unless replacing only or main residence – claim repayment if sell existing main residence within 18 months LBTT – Additional Dwelling Supplement
  9. 9. • Example (purchaser already owns a dwelling):- Buy-to-let purchase - £300,000 LBTT - £4,600 ADS - £9,000 £13,600 • ADS potentially repayable LBTT ADS
  10. 10. • CGT on disposals of residential property still at 18% or 28% • subject to availability of usual reliefs such as Private Residence Relief and Lettings Relief • non-residents subject to CGT on disposal of UK residential property with effect from 6th April 2015 Capital Gains Tax
  11. 11. • with effect from 5th July 2016 • profits on certain property disposals subject to income tax rather than CGT? • HMRC “… considers that generally property investors that buy properties to let out to generate property income and some years later sell the properties will be subject to capital gains tax on their disposals rather than being charged to income tax.” Transactions in land – anti-avoidance rules
  12. 12. • currently up to 45% tax relief • to be reduced to basic rate tax (currently 20%) from 2020/21 tax year • phased in gradually from 2017/18 onwards:- Restriction on deduction of mortgage interest from rental income Tax Year % of costs deducted from profits % of costs deducted at basic rate 2017/18 75% 25% 2018/19 50% 50% 2019/20 25% 75% 2020/21 0% 100%
  13. 13. • Property income allowance - £1,000 (from April 2017) • replacement of the “Wear and Tear Allowance” (from April 2016) • replacement of “Domestic Items Relief” Other income tax deductions
  14. 14. • partnerships – flexibility to share income – tax implications? – recent tax changes still apply – tax transparent Alternative ownership structures
  15. 15. • limited company – profits and gains taxed at corporation tax rates – currently 19% – finance costs still fully deductible against corporation tax – further tax cost to extract profits? Alternative ownership structures
  16. 16. • administration • borrowings • Capital Gains Tax – incorporation relief? • Land and Buildings Transaction Tax and Additional Dwelling Supplement  multiple dwellings relief  ADS?  6 or more properties = non-residential rates and no ADS Incorporation
  17. 17. 1. Five properties, each with a value of £180,000 LBTT and ADS £30,500 2. Six properties, each with a value of £180,000 LBTT (at non-resi rates and no ADS) £9,713 LBTT and ADS on incorporation
  18. 18. • maximise reliefs • alternative structures • compare against different asset classes Summary
  19. 19. We take all reasonable care to ensure information contained within this document is accurate, however, we give no guarantee to the accuracy and completeness of the information or to any errors and omissions that may occur due to circumstances beyond our control. Firm Information Turcan Connell is a Scottish Partnership regulated by The Law Society of Scotland. Registered office: Princes Exchange, 1 Earl Grey Street, Edinburgh, EH3 9EE. London address: 12 Stanhope Gate, London, W1K 1AW Risk Warnings Information provided in this document and any opinions expressed are for general use and not personal to your circumstances, nor are they intended to provide specific advice. No information in this document should be viewed as an offer or recommendation to undertake any specific activity. All information provided is based on our understanding of current legislation which is subject to change. It has been produced for information purposes only. Professional advice should always be sought before taking any action. Turcan Connell or any of its associated companies cannot take any responsibility for losses incurred through acting or failing to act on the basis of anything contained in this document. Intellectual Property All rights to use the content of this document belong to Turcan Connell and any unauthorised use, including transmission, extraction, modification and distribution is strictly prohibited. You may not reproduce part or all of the content of this document in any form unless it is for personal use. ©Turcan Connell 19
  20. 20. Breakout sessions now available to attend National Landlord Day An alternative vision of private rented sector housing Dispute resolution – supporting a claim Understanding Universal Credit Investing in training Biosphere: Ozone: Showdome: Salisbury suite:
  21. 21. An alternative vision of private rented sector housing Graham Simpson MSP National Landlord Day 2018 with Stephen Jardine National Landlord Day
  22. 22. Breakout sessions now available to attend National Landlord Day Short term letting – what’s all the fuss about? Top 10 things to look out for with landlord Insurance Could an empty home be your next investment? Quality (mid tenancy) data – are your SSORTed? Biosphere: Ozone: Showdome: Salisbury suite:
  23. 23. Short term letting – what’s all the fuss about? National Landlord Day 2018 National Landlord Day Fiona Campbell Adam McVey ASSC City of Edinburgh Council
  24. 24. National Landlord Day Lunch is served in the Stratosphere area Programme resumes 13:40 hrs Please visit our exhibitors’ stands Sponsors: National Landlord Day
  25. 25. Breakout sessions now available to attend National Landlord Day Handling difficult situations Reducing costs in implementing the letting agent code? Quality (mid tenancy) data – are your SSORTed? Understanding Universal Credit Biosphere: Ozone: Showdome: Salisbury suite:
  26. 26. Handling difficult situations Carolyn Hirst National Landlord Day 2018 National Landlord Day Hirstworks
  27. 27. Handling Difficult Situations National Landlord Day 13:40 – 14:15 Carolyn Hirst Hirstworks 13 November 2018
  28. 28. Hirstworks © Difficult Situations can of worms complaint complexity complication dog's breakfast entanglement gordian knot hard nut to crack headache hornet's nest hot water mare's nest mess pandora's box predicament problem quagmire quandary snake pit trouble
  29. 29. Hirstworks © Complaints What do complainants want? • to know who is dealing with the complaint; • to be listened to and believed; • to be treated fairly and efficiently; • to be kept informed of progress; and • to believe that professionals are committed to the people they are serving and will take responsibility and ownership for the services they deliver.
