What's Happening

The government reveals plans to overhaul the UK’s licensing regime.

Plans to raise licensing fees and impose a late night levy to pay for the increase in police patrols have been announced. In addition residents and local authorities will be given powersto object to licences on public health grounds. Home Secretary Theresa May outlined plans in a speech on anti-social behaviour at the end of July 2010.

The Association of Licensed Multiple Retailers has branded this a “missed opportunity” to deal with alcohol related problems properly. The British Beer & Pub Association saidmany of the “new” powers already exist and just needed to be used properly, with greater encouragement to use them. While businesses need to assist in curbing alcohol related problems, it is equally important to make sure that the individual themselves are also held accountable for their own anti-social behaviour.

Second half of mandatory conditions scrapped

The second half of the mandatory alcohol retailing code is also set to be dropped in favour of a late night levy. The next part of the code that was to be enforced on 1 October (ournews item entitled “Ban on Drinking Games”) which required retailers to ensure that an age verification policy applied to the premises and customers were made aware of the different quantities of alcoholic drinks available. Trade bodies have been lobbying the Reducing Regulation Committee chaired by Vince Cable for the removal of the second half of the mandatory alcohol retailing code as most premises already have a policy for age verification and most customers are already aware of the different quantities of alcohol available. It is estimated that the scrapping of the second part of the code could save the industry £41.3m (£650 per pub).

A late night levy will be payable from a set closing time, which is yet to be decided, and is likely to be between 10pm to 1am, with the fees being collected by the local authorities.The levy and the banning of below cost alcohol sales is to be discussed in five Home Office workshops in August, as will be the giving of councils and police extra powers.

Our newsletter of particular interest to Housing Associations is now out. VAT updates affecting the social housing and charity industries, avoiding VAT for housing associations and health and housing are a summary of the topics covered in the newsletter. Please contact Fern at su-fernlee@cartercamerons.com if you would like a copy of the newsletter sent to you.

The latest budget was revealed by the Chancellor on 22 June 2010. Here is a summary of the key points:

VAT will be raised to 20% from 4 January 2011.

Capital gains tax will increase to 28% for higher rate taxpayers from 22 June 2010 but remain at 18% for low and mid income savers. The £10,100 annual exemption will remain.

Corporation tax is to be cut by 1% a year over the next four years, taking it to 24% by 2014-15. Small companies tax rate to be cut to 20 per cent. The Enterprise Finance Guarantee Scheme is to be extended.

The Chancellor has also scrapped SDLT on homes costing £250,000 or less for first-time buyers. The existing nil rate of SDLT on residential purchases not exceeding £125,000 and commercial purchases not exceeding £150,000 continues to apply as before (which means that it is not limited to first-time buyers).

Housing benefit will be limited to £400 a week for a four bedroom house and £280 a week for a one bedroom house. The move is intended to save £1.8 billion a year by the end of the Parliament.

Banks will be charged a £2 billion-a-year levy.

The Chancellor increased the income tax threshold by £1,000 to £7,475.

Child tax credits and child benefits will be frozen for 3 years.

The link between the state pension and earnings which had been abolished by Margaret Thatcher was restored and, in a £2 billion move, the Chancellor increased child tax credits to the lowest-earning families by £150 above inflation.

Other benefits to be cut include the health in pregnancy grant while the Sure Start maternity grant will be restricted to the first child only and lone parents will be expected to look for work when their youngest child goes to school.

Five new mandatory conditions for licensed premises became law on 6 April 2010 intended to lessen the risk of alcohol related crime and anti-social behaviour.

Drink downing competitions, offering free drinks at specified events or incidents in a football or rugby match and “all you can drink for £10” (does not apply where the alcohol is consumed with a table meal) are examples of promotions that may be prohibited.

Three of the conditions came into force from 6 April 2010:

1. To ensure that staff do not arrange or participate in any irresponsible promotions in relation to the premises.
2. To ensure that no alcohol is dispensed directly into the mouth of another.
   This condition is designed to prevent drinking games such as the “dentists chair”.  Assisting a person to lift a yard of ale glass may also be prohibited. The regulation will not be breached where the recipient is unable to drink without assistance by reason of a disability.
   The regulations may also affect events where a free bar is included.
3. To ensure that free tap water is provided on request to customers where it is reasonable available.

Five categories of irresponsible promotions are referred to in the new regulations:

(a)    Drinking games;
(b)    Providing unlimited or unspecified quantities of alcohol free for a fixed or discounted price;
(c)    Providing discounted alcohol or anything as a prize to encourage or reward the purchase and consumption of alcohol over a period of 24 hours or less;
(d)    Providing alcohol free or for a discounted price in relation to a sporting event shown on the premises where the sale depends on the outcome of a race, match or other event, and
(e)    Providing alcohol in association with promotional posters or flyers which can reasonably be considered to condone encourage or glamorise anti-social behaviour or refer to the effects of drunkenness in any favourable manner.

According to The Department for Culture Media and Sport (DCMS) guidance, a promotion is considered irresponsible if it is carried on for the purpose of encouraging the sale or supply of alcohol in a manner which carries a significant risk of:

• leading or contributing to crime and disorder,
• prejudice to public safety,
• public nuisance, or
• harm to children.

"Happy Hours" however, are not prohibited as long as they are not designed to encourage excessive or rapid drinking.

Two remaining new mandatory conditions come into force from 1 October 2010:-

1. To ensure that an age verification policy applies to the premises.
2. To ensure that customers are aware that drinks are available in small measures.

Further details on the two remaining conditions can be found in the Carter Lemon Camerons’ Autumn Newsletter 2010.  For a copy, go to Contact Us.

These are introduced under the Licensing Act 2003 (Mandatory Licensing Conditions) Order 2010.

DCMS has published revised guidance on their website.
http://www.culture.gov.uk/what_we_do/alcohol_and_entertainment/default.aspx/

If you need more information or any advice on Licensing laws, please contact Ian West at ianwest@cartercamerons.com

The chancellor scrapped stamp duty land tax on homes costing £250,000 or less for first-time buyers for the next 2 years.

But if you are selling your house, to buy another you will still pay stamp duty at 1% of the purchase price on the new home if it costs between £125,000 and £250,000.

The HMRC’s definition of a ‘first-time buyer’ looks strict, but it is hard to see how the HMRC is going to monitor effectively which buyers are truly new to the market. The Council of Mortgage Lenders appears to agree having warned that the concession “looks like a tax loophole waiting to happen”.

The new regime, which is hoped to put the dream of home ownership back within reach of thousands, does not address what many see as “the real problem” with the property market, which is that many first-time buyers, particularly those who cannot raise a large deposit, are still finding it hard to obtain a mortgage.

Prodromos Shakallis, property team