Prism November 2019

News and views from

An

evening with Kevin Keegan

The Dunelm Foundation Historic multi-million-pound development Simon Robinson’s major role Life at Atom Bank

An interview with Laura Farnworth

Contents

03

Welcome

Partner and Head of the Dispute Resolution department, Jonathan Moreland, introduces us to the latest news and insights.

04 - 05 Ask the Expert

Victoria Walton explains some of the costly pitfalls of leasing commercial premises.

08 - 09

Further growth at Swinburne Maddison

Partner’s retirement leads to two new appointments.

16 -17

Joint Ventures: Getting the right deal

Martyn Tennant explains Joint Ventures and how to know if this is the right option for you.

10 -11

Simon’s Major Role Muli-million-pound development of historic Lambton Estate.

06 Partner joins County Durham Growth Fund Panel

We are pleased to announce that Jonathan Moreland has joined the panel of the County Durham Growth Fund.

07 Three Questions

David Low shares what led him to specialise in Litigation work.

12-13

Find out more about our CSR initiatives.

14 -15 An Evening with Kevin Keegan

The first annual sportspersons dinner for the Dunelm Foundation.

18 -19 Striking the right balance

Head of Legal at Atom Bank, Laura Farnworth, takes us through what it’s like to work for the UK’s most trusted bank.

20

Inheritance tax payments hit new record high.

There was a 3.1% increase in HMRC’s annual receipts in 2018/19 but are some of these payments preventable?

21 When Wills become complex

Find out why every Will is different.

22 - 23

Durham transformed into a glittering gallery without walls

Lumiere celebrates it’s 10th anniversary.

We are a firm that cares…

Welcome to

Welcome to the second instalment of Prism, Swinburne Maddison’s very own publication bringing you the latest news and insights from our team, clients and the local community.

Over the summer months we have been extremely busy working on some of the region’s key deals and projects, including the historic multi-million-pound development of Lambton Estate, and helping our private clients with the matters closest to their hearts.

In May we said farewell to founding Partner of the firm, Philip Robson as he embarks on his well-earned retirement, golfing from dawn ‘til dusk and spending time with his family. Philip’s departure led to the recruitment of residential property solicitor Andrew Allon and the promotion of Ashley Garthwaite as she commences her training contract with the firm.

In addition to these exciting changes within our residential property team, we are very pleased to announce six further well-deserved promotions across the firm and the recruitment of family solicitor, Natalia Lalas, highlighting our continued commitment to staff development and recruitment as well as our drive to offer clients a broader range of specialist legal services.

As a firm we are incredibly proud of the close client relationships that we have developed over the years, one such example being the relationship we share with our neighbours, Atom Bank plc. We talk to Laura Farnworth, Head of Legal at the digital banking giant who reflects upon the rapid growth of the bank since its launch in 2014.

With the festive season approaching, we celebrate one of Durham City’s most anticipated winter spectacles: the majestic Lumiere festival. Celebrating it’s 10th anniversary this year, the festival took place across the City on 14th – 19th November 2019 and we share some of the highlights in our feature on pages 22 and 23 of this issue.

Finally, we recount the firm’s recent charitable activity, including support at the Durham City Run, pro-bono work for the Dunelm Foundation (and meeting football legend, Kevin Keegan at the charity’s first sportsperson’s dinner!) and tackling the world-famous Great North Run on behalf of St Cuthbert’s Hospice.

For our final headline fundraising activity this year, we will be collecting donations for The Trussell Trust – Durham Foodbank and for our Changing Lives – Reverse Advent Calendar campaign, full details of which can be found on the News section of our website.

It is at this point when I would usually take a moment to look forward to the coming year and offer a glimpse of what news and features we might be covering in our next issue. Yet, with the uncertainty of a festive general election ahead of us, I think I’ll hold off on any predictions and simply sign off by wishing all of our staff, clients and friends a very Merry Christmas and a Happy New Year.

Leasing commercial premises

5 costly pitfalls and how to avoid them

During my 20-year career as a commercial property lawyer, I have been contacted by a lot of business owners in need of urgent legal advice because they are trapped in a lease they cannot afford or have received a demand for unforeseen costs from their landlord.

Experience has shown me that there are 5 areas in particular which can catch a tenant out. By understanding a bit more about these potential pitfalls before you begin negotiating terms for a commercial lease, I am confident you will be able to make significant savings for your business or at the very least ensure that you have a full picture of potential costs going forward for budgeting and cash flow purposes.

1 Rent

There are a number of things to keep in mind when reviewing the rent provisions of a lease:-

frequency of payments (likely to be quarterly in advance but monthly/weekly payments may be preferable for cashflow); whether or not there is a rent-free/reduced rent period (particularly if works are needed to the property when you go in); whether or not the rent is to be reviewed (and, if it is, when, and how? Are you satisfied that the review mechanism works?)

