Latest Posts

Leasehold and Freehold Reform Act 2024 – January 2025 Update 

Implementation of changes to ownership requirement rules

On 21 November 2024, Matthew Pennycook MP (the Minister for Housing and Planning) confirmed the Government would imminently introduce new regulations to abolish the two-year ownership rule for i) a leaseholder of a flat to extend their lease; and ii) a leaseholder of a house to extend their lease or purchase the freehold.  

It has now been confirmed that these changes will be implemented this Friday, 31 January 2025. 

Up until now, it has been regular practice for sellers of long leasehold properties to apply for a statutory lease extension (in accordance with the Leasehold Reform, Housing and Urban Development Act 1993) and immediately assign the benefit of the claim to the buyer upon completion. This procedure provided a framework for buyers to legitimately circumvent the two-year ownership rule before they could bring their own claim. As of this Friday, these steps will no longer be required. 

Buyers will now be able to make a statutory claim for a new lease as soon as they become the registered proprietor of the leasehold title at HM Land Registry. This point is noteworthy given HM Land Registry continues to experience a significant backlog of applications, resulting in an extended ‘registration gap’ – the period between completion and subsequent registration of the transaction at HM Land Registry.  

Accordingly, buyers will be prevented from exercising these rights immediately upon completion and not until registration of the legal title has been effected at HM Land Registry. This may result in some buyers not wishing to wait, in which case they will have to follow the current practice of the seller giving notice of the claim with the benefit being assigned to them upon completion. 

Conclusion 

Subject to potential delays resulting from the ‘registration gap’, these changes should empower leaseholders to enfranchise at their own convenience and without the potential pressure of having to undertake the exercise at the point of acquisition. 

Whilst the removal of the two-year ownership requirement will be welcomed by both buyers and sellers of leasehold properties, other proposed legislative changes introduced by the Leasehold and Freehold Reform Act 2024 are yet to be implemented. For example, buyers will still be faced with uncertainty as to whether a claim should be pursued under current valuation rules or to await implementation of the new provisions. We await further developments with interest. 

To discuss any of the points raised in this article, please contact Daniel Blake or fill in the form below. 

Read More

Global Talent Visa: Arts Council Endorsements

The Global Talent visa is a prestigious UK immigration route designed for exceptional individuals in arts and culture. Securing an Arts Council England endorsement is a critical requirement for this visa, enabling talented professionals to live and work in the UK. This guide explains the eligibility criteria, the application process, and the importance of professional support to maximise your chances of success.

What is the Global Talent Visa?

The Global Talent visa allows individuals in arts, culture, digital technology, and other fields to work in the UK without employer sponsorship. It is designed for applicants with either a proven international reputation (via the Exceptional Talent route) or clear evidence of high potential (via the Exceptional Promise route).

Arts Council Endorsement Criteria

To apply for the Arts Council endorsement, candidates must demonstrate:

• Professional excellence: A record of outstanding work performed or exhibited internationally.
• Recent activity: Evidence of active participation in their field within the last five years.
• Leadership status: Either a well-established reputation as a leader (Exceptional Talent) or strong potential for leadership (Exceptional Promise).
• The Exceptional Talent route requires applicants to show consistent international acclaim, whereas the Exceptional Promise route is tailored for early-career professionals with evidence of significant promise.

Evidence and Recommendation Letters

Applicants must provide robust evidence of their achievements, including recognition in reputable media, significant awards or nominations, and international exhibitions or performances. In addition, three recommendation letters are required. One must come from a prominent UK-based cultural organisation, while the others may be from recognised institutions or experts abroad. These letters must establish the referees’ credentials, their relationship to the applicant, and why the applicant meets the endorsement criteria.

Application Process for the Arts Council Endorsement

The application involves two stages. First, the applicant submits an endorsement application to Arts Council England, including evidence and recommendation letters. If endorsed, the second stage involves applying for the visa through UK Visas and Immigration. Certain award winners may bypass the endorsement stage altogether.

Why Legal Advice is Crucial for the Global Talent Visa

The endorsement process is highly competitive, and many applications are refused due to insufficient evidence or poorly presented submissions. At this critical stage, instructing Quastels can make a significant difference. Quastels possess extensive experience in handling Global Talent visa applications, including securing Arts Council endorsements. Our team of immigration experts will evaluate whether the Exceptional Talent or Exceptional Promise route is more suitable, assist with compiling strong evidence tailored to Arts Council requirements, and draft compelling recommendation letters. Quastels also offers strategic advice for appeals or reapplications, ensuring a comprehensive and robust submission.

Increase Your Success Rate for the Global Talent Visa

Given the high refusal rates for Arts Council endorsements, professional guidance is vital. Quastels’ expertise ensures that your application is precise, compelling, and aligned with the stringent standards required by Arts Council England. 

For detailed information about the Global Talent visa and the endorsement process, visit the official Arts Council England and UK Government websites. To discuss your application, contact Quastels for expert advice and support.

Read More

Cryptoassets and UK Tax- FAQs

UK tax returns are due by the end of January – but do you know whether you need to report your cryptoassets?

