IN THIS EDITION� Couple sell up to pay

for Church repairs � Crime – A record for

life

� Inheritance matters –Don’t be caught out

� Selling a business –Tax considerations

Clive Goatham, a champion of Englishapples and pears, says we are all beinghoodwinked by the supermarkets who tellus what type of food we should be eatingand are more concerned with theaesthetics of food rather than value.

Clive, 59, senior partner in A C Goathamand Son, together with his fellow partnerand son, Ross, 32, have built up thebusiness which was launched in 1947 byClive’s father, Arthur, into one of the threemajor ‘top fruit’ producers in the UK.

He is a major supplier to Sainsbury’s andMorrison’s but is happy to air a note ofcaution about an industry that has worriesover carbon footprints and yet seesproduce being imported when there is noneed, and good English produce being

ploughed back into the ground because itdoesn’t match up to what thesupermarkets feel we want.

Speaking from his office at Street Farm,Hoo, just one of 14 farms owned by thecompany, Clive said: “We have a situationwhere the supermarkets say we will onlyeat a perfectly formed apple that conformsto a standard size adopted by the largemultiples.

“This is clearly nonsense, particularly if wetalk about people over the age of 40. Just

down the road there is a lovely crop ofpurple sprouting broccoli which the farmerknows he will have to plough back into theground because the supermarkets will saythe stalk is a millimetre too thick or theflorets are slightly too small.

“This is good food we are wasting purelybecause there is no market for it. Thelarge multiples will not negotiate. Theyhave us over a barrel to the disadvantageof the consumer, we feel.

“To rub salt in the wound, we, theproduce-buying public, have no say in thematter.

“What affect the recently publicisedombudsmen will have over the waysupermarkets deal with suppliers remainsto be seen. Something has to be done,but I don’t know when or how it will everhappen.” said Clive.

“The Government is, quite rightly, sayingthat we should buy local and then overseea situation where foreign apples andpears are being imported while Englishversions go to make juice."

Clive and Ross both know that Englishapples and pears are the very best, butthe problem will remain as long as thesupermarkets depress values by sayingeverything must be cheap, yet perfectlyformed.

"The Government must find a way ofgiving us confidence. After all, our

Turn to page 2

ISSUE 19 news

Helen Grant, Conservative ProspectiveParliamentary Candidate for Maidstone andthe Weald, cut the ribbon to officially openGullands’ new reception area at 16 MillStreet, Maidstone. Blair Gulland, Chairman,is on the left with Managing Partner, RichardCripps on the right. Helen was in town toannounce a new Business Forum initiative atthe offices of Gullands. See Page 3 for fullstory and more pictures.

ARE SUPERMARKETS TAKINGUS FORA RIDE?

UK’s TOPGROWERQUESTIONSMISGUIDEDPOLICY

Helen cuts the ribbonto make us ‘official’

HM Revenue and Customs (HMRC) have now updated their instructions on howcompanies which move premises should inform them of a change of companyaddress.

The essential point is that HMRC will not accept a notification of change of addressuntil such time as the record at Companies House has been changed. This is doneby lodging form 287 by post or updating the company’s record online.

Companies House does not notify HMRC of such changes. When HMRC receive anotification of change of address (this must be done by post or telephone; it cannotbe done online), they check the Companies House record. HMRC will not updatetheir correspondence address unless that record has been changed, so do makesure you wait for ten days or so after Companies House has been informed before you notify HMRC.

www.gul lands.com

From page 1

company has invested £15 million in the lastthree or four years supporting the productionof the finest apples and pears,” said Clive.

One of the more exciting projects Goathamsare involved in at the moment is thedevelopment of new apple varieties forwhich they have exclusive UK growingrights.

Of Belgian origin, the two new varieties, Zariand Zonga, are being grown in the UK forthe first time at Griffin Farm, Sutton Valence,purchased by Clive two years ago fromapple grower, David Boxall, who has nowretired.