These are all terms which the landlord may be prepared to negotiate on, even if he does not advertise the fact at the outset.

2 Repairing Obligations

Repairing obligations are notorious for catching people out and many tenants are shocked to learn that their liability is far greater than they realised. I cannot stress enough how important it is to check the specific wording of the lease and make sure that you know exactly what you are responsible for.

If left unchallenged, there is a real risk that the terms of the lease will not only require a tenant to keep the premises in good repair but actually require them to put the property into good repair, even if it wasn’t in good repair when the lease was entered into.

There are measures available to protect your position if you obtain proper legal advice as early as possible.

3 Service Charges

As with repairing obligations, tenants often do not understand the extent of their service charge liability. Even if a tenant is leasing a small part of a building, they could be responsible for contributions towards extensive structural repairs.

I would advise that a tenant should always:request a copy of the last 3 years’ service charge accounts to see what has been charged in the past; enquire whether there is a sinking fund available; find out whether the landlord is aware of any items likely to require significant expenditure in the next 3 years; consider asking for a cap on the service charge.

4 Length of Term / Break Clauses

Deciding how long to commit to a lease is a big decision for a tenant, particularly in today’s uncertain market. In order to try and minimise the financial risk associated with a longer term, a tenant may wish to request a break clause; something which, if exercised, would allow the tenant to terminate the lease before the end of the agreed term.

However, please remember that tenants are required to pay SDLT based on the full length of the term (irrespective of any break date in the lease) and are not entitled to any refund from HMRC in the event that the lease is brought to an end sooner.

5 Alienation

Not as exotic as it sounds, alienation is a term used to describe the process by which a tenant passes the lease on to another party. Many people believe that a tenant can sell on its lease whenever it wants to but that is not necessarily the case.

In the event of a sale, it is likely that the landlord will require the tenant to enter into an Authorised Guarantee Agreement (AGA). An AGA will usually require the original tenant to guarantee the performance of the ingoing tenant, meaning that they could be required to make future payments if the ingoing tenant fails to perform any of the obligations under the lease. In some circumstances the original tenant can actually be required to take the lease back on.

Please note that this is not an exhaustive list of the potential risks facing a tenant of commercial premises. Early discussion with professional advisors, including your lawyer, will help to make sure you identify any potential issues from the start and that measures are put in place to protect you and your business for the duration of the lease and beyond.

YOUINCASEMISSEDIT

Partner joins County Durham Growth Fund Panel

We are pleased to announce that Partner, Jonathan Moreland, has joined the panel of the County Durham Growth Fund.

The County Durham Growth Fund is a £4.9 million grant scheme funded by the European Regional Development Fund (ERDF), designed to provide grant support to SME’s in County Durham for capital investment projects with the aim of creating quality jobs in the private sector.

The three-year programme, managed by Umi in partnership with Business Durham, runs from 1st April 2019 to 31st March 2022, whereby applicants can apply for up to 40% of the value of a specific project. The final date for projects to be completed is 31st December 2021 and jobs must be in place by 31st December 2022 in order to receive the grant.

Jonathan, Partner at Swinburne Maddison LLP, joins the investment panel which consists of up to 12 voting members, across varying sectors, and draws representation from the local business community. Jonathan heads up the Employment and Dispute Resolution teams at the firm, acting for business owners across the region, and brings the benefit of his extensive experience to his new role.

Jonathan commented, “ I am delighted to have been given the opportunity to join the County Durham Growth Fund Panel. This fund is a great opportunity for businesses already based within the County Durham area and for those wishing to expand into the area to invest in their organisation and improve prospects for the next generation.

The panel is comprised of professionals across varying sectors, so we are able to combine our individual skills and experiences and apply our own professional litmus tests when deciding whether or not a particular investment is viable for both the fund and for the business.

In the first three months of the fund being launched the panel has provisionally granted around £2m across ten businesses, in different sectors, leading to the creation of 200 jobs in the County Durham area.

Jonathan explained, “ Umi do a fantastic job in working with the applicants to prepare the high calibre of applications we receive. They ensure transparency when mapping out the process as to how the investment will help to achieve future employment.

The panel is required to consider set criteria against each application and then decide whether to approve (with or without conditions), decline or defer the said application. The set criteria includes the following considerations:-

Is the project viable for the business?

What is the minimum grant necessary for the project to complete?

Can the applicant demonstrate that the investment will result in a net increase of jobs?

Will the grant negatively impact other County Durham businesses? Does the application fit into the portfolio of other invested businesses?

If you are a business in the County Durham area, looking to invest in a capital project and can demonstrate that it will result in future employment, you may be eligible to apply for County Durham Growth Fund.

For more information on the fund and the criteria, please visit countydurhamgrowthfund.co.uk

Three Questions

3What has been your greatest achievement at Swinburne Maddison?