  30. 30. Hirstworks © Handling difficult situations A suggested approach 1. Have a simple and timely process 2. Be objective, impartial and fair 3. Be comfortable with conflict 4. Resolve whenever possible 5. Look after those complained about
  31. 31. Hirstworks © 1. Have a simple and timely process • recognise a complaint and deal with it proactively; • have as few stages in your complaints process as possible; • publish and meet your time-scales for responding; • make sure all staff know and understand your complaint handling process; • keep your promises/commitments – do what you say you are going to do; • use feedback to improve your service.
  32. 32. Hirstworks © 2. Be objective, impartial and fair • hear the concerns – try to listen with a view to understand, not to defend; • show empathy – demonstrate that you can ‘see the same picture’ – there are two sides to every story; • be as impartial as you can when gathering and establishing the relevant facts; • wherever possible don’t investigate yourself; • give reasons for your decisions.
  33. 33. Hirstworks © Seeing the same picture?
  34. 34. Hirstworks © What do you see?
  35. 35. Hirstworks © What do you see?
  36. 36. Hirstworks © 3. Be comfortable with conflict • conflict can be experienced as win or lose; • negative feelings and actions if think have ‘lost’ - impacts on future relationships; • there are two common reasons why people get into conflict: they do not communicate clearly and they have different needs or interests; • helps to understand and work with the conflict. The most effective way to manage conflict is to manage your own response to conflict and your relationship with others.
  37. 37. Hirstworks © People in conflict Express a strong sense of grievance Think their solution (outcome) is the only one Validate and invalidate – collect evidence to prove they are right and the other is wrong Ignore common ground Seek to win at the expense of the other 37
  38. 38. Hirstworks © Vicious cycles in customer–employee interactions Traut-Mattausch, E., Wagner, S., Pollatos, O. and Jonas, E., 2015. Complaints as starting point for vicious cycles in customer–employee-interactions. Frontiers in psychology, 6, p.1454.
  39. 39. Hirstworks © Conflict is a whole body experience Triggering event Physical responses - how the body reacts to a conflict situation Emotional responses - the feelings experienced in conflict Cognitive responses - include perceptions and thoughts about a conflict Behavioural responses - the actions taken in response to a conflict Hirstworks ©
  40. 40. Hirstworks © Remember your ABC’s • Attend – pay attention to what is happening and recognise the warning signs; • Be calm – don’t take the bait. Be aware of your own response to the situation; • Communicate – listen and keep listening. Seek first to understand, then to be understood.
  41. 41. Hirstworks © What do angry people want? They want what we all want: • help and for someone to make a genuine effort on their part; • acknowledgement of their situation and feelings; • choices and alternatives. Need to ‘fix the person’ before you can ‘fix the problem’.
  42. 42. Hirstworks © Working with anger Using the DESC sequence • what you are experiencing and/or seeingDescribe • the effect it is having on youExplain • that you understand the behaviourShow • your preferred alternative behaviourCommunicate
  43. 43. Hirstworks © If the behaviour continues • if the inappropriate behaviour continues, then you may need to set out the consequences using the “if …..then….” process; • for example - “if you continue to shout at me, then I will end this conversation”.