“I am very pleased with the purchase andthe way the development is going,” saidClive. “The site is very conducive to growingthis new breed of earlyapple which, we hope, willcompete with the far fromsatisfactory Discoveryapple which supermarketsknow has a very poorshelf life. Our first harvestwill be this August.”

A C Goatham and SonLtd are currently farmingclose to 1,000 acres inKent either on land ownedand operated by thecompany or throughtenanted farmers. With alabour force of between300 and 600 dependingupon the season, theyproduce 20,000 tons ofapples per year – aneighth of the country’sgrowing capacity.

Clive and Ross are proudof the fact that theyprovide value to those who grow apples ontheir behalf.

“We have an honest grower base,” saidRoss. “They get value for their fruit and weare constantly trying to increase our market

UK’s Top grower questionsmisguided policy

“But it has to be sustainable and at themoment the industry is not sustainablebecause of the value of the product to theproducer. We do what supermarkets tell usand the British people are paying more fortheir produce than they need to pay. Somefarmers only harvest 20 per cent of theircrop because its appearance does notsatisfy the template laid down by thesupermarket.

“Thirty per cent of our Cox production goesto producing juice. We don’t make money onthis. It just pays us what we would have hadto pay to dump the crop. As far as Cox’s areconcerned, we have had to bastardise thebreed to get a smoother skin acceptable bythe supermarket.

“We are often asked, ‘What’s happened toall the traditional varieties?’

“Well, as forward thinking businessmen, wehave to decide if these well known and wellloved varieties have, in fact, become far toouneconomical to grow. With this being trueof so many others, Cox is fast approachingthis crossroads.”

“Even with our high yielding, high colour,modern varieties, our industry needs a 10-12per cent increase in average values toenable us to reinvest in the future. But thereis not a chance of this happening at themoment,” says Clive.

“This mindset must change.”

share. Half the fruit we produce comes fromfarms we own.”

Looking to the future, Clive agrees with theGovernment that Britain must become moreself-sufficient.

A C Goatham and Son have been clients ofGullands for about 20 years, but Clive Goathamand Blair Gulland first met 50 years ago whenthey were eight-year-old prep school boys atEylesden Court School in Bearsted.

“I admire Blair’s old style values. He is totallyhonest and works very hard for the interests ofhis clients,” said Clive. “He istotally committed to theidentified goal and we knowwe are safe because Blair hasto be absolutely sure that weare doing the right thing. If Isign a document to purchase anew asset, I know that I cansign in confidence and thepeace of mind that comes fromthat is immeasurable.

“We all feel that we are lucky to have Blair on ourside. We would have been the losers in so manytransactions had not Blair been on our team atthe negotiating table,” he said.

Clive Goatham and son Ross proudlydisplay some of their Cox’s apples

‘Luckyto haveBlair onour side’

Moving premises? Don’t forget the Tax Man!

Helen Grant, the ConservativeProspective Parliamentary Candidate forMaidstone and the Weald, has officiallyopened our new reception facilities atGullands in Mill Street, Maidstone.

Helen, who is also a practising solicitor,cut the ribbon with Managing Partner,Richard Cripps and Chairman, BlairGulland.

“I was so pleased to be asked to openthe reception area at one of the county’sforemost legal firms.” said Helen.

Richard Cripps said: “Although visits toclients’ offices or homes can bearranged through our outreach policy,there are some who prefer to come intothe office, combining a visit with othertown centre appointments, and weaccept that if they do, we should makethem more comfortable.

“With that in mind we had plans drawnup to redesign and refurbish thereception area in Mill Street,” he said.

While in Maidstone, at the invitation ofGullands’ clients, Judith and FergusWilson, Helen, accompanied by herhusband, Simon, took the opportunity tomeet local farmers to discuss theproblems affecting the agricultureindustry. She also announced her plansfor a new Business Forum, which waslaunched in January, aimed ataddressing some of these problems.Helen said she intended to visit localfarms to “see for myself”.

While in Maidstone Helen also visitedthe Maidstone Fatstock Show beforeattending the annual Show lunch.

Lawyer Helen opens our new reception

Britain’s biggestprivate property

landlords, Judith andFergus Wilson, who

also own farms in themid Kent area, talk to

Helen Grant.

Leading dairy farmer,Peter Forknall,discusses agriculture’sproblems with HelenGrant and Gullands’Partner, PaulBurbidge, head of theCommercialDepartment (right).

Helen Grant gets upclose and personalwith a friend at the

Maidstone LivestockShow which she

attended while inMaidstone.

After fighting their case all the way to the House of Lords andlosing, Powys couple Andrew and Gail Wallbank have been forcedto sell their farm in order to pay for repairs to the chancel of theirlocal church and their legal costs in fighting their case.

When the couple first acquired the property, they were only vaguelyaware that it was ‘rectorial property’, which meant that it came witha legal obligation, under the Chancel Repairs Act 1932, to maintainthe local church at Aston Cantlow.

They thought this a mere technicality until they were presented witha bill for more than £200,000 for repairs to the 13th century church.They undertook a series of legal battles contesting the Church’sdemands.

Having lost their case, the farm was sold at auction for £850,000,

but only after a payment of £37,000 had been made to the Churchauthorities in order to remove the legal obligation to maintain thechurch from future owners.

Unless that had been done, the property was virtually unsaleable.Mr Wallbank had inherited the farm from his father and had beenunaware of the extent of the obligation attaching to the propertyuntil the demand was made by the local Diocese.

Stephen Tomlinson, Senior Partner and head of the ResidentialConveyancing Department said: “In any property transaction, it isessential to be aware of and understand any obligations attachingto the property or rights others may have over it. We can assist youto make sure your property acquisition does not bring with itunnecessary risks.”

COUPLE SELL FARM TO PAY FOR CHANCEL REPAIRS

www.gul lands.com

A champion rower from Maidstone will find things a little easier afterGullands have agreed to sponsor him for three years.

Morgan Hellen, from Bower Mount Road, is a 17-year-old pupilfrom Oakwood Park Grammar School and amember of Maidstone Invicta Rowing Club.

Gullands’ Partner, Leroy Bradley, said: “Weare delighted to be assisting a local lad whohas a very realistic chance of becoming anOlympic oarsman. We have helped other local youngsters in theirsporting endeavours in the past, and Morgan’s determination to getto the absolute top deserves encouragement. We hope hemanages to secure other sponsorship as well.”

Morgan, who is the son of Gullands’ client, Paul Hellen, proprietorof Solo Hairdressing salon in Bank Street, Maidstone, approachedGullands pointing out the expenses he incurs trying to fulfil hisambitions in the sport.

“Last year my parents spent £3,000 just on events andaccommodation, and that’s without travel costs, kit and myexceptionally large appetite!” he said.

Sporting activity runs in Morgan’s family. He has also representedKent at rugby but it is in the world of rowing that he has shown somuch promise. He has rowed for the Junior 18 GB team as a 16-

Morgan Hellen (right) is congratulated by Partner, Leroy Bradley.

It is widely thought that once a convictionis ‘spent’, it is erased from ‘the system’and simply ceases to exist. Regrettablyfor those who may have a youthfulindiscretion or two on their record, this isnot so, as is illustrated by a recent case.

The Information Commissioner sought torequire Humberside police to removefrom its records details of the convictionsof five people. The convictions were forminor offences – one example being aconviction for theft by a sixteen-year-oldthat led to a fine of £15. In each case theperson convicted had not been in troublewith the law subsequently.

