Tories “at the service of ordinary working class people”, Baby-boomers – blowing the kids inheritance, the GBBO – Frenchman’s grave mistake and more
Theresa May pledges a fairer Britain – Theresa May told the Conservative party conference yesterday that the Government will be put “at the service of ordinary working-class people” and that it would go after tax avoiding companies and irresponsible capitalists who take out “massive dividends while knowing the company pension is about to go bust”. Mrs May pledged to fix “dysfunctional” financial markets and crack down on financial advisers who helped clients to dodge tax. Mrs May barely disguised those she intends to tackle when she stated: “So if you’re a boss who earns a fortune but doesn’t look after your staff in an international company that treats tax laws as an optional extra, a household name that refuses to work with the authorities even to fight terrorism, a director who takes out massive dividends while knowing that the company pension is about to go bust — I’m putting you on warning. This can’t go on any more.”
Landlords fight Government over tax changes – The challenge to new tax rules for landlords began yesterday. From 2017, landlords will no longer be able to deduct the cost of their mortgage interest from their rental income when they calculate the profit on which to pay tax. Smith &Williamson calculated that any higher-rate taxpayer landlord whose mortgage interest is 75% or more of their rental income, net of other expenses, will see all of their returns wiped out by 2020. A group of landlords is being represented by Omnia Strategy, led by Cherie Blair QC. They claim the change will distort market competition, increasing rents substantially and giving cash investors and corporate landlords an unfair advantage.
Shazam!…and it’s gone – Music app Shazam paid no corporation tax last year despite making gross profits of £32.9m. The firm claimed “recurring administrative expenses” of £47m. Tax accountant Robert Leach told the Sun: “There is no explanation of what these expenses are. I would guess, and this is only a guess, that this is a payment overseas to avoid UK tax.”
Baby-boomer grandparents blow kids’ inheritance – A study by the website Gransnet has found that grandparents from the baby-boomer generation are spending their money on themselves rather than passing it on to children and grandchildren. The survey of 1,000 grandparents aged 50-70 reveals that one in six plan to spend all their money before they die. And four-fifths of those polled said they had not considered how to protect their children from having to pay IHT by gifting them money before they die. At the same time, three-quarters said they wanted IHT scrapped, describing it as “double taxation”.
HMRC to probe illegal football payments – Investigators from HMRC are to probe allegations of illegal payments surrounding football transfers following a week of revelations. During an undercover investigation by the Telegraph, Barnsley assistant coach Tommy Wright was filmed appearing to accept £5,000 in cash to help place players at the club. That payment is now set to be probed by tax investigators, who are also understood to be interested in the QPR manager Jimmy Floyd Hasselbaink’s request to be paid in the Netherlands so that he could then bring the money into England having paid less tax. The latest exposures come after Sam Allardyce stepped down as England manager after he was filmed suggesting ways of bypassing the FA’s rules on third-party ownership. Mr Allardyce’s investments were scