TA6 Property information Form update
The TA6 form is a crucial document used in the UK property conveyancing process. It is part of a Law Society’s suite of forms and is officially known as the “Property Information Form.” The TA6 form is completed by the seller and provides detailed information about the property to prospective buyers. This information helps buyer make informed decisions and addresses any potential issues before the sale is completed.
Currently the TA6 covers 14 separate subjects with question to be answered by the seller. These are:
- Boundaries
- Disputes and complaints
- Notices and Proposals
- Alterations, planning and building control
- Guarantees and warranties
- Insurance
- Environmental matters
- Rights and informal arrangements
- Parking
- Other charges
- Occupiers
- Services
- Connection to utilities and services
- Transaction information
While currently completing a TA6 form is not mandatory. Omission or delay in providing the same may delay the sale. As you’re trying to sell your home, you’ll not doubt want to get a move on, so filling in the form as thoroughly as possible will get your sale off to a good start.
The form includes instruction to seller that they should:
- Complete the form to the best of your knowledge
- State if you don’t know the answer to any question
- Be accurate, if you give incorrect or incomplete information to the buyer, the buyer may make a claim for compensation from you or refuse to complete the purchase.
- Inform your solicitor immediately if you become aware of any information which would alter any replies you have given
- Give your solicitor any letters, agreement or other paper which help answer the question
In March 2024, the Law Society published the TA6 (Fifth Edition) Property Information Form. Initially, it was set to be mandatory for all Conveyancing Quality Scheme (CQS) firms from June 25, 2024.
The form has been updated to include information that the National Trading Standards Estate and Letting Agency Team (NTSELAT) says should be disclosed on a property listing. The idea behind the new form is that a client should contact their solicitor and complete this form earlier so that more information can be used for marketing the property. This should give buyers an increased knowledge of the property and reduce the likelihood of the transaction falling through at a later stage when extra information is revealed.
The Law Society President Nick Emmerson says: “Earlier contact between sellers and their solicitors may provide an opportunity to address any issues that could cause delays in the sale process at a later date. We hope that the TA6 will help facilitate the flow of information from marketing a property by estate agents through to the legal process. The aim is that having better informed buyer could help reduce both the time process takes and the number of sales that fall through.
The new form has been split into two parts:
Part 1 deals with material information which your estate agent will require, for instance, Council Tax Band, Physical Characteristics of the property or Building Safety while Part 2 deals with general information and should be completed. These include queries regarding Boundaries, Disputes and complaints or Transaction Information, etc.
While the intention behind the updates was to enhance transparency and efficiency in property transactions, several concerns have been raised regarding the practical implications and effectiveness of the new form. Here are some of the criticisms:
- Complexity and Length – Many argue that the new TA6 form is overly complex and lengthy. The increase level of details and additional questions may overwhelm both buyer and seller, leading to confusion and potential errors in completion. This could result in longer transaction times, as parties may require more time to understand and complete the form accurately.
- Increased Burden on Seller—The new TA6 form places a greater burden on sellers to provide detailed information about the property. This includes additional disclosures related to environmental factors, building work, and insurance claims. The increased burden on the sellers to provide detailed information and potentially obtain additional assessments or reports could increase the overall cost of selling a property.
- Uncertainty about Effectiveness—Some question the effectiveness of the new TA6 form in achieving its intended goals of improving transparency and efficiency in property transactions. There is uncertainty about whether the increased level of detail and additional disclosures will genuinely benefit buyers and sellers or simply add complexity to the process without significantly improving outcomes.
However, the Society of Licensed Conveyancers (SLC) has expressed its disappointment that the Law Society has updated the TA6 forms without their consultation. Simon Law, the Society Chairperson, says: “We are disappointed to note that the forms have been amended without consultation with either the SLC or the Conveyancing Task Force. Adding material information to these forms has drastically increased the size of the forms and information required.”
Following the backlash, President Nick Emmerson wrote an article in The Law Society Gazette addressing the concern, saying: “We have heard your feedback and want to explain in more detail the reasons behind the changes to the form, which was developed by a working group conveyancer with a wealth of experience of working on the transaction form. Our aim with the new TA6 is to help solicitors and consumers implement the NTSELAT material information guidance as seamlessly as possible.”
However, The Law Society has delayed the mandatory use of the updated TA6 form from June 2024 to January 2025. Ian Jeffrey, the Chief Executive Officer of the Law Society of England and Wales, explained, “We recognise that we have not yet persuaded enough of our colleagues on these particular changes, so we need to do more to communicate with the profession about them.” Until 15th January 2025, firms can use either the 4th or 5th edition of the TA6 form.