I completed my undergraduate Law degree at the University of Leeds and then my Legal Practice Course in York. I was very keen to have the full “University experience” and move away from my home city of Aberdeen after finishing my schooling. I am the first lawyer in my family (so far as I am aware) and so my choice of degree was very much led by school careers advisors who seemed keen to direct me into either medicine or law; at that time I had a bit of a phobia of blood so there was only really one choice! It wasn’t until I started my degree that I realised how much I enjoyed law and started really looking into the subject from a career perspective.

2

Litigation work?

When I applied for a training contract with the firm in 2007 I really wasn’t sure what area of law I wanted to practice. That year the firm was looking to take on two trainee solicitors and at interview I was asked whether I would be interested in starting in litigation or in non-contentious property. I was caught a little off guard by the question as I didn’t really know but I decided in that moment that litigation would probably suit my skill set and I was very keen on experiencing Court work first hand. It was definitely the best decision I ever made as now I cannot imagine doing anything else!

I could name a number of specific cases where we have managed to achieve some fantastic results for our clients, but in all honesty my greatest achievement has been my progression through the firm and achieving Partnership at the age of 29. This has been down to all the Partners in the firm (past and present) and the amazing people I work with. The whole firm has really encouraged and supported me to achieve my goals and develop a caseload which I enjoy; it is busy and challenging but making a positive difference is hugely rewarding.

1Where did you study law and why did you want to become a lawyer?

Why did you want to specialise in

Further growth at Swinburne Maddison

Partner’s retirement leads to two new appointments

The recent retirement of one of the founding partners of Swinburne Maddison, Philip Robson, initiated some changes within the residential property team this year, as the firm strengthens its position in a competitive market.

As one of County Durham’s leading law firms, we have continued to experience steady expansion in recent years and this is no less true within our residential team, which newly appointed solicitor, Andrew Allon, has joined.

Qualifying in 2011, Andrew has over eight years of experience dealing with a diverse range of property matters, including professional negligence claims and housing issues. For the last three years, Andrew has concentrated predominantly on residential Conveyancing. This experience has enabled him to take on Philip Robson’s case load together with looking after new residential clients and their property transactions.

As Andrew’s previous role was with a specialist online firm, which meant that most legal work was done over the telephone or email, he is looking forward to building relationships face to face, as he explains:

“ I am really looking forward to the opportunity I have been given to work for Swinburne Maddison. I am eager to grow the department and pleased to be able to build client relationships one to one. The firm has a great reputation and the residential department is very busy, providing the opportunity for career progression too in the future.

An internal promotion has led to the creation of a second role within the residential team, this time for a trainee solicitor. Ashley Garthwaite, who joined Swinburne Maddison in 2016, exemplifies the firm’s commitment to training and recruitment from within.

Ashley joined Swinburne Maddison as a secretary in the residential department to gain practical experience. However, with a law degree and an LPC qualification already under her belt, it wasn’t long before she was promoted to paralegal, assisting Philip Robson and his team. She said:

“ Working at Swinburne Maddison has opened my eyes to the different opportunities available and being able to work alongside great colleagues too, there is nowhere else I would rather be. I am so grateful I applied for a training contract and for the opportunity I now have and look forward to learning from the best. Since joining Swinburne Maddison, my career has gone from strength to strength.

Expansion in the family team

We were also very excited to welcome a highly experienced lawyer and Deputy District Judge to our Family team.

Natalia Lalas, who was appointed as a Deputy District Judge in March this year, has Higher Rights of Audience, which allow her to represent clients in all courts. She was also the first solicitor in the Teesside area to qualify as a collaborative lawyer. She has lectured on the law relating to financial cases following divorce and acts as a specialist family solicitor for Durham Police Federation, representing police officers and employees across a wide range of issues.

She joins Swinburne Maddison as an associate solicitor and will work with clients seeking advice on divorce, financial matters, children, cohabitees and surrogacy.

Joining a well-established department within the firm, she will complement the skills of the existing team and create strength in depth within the department, helping to further consolidate the firm’s prominent position in the marketplace.

Excited to develop the role, Natalia said:

“ Swinburne Maddison is an award-winning law firm which already has an outstanding reputation for its work across all service lines and I am delighted to have the opportunity to become part of its highly talented team.

This is a superb opportunity to build on my experience and to enhance the range of legal support already on offer at the firm within the family department.

Associate promotions across the firm

In addition to the wealth of talent which Swinburne Maddison has recruited from elsewhere in the region this year, we are also very proud to announce the promotion of 6 new associates across the firm.

These promotions recognise the experience and dedication which each of these individuals bring to their respective teams and their ongoing commitment to the growth and success of Swinburne Maddison as a whole.

Huge congratulations to Helen Griffiths, Jennifer Purvis, Sharney Randhawa, Nadine Walton, Mike Ward and Abigail Zuk.

