A look back at the most read stories on eprivateclient this week...
Monday
The UK Conservative Party is considering scrapping inheritance tax (IHT) as a ploy to sway voters ahead of a general election, according to The Times newspaper. The Times was told by senior sources in the government that there is a “live” discussion among senior figures in Downing Street about abolishing IHT as the Conservative Party’s headline tax offer next year. The move would cost HM Treasury around £7 billion a year in revenue – far cheaper than mooted calls for a cut in income tax that was forecast to impact tax revenue by as much as £13.7 billion.
The partners of City of London law firm Druces elected to appoint a chief executive to manage the firm – the first such role at the firm in nearly a decade. Edward Gordon-Hall – who previously served as Druces’ finance director and sat on the firm's executive committee until October 2020 – is returning to the firm as chief executive. Mr Gordon-Hall has over 30 years’ experience advising and working with professional services firms, particularly in the legal sector, including firms such as Lewis Silkin and Olswang.
Tuesday
Private tax specialist Dermot Callinan sadly passed away. Dermot had a tragic accident whilst hiking with his wife Sue in the French Alps during their holiday on 9 July, on his 61st birthday. Dermot spent the majority of his long and well-respected career as a senior partner at KPMG. His career at KPMG spanned 25 years and following that, Dermot was appointed as an equity partner at Saffery Champness. He built a new business in the North, but after two years was invited to join the LNT Group board to help grow its successful care home business. He is survived by his wife, two daughters and a grandson.
The European Commission (EC) decided to register a European citizens’ initiative calling for a wealth tax to aid ESG transition. The initiative, titled ‘Taxing great wealth to finance the ecological and social transition’, calls for the establishment of a European tax on great wealth for the benefit of the ecological and social transition. The aim of the initiative is to contribute to the fight against climate change and inequality across the EU, as well as to ensure that European citizens pay their fair share towards achieving these objectives.
Wednesday
Professional services provider Evelyn Partners appointed Laurence Kiddle as head of technology and transformation. Mr Kiddle will provide support to businesses to help them manage tax and regulatory compliance. Mr Kiddle has spent over 20 years in tax technology. He trained as a tax adviser at Arthur Andersen and since then has held leadership roles in the Big Four advisory firms. He has been a partner in Deloitte’s tax management consulting team, a managing director of the EMEA business for Thomson Reuters and more recently chief executive at Arkk.
A fifth of Britons are relying on an inheritance from their parents to supplement them financially in the future, research from law firm Lime Solicitors revealed. One in five also fear that their quality of life will be impacted if they do not receive an inheritance from their parents. The figures come as the UK continues to grapple with the dramatic impact of the rising cost of living, ongoing inflation, and rising mortgage rates.
Thursday
Crestbridge Family Office Services’ team in Jersey promoted five staff. The mid-year promotions, which took effect from 1 July 2023, include Clare Stotesbury, who becomes an associate director. In addition, Charlotte Williamson was made a senior manager whilst 2020 eprivateclient Channel Islands’ Top 35 Under 35 Melloney Bond was promoted to manager, and both Hannah Le Claire and Joel Lucas-Villar became senior administrators.
Luxury department store Harrods launched its first private members’ club, The Residence, set to open in Shanghai at the end of the year. Housed on the second floor of Cha House in the “heart of the city”, only 250 members will be accepted to join the club with additional members considered following peer nominations. There will be three tiers of membership at The Residence starting from 150,000 RMB for annual membership.
Friday
Later this month the UK government is changing the ‘statutory legacy’ sum from £270,000 to £322,000, which means if a person dies without a will, in addition to being entitled to their personal effects, their spouse or civil partner will automatically receive up to £322,000 worth of assets from the deceased’s estate, with the remaining sum split 50/50 between the surviving spouse/civil partner and any children. If there are no children, then the surviving spouse/civil partner will automatically inherit everything. But this is only applicable to those who are married or in a civil partnership, and does not include cohabiting couples.
National law firm Weightmans announced its financial results for 22/23, the first since its merger with RadcliffesLeBrasseur in June 2022. Total income increased by 22 percent to £125.9 million, 11 percent of that organic. Net profit also increased by 12.5 percent from £11.3 million to £12.7 million in the 12-month period. Net cash also improved over the period. The firm recorded an increase in revenue across all key client markets, with standout increases seen in services to private clients (67 percent) as well as 48 percent growth in its health sector, a 32 percent increase in work for corporate clients and 24 percent growth in services to public bodies.