The convictions were ‘spent’ under theRehabilitation of Offenders Act 1974(ROA), which provides that where thepunishment is a fine, a conviction is spent

after 5 years (21/2 years where the offencewas committed by a person under 18years of age) and in the case of aconditional discharge, at the end of theperiod of the condition. The ROAprovides that spent offences are to betreated for some purposes as if theynever occurred.

The Information Commissioner’sapplication to delete the records wasopposed by the police, who wereconcerned that acceding to the demandwould mean that more than a millionsimilar records of criminal offences wouldhave to be expunged from their files.

Their argument was that the use made ofthe records was appropriate – in dataprotection terms ‘adequate, relevant andnot excessive in relation to the purposes

for which they are collected’. In the viewof the police, the 'purposes' included theprovision of criminal intelligence to otherbodies, in particular the need to providefull records for disclosure to the CrownProsecution Service when required.

The Court of Appeal held that the value ofthe information to the police wassufficient reason for its retention. Whilstthe Information Commissioner had theright to supervise this, he did not havethe right to say for how long the datashould be retained or indeed to dictatethe specific purposes for which it couldbe used.

Since police policy is to retain suchinformation for 100 years, few people willlive to see a youthful conviction removedfrom the criminal records system.

Morgan, set to ‘pick upthe pace’ with our help

year-old in the European Championships, and won three gold andone bronze international medals in 2009.

When he was just 15 he was selected a year early for the Junior 16GB team and was national champion two years running in 2007/08as well as National Schools Champion in the double scull (2008)and in the pair (2009).

Every time he has entered the British Indoor RowingChampionships, he has won a medal.

“I hope to represent Great Britain at the Junior WorldChampionships in the Czech Republic in August and eventually torepresent my country in the Olympics,” he said. “I am thrilled toreceive sponsorship from Gullands.”

The Companies Act 2006 came intoeffect fully on 1 October 2009.

One of the advantages of the Act is thatit has made the incorporation of acompany easier by creating a new andsimplified set of model articles ofincorporation.

However, before you rush off and buy

CRIME IS WITH YOU FOR LIFE!

Companies Act model articles – Think before you leap

GULLANDS INTHE COMMUNITY

an ‘off the shelf’ company, pause toconsider this – it is usually much moresensible to start with the right articlesthan to amend ‘standard’ articles to saywhat you mean later.

Articles tend to be of little importanceto directors and shareholders until thecompany has ‘grown up’ a bit – bywhich time vested interests can bestrong and changes to the internal

regulations, such as alteration of sharerights and so on, can be difficult andfull of hidden pitfalls.

These sorts of issues can prove adisaster when there are discussionsongoing relating to the retirement ofdirector-shareholders or a proposedpurchase of the business or of ashareholding in it.

We can advise you on all mattersrelating to setting up in business.

The articles contained in this newsletterare for guidance only and legal adviceshould be obtained for specific issues.

Family break-up is always complicatedand when there is a property involved,things can get very complex indeed.

In principle, when a couple are cohabiting(not married or in a civil partnership) theproperty belongs as of right to whoever isshown on the deeds as the owner.

Where there are minor children, the courtwill put their interests first and willnormally ensure that their accommodationneeds are met until they reach the age ofmajority. The most common circumstancein which a specific arrangement isnecessary to secure the accommodationneeds of minor children is when themother and children live in a propertywhich is owned by the father. Sucharrangements may well involve asettlement into trust with the trust capital

(the property) reverting to the father whenthe youngest child reaches 18.

In some circumstances, the courts willconclude that there is a ‘constructive

Who gets the family home?

Until the recent publicity afforded by television shows on thesubject, many people might not have realised that ‘heirtracing’ companies exist, let alone that they research‘promising’ estates by looking at public records and thencontact potential beneficiaries of those estates.

The prospect of obtaining a windfall following a knock onthe door by such a firm makes many people only too glad tosign the contract offered, but quite often these can involvevery considerable sums being paid to the heir locators – afigure of 25 per cent of the inheritance is not uncommon.