Swinburne Maddison currently employs 56 staff and partners.

Simon’s major role on historic multi-million-pound development scheme

Building on a relationship spanning several years, Partner, Simon Robinson, is pleased to see the multi-million-pound development of Lambton Estate, near Bournmoor, Chester-le-Street, now finally underway.

Described as one of County Durham’s ‘hidden gems’ which had fallen into decline, the planning consent obtained for the development of part of the Lambton Estate some three years ago will see the renovation of the Grade II listed Lambton Castle, architect Ignatius Bonomi’s Lamb Bridge and castle stables and the construction of many new homes together with associated commercial and retail development.

Over the last few years, Simon has played a major role in assembling the site for sale, acting on behalf of client, Theakston Estate Company Limited (Theakston) alongside the Trustees of Lambton Estate.

It is the latest in a long succession of instructions involving Simon and Swinburne Maddison for Theakston. Others include the sale of a site in Yarm to Barratt and Bellway comprising around 300 units as well as other developments that these parties are involved with

at Peterlee and Durham; further sites in Yarm, a site in Eaglescliffe, a collaboration with Darlington Borough Council in respect of the development of around 4,500 houses for the north of Darlington and land at Sniperley, Co Durham.

For the moment, Simon can catch his breath a little, while construction work progresses with development partner Miller Homes, who bid for and secured the first site to come to market, at the eastern entrance to Lambton Park. Miller Homes will build 106 three, four and five-bedroom bespoke homes designed by Ben Pentreath and refined by POD architecture, along with one, two and three-bedroom apartments.

The overall project was granted planning permission by Durham County Council for new homes, offices, retail and community space in 2016 as part of the Estate’s strategy to develop and sell an area of land for high quality, environmentally friendly housing with some commercial and retail use with an emphasis on creating a community feel.

As Simon, explains, the first phase under construction is extremely important because homes built here must reflect the development team’s ambitious aspirations for the site, demonstrating both the heritage of the estate and the highest levels of quality and aesthetic appeal, because they set the tone for future phases. He said:

It is satisfying to see construction work now getting underway. I worked on this project before I joined Swinburne Maddison, acting as legal adviser to Theakston at the time the option to purchase certain areas of land was taken up. My instruction in this matter followed me to my new role and I have since negotiated several supplemental agreements and a Section 106 planning agreement.

It has been necessary to work very closely with the Trustees of the Lambton Estate’s solicitors, Withers Worldwide LLP in London, together with the solicitors for Miller Homes Limited and GSC Grays, the managing agent acting on behalf of Lambton Estate. Since all documentation had to be approved at every stage and by all parties, this was both a complex and challenging process. The overriding aim was to keep the transaction on track, so my longstanding relationship with Theakston and my knowledge of the various projects has been particularly helpful.

Theakston director, Chris Harrison, appreciates Simon’s wide-ranging expertise and diligence. He said:

After many years of hard work covering planning, architectural, commercial and legal issues it’s great to see diggers on site and the first phase being implemented.

At all stages of the project Simon has provided commercially astute legal advice, ensuring a robust contractual framework, within which the development is now being delivered. It’s a testament to Simon’s hard work and tenacity that, despite three sets of solicitors being involved, the transaction moved swiftly and smoothly with all parties being focused on completing the deal.

Simon continues to advise on future phases of the Lambton Park project alongside other development proposals Theakston is involved with and is recognised as a leading solicitor in the property sector. Over the years he has handled many complex transactions on our behalf and is a valued member of the team.

Following on from the residential development will be the construction of a community hub, offering opportunities for local business to take up space and providing amenities for the residents and workers at Lambton Park.

The revenue streams created from the development will be used to restore the heritage assets of Lambton Estate and open up around 15km of previously private pathways within this superb parkland setting for the benefit of members of the public, businesses and house buyers.

We are a firm that cares…

As a result, Swinburne Maddison is firmly committed to contributing to the progress, development and wellbeing of the North East’s businesses, organisations and communities. We do this, not only through the legal advice and services we provide, but also by offering sponsorship, supporting events and encouraging the individual efforts of our dedicated colleagues.

Here are some of the ways we have been helping to make a difference lately.

Making a splash at the Durham City Run

On the hottest day of the year, we rallied together a group of volunteers from our team to assist with the Durham City Run.

The annual event, which gives runners the choice of a 5k or 10k route, is one of the more scenic courses the region has to offer, starting at the ancient Market Place then weaving through the historic buildings and along the scenic riverside before finishing up at Palace Green, on the doorstep of Durham Cathedral.

Not only did some of our solicitors take part in the races, raising money for charity, we were also very proud to sponsor the first water station, providing muchneeded hydration (and hearty cheerleading) to thousands of very hot runners!