31 January is a key date in the UK tax year, as the deadline for submitting a self-assessment tax return.  Hopefully by the time you read this you will be secure in the knowledge that your own return has been submitted, if you are a self-assessment taxpayer.  However, if you have been investing in cryptoassets, are you sure that you have reported everything you need to? Unfortunately, given this is such a new type of asset and the law is still being established, many people are unaware of the tax rules relating to their cryptoasset holdings.

For example, have you ever found yourself thinking along the following lines: 

• I’ve invested into crypto, and I switch between different tokens from time to time, but until I cash in for fiat currency I don’t have any tax issues to worry about. 

• I can’t have a UK tax liability on my crypto, because I’m within the FIG regime, and only deal with offshore exchanges. 

• I don’t need to declare tax on my crypto, because HMRC have never asked me to submit a tax return. 

If so, you need to carefully consider your tax position – read on for more details. 

Capital Gains Tax  – Do I have to pay CGT on cryptoassets? 

In the UK, capital gains tax (CGT) is payable on the disposal of any asset.  In a straightforward case, this would be when you sell something for cash.  For example, if you purchased a Bitcoin in 2010 for £10,000, and you’re selling it now for £80,000, then you would have made a capital gain of £70,000, less any deductible costs. 

Do I have to pay tax if I swap one crypto token for another? 

However, the concept of a disposal goes far beyond a cash sale.  For one thing, it includes an exchange of one asset for another, even where one cryptoasset token is swapped for another.  Therefore, if instead of selling your Bitcoin for cash you had exchanged it for 30 ETH, you have still made a disposal, and so could be liable for CGT on the difference between the price you paid for the Bitcoin, and the market value of the ETH received in exchange. 

Do I have to pay tax if I gift or spend a crypto token? 

More broadly, you will be making a disposal whenever you give up your ownership of a token.  For example, if you make a gift to somebody, or spend it, such as to purchase an NFT or to pay for other goods or services.  Each of these scenarios can be subject to CGT. 

Do I have to pay tax on mining or staking? 

If you are receiving tokens through mining on a proof of work blockchain, or staking on a proof of stake blockchain, then you need to consider whether this is subject to income tax. 

The law on this issue is currently not certain, but HMRC’s view is that generally income from mining or staking will be subject to income tax, after deduction of certain allowable expenses. We can provide advice on this topic.

Remittance basis/FIG regime taxpayers – are crypto gains and income subject to UK tax? 

If you were a remittance basis taxpayer in past years, you do not have to pay UK tax on relevant foreign income, or foreign chargeable gains, from that period if such income or gains are not remitted (or brought back) to the UK. If you qualify for the new Foreign Income and Gains (FIG) regime, you do not have to pay UK tax on relevant foreign income, or foreign chargeable gains, while within the FIG regime. However, can a decentralised cryptoasset recorded on a global blockchain be said to be ‘foreign’? 

Again, the law has not yet fully clarified this point.  However, you need to be aware that HMRC has taken a very wide interpretation of the law, based on the residence of the beneficial owner. HMRC’s position means that remittance basis/FIG regime taxpayers are unlikely to escape UK tax on their cryptoasset income and gains, even where tokens are held for them by a foreign exchange or via a wallet held outside the UK. 

If you find yourself in this position, you need to take legal/tax advice, as the position is likely to turn on the precise factual arrangements, as well as the interpretation of the law.  

What to do about your cryptoasset taxes 

If you find yourself having made cryptoasset disposals, then you need to consider your potential CGT or income tax liability and whether this needs to be reported to HMRC.  CGT and income tax are both self-assessment taxes, which means that it is your responsibility to ensure you have reported anything you need to report, whether or not HMRC have already asked you to submit a tax return. 

The calculations are not straightforward.  For one thing, there will be various deductible costs, to reduce your tax liability.  For another, fungible cryptoasset tokens are subject to the share pooling rules, meaning that it is necessary to work out an average cost based on all of your purchases. 

Specialist software is available, which can help with these calculations.  However, you need to understand the legal interpretation of transactions in order to ensure that the software is analysing your tax liability correctly. 

If the result is that you have made a net loss for the year, then you may not need to submit a tax return, but it can still be worth reporting your losses to HMRC to enable them to be deducted against gains you make in the future.

How Quastels can help with cryptoasset taxes 

Ben Rosen, Partner, and Jack Burroughs, Senior Associate, in the Private Wealth and Tax team are leading experts on the legal and tax treatment of cryptoassets.  We can therefore advise you on the issues that might arise in calculating your taxes, including: 

• which transactions are disposals for CGT; 

• how staking and mining income is calculated; and 

• whether gains and income are located in the UK or abroad. 

We can provide the analysis of your cryptoasset gains and income needed to submit your tax return, and state your legal position to HMRC where the law is unclear or where mistakes may have been made. We are also able to assist with your estate planning for cryptoassets, helping to ensure that your tokens can pass to those you want to receive them, as tax-efficiently as possible. 

To discuss your circumstances and find out how we can help you, please get in touch. 

Read More