Throughout the year, the legal industry witnessed changes to legislation, consultations to improve processes, and announcements of what to expect in 2025. As the final month of 2024 nears its end, we’ve selected the biggest news stories of the year that made the headlines within the industry.
On Wednesday 30 October, Chancellor Rachel Reeves delivered the first Labour government’s Autumn Statement in 14 years, confirming upcoming changes to taxation, business rates, and pensions. Following months of speculation, Chancellor Rachel Reeves outlined new fiscal measures to stabilise public finances and raise revenue.
Below is a quick overview of some of the key announcements:
Inheritance Tax Reform – With IHT reforms at the forefront, the Chancellor introduced a four-point plan focused on revenue generation, impacting estates in probate, which included freezing the NRB, closing the pension "loophole", and reforming agricultural and business property reliefs;
The Chancellor announced revisions to non-domiciled taxation - Starting April 2025, the remittance basis for UK resident non-domiciled individuals will be replaced by a revised regime. Under this new structure, eligible UK tax residents will benefit from a four-year tax-free period on foreign income and gains, which they can remit to the UK without further tax following a period of at least 10 years of non-UK residency;
The UK’s National Living Wage will rise from £11.44 per hour to at least £12.21 per hour. The increase is worth up to £1,500 for a full-time worker.
Read our full summary of the Autumn Statement.
In November 2023, the government initiated an inquiry into the probate service, addressing concerns about delays in estate administration and the support provided to beneficiaries and Executors. The Justice Committee invited submissions on issues such as capacity, resources, and the impact of digitisation, with a deadline of 22 January 2024.
The Committee conducted several evidence sessions in early 2024, gathering insights from legal professionals, charity representatives, and government officials. However, the inquiry was discontinued following the dissolution of Parliament on 30 May 2024 due to the General Election. Before disbanding, Committee Chair Sir Robert Neill KC MP communicated key findings to the Ministry of Justice, highlighting the detrimental effects of probate delays on grieving families, charities, and local authorities.
In response, HM Courts and Tribunals Service (HMCTS) implemented measures to enhance the probate service. By July 2024, the average processing time for probate applications had improved to 9.3 weeks, down from 14 weeks in July 2023. Additionally, HMCTS reported 12 consecutive months where the number of applications processed exceeded new receipts, reducing the backlog to approximately 49,500 cases—the lowest since May 2020.
Further improvements included the introduction of a new design for Grant certificates featuring enhanced security measures, and the development of a dashboard to track both digital and paper applications. HMCTS also committed to publishing more detailed statistical information on caseloads and processing times to increase transparency and assist practitioners.
While these developments are promising, ongoing attention is necessary to ensure the probate service continues to meet the needs of bereaved individuals and professionals involved in estate administration.
The Law Society has expressed support for modernising Will-making laws, emphasising the need for appropriate safeguards in electronic Wills to prevent fraud and undue influence. They also highlight the importance of protecting vulnerable individuals from exploitation through marriage and Wills processes.
The supplementary consultation period closed on 8 December 2023. The Law Commission is now analysing responses and developing final recommendations for comprehensive reform. They aim to publish a final report and a draft bill in early 2025.
As the Law Commission prepares its final recommendations, stakeholders anticipate reforms that will modernise Will-making, enhance protections against exploitation, and address the complexities introduced by technological advancements.
In the lead-up to the 2024 U.S. presidential election, the political landscape was marked by intense campaigning and significant public interest. The election cycle began on the 15th January 2024, and concluded with the general election on the 5th November 2024.
The election winner was President Donald Trump, who beat Vice President Kamala Harris.
There are speculations about the policies the Trump administration may pursue. Analysts suggest potential shifts in domestic and foreign policy, including changes to tax regulations, trade agreements, and international relations. However, the specifics of these policies remain to be seen and will depend on forthcoming decisions by the administration and Congress.
In November 2023, the Isle of Man's Assisted Dying Bill 2023 passed its second reading in the House of Keys, proposing to allow terminally ill residents the option to end their lives under specific conditions. The eligibility criteria included being over 18, having a prognosis of six months or less to live, residing on the Isle of Man for at least 12 months, and possessing the legal capacity to make such a decision.
Subsequent debates raised concerns about safeguards, potential coercion, and the adequacy of the residency requirement. In response, amendments were made to the bill during its progression through the House of Keys. Notably, the prognosis requirement was extended to 12 months, and the residency criteria was increased to five years to mitigate fears of an influx of non-residents seeking assisted dying services.
In July 2024, the House of Keys passed the bill by a vote of 16 to 8, advancing it to the Legislative Council for further scrutiny.
The Legislative Council conducted evidence sessions, hearing from various experts and stakeholders to address concerns about coercion and the role of medical professionals in the process. Discussions included suggestions for involving multidisciplinary teams to assess eligibility and ensure robust safeguards.
As of December 2024, the Legislative Council is scheduled to consider the bill's clauses in detail on 17 December. If approved, the Isle of Man would join a growing number of jurisdictions legalising assisted dying, marking a significant shift in end-of-life care policy. The bill's progression reflects ongoing debates balancing individual autonomy with ethical and societal considerations.
In November 2024, the Solicitors Regulation Authority (SRA) initiated a public consultation to reassess how law firms handle client money, aiming to enhance consumer protection and address recent regulatory challenges. This move follows a series of high-profile cases, notably the Axiom Ince scandal, where significant sums of client funds were misappropriated, leading to increased scrutiny of current practices.
The consultation focuses on three primary areas: evaluating the traditional model of solicitors holding client money, considering alternatives such as Third-Party Managed Accounts (TPMAs); implementing stricter controls and safeguards for firms that continue to manage client funds; and exploring sustainable funding mechanisms for the Compensation Fund, which has been under strain due to recent large-scale interventions. Proposed measures include prohibiting firms from retaining interest earned on client accounts and setting time limits for returning client funds.
The SRA's initiative has elicited mixed reactions within the legal community. Some practitioners express concerns that the proposed reforms could impose additional administrative burdens and financial pressures, particularly on smaller firms operating in competitive sectors like conveyancing.
The consultation remains open for feedback until the 21st February 2025, providing stakeholders an opportunity to influence the future framework governing client money in legal services.
Recent data revealed that during the 2023/24 financial year, the Office of the Public Guardian (OPG) took an average of 76 working days (approximately 15 weeks) to process new Lasting Power of Attorney (LPA) applications, nearly double its target of 40 working days. Notably, one application experienced an extreme delay, taking over 10 years (2,777 working days) to finalise.
These delays have been attributed to errors in applications and the predominance of postal submissions, which prolong the rectification process. To address these issues, the OPG has been working to reduce the backlog of unprocessed LPAs, achieving a 48% reduction from its August 2023 peak to 149,400 by March 2024. Additionally, the introduction of digital application methods aims to expedite processing times and minimise errors.
The Powers of Attorney Act 2023, set to introduce a digital LPA in Autumn 2024, is expected to further modernise and streamline the application process. This development underscores the importance of establishing an LPA while one has mental capacity, as delays can impede timely access to crucial decision-making authority when it's most needed.
We look forward to monitoring these stories and their developments in the New Year. From the team at Title Research, we would like to extend our gratitude to all our professional clients who have instructed us in 2024 – we look forward to continuing to work with you in the New Year and wish you a wonderful New Year.