My role at Rawlinson & Hunter is a hybrid one, in that I carry out both client facing and technical work. In addition to an ongoing portfolio of clients, I will generally have specific one-off planning projects. I play an active role in various ICAEW Tax Faculty technical initiatives, lecture and contribute to various technical publications.
At the moment, my to do list includes a number of planning projects, ranging from inheritance tax and succession planning to remittance basis issues, pre-arrival planning and statutory residence test advice. On the compliance side, there is still some tidying up from 2014/15.
What caught your eye in the draft Finance Bill?
In addition to the new dividend tax regime and the changes to the taxation of foreign domiciliaries (now not going ahead until Finance Bill 2017), there is the legislation on downsizing and the residence nil rate band. The additional legislation on avoidance and evasion, with the new sanctions and offences, is also attention grabbing.
The company distributions consultation paper and draft legislation has caused concern. It is hoped that the Finance Bill legislation will be adjusted, so there will not be issues with respect to genuine commercial transactions.
Whilst it was not in the draft Finance Bill, we know now that there will be legislation to amend the changes to entrepreneurs’ relief made by FA 2015. It appears to be accepted that FA 2015 went too far and amendments should support businesses, by ensuring that the relief is available on certain commercial transactions.
What big development should we be looking out for in 2016?
The new dividend tax regime is very different from what came before and will have a significant impact on the finances of individuals and trusts with significant dividend income.
I am particularly involved with the changes to the taxation of foreign domiciliaries and the inheritance tax changes with respect to offshore companies owned by foreign domiciliaries and to trusts settled by foreign domiciles, holding UK residential property. In terms of number, UK resident foreign domiciliaries may not make up that large a proportion of the UK taxpayer base; however, the tax they pay is significant, so these changes are important.
It seems likely that further significant changes to pensions taxation will be announced in 2016.
What sets the tax team at Rawlinson & Hunter apart from other firms?
We provide specialist taxation advice to both private and corporate clients, so we are able to look at the big picture. Unlike many firms, however, private clients are at the heart of our practice and we have a far larger proportion of international clients than most firms. We like to get to know our clients well (favouring face to face meetings where possible) and find bespoke solutions to best achieve their objectives.
If you could make one change to UK tax law or practice, what would it be?
There should be a level playing field between taxpayers and HMRC. The tide of recent legislation has all gone one way.
I would like to see a provision that gives HMRC a wider discretion than its care and management powers do, so that where applying a provision would result in an unfair outcome for the taxpayer (Joost Lobler [2015] UKUT 152 being a case in point), the tax can be waived. The taxpayer should be able to appeal to the courts if HMRC does not apply this discretion in appropriate circumstances.
Tell us a secret.
I am a big fan of Marvel Comics. With Disney having acquired Marvel and Star Wars, there are also now new ongoing Star Wars comics, so I also buy a few Star Wars comics on a monthly basis.
My role at Rawlinson & Hunter is a hybrid one, in that I carry out both client facing and technical work. In addition to an ongoing portfolio of clients, I will generally have specific one-off planning projects. I play an active role in various ICAEW Tax Faculty technical initiatives, lecture and contribute to various technical publications.
At the moment, my to do list includes a number of planning projects, ranging from inheritance tax and succession planning to remittance basis issues, pre-arrival planning and statutory residence test advice. On the compliance side, there is still some tidying up from 2014/15.
What caught your eye in the draft Finance Bill?
In addition to the new dividend tax regime and the changes to the taxation of foreign domiciliaries (now not going ahead until Finance Bill 2017), there is the legislation on downsizing and the residence nil rate band. The additional legislation on avoidance and evasion, with the new sanctions and offences, is also attention grabbing.
The company distributions consultation paper and draft legislation has caused concern. It is hoped that the Finance Bill legislation will be adjusted, so there will not be issues with respect to genuine commercial transactions.
Whilst it was not in the draft Finance Bill, we know now that there will be legislation to amend the changes to entrepreneurs’ relief made by FA 2015. It appears to be accepted that FA 2015 went too far and amendments should support businesses, by ensuring that the relief is available on certain commercial transactions.
What big development should we be looking out for in 2016?
The new dividend tax regime is very different from what came before and will have a significant impact on the finances of individuals and trusts with significant dividend income.
I am particularly involved with the changes to the taxation of foreign domiciliaries and the inheritance tax changes with respect to offshore companies owned by foreign domiciliaries and to trusts settled by foreign domiciles, holding UK residential property. In terms of number, UK resident foreign domiciliaries may not make up that large a proportion of the UK taxpayer base; however, the tax they pay is significant, so these changes are important.
It seems likely that further significant changes to pensions taxation will be announced in 2016.
What sets the tax team at Rawlinson & Hunter apart from other firms?
We provide specialist taxation advice to both private and corporate clients, so we are able to look at the big picture. Unlike many firms, however, private clients are at the heart of our practice and we have a far larger proportion of international clients than most firms. We like to get to know our clients well (favouring face to face meetings where possible) and find bespoke solutions to best achieve their objectives.
If you could make one change to UK tax law or practice, what would it be?
There should be a level playing field between taxpayers and HMRC. The tide of recent legislation has all gone one way.
I would like to see a provision that gives HMRC a wider discretion than its care and management powers do, so that where applying a provision would result in an unfair outcome for the taxpayer (Joost Lobler [2015] UKUT 152 being a case in point), the tax can be waived. The taxpayer should be able to appeal to the courts if HMRC does not apply this discretion in appropriate circumstances.
Tell us a secret.
I am a big fan of Marvel Comics. With Disney having acquired Marvel and Star Wars, there are also now new ongoing Star Wars comics, so I also buy a few Star Wars comics on a monthly basis.
