What’s not? I’ve been speaking to my clients on the impact of the Covid-19 pandemic, the various government support measures and what the future UK tax landscape will look like. The latter point has been a constant theme in discussions with
clients as the speculation starts around possible future tax rises. So far, it’s been good news from the chancellor, but I can’t help but think that some form of tax rises are inevitable.
There have been numerous opportunities for private clients recently. I have seen clients make large gifts whilst asset values are low (and the possibility that the PET regime could be reformed), restructure assets to own them through trusts and companies,
and look to engage in estate planning whilst they have had fewer distractions during the lockdown period.
If you could make one change to tax, what would it be?
One word: simplification. My first set of UK tax legislation (1999/2000) was represented by two books. The legislation has since become so complicated that we now need an index book. Tax has increasingly become front page news, and tax policy has been
dictated by politics, rather than economics. Large parts of the UK tax code are woefully out of date, and you could make a good case for starting over again. There are early suggestions that the chancellor may see the current situation as a good reason
to introduce much-needed widespread reform to the UK’s tax system.
What do you know now that you wish you’d known at the start of your career?
You can’t do it all on your own. As with any business, the success is built around the people and the team. For a large part of my early career, I would aim to complete the task on my own, but that approach was not sustainable, and you reached saturation
point on the number of clients you could realistically work for. I took a step back and spent more time investing in my team. It was difficult at first, but the rewards came quickly and it was possible to scale my business as a result. I am now a
firm believer that the collective is more powerful than the individual.
Are there any rules that are causing a problem?
The CGT rules on property are inexplicably difficult to navigate. There are different revaluation provisions, reporting regimes and rates. I can understand why the government decided to introduce CGT on UK property, as it was out of kilter with the rest
of the world. However, the sporadic way in which the rules were introduced make it more likely that individuals and companies are simply not clear on the rules and what they need to do, which makes tax underpayment more likely. Again, the case for
simplification is that people better understand the rules and the right amount of tax is collected.
What should we look out for this Autumn?
We can expect what will probably be one the most important Budget statements in a generation. The chancellor needs to set out a clear agenda, so that businesses and individuals can plan with greater certainty.
Rishi Sunak has done incredibly well since becoming chancellor, although I disagree with his decision to cut what was the entrepreneurs’ relief lifetime limit from £10m to £1m. Having said that, many business owners are accepting of
a 20% CGT rate, but the latest speculation is that the Office of Tax Simplification review of CGT could result in a rate increase, although I don’t share this view.
Finally, you might not know this about me but ...
I can play the organ to a grade 8 standard. I was very fortunate as a child that my mother liked to listen to music, so she invested in both her children playing musical instruments, and we had an electronic organ at home where I could practice. I still
love playing, although these days I don’t get the time.
What’s not? I’ve been speaking to my clients on the impact of the Covid-19 pandemic, the various government support measures and what the future UK tax landscape will look like. The latter point has been a constant theme in discussions with
clients as the speculation starts around possible future tax rises. So far, it’s been good news from the chancellor, but I can’t help but think that some form of tax rises are inevitable.
There have been numerous opportunities for private clients recently. I have seen clients make large gifts whilst asset values are low (and the possibility that the PET regime could be reformed), restructure assets to own them through trusts and companies,
and look to engage in estate planning whilst they have had fewer distractions during the lockdown period.
If you could make one change to tax, what would it be?
One word: simplification. My first set of UK tax legislation (1999/2000) was represented by two books. The legislation has since become so complicated that we now need an index book. Tax has increasingly become front page news, and tax policy has been
dictated by politics, rather than economics. Large parts of the UK tax code are woefully out of date, and you could make a good case for starting over again. There are early suggestions that the chancellor may see the current situation as a good reason
to introduce much-needed widespread reform to the UK’s tax system.
What do you know now that you wish you’d known at the start of your career?
You can’t do it all on your own. As with any business, the success is built around the people and the team. For a large part of my early career, I would aim to complete the task on my own, but that approach was not sustainable, and you reached saturation
point on the number of clients you could realistically work for. I took a step back and spent more time investing in my team. It was difficult at first, but the rewards came quickly and it was possible to scale my business as a result. I am now a
firm believer that the collective is more powerful than the individual.
Are there any rules that are causing a problem?
The CGT rules on property are inexplicably difficult to navigate. There are different revaluation provisions, reporting regimes and rates. I can understand why the government decided to introduce CGT on UK property, as it was out of kilter with the rest
of the world. However, the sporadic way in which the rules were introduced make it more likely that individuals and companies are simply not clear on the rules and what they need to do, which makes tax underpayment more likely. Again, the case for
simplification is that people better understand the rules and the right amount of tax is collected.
What should we look out for this Autumn?
We can expect what will probably be one the most important Budget statements in a generation. The chancellor needs to set out a clear agenda, so that businesses and individuals can plan with greater certainty.
Rishi Sunak has done incredibly well since becoming chancellor, although I disagree with his decision to cut what was the entrepreneurs’ relief lifetime limit from £10m to £1m. Having said that, many business owners are accepting of
a 20% CGT rate, but the latest speculation is that the Office of Tax Simplification review of CGT could result in a rate increase, although I don’t share this view.
Finally, you might not know this about me but ...
I can play the organ to a grade 8 standard. I was very fortunate as a child that my mother liked to listen to music, so she invested in both her children playing musical instruments, and we had an electronic organ at home where I could practice. I still
love playing, although these days I don’t get the time.
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