Beware the stroke of midnight! From last night Capital Gains Tax will increase for higher rate tax payers to 28%, but lower rate tax payers will still pay 18%. The annual exemption remains at £10,100. However Entrepreneurs' relief has been extended to the first £5 million of gains.
As predicted in the Royds tweet in May, VAT has been increased to 20% from 4th January.
Income tax stays the same except for an increase in the personal allowance to £7,475 from April 6th 2011.
Corporation tax is reduced from 28% by 1% per year from April 2011 over the next four years.
Stamp duty remains the same with the retention of the planned increase to 5% on property sales over £1 million.
Inheritance tax remains at 40% above the current allowance of £325,000, which is frozen until 2014-15.
Finally, you can still drink cider to celebrate or commiserate England’s performance, as the planned increase in cider duty on 30th June will not go ahead!
Wednesday, 23 June 2010
Friday, 18 June 2010
Kiev – Interleges AGM by John North
I recently attended the Interleges AGM in Kiev, Ukraine – which happily coincided with the Kiev Day Festival (Day of Kyiv) so that many of the city centre’s roads were closed, there were bike races, street performances by artists and musicians and other family events which created a relaxed, party feel.
Like all Interleges events, it is good to catch up with colleagues from all over the world – and we chatted to lawyers from Belgium and Luxemboug (Philippe Partners), France (ABCR), Finland(Hedman), Ireland (Reddy Charlton McKnight) and Spain(Legse Abagados) amongst others. Chris Hall, the new partner in our Family Wealth department was delighted to meet up with the various member firms with private client practices from all over Europe and the Middle East including Badri & Salim El Meouchi Law Firm of Beirut and Qatar.
We agreed that we would hold an environmental law conference – focusing on the carbon credit market - to coincide with the AGM next May in Paris. It was also agreed that the 2012 AGM will be hosted in Beirut. We have also established an Arbitration and International Enforcement Work Group which will be led by our members in the United States (Anderson Kill & Olick) and Sweden (Delphi & Co).
On the final evening there was a reception in the Mariyinsky Palace (built originally in 1745 by an Empress) – the official ceremonial residence of the President of Ukraine - where we were entertained by a small string orchestra featuring a leading Ukrainian violinist. It was a marvellous.
I admit that I was pleasantly surprised at Kiev. Having expected a grey former Soviet city that was rebuilt after the war, there is a variety of architecture – including a significant number of beautiful Tsarist era churches and buildings and – boosted no doubt by the festival – a genuinely warm, lively and welcoming atmosphere.
Many thanks to our Kiev member firm for hosting the event - T & O Buyanovskaya.
Like all Interleges events, it is good to catch up with colleagues from all over the world – and we chatted to lawyers from Belgium and Luxemboug (Philippe Partners), France (ABCR), Finland(Hedman), Ireland (Reddy Charlton McKnight) and Spain(Legse Abagados) amongst others. Chris Hall, the new partner in our Family Wealth department was delighted to meet up with the various member firms with private client practices from all over Europe and the Middle East including Badri & Salim El Meouchi Law Firm of Beirut and Qatar.
We agreed that we would hold an environmental law conference – focusing on the carbon credit market - to coincide with the AGM next May in Paris. It was also agreed that the 2012 AGM will be hosted in Beirut. We have also established an Arbitration and International Enforcement Work Group which will be led by our members in the United States (Anderson Kill & Olick) and Sweden (Delphi & Co).
On the final evening there was a reception in the Mariyinsky Palace (built originally in 1745 by an Empress) – the official ceremonial residence of the President of Ukraine - where we were entertained by a small string orchestra featuring a leading Ukrainian violinist. It was a marvellous.
I admit that I was pleasantly surprised at Kiev. Having expected a grey former Soviet city that was rebuilt after the war, there is a variety of architecture – including a significant number of beautiful Tsarist era churches and buildings and – boosted no doubt by the festival – a genuinely warm, lively and welcoming atmosphere.
Many thanks to our Kiev member firm for hosting the event - T & O Buyanovskaya.
Thursday, 10 June 2010
South London residential property market picks up by Jon Buckland
It's really good to be so busy again after the devastating impact on the property market during the recession where transaction levels dropped by over 80%.
We didn't see much change when the HIPs were abolished and I don't think that the high levels of activity we have seen over the past few weeks are people trying to move before the Emergency Budget later on this month.
During the recession, people postponed moving but the recovery means that they now have to consider moving to accommodate their larger families.