Hats off to everyone who took part –we think you’re all amazing.

We are incredibly proud of where we’re from and to be part of the community around us.

St Cuthbert’s Fundraising

We have been a longstanding supporter of St Cuthbert’s Hospice, raising awareness and, crucially, funds in order for them to continue their vital work providing palliative care for individuals suffering with cancer and support for their families.

At a time when charities are facing a range of financial and other challenges, it is more important than ever for us to be a socially responsible business and to give something back. We simply couldn’t do this without the support and enthusiasm of our fantastic team who, year on year, come together to raise money in innovative ways, whether this be through office “bake-offs” or charity pamper evenings in collaboration with students from the local collage.

This year, Associate Solicitor, Abigail Zuk, and Trainee Solicitor, Rory Ogden, took part in the Great North Run, raising over £700.00 for St Cuthbert’s. Phenomenal effort guys!

We were also very proud to see our Managing Partner, John Davison, appointed to the charity’s board of trustees in the summer of 2018 and, more recently, to its governance committee.

Christmas Food Appeal

For the majority of us, the thought of going hungry at any time of year, not least over Christmas, is unimaginable. And yet December continues to be one of the busiest months for food banks. This is why we are calling on our team and clients to support us with our 2019 Christmas Food Appeal.

Each year we donate food, toiletries and Christmas treats to our local Trussell Trust food bank in Durham which provides nutritionally-balanced emergency food and supplies to families and vulnerable individuals in the Count Durham area. This year we will be expanding our efforts to include a reverse advent calendar campaign on behalf of Changing Lives.

We began collecting items for the Changing Lives appeal on 4th November and will be continuing to accept donations until Monday 2nd December, at which time our Christmas Food Appeal drop off point will open. Any donations for either cause would be very gratefully received.

For more information, please visit the News section of our website or contact Lauren Rutherford on 0191 384 2441.

An evening with Kevin Keegan

Friday 4th October 2019 saw the first annual sportspersons dinner for the newly formed Dunelm Foundation which raised an astounding £25,000.00 for local charities and an oversees project.

The inaugural event held at Ramside Hall Hotel and Spa was opened by compere for the evening, Phil Hourigan, as he welcomed guests to the stunning ballroom and invited everyone to dig deep for the important causes which the Foundation supports.

Star guest and North East football legend, Kevin Keegan OBE, entertained guests with anecdotes from his playing career, including an impeccable retelling of his first encounter with Peter Beardsley and a story about an unfortunate misunderstanding on his debut for Liverpool F.C., which saw him refused entry to the players car park and asked to park across the road with the fans. Kevin also spoke of how football has changed over the years and his hopes for the future.

The generosity in the room was wonderful to see as Keith Johnson once again took his place on stage to auction prizes including spa days, private cinema screenings, dinners and the iconic Hartlepool Football, which was signed by Kevin Keegan. The highlight of the bidding came when Kevin himself won two tickets to see Manchester City play Newcastle United at Emirates, then he immediately offered one of these tickets back up for auction for a guest to accompany him. This resulted in the total Lot going for a staggering £3,500.00!

The evening concluded with entertainment from comedian and impressionist Kevin Connelly.

Reflecting on the evening, Chairperson, Dale Lever said:

“

I would like to thank everyone who attended the evening and for their generosity. £25,000 is an astonishing amount to raise, especially for our first event as the Dunelm Foundation.

The event would not be possible without our dedicated committee members and support from our sponsors.

About the Foundation

Kath

“

The new foundation still has the same ethos that we adopted when previously fundraising for Barnardo’s, only now we are now able to support projects closer to home which are in need of vital funds.

We were overjoyed to kickstart the fundraising with such an incredible total from our first sportsperson’s dinner. Thank you to everyone who came along to show their support and who gave so generously on the evening.

It would be remiss of us to talk about the Dunelm Foundation without first mentioning it’s predecessor, the Barnardo’s committee, which was formed over 25 years ago under the guidance of Keith Johnson, to raise vital funds for the Barnardo’s children’s charity. During that period, Keith and the other dedicated committee members, including our very own Kath Hill, raised almost £400,000.00 for the charity through the success of their annual sportsperson’s dinner.

In May 2019, after 25 years of dedicated service to the cause, Keith stepped down from his role as Chairperson of the Barnardo’s committee and, with the help of Partner, Alex Wilby, who undertook the work on a pro bono basis, the Dunelm Foundation was incorporated.

It was agreed that the new not-for-profit organisation, which welcomed some new faces alongside many of the original Barnardo’s committee members, would continue to host the annual sportsperson dinners, with a new focus; to fundraise for a range of local charities and projects, plus one oversees project.

Joint Ventures: getting the right deal

There are a number of ways in which parties can cooperate. Most commonly a special purpose vehicle (company or limited liability partnership) is used for the venture. However, joint ventures can also be implemented by formal partnerships or under simple contracts.