  44. 44. Hirstworks © 4. Resolve whenever possible • can be helpful to negotiate/mediate a resolution; • saying sorry is an expression of regret not an admission of liability; • apologise when you have got it wrong - a good apology includes – reason – regret – remedy
  45. 45. Hirstworks © Mediating a resolution Common ground Position Position Needs and interests Needs and interests
  46. 46. Hirstworks © Guidance on apology https://www.spso.org.uk/ leaflets-and-guidance SCOTTISH PUBLIC SERVICES OMBUDSMAN (SPSO)
  47. 47. Hirstworks © 5. Look after those complained about https://administrativejusticeblog.files.wordpress.com/2017/12/ effects-of-complaints-report-15-december-2017-final.pdf
  48. 48. Hirstworks © Being complained about The findings 71% of people complained about report their work practice has been affected by a complaint 67.2% report their health and well-being being affected 66.7% are more cautious in dealing with service users 61.2% say their attitude to service users has been affected 33.3% frequently check and double check their work 27.9% have become unsure of their work practice
  49. 49. Hirstworks © Being complained about Good practice guidelines • have clear processes which involve and support the person complained about; • tell the staff member about the complaint and make appropriate support available; • say how and when they will be involved in any investigation - important to be listened to, heard and be able to give their ‘side of the story’; • tell them about the decision/any associated actions; • involve them in identifying any shortfalls and in the development of solutions.
  50. 50. Hirstworks © In summary 1. Have a simple and timely process 2. Be objective, impartial and fair 3. Be comfortable with conflict 4. Resolve whenever possible 5. Look after those complained about Questions? Contact details Carolyn Hirst cahirstworks@aol.com
  51. 51. Breakout sessions now available to attend National Landlord Day Enforcing tribunal decisions – the role of the sheriff officer Understand your EPC and improve its rating Investing in training Could an empty home be your next investment? Biosphere: Ozone: Showdome: Salisbury suite:
  52. 52. Enforcing tribunal decisions – the role of the sheriff officer Ronnie Murison Stirling Park LLP National Landlord Day 2018 National Landlord Day
  53. 53. Part of Making a Difference ‘Enforcing tribunal decisions – the role of the sheriff officer’ Ronnie Murison – Stirling Park LLP 13th November 2018
  54. 54. Part of Making a Difference Role of sheriff officer • historic profession • code of practice • regulated • messenger-at-arms • our functions • legislative evolution
  55. 55. Part of Making a Difference Taking possession back • vacant properties • charge for removing • form 4 notice (date of removal) • removing the tenant(s) and occupants etc. • possessions left in property
  56. 56. Part of Making a Difference 2 DAYS 14 DAYS 2 DAYS
  57. 57. Part of Making a Difference Recovering any arrears • tracing former tenants • commercial assessment • charge for payment  pre-requisite to certain diligences  establishes apparent insolvency
  58. 58. Part of Making a Difference Earnings arrestment • prescribed deductions from salary • DAIP issued within 12 weeks • exemptions • penalties for non-compliance
  59. 59. Part of Making a Difference Prescribed deductions Net earnings (monthly salary) Deductions Not exceeding £494.01 Nil Exceeding £494.01 but not exceeding £1,785.61 £15 or 19% of earnings exceeding £494.01, whichever is the greater Exceeding £1785.61 but not exceeding £2,684.51 £245.40 plus 23% of earnings exceeding £1,785.61 Exceeding £2,684.51 £452.15 plus 50% of earnings exceeding £2,684.51 Example 1. Net salary of £10k p/a = £64.47 per month Example 2. Net salary of £15k p/a = £143.64 per month Example 3. Net salary of £25k p/a = £313.88 per month Example 4. Net salary of £30K p/a = £473.53 per month
  60. 60. Part of Making a Difference Arrestment • freezing funds/goods held by 3rd party • protected minimum balance (banks) of £494.01 • automatic release after 14 weeks • duty of disclosure with penalties
  61. 61. Part of Making a Difference Attachment & auction • moveable effects (outside dwelling) • attaching cars (DVLA/HPI checks) • exceptional attachment order (inside dwelling) • auction • cost consideration?
