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Insurance premium tax (IPT) will increase from 1st June 2017

Don’t forget that as revealed in the Autumn statement (Nov 2016) that Insurance Premium Tax (IPT) will increase to 12% from 1st June 2017.

It is the third time the tax has been increased in less than two years – from 1st November 2015 it increased to 9.5% and then from 1st October 2016 it went up to 10%.

The British Insurance Brokers’ Association (Biba) had lobbied the government for a freeze. Chief executive Steve White commented “Insurance Premium Tax is a tax on protection and there should be no further increase in this regressive tax.”

Huw Evans, director general of the Association of British Insurers, the industry trade body, said the move was a “hammer blow for the hard pressed”. “Yet another increase … will hit consumers and businesses alike, hurting those who buy business, motor, property, pet and health insurance. It marks a doubling of insurance premium tax since last year,” he said.

 

Author Tony HousdenPosted On Categories General

Court Successes: A welcome result for Landlords

The ruling in two recent court cases should be welcomed by landlords as they usefully clarify the extent of their duties under the Defective Premises Act 1972.

 

J Bainton v First Choice Homes Limited (Oldham County Court) – there is no duty of care to rectify something that is not in disrepair

Read more

 

Perry Masters Anthoni v Coast & Country Housing (Middlesborough County Court – Appeal) – a relevant defect must arise out of a failure to maintain or repair

Read more

 

Author Tony HousdenPosted On Categories Legal, Real Estate

Cyber – extortion and ransomware

Cyber claims statistics reveal that extortion and ransomware are one of the fastest growing sources of cyber loss.

The importance, and urgency, of cyber security measures have become increasingly visible in recent years. Industry reports from the likes of Verizon, Trustwave, and PwC all express the importance of cyber security measures and the costly consequences of cyber attacks.

No company wants to become another data breach statistic but some decision-makers still may not understand the urgency of cyber security protection. This is largely down to the fact that on the whole, UK businesses have a lower level of security maturity than their US counterparts.

Acknowledging that cyber security is a major problem is one thing, but understanding what you can do in response is another. Few organizations feel prepared for a sophisticated cyber attack and if you are not one of those – or you are not sure if you are prepared – one thing you can do is to start monitoring your performance and create a benchmark to track changes in your security posture and create a performance metric around cyber risk that is specific to your organization will help you protect yourself from being just another number.

Author Tony HousdenPosted On Categories Cyber, General

JCT Minor Works 2016 – what it means for Landlords

One of the key changes was the amendments to the insurance provisions, particularly in relation to JCT Minor Works clause 5.4C, which has addressed an issue that has long been a concern for tenants, and their contractors, wishing to carry out works in a multi-let property.

The amendments allow far greater flexibility in the type of insurance put in place, especially where existing structures cover for the Contractor is not readily available to the Employer at a reasonable cost; such as where the Employer is a domestic homeowner or where he is only a tenant and the structures cover is effected by the Landlord.

Commercial landlords can expect more requests from tenants for the landlord to provide insurance cover for tenants’ fit-out contractors.

Read more

Author Tony HousdenPosted On Categories Real Estate

Right to Rent checks – Landlords and Letting Agents beware!

From 1 December 2016 landlords need to check tenants right to rent and comply with new provisions concerning illegal immigrants.

Whilst some of these new provisions are welcomed, others may be of concern to landlords.

Previously if a landlord found that an existing tenant is an illegal immigrant they could not evict them from the property but the new provisions do allow landlords to evict such tenants more easily, and, in some circumstances, without a court order.

However, Landlords should also be aware that the new provisions also introduce four new criminal offences.

Landlords that fail to conduct “Right to Rent checks” or who fail to take steps to remove illegal immigrants from a property can face:-

  • unlimited fines
  • up to five years’ imprisonment
  • sanctions under the Proceeds of Crime Act if convicted
  • in addition to a civil penalty of up to £3,000 per illegal immigrant for tenancies that already exist.

Whilst the government has made clear these new criminal offences are aimed at rogue landlords and letting agents that exploit migrants it is recommended that all landlords and agents should review their procedures to ensure that they are performing adequate checks on potential tenants and to ensure adequate status checks have been performed in respect of existing tenants.

Government guidance on Right to Rent can be found here

Author Tony HousdenPosted On Categories Legal, Real Estate