The approach chosen will depend on the nature of the venture, the parties’ respective approaches to risk and, often, tax considerations.

Why enter into a joint venture?

Joint ventures can be a useful way of delivering a particular project or business venture, but there are many issues to consider upfront to ensure that the arrangement is workable from both parties’ perspective.

Common drivers for joint ventures include:

Changes in political and economic conditions such as deregulation and technological developments.

Establishing non-core businesses.

Exploiting new geographical markets.

Entering new market sectors.

At its simplest, a joint venture does what the name describes: two (or, sometimes, more) parties get together to act jointly in business.

Martyn Tennant

Joint ventures are typically utilised as part of strategic planning and in particular to share risk and cost between the joint venture parties. This is of particular importance if the parties are progressing with a concept that is new to both or either of them. In addition, the bringing together of resources will often result in improved efficiency and effectiveness due to increased capacity, improved expertise and shared insights.

Planning your joint venture

Nevertheless, because embarking on a joint venture can require significant reconstruction of your business, careful planning is needed, however favourable it may appear to your potential for growth. The joint venture must fit into your overall business strategy.

By reviewing your business strategy before committing to a joint venture, it will be easier to define what you can realistically expect. In fact, you might decide there are better ways to achieve your business aims.

Another factor, often overlooked, concerns competition law. There is a common misconception that competition and anti-trust law will apply only to the largest of joint ventures. This is not the case. If the impact of the joint venture has a bearing on consumer choice, even if limited to a specific geography, this will be an important consideration requiring clear advice.

If you decide to proceed, you will need professional advice to ensure your exposure to failure can be limited by use of the right structure, clear documentation setting out the rights and obligations of the joint venture parties and the right funding arrangements. Issues to be addressed include:

Structure – what vehicle should be utilised for the project?

Purpose – do both parties have the same objectives?

Contributions – will these be balanced or will the funder be the senior joint venture party?

Culture – do both parties share a business culture or does this need to be addressed to avoid difficulty once the project has commenced?

Dispute Resolution – in any joint venture, points of difference will arise; clear lines of communication and escalating resolution procedures can assist with smooth progress.

A written agreement is essential

However a joint venture is structured, it is vital that the terms of the deal are recorded in writing. This is to ensure that both parties understand not only what is required of them in terms of funding and day-to-day operation but also what will happen if things go well or go badly.

Any agreement should, as a minimum, address:

Objectives and

Any time limits and exit planning

Deadlock in 50:50 joint ventures and protection of minority interest in others

Restrictions around the disposal of any interest in the joint venture

Governing law and jurisdiction

How we can help

Swinburne Maddison LLP have a vast amount of expertise in dealing with joint venture projects of varying scale and degrees of complexity, including those with cross-border implications.

Planning ahead is the key to success and working to an agreed framework and understood position can be key to a positive outcome.

We work with your other advisors to ensure that any project has the best chance of success.

Striking the right balance

- a key feature of Laura’s life

You might expect someone who is Head of Legal in what has been voted ‘the most trusted UK bank’ on Trustpilot, to be a serious, reserved person. Think again. If applied to Laura Farnworth, Head of Legal at Atom bank, it could not be further from the truth.

If she runs out of things to do, that’s when she’s at her most dangerous, according to those who know her well. So, it is probably fortunate that she is not only endowed with an astonishing capacity for hard work and good humour, but additionally, that her job spec at Atom bank - which also includes responsibility for procurement and facilities - keeps her more than occupied.

One of the early starters who found themselves responsible for launching the bank, she arrived five years ago on a six-month secondment from a Quayside law firm, where she was a banking lawyer. She says:

“ From the outset, I was involved in a wide range of exciting tasks, - raising seed capital, regulatory work, drafting NDAs - and a raft of other legal necessitiesthe bare bones required of a start-up. I loved every minute of it.

Before I had come to the end of my six-month secondment, I realised I was becoming emotionally invested in the bank’s future and it was only when one of my colleagues exclaimed “Laura, you’ve gone native” that I realised indeed I had, which required a conversation with Mark Mullen (CEO) and Edward Twiddy (Chief Customer Officer), about my future.

We now offer savings and lending products with a 100% focus on customers and notwithstanding fierce competition, I believe we continue to occupy a unique space. We are also looking to launch a data-driven toolkit for SMEs that will help them with financial planning and day-to-day banking matters, so we are fuelling the growth of business banking too.

“ I don’t like labels such as ‘challenger bank’ which is often used to describe us, but if pushed, I would probably say: ‘We are Atom – aiming to be a full service, customer-centric bank - with you through every stage of life’ … but we’re not finished yet!