It is often the case that your entitlement to an unexpectedlegacy can be achieved more economically. Many suchapproaches result from the firm researching into thebackground of substantial unclaimed estates and much ofthe work that is done can be done by an ‘amateur’(especially one with an interest in genealogy) without greatexpense.

Here are some things to think about if you are approachedby such a firm. Often, the details they give you will be scantyand will not include the likely value of the inheritance. The

withholding of critical information in order to make you signthe contract may make their agreement with youunenforceable.

Firstly, try to establish who the deceased is, yourrelationship to them and the value of the estate. The lattercan normally be found with a little research, as wills arepublic documents. The more distantly related to them youare and the more other possible beneficiaries, the less youare likely to receive.

Do not rush! If the visit arises because of an unclaimedestate, the estate will not pass irrevocably to the Crownuntil 30 years after the death of the testator, so there isnormally plenty of time. The Treasury Solicitor’s websitecontains details of unclaimed estates(www.bonavacantia.gov.uk), which is a good starting placefor your research.

If the approach arises through a solicitor, always ask thename of the solicitor.

We can help you understand your rights and negotiate with‘heir hunters’.

trust’, which arises as a result of thearrangements made by the couple. Insuch cases, it is necessary for the personclaiming an interest in the property whichis not the same as the legal interest todemonstrate this.

The courts in such cases will considerthe intentions of the parties involved.When one party claims a share in theproperty, the court will first ask whetherthere was an intention to share thebeneficial interest in the property. If theanswer to that question is ‘yes’, then thecourt will decide, on the basis of theevidence, what the nature andproportions of the couple’s shares shouldbe. Note that it must also be shown thatthe claimant relied on the commonintention to own the property jointly to hisor her detriment.

Factors which will help substantiate aclaim to a beneficial interest in a propertyin these circumstances will include:

� making a contribution to the costs ofpurchase;

� making a contribution to the mortgage,rates etc;

� making a non-financial contribution(such as working to renovate, improveor maintain the property); and

� making an indirect financialcontribution (e.g. paying otherhousehold bills so that the otherpartner can pay the mortgage etc.).

If you are facing a family break-up andwant to know what your legal rights are,contact Partner, Philip Dimond at:p.dimond@gullands.com

YOU’RE AN HEIR – NOW SIGN THIS AND PAY UP!

Owners of properties and other assetsabroad will be relieved to hear that theEuropean Union (EU) has brought forwardproposals to simplify the administration ofestates with a 'cross-border' dimension.

The EU estimates that there are some450,000 of these, but with more than400,000 people in the UK alone said to haveforeign property interests, and one in sevenmarriages in the UK being contracted withsomeone born abroad, this must surely bean underestimate.

The proposals stipulate that in cross-bordercases, the inheritance laws of the state inwhich the deceased last habitually residedwill apply in determining the division of the

estate assets, unless the will of thedeceased contains an election that theinheritance law of their native country shouldapply.

The inheritance law in several EU countriesis very different from that in the UK and, inparticular, many countries require thatestates are divided in a certain way. Thisgives much less flexibility than is availableunder UK law.

If you own property abroad, it is veryimportant that the inheritance law and taximplications are considered fully andappropriate arrangements made. We canadvise you on these issues. Contact PartnerAlex Astley at: a.astley@gullands.com

European inheritance law overhaul?

Gullands Solicitors16 Mill Street Maidstone Kent ME15 6XT

Tel: 01622 678341 Fax: 01622 757735 www.gullands.com mailbox@gullands.com

Government plans uninsured car blitz

With many companies suffering from theeffects of the recession, business ownerslooking for an exit are thick on the ground.

One problem those in this situation face isthat if their business is in a fairly weakfinancial position, it is difficult to take atough stance when negotiating over thestructure of the sale.