Whilst we cover a wide area in London and the South East, we have seen particularly high levels of activity in Wimbledon, Morden (where we are based), Merton Park, Wandsworth, Raynes Park, St Helier, Sutton and Carshalton. Long may it continue!
We didn't see much change when the HIPs were abolished and I don't think that the high levels of activity we have seen over the past few weeks are people trying to move before the Emergency Budget later on this month.
During the recession, people postponed moving but the recovery means that they now have to consider moving to accommodate their larger families.
Whilst we cover a wide area in London and the South East, we have seen particularly high levels of activity in Wimbledon, Morden (where we are based), Merton Park, Wandsworth, Raynes Park, St Helier, Sutton and Carshalton. Long may it continue!
Legal issues for direct marketers by David Konviser
We've just produced a fairly detailed bulletin about the legal issues surrounding the use of databases for direct marketing purposes.
Most businesses will have some form of database containing customer and prospect information and will send out marketing materials to alert people to their products and services.
The briefing sheet covers issues including:
- Data Protection
- Fair Processing Notices
- Collecting and storing customer data
- Opting in and opting out
- Sending solicited and unsolicited materials
Please let me know if you would like a copy of the bulletin or if you would like to discuss any of the issues
Most businesses will have some form of database containing customer and prospect information and will send out marketing materials to alert people to their products and services.
The briefing sheet covers issues including:
- Data Protection
- Fair Processing Notices
- Collecting and storing customer data
- Opting in and opting out
- Sending solicited and unsolicited materials
Please let me know if you would like a copy of the bulletin or if you would like to discuss any of the issues
Protecting the Intellectual Property of Jewellers by Stephen Welfare
Delighted to see that various jewellery sector magazines (including Retail Jeweller, Drapers OnLine and Jewellery Outlook) picked up the news of our Promoting Intellectual Property Rights (PIPR) initiative which will launch at the International Jewellery London (IJL) 2010 trade show in September to help protect jewellers’ designs.
PIPR will be promoted before and during the show and will highlight the value of intellectual property rights and provide a visual warning to would-be copiers of designs that IJL will not condone any form of infringing conduct at its shows. Lawyers from Royds intellectual property unit will attend the exhibition to provide advice to members of the British Jewellers’ Association under the Copywatch scheme.
PIPR will be promoted before and during the show and will highlight the value of intellectual property rights and provide a visual warning to would-be copiers of designs that IJL will not condone any form of infringing conduct at its shows. Lawyers from Royds intellectual property unit will attend the exhibition to provide advice to members of the British Jewellers’ Association under the Copywatch scheme.
Future changes in Capital Gains Tax by Chris Hall
You will no doubt be aware that the rate of Capital Gains Tax (CGT) is set to rise on 22nd June at the Emergency Budget. Whilst it is difficult to predict the exact nature of the tax changes, it is advisable to consider taking pre-emptive action to lock in the existing gains under the CGT regime.
There are a number of techniques that you can consider, for example, selling an asset or transferring it to a discretionary trust or another family member if appropriate.
There are clear advantages in taking pre-emptive action, including the possibility of locking in current gains at 18% particularly if any gains can be covered by the current CGT annual exemption. Since some predictions say that CGT could rise to as much as 50%, there is a huge potential tax saving. There is also the possibility of accelerating inheritance tax planning and removing assets from an estate for inheritance tax purposes.
There is a chance that the tax changes may be retrospective so any step should only be taken if they are practical, particularly since any assets held would crystallise a CGT bill which would be payable by 31st January 2012. There would also be stamp duty of 0.5% on any share transfers that may arise which will need to be funded separately.
The tax changes are particularly relevant if you are in the process of or expecting to sell a business or shares, or if you hold assets such as buy to let properties and investment portfolios with large inherent gains, and you are expecting to sell them in the short to medium term.
There are a number of techniques that you can consider, for example, selling an asset or transferring it to a discretionary trust or another family member if appropriate.
There are clear advantages in taking pre-emptive action, including the possibility of locking in current gains at 18% particularly if any gains can be covered by the current CGT annual exemption. Since some predictions say that CGT could rise to as much as 50%, there is a huge potential tax saving. There is also the possibility of accelerating inheritance tax planning and removing assets from an estate for inheritance tax purposes.
There is a chance that the tax changes may be retrospective so any step should only be taken if they are practical, particularly since any assets held would crystallise a CGT bill which would be payable by 31st January 2012. There would also be stamp duty of 0.5% on any share transfers that may arise which will need to be funded separately.