We are doing things here, like working on very complicated securitisation transactions, that you wouldn’t normally see outside of London. This place allows you to grow as a person as well as modelling you as a professional; the pace is incessant, but if you’re happy to jump on the train, it’s an amazing experience.

There are great opportunities for those who have done just that. Happily, the bank is committed to Durham and its proximity to three good universities - one of the key reasons for its choice of location. It is also a keen investor in the regional economy, working with local companies whenever possible. Whilst it has a small, additional office in London providing a home for members of the Atom Treasury team, most of the bank’s 360 staff work at Aykley Heads.

The rapid growth of the bank from its launch in 2014 closely mirrors the pace of change in Laura’s personal life - she became engaged a month after the first £45m BBVA* investment completed in November 2015, got married a year later and had a baby another 11 months after that. Her husband, Jon has thrown himself into becoming a stay-at-home dad with the same energy as Laura has invested in the banking world - a win-win situation for all.

Unsurprisingly, Laura’s typical working day is far from predictable. She continues:

“ I get up at 7am each morning and play with Isla before I go to work - which is essential - and I’m in the office for 8.15am. Days are a relentless flurry of meetings, queries, interactions with people in the business and in the café - which is my responsibility wearing my ‘facilities’ hat - and involvement in a host of other matters.

We operate a lean legal team, including Fiona Gibbon (who replaced me while I was on my maternity leave and did such a brilliant job, we kept her on) and Ryan Brittain, who juggles a demanding role with his professional qualification to become a solicitor.

My life at Atom has been a roller coaster of late nights, weekends, good times, scary times, but a lot of fun and a tremendous, life-changing experience. Some amazing people work here - there’s such a huge talent pool - it would be hard to find a bunch of colleagues like this anywhere else.

It’s certainly a position of responsibility, being Head of Legal, but it’s an exciting challenge grasped with both hands. Raising capital and launching new products - it’s simply the greatest feeling. One of the proudest aspects of my career to date is looking at where we are now, where we’ve come from and where we’re going.

Swinburne Maddison continues to enjoy a successful professional relationship with Atom bank, having completed its first instruction for the bank in December 2016 after appointment to Atom bank’s Commercial Lending Legal Panel the same year.

*Banco Bilbao Vizcaya Argentaria

Ten fast facts about Atom bank

Since its creation in April 2014, Atom has:

Raised just over £450m of equity capital through the support of private and institutional investors

Taken £1.8bn in deposits so far in its Fixed Saver accounts

Loaned over £2.4bn to date on Digital Mortgages

Welcomed will.i.am as a Strategic Board Adviser, giving an external perspective on culture, community and technology

Acquired an industry leading NPS score of +74

Been ranked the UK’s most trusted bank on Trustpilot

Been awarded a Reevoo rating of 98% (customers who would recommend Atom bank)

Announced the Atom Incubator to support North East start-ups at its HQ in Durham

Been named in the Chronicle’s top 50 best places to work in the North East and listed in the top 20

Featured in London Stock Exchange’s 1000 Companies to Inspire Britain 2019

YOUINCASEMISSEDIT

Recently published analysis by financial advice firm and insurer NFU Mutual has revealed that the average inheritance tax (IHT) bill reached almost £200,000.00 for the 2018/19 tax year, resulting in a 3.1% increase in HMRC’s annual receipts to a record £5.4billion.

These figures are the latest in a trend of steady increases that show little sign of slowing down. March 2019 was a particularly profitable month for the Treasury, with receipts up 44.4% on the previous month.

Whilst it is too early to speculate on the reason for the sustained increase, many of these payments are believed to be preventable. Unfortunately, public awareness on the various IHT reliefs, exemptions and allowances available is still very low, so the government continues to reap more and more revenue from this very complex system.

Measures as simple as taking full advantage of the residence nil rate band and the variety of lifetime exemptions available can have a significant impact on your final IHT bill. By seeking legal advice now, you can ensure that you have all the information you need to navigate this complicated tax regime, safe in the knowledge that more of your money will be making a difference to the future of your loved ones after you are gone.

For specialist legal advice on inheritance tax, or any other aspect of estate planning, please contact a member of our Private Client team on 0191 384 2441.

When Wills become complex

The average age that a person decides to make a Will is 47, which may coincide with the time that mortgages are close to being paid off and children are about to leave the family home. Wills can however be made from as young as 18, or 16 in the case of those serving in the armed forces.

So why do we leave it so late?

There are often misconceptions centred around the Will making process itself. It may be that those younger than 30, who are still be establishing themselves in relationships and getting on the property ladder, consider they have little to leave. Other clients inform us that they did not appreciate the problems or reality of how their estates would be distributed if they died ‘intestate.’ Many young parents we see do not appreciate the importance of providing for guardians via their Wills.

Making a Will is the only means by which to ensure that such issues are addressed and your loved ones are provided for appropriately after you are gone.