Whilst there are sometimes taxadvantages for a purchaser to buy theshares, in these uncertain times they oftenprefer to buy the assets of the companyinstead and thereby ensuring that they arenot taking on any unknown liabilities. Mostvendors will however prefer a share salerather than an asset sale because of theavailability of entrepreneur’s relief forCapital Gains Tax (CGT) purposes and theproblems with extracting the cash from acompany tax-efficiently if the assets of thecompany are sold. In practice,entrepreneur’s relief often means that amaximum rate of CGT of 10 per cent ispaid. Extracting funds by way of dividendmeans that the Income Tax dividend rateof 32.5 per cent is applicable.

One possibility is to put the company intoliquidation when the assets have beenreduced to cash. If this is done, thedistributions will be treated as distributionsof capital and taxed under the CGT rules.

The Department for Transport (DfT) hasannounced new measures to curb themenace of uninsured drivers, of whom ithas recently been estimated there aremore than two million in the UK.

Despite the fact that as many as 500vehicles being driven without insuranceare seized daily, and the ability of thepolice to impose a six-point penalty onanyone caught driving whilst uninsured, itis calculated that in Greater London,Manchester and Liverpool more than 10per cent of all cars are driven withoutinsurance.

The cost of uninsured drivers adds morethen £30 a year to every motor insurancepolicy and uninsured and untraced driversinjure more than 20,000 people annuallyand are responsible for the deaths ofmore than 150 people a year.

At the moment, it is only an offence ifsomeone drives a vehicle without havingmotor insurance in place.

Owners of vehicles that are not used onthe roads are not required to insure them.

SOLDSubject to Taxation

Says Partner, Paul C Burbidge

However, this can be expensive.

A second possibility is to dissolve thecompany informally. HM Revenue andCustoms will by concession treatdistributions in an informal dissolution ascapital distributions. However, thisapproach is not without problems. Acreditor of the company has 20 yearsfrom the date of an informal dissolution tomake a claim against the company (in aformal liquidation, the period is two years)– a long time to live with any uncertainty.

In the event that a capital distribution ismade, this will qualify for entrepreneur’srelief, provided certain conditions havebeen met for the 12 months prior to thedistribution. These are that the personclaiming the relief must have been anemployee or director of the company,must own more than five per cent of theshares and the company must be atrading company. Any such capitaldistribution must be made within threeyears of the cessation of trade.

Your business may well be the mostvaluable asset you own. It is essential thatyou plan your exit strategy carefully andpreferably early. High quality professionaladvice is crucial to maximising the benefitto you and your family.

For advice on selling your business.contact Partner, Paul Burbidge:p.burbidge@gullands.com

Selling yourbusiness – Taxconsiderations

A recent case saw the first injunctionto be served via a social networkingsite.

An unknown individual, who wasposing as the political blogger andsolicitor, Donal Blaney of Griffin Law,was served with a court order toprevent him from continuing underthat guise and to require him toreveal his true identity. Theinjunction, now referred to as‘Blaney’s Blarny Order’, wasgroundbreaking due to the fact thatit was served via the Twitter website.

The injunction was granted on thebasis that the Twitterer hadbreached Mr Blaney’s copyright. It isunderstood that the unknownTwitterer contacted Donal Blaneytwo days after the injunction wasserved and a four-figure sum wasagreed in settlement

PerformingRights LicencesLicensees will be pleased to knowthat an attempt by PhonographicPerformance Ltd. (PPL) to increaseby up to 200 per cent the cost oflicences to play music in publicplaces has failed because thecourt ruled that the proposedincreases were not reasonable.

As a result, holders of PPL licenceswill see increases of around the 10per cent mark.

For advice on any licensing matter,contact Partner, Leroy Bradley at:l.bradley@gullands.com

However, the DfT proposes to make it anoffence to keep as well as to drive anuninsured vehicle. Vehicles so identifiedwill be required to be insured and, if theyare not, will be subject to seizure anddestruction. A fine of up to £1,000 will alsobe levied on the vehicle owner.