In conclusion, the updated TA6 Property Information Form, now in its fifth edition, introduces significant changes to enhance transparency and efficiency in the property conveyancing process. Mandated for use by Conveyancing Quality Scheme firms from June 2024, the revised form includes comprehensive disclosures recommended by the National Trading Standards Estate and Letting Agency Team. By requiring sellers to provide detailed information earlier in the transaction process, the updated TA6 aims to inform buyers more thoroughly and reduce the risk of sales falling through.
The change has not been without controversy. Criticisms focus on the increased complexity and length of the form, the additional burden placed on the seller, and doubt about the form’s overall effectiveness in achieving its goals. The Society of Licensed Conveyancers and many professionals in the field have expressed concerns, highlighting the need to balance thorough disclosure and practical usability. Hopefully, the delay will allow for these issues to be addressed and for better communication with the profession.
As part of our commitment to maintaining the highest standards under the Conveyancing Quality Scheme, Chan Neill Solicitors LLP will begin using the new TA6 form from 15th January 2025. Please do not hesitate to contact us for guidance or support. We will provide clear instructions and examples to help you complete the new form accurately. Our team will be available to answer any questions about specific sections or the information required.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
How will the arrival of the UK's new ruling party affect non-UK domiciliaries?
According to data from HMRC, the number of people applying for non-domiciled status in the UK has increased since the COVID-19 pandemic. In the 2022-23 fiscal year, approximately 74,000 people applied for non-domiciled status, up from 68,900 in the 2021-22 fiscal year.
In their inaugural speech, the new Labour government emphasised one of the main issues the UK is currently facing: a public sector funding shortage. To address this issue, Labour has pledged to abolish the UK’s non-domiciled tax status to raise more funds for the National Health Service (NHS) and other public service sectors.
Why would abolishing non-domiciled tax status help the government raise more funds? Today, Chan Neill Solicitors will explore the concept of non-domiciled status.
What is Non-Domiciled Status (Non-Dom)?
Non-domiciled status refers to the tax status of UK residents whose permanent residence or domicile is outside the UK.
A person’s tax status is not directly determined by their nationality or residency but can be influenced by these factors. Individuals with non-domiciled status only need to pay UK income tax on their UK-sourced income. They do not need to pay UK tax on their income from other parts of the world unless they deposit it into a UK bank account.
For UK individuals with significant overseas assets and who have moved abroad, having non-domiciled status can legally save them a considerable amount in taxes.
How Will the Non-Domiciled Rules Change?
In March 2024, then-Chancellor Jeremy Hunt of the Conservative Party announced plans to abolish the non-domiciled tax regime gradually. This means that UK citizens/residents who move abroad must also pay UK income tax on their overseas income.
Hunt plans that, from April 2025, individuals who move to the UK will not have to pay tax on their overseas income for the first four years, nor will they need to pay tax on distributions from non-resident trusts. These funds can be freely brought into the UK. However, during these four years, individuals will lose the right to personal and annual tax-free allowances for corporate income. After four years, these individuals must pay tax on their global income and gains according to normal UK resident tax rules.
Current non-domiciled individuals will have a two-year transition period. Until April 2027, they will receive a tax discount on overseas income, with only 50% of overseas income being taxed. From April 2027 onwards, the UK will tax all their overseas income.
After taking office, the Labour government revealed plans to uphold the April 2025 abolition of the non-domiciled regime but also announced intentions to strengthen these planned reforms.
Labour stated that in the first year of implementing the new rules, the 50% discount would be eliminated, and foreign assets held in trusts would be brought into the UK inheritance tax framework.
New Chancellor Rachel Reeves stated that Labour’s reforms could raise £2.6 billion for the government during the 2028/29 fiscal year.
How to Become a Non-UK Domiciled Individual?
There are two main conditions and methods for obtaining non-domiciled status:
- Birth Origin: You were born in a country outside the UK, or your father is from abroad.
- Domicile of Choice: You are at least 16 years old and choose to leave the UK and permanently reside in another country.
What Are the Current Rules for Non-UK Domiciled Status?
If you are a non-domiciled individual and choose not to pay UK tax on your overseas income, you must pay:
- £30,000 if you have lived in the UK for at least 7 out of the last nine tax years.
- £60,000 if you have lived in the UK for at least 12 out of the previous 14 tax years.
In 2017, the non-domiciled rules changed, meaning you can no longer apply for this status if you have lived in the UK for 15 out of the last 20 years or if you meet all the following conditions:
- You were born in the UK.
- Your domicile of origin is in the UK (i.e., your father is from the UK).
- You have lived in the UK for at least one year since 2017.