  62. 62. Part of Making a Difference Regulated costs * First-TierTribunalOrders Charge forPayment £81.16 Earnings Arrestment £60.56 Arrestment £81.16 Attachment (variable) >£100.60 Allexecutedfees are recoverable from the Respondent
  63. 63. Part of Making a Difference
  64. 64. Part of Making a Difference The modern sheriff officer  tablets & mobile printers  real-time reporting  investigative  treating customers fairly  ISO 27001 & 9002
  65. 65. Part of Making a Difference Our locations
  66. 66. Part of Making a Difference Additional information Additional information available on request - please contact Scottish Association of Landlords if you would like an electronic version of the following leaflets: • Enforcing a payment order from FTT for private landlords • Stirling Park information sheet • Stirling Park contact sheet
  67. 67. Part of Making a Difference Questions Ronald J Murison, Director of Sheriff Officer Services Stirling Park LLP, 24 Blythswood Square, Glasgow G2 4BG DX 512051 Glasgow Central r.murison@stirlingpark.co.uk 0141 565 5765/07771 845539 Enquiries to: 0141 565 5765 or officers@stirlingpark.co.uk Tracing: trace@stirlingpark.co.uk
  68. 68. National Landlord Day Refreshments are served in the Stratosphere area Programme resumes 15:30 hrs Please visit our exhibitors’ stands Sponsors: National Landlord Day
  69. 69. National Landlord Day Conference and exhibition 13 November 2018 Tweet #LandlordDay Sponsors: National Landlord Day
  70. 70. What’s new in property finance? Duncan MacInnes, Ruffer National Landlord Day 2018 Hugh Meechan, The Mortgage Lender David Morrison, EQ Accountants National Landlord Day
  71. 71. National Landlord Day Conference and exhibition 13 November 2018 Tweet #LandlordDay Sponsors: National Landlord Day
  72. 72. Tribunal decisions – what can we learn? Jim Bauld TC Young Letlaw National Landlord Day 2018 National Landlord Day
  73. 73. National Landlord Day First-tier First Year Jim Bauld TC Young Solicitors
  74. 74. First-tier Tribunal Housing and Property Chamber • Housing (Scotland) Act 2014; • sheriff court jurisdiction transferred to FTT-HPC on 1 December 2017; • “Actions arising from tenancies and occupancy agreements” under existing legislation; e.g. regulated and assured tenancies.
  75. 75. FTT-HPC jurisdiction • FTT-HPC has sole jurisdiction in all civil proceedings arising from a private residential tenancy (PRT) under Private Housing (Tenancies) (Scotland) Act 2016; • PRT introduced 1 December 2017; • jurisdiction includes payment actions in all tenancy regimes.
  76. 76. Making an application to FTT-HPC • application form to be prepared; • lodge with FTT-HPC office; • separate application for eviction and arrears; • include required attachments; • no fee payable.
  77. 77. Application process • application received by tribunal; • checked by staff; • passed to President / tribunal member; • sifting process; • either dismissed, further information sought or referred to tribunal.
  78. 78. Applications dismissed at “sifting” • frivolous or vexatious; • dispute has been resolved; • “not appropriate” to accept application; • application is for a purpose other than that specified in application; • identical to previous application.
  79. 79. “Frivolous” applications • ALL applications are now checked by a legal member before proceeding to tribunal; • much more stringent than sheriff court; • application will be dismissed at sift if they are “futile, misconceived, hopeless or academic”; • application has no prospects of succeeding.
  80. 80. Scott v Bachhaznadji • application for eviction lodged 5 February 2018; • CMD (case management discussion) set for 16 April; • sheriff officers could not find the tenants to intimate CMD date; • Chamber President made the decisions; • where tenants' address is not known application should be rejected at sift; • no provision in FTT rules for service by “advertisement” or on “walls of court”.
  81. 81. Armstrong v Clark • arrears payment case lodged 8 February 2018; • tenant's address in application was his work address; • tribunal asked landlord to obtain home address for former tenant; • requests for correct address sent to landlord; • landlord told tribunal to phone tenant at work and ask; • sifting member dismissed the application on 6 June 2018; • “not a function of the FTT to establish the address of a tenant”.
  82. 82. KJB Housing v Rae • application lodged 3 January 2018; • seeking eviction from a PRT; • notice to leave dated 17 December 2017; • notice specified 18 January as the effective date; • at sift, notice deemed invalid and ineffectual as failed to specify correct date; • application thus “frivolous” and rejected.
  83. 83. Badahur v Sachmerda • application lodged in name of estate agents; • tenancy agreement listed the agent as the landlord; • land register check showed property owned by Mr Badahur; • no explanation why tenancy/application not in his name; • rejected at sift by legal member.
  84. 84. McConville v Mohammed • eviction application in short assured tenancy; • NTQ/section 33 notice handed to tenants in agent's office; • not proper service; • NTQ can only be served by recorded delivery or sheriff officers; • application rejected.
  85. 85. Process after “acceptance” • notice given to all parties that application accepted; • written representations requested from other party; • tribunal may issue “directions”; • fix case management discussion or hearing.
  86. 86. Case management discussion • heard by legal member alone; • identify issues to be resolved; • identify agreed facts; • discuss what witnesses / documents required; • discuss whether “evidential” hearing is required; • can make “final” decision at CMD.
  87. 87. Hearing • held in public; • held on weekdays during normal business hours; • tribunal will consist of legal member (chair) and at least one “ordinary” member; • can proceed in absence of party; • at least 14 days’ notice given to parties by FTT.