The tax changes are particularly relevant if you are in the process of or expecting to sell a business or shares, or if you hold assets such as buy to let properties and investment portfolios with large inherent gains, and you are expecting to sell them in the short to medium term.
Tuesday, 1 June 2010
The economic outlook for London by John North
The latest report by Oxford Economics on the economic outlook for London shows:
• London is expected to see a small increase (.4%) in GVA (Gross Value Added) during 2010 after a difficult 2009 where they estimate the region saw a fall in GVA of almost 5%.
• The Construction sector is expected to increase 7% in 2010 as some Olympic effects feed through and house building picks up.
• The employment situation is better with “only” a 2% reduction (almost 100,000 jobs) in 2009 – with the financial services sector losing 4% of jobs and the closely related business services sector (including real estate, renting and insurance) experiencing a 3.8% fall in employment. A further 20,000 job losses (-.4%) are forecast for London in 2010.
• The second half of 2009 saw UK house prices rising strongly (the Department for Communities and Local Government figures show that London house prices rose 6.1% in 2009 Q3) although in recent months (2.3% in 2009 Q4) the market has cooled somewhat. London has been a driving force behind the upturn in prices.
• Research on commercial property from GVA Grimley shows that prime rents fell 25% during 2009 across Central London with prime Mayfair rents experiencing a fall of 37%.
• Of all the UK regions, London has the most upside risks attached to its forecast. From 2011 onwards they expect the capital to perform significantly better than the UK average.
The full report is available at: http://www.oef.com/OE_FA_Display_Frm.asp?Pg=UKSpec&Txt=UK%20Economy#
• London is expected to see a small increase (.4%) in GVA (Gross Value Added) during 2010 after a difficult 2009 where they estimate the region saw a fall in GVA of almost 5%.
• The Construction sector is expected to increase 7% in 2010 as some Olympic effects feed through and house building picks up.
• The employment situation is better with “only” a 2% reduction (almost 100,000 jobs) in 2009 – with the financial services sector losing 4% of jobs and the closely related business services sector (including real estate, renting and insurance) experiencing a 3.8% fall in employment. A further 20,000 job losses (-.4%) are forecast for London in 2010.
• The second half of 2009 saw UK house prices rising strongly (the Department for Communities and Local Government figures show that London house prices rose 6.1% in 2009 Q3) although in recent months (2.3% in 2009 Q4) the market has cooled somewhat. London has been a driving force behind the upturn in prices.
• Research on commercial property from GVA Grimley shows that prime rents fell 25% during 2009 across Central London with prime Mayfair rents experiencing a fall of 37%.
• Of all the UK regions, London has the most upside risks attached to its forecast. From 2011 onwards they expect the capital to perform significantly better than the UK average.
The full report is available at: http://www.oef.com/OE_FA_Display_Frm.asp?Pg=UKSpec&Txt=UK%20Economy#
Launch of 2010 "Business in the City Legal Briefings” by Duncan Holden
This week we are launching a new series of short business briefings for senior business people in the vicinity of our City offices near St Paul's - they only last an hour and take place at 9am with a repeat performance the same day at 6pm.
As well as providing a great opportunity to meet with other local businesses, the events will be attended by Royds commercial specialists and by lawyers from our Family Wealth Department who advise on personal matters.
The following dates and topics are currently scheduled:
8th July – Dealing with staff fairly (Gemma Webb, employment partner)
23rd September – Minding your premises profitably (Robert Lloyd-Davies and Gareth Williams, partners in our commercial real estate group)
11th November – Working effectively with agents and distributors (John North from the commercial department and Stewart Wilkinson, head of commercial litigation)
28th January 2011 – Protecting your information and ideas (Stephen Welfare and David Konviser from our intellectual property unit)
3rd March 2011 – Board Room Briefing (Myself and John North)
Please let me know if you would like any further information – 020 7842 1402
As well as providing a great opportunity to meet with other local businesses, the events will be attended by Royds commercial specialists and by lawyers from our Family Wealth Department who advise on personal matters.
The following dates and topics are currently scheduled:
8th July – Dealing with staff fairly (Gemma Webb, employment partner)
23rd September – Minding your premises profitably (Robert Lloyd-Davies and Gareth Williams, partners in our commercial real estate group)
11th November – Working effectively with agents and distributors (John North from the commercial department and Stewart Wilkinson, head of commercial litigation)
28th January 2011 – Protecting your information and ideas (Stephen Welfare and David Konviser from our intellectual property unit)
3rd March 2011 – Board Room Briefing (Myself and John North)
Please let me know if you would like any further information – 020 7842 1402
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