In a continuing series, the Law Society's practice advice service offers guidance on a range of issues


Q What are the rates for stamp duty land tax (SDLT) in residential freehold transactions?



A SDLT is calculated in accordance with the rate tables contained in section 55 of the Finance Act 2003 for capital payments. Schedule 5 of the Act contains provisions relating to the calculation of SDLT on rent. Both section 55 and schedule 5 were amended by section 95 of the Finance Act 2005. Amendments to raise the threshold from £120,000 to £125,000 are contained in the Finance Bill currently going through Parliament. Schedule 6 gives the rates applicable to property in a Disadvantage Area (DA). Solicitors can carry out a postcode and ward search on the Revenue & Customs Web site to determine whether land falls within a DA (visit: www.hmrc.gov.uk/so/dis_relief_menu.htm). SDLT is calculated as a percentage of the whole of the consideration paid:



Not more than £125,000 - 0% (outside a DA)

Not more than £150,000 - 0% (within a DA)

More than £125,000 (or £150,000 within a DA) but not more than £250,000 - 1%

More than £250,000 but not more than £500,000 - 3%

More than £500,000 - 4%



Where the property is partly within a DA, the zero-rate band threshold applicable to the part within the DA is £150,000. However, all the consideration for the part outside the DA is chargeable at 1% or above.
Additional information is available from the Law Society's Conveyancing Handbook, 12th Edition (available from the Law Society bookshop, tel: 020 7320 5640) or by visiting: www.hmrc.gov.uk/so.





Q What is a Larke v Nugus letter?



A A letter requesting information about the circumstances in which a will was made has come to be known as a Larke v Nugus letter, following the case Larke v Nugus 2000 WTLR 1033.This type of letter may request some or all of the following:



How long you had known the deceased;

Who introduced you to the deceased;

The date you received instructions from the deceased;

Contemporaneous notes of all meetings and telephone calls, including an indication of where the meeting took place and who else was present;

How the instructions were expressed;

What indication the deceased gave that he knew he was making a will;

Whether the deceased exhibited any signs of confusion or loss of memory;

Whether and to what extent earlier wills were discussed and what attempts were made to discuss departures from the deceased's earlier will-making pattern and what reasons the testator gave for making any such departures;

How the provisions of the will were explained to the deceased;



Who, apart from the attesting witnesses, was present at the execution of the will and where, when and how this took place.

As long ago as 1959, the Law Society Council stated that a solicitor who acted for a testator in drawing up his will should, if the will becomes the subject matter of a dispute after the testator has died, make available a statement of evidence regarding the execution of the will and the circumstances surrounding it to anyone who is a party to probate proceedings or who the solicitor believes has a reasonable claim under the will, whether or not the solicitor acted for those propounding the will.



This recommendation was considered by the Court of Appeal in the above case. See the Law Society's Probate Practitioner'sHandbook, 4th Edition, which is available from the Law Society bookshop.




Q My client has requested a remuneration certificate, and the bill has been paid in full by way of deduction from monies received on account. Is he still entitled to a certificate?



A Yes. If a solicitor deducts his costs from monies held on account and the client objects in writing to the amount of those costs within the prescribed time (three months, or a lesser time specified by the solicitor which cannot be less than one month), the solicitor must immediately inform the client in writing of his right to obtain a remuneration certificate or to apply for assessment. The client then has one month in which to ask the solicitor to apply for a remuneration certificate. If a solicitor wishes to speed up the process, he should send the necessary information to the client with the bill. The client then has one month from that time to ask the solicitor to apply for a certificate (see the Solicitors (Non-Contentious Business) Remuneration Order 1994).





Q Can I reproduce the conveyancing protocol forms on a word processor?



A It is in the interest of both the solicitor and his client that uniformity of presentation should be maintained where forms form part of the TransAction scheme.The forms are Law Society copyright but may be reproduced by a solicitor on a word processor in a version that resembles the printed form as closely as possible. No additions, deletions, adaptations or alterations of the text of the printed version must be made. Additionally, each word-processed copy must bear in a prominent position the phrase 'This form is part of the Law Society's TransAction scheme' to indicate to readers that the document is a genuine reproduction of a protocol form. This guarantees to one solicitor that the other solicitor has not departed from the approved wording of the form.





Q Has the Law Society produced any guidance for solicitors on what advice we should give to our litigation clients about mediation and alternative dispute resolution?



A Yes. Further to the case of Halsey v Milton KeynesNHS Trust and Steel v Joy 2004 EWCA 576, practice advice was issued jointly by the Law Society's civil litigation and alternative dispute resolution committees. The advice relates to the provison of information on mediation and other alternative dispute resolution options available to clients before, and during, the process of resolving any disputes between the client and third parties (see 2005 Gazette, 16 June, 38).





Q My costs are about to be assessed. Is there any information available on the hourly rates allowed on assessment in my local county court?



A The Court Service provides details of guideline hourly charging rates. The most recent were published in January 2005 and are available on the Court Service Web site. Visit: www.hmcourts-service.gov.uk/publications/guidance/scco, appendix 2. There is a model solicitor-client costs breakdown in the schedule of costs precedents attached to the Civil Procedure Rules. This is the recommended format if the matter goes to assessment.





This column is compiled by the Law Society's practice advice service, tel 0870 606 2522, e-mail: lib-pas@lawsociety. org.uk. Comments relating to the questions should be sent to Practice Advice Service Manager, The Law Society, 113 Chancery Lane, London WCA 1PL. The service endeavours to ensure that the information provided is correct but does not accept liability for error or omission. Readers should bear in mind that this publication is intended for information purposes only and should not act on the basis of the information provided without verifying it first