  88. 88. “Overriding objective” • FTT-HPC must give effect to “overriding objective”; • “deal with the proceedings justly”; • must manage proceedings in accordance with this objective; • parties must assist tribunal.
  89. 89. “Deal with the proceedings justly” • proportionate to the complexity of the issues and the resources of the parties; • seeking informality and flexibility in proceedings; • ensuring parties are on equal footing procedurally; • using the special expertise of the First-tier Tribunal effectively; • avoiding delay, so far as compatible with the proper consideration of the issues.
  90. 90. Evidence at hearings • documents to be lodged 7 days in advance; • can lodge late with permission of FTT; • witnesses should be listed in advance.
  91. 91. Decisions at hearings • majority vote but chair has casting vote; • decisions must be in writing; • statement of reasons to be given if requested in eviction cases; • if decision not unanimous, chair must also give a note on minority view.
  92. 92. Decisions at hearings • all published on the FTT website; • many decisions in favour of landlords; • payment orders made; • eviction orders granted; • still the occasional problem though!!!
  93. 93. Hall v Beattie • hearing 11 September 2018; • eviction action; • all in order except section 11 notice; • named person was not tenant; • tribunal held notice was mandatory; • allowed adjournment for re-service in correct form.
  94. 94. Lewis v McKenzie • eviction action • application lodged 16 March 2018 • CMD 11 May 2018 • tribunal questioned validity of NTQ and AT6; • adjourned to 18 July 2018; • decided both were invalid; • application refused.
  95. 95. Patience v Owens • eviction action; • CMD 6 June 2018; • short assured tenancy; • NTQ served by sheriff officers; • no section 33 notice; • landlord unaware it was needed; • application dismissed.
  96. 96. Royal College of Surgeons v Murray • eviction application; • based solely on AT6 procedure; • ground 8 eviction; • CMD 22 June 2018; • no specification of grounds in part 3 of AT6; • FTT held AT6 invalid and dismissed application.
  97. 97. Scotcrafts Leasing v Kajaks • eviction case; • CMD 23 August 2018; • NTQ and section 33 hand delivered on 28 December 2017; • tenant accepted he had received them; • FTT held service invalid and application dismissed.
  98. 98. Tenancy deposit cases • The Tenancy Deposit Schemes (Scotland) Regulations 2011; • must lodge deposit with an approved scheme within 30 days of start of tenancy; • must provide information to the tenant re deposit amount, date paid, details of scheme and circumstances in which deposit can be retained; • currently 3 approved schemes in Scotland.
  99. 99. Tenancy deposit cases • over 90 published decisions on HPC website; • if regs breached, award “must” be made; • almost all make awards against landlords; • most seem to be 1 or 2 times the deposit; • very few have the full possible sanction!
  100. 100. Gordon v Ghafoor • tenancy started 28 February; • deposit of £650 paid; • tenant moved in and moved immediately out; • keys returned 5 March; • deposit not paid into scheme; • landlord argued no need as tenancy had ended within 30 day period.
  101. 101. Cook v Gilliard • successive tenancies from 2014-2017; • deposit £500 paid to letting agent; • lease said lodged with SafeDeposits Scotland; • actually lodged with LPS; • no information given to tenant; • deposit returned at end to landlord.
  102. 102. Scheltdorf v Singh • deposit of £550 paid; • not lodged with any of the schemes; • landlord defence was “cash was put in a safe deposit box with RBS”.
  103. 103. Appeals • appeal to Upper Tribunal; • on point of law only; • requires leave of the FTT; • must seek leave within 30 days of receiving decision; • if leave refused, applicant can ask for leave from Upper Tribunal; • also a “review” process.
  104. 104. Questions? Jim Bauld: jdb@tcyoung.co.uk www.tcyoung.co.uk Read our blog: www.tcyoung.co.uk/blog Follow us on Twitter: @TCYLetLaw
  105. 105. National Landlord Day Conference and exhibition 13 November 2018 Tweet #LandlordDay Sponsors: National Landlord Day
  106. 106. Summing up and close National Landlord Day 2018 National Landlord Day 2018 National Landlord Day
  107. 107. National Landlord Day Thank you for coming See you next year Sponsors: National Landlord Day
  108. 108. Welcome to National Landlord Day Conference and exhibition 13 November 2018 Sponsors: National Landlord Day
  109. 109. Welcome to National Landlord Day Conference and exhibition 13 November 2018 Sponsors: National Landlord Day
  110. 110. Welcome to National Landlord Day Conference and exhibition 13 November 2018 Sponsors: National Landlord Day

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