However, if your annual foreign income is less than £2,000 and you do not bring this money into the UK, you do not need to pay any tax on your overseas income.
If you are concerned about the impact of these reforms on your assets, we recommend consulting with professionals to strategically plan your assets and minimise the reform’s impact on you. Our professional legal team can help you plan your assets from various perspectives, including business, real estate, and immigration.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com
Understanding the Building Safety Act 2022: Why Do We Need It in Conveyancing Practice?
The Building Safety Act 2022 represents a landmark legislative endeavour aimed at addressing the systemic failures and deficiencies exposed by incidents such as the Grenfell Tower tragedy. The fundamental purpose of the Act is to provide a framework for maintaining the integrity and safety of high-risk residential buildings and thus ensuring public confidence. The purpose of this article is to investigate the Building Safety Act 2022 and seek an explanation as to why its implementation in conveyancing practice is crucial for protecting stakeholder interests.
What are the new roles created by the Act?
Chief among these roles is the establishment of the Building Safety Regulator (BSR), tasked with implementing standards, conducting inspections, and enforcing adherence to regulatory standards, thereby representing a shift in the regulatory landscape. The Act also introduces the designation of the 'Accountable Person,' who is responsible for ensuring that high-risk buildings are safe and maintaining effective, productive communication with residents. These new roles represent a fundamental shift in the regulatory landscape, emphasising the importance of proactive risk management and stakeholder engagement.
The Building Safety Regulator (BSR)
BSR presents a thorough strategic framework, the timeframe of which extends from the implementation of the Building Safety Act 2022 to April 2026 and beyond. The strategic framework presents the following main objectives:
- Implementing strict safety measures for high-risk buildings, covering the aspects of design, construction and ongoing maintenance.
- Undertaking thorough audits and inspections to identify safety hazards and enforce adherence to regulatory standards.
- Cultivating effective communication with stakeholders, such as industry professionals, residents and owners, to facilitate accountability and transparency.
- Offering building owners and managers support and in enacting measures aimed at proactive risk management and adequately amending safety concerns.
- Enabling residents to access vital information about the safety of their residence and participate in the safety management process.
- Responding to emerging challenges and lessons learnt from previous incidents by continuously assessing and amending regulatory frameworks.
- Cooperating with government agencies, regulatory bodies and industry stakeholders to promote best practices and innovations in building safety.
The principles in the strategic framework aim to instil public confidence in high-risk building safety and reduce the likelihood of catastrophic incidents. By fostering proactive collaboration and engagement, the BSR seeks to ensure the long-term well-being of building residents and their communities. The framework also highlights the importance of informing clients about all potential liabilities and risks associated with their investments.
Definition of a High-Risk Building?
A high-risk building is defined based on several factors, such as construction materials, occupancy, and height. High-risk residential buildings that are found to exceed the height threshold are categorised as high-risk given the potential for structural vulnerabilities and the spread of fire. In addition, buildings featuring historical deficiencies, complex facades, or mixed-use occupancies may also be categorised as such.
Accountable Person
The role of Accountable Person is responsible for ensuring that high-risk buildings are safe and maintaining effective, productive communication with residents. The implementation of this role presents a duty of care to property owners and managers, enforcing mandatory proactive measures for identifying and amending all safety hazards. From the perspective of conveyancing, this requires careful scrutiny of the role of Accountable Person in order to alleviate the risk of accidentally transacting in properties beleaguered by issues related to safety.
Conveyancing practitioners play a crucial role in facilitating transparency and dialogue between sellers, buyers, and stakeholders, ensuring everyone is aware of their obligations. Promoting open communication enables practitioners to enhance risk mitigation and accountability within the real estate sector.
The Building Safety Act 2022 enhances residents' rights and protections, granting them access to vital safety information about their homes. This fosters engagement and transparency, empowering residents to actively participate in safeguarding their communities and promoting collective responsibility and vigilance. For conveyancing practitioners, it underscores the importance of helping clients make informed decisions and understand their rights as homeowners.
In summary, the Building Safety Act 2022 is pivotal in ensuring safety, transparency, and accountability in the built environment, transforming real estate law. Its implementation in conveyancing is both a legal requirement and a moral imperative, demanding proactive client advocacy and risk management. Conveyancing practitioners who fully embrace the Act's principles can safeguard their clients' interests, promote safety and integrity in built environments, and uphold high standards of ethical conduct and professionalism.
This article is provided for general information only. It is not intended to be and cannot be relied upon as legal advice or otherwise. If you would like to discuss any of the matters covered in this article, please contact us using the contact form or email us on reception@cnsolicitors.com