If your circumstances are straightforward, a simple Will may be sufficient. With a simple Will, you leave your entire estate to one class of beneficiary (for example, your children or nieces and nephews) without any additional gifts or trusts. Spouses and partners can prepare simple ”mirror” Wills, through which they leave their entire estate to each other upon the first death, and thereafter to a single class of beneficiaries.

However, a simple Will is not always suitable and it is important that your Will is tailored to your individual needs.

One size does NOT fit all

A more complex Will may be required in the following situations: -

Control is required as to the ultimate destination of your assets. This could include establishing a trust that provides income for your spouse during their lifetime, which then transfers capital to your children after the death of your spouse. Such arrangements are commonplace for couples with children to previous relationships;

You wish to make numerous gifts;

Provision is required for a dependant who is unable to care for themselves, for example, minor children or a disabled beneficiary;

You have family members who may potentially make a claim against your estate (for example, children from whom you are estranged);

Your property is shared with someone who is not a spouse or civil partner;

Your estate is large and likely to be subject to inheritance tax and tax planning advice is required;

You have agricultural or business assets;

You have assets overseas.

If you have any initial queries regarding the process of making a Will, or any other issues covered in this article, please do not hesitate to contact a member of our Private Client team on 0191 384 2441, and we would be more than happy to discuss these with you in advance of any face-to-face meeting.

Durham transformed into a

glittering gallery without walls

We take a look back at the highlights from

10th anniversary programme.

The full programme of 37 artworks for Lumiere 2019 was revealed to the public earlier this month and we were thrilled to see Durham once again transformed and reimagined through the dramatic installations, dynamic projections and reflective works of this showstopping festival.

Created by Artichoke, the UK’s leading producers of art in the public realm, Lumiere ran from Thursday 14th - Sunday 17th November 2019. For the most ambitious edition of Lumiere yet, a selection of favourite artworks from previous festivals sat alongside a host of new commissions by international artists and fresh talent from the North East.

Free to attend, the festival was commissioned by Durham County Council, with additional support from Arts Council England, Durham University and a host of further funders and supporters.

Lumiere 2019 marked 10 years since the festival first launched in Durham. This dazzling night-time spectacle has now become an unmissable fixture in the cultural calendar of the North East. While the number of artworks and visitors has continued to increase, the idea behind the festival — to bring art out onto the streets and cast the city in a new light — has remained steadfast.

Since the first edition, Lumiere has returned to the city every other year, as well as lighting up Derry~Londonderry in 2013, during its year as UK City of Culture, and London in 2016 and 2018. The festival has become an important part of Durham’s identity, so much so that it has become known as the ‘Place of Light’.

New for 2019

This year saw several new commissions and many interactive artworks that visitors could play with. Highlights included:-

Stones by artist collective Tigrelab Art (Spain); a shapeshifting video-mapped projection that will animate the facade of Durham Cathedral that invites audiences to interact and manipulate using tablets made from stone;

Human Tiles by Ocubo (Portugal), which will transform the exterior of Gala Theatre & Cinema responding to the movements of visitors whose bodies will create projected patterns in real-time;

Geometrical Traces by Javier Riera (Spain), which will illuminate the city’s riverside tree canopies in a mesmerising new work that draws upon mathematical patterns found in nature;

Neon Dogs by Deepa Mann-Kler (UK), which is a series of glowing balloon dog sculptures previously seen at Lumiere London;

End over End by Lucy McDonnell (UK), which will remind everyone of childhood with this clever homage to the iconic slinky; and

Washed Up by Diane Watson (UK); a series glowing collages assembled from plastic reclaimed from the beaches of the North East.

Returning favourites

Lumiere 2019 also saw the return of many past favourites from throughout the festival’s history, including:-

The giant glittering snow globe I Love Durham by Jacques Rival (France);

Fogscape #03238, the mysterious nocturnal fog sculpture by Fujiko Nakaya (Japan) and Simon Corder (UK); and

Speaking in the lead up to the festival

This year’s 10th anniversary edition offers the chance to relive some of the wonderful memories of previous festivals, sprinkled as always with an element of surprise. We hope visitors from across the county and beyond join us as we take to the cobbled streets of Durham for four nights of wintry magic.

Lumiere is an inspiring event; it’s innovative, exciting and something that many, many people look forward to greatly. As Durham’s University, we’re proud to have been involved with Lumiere from the beginning and very pleased to be a major partner for Lumiere Durham 2019: sponsoring the festival, hosting new and returning installations and supporting across cultural engagement, volunteering and logistics.

Over the decade in which it has run, Lumiere has provided a treasure chest of memories for hundreds of thousands of local residents and visitors. It is a world class event which has huge social and economic benefits for County Durham and the North East. This year’s programme is truly awe-inspiring and will once again showcase our county as a place of light, where heritage is cherished and innovation is embraced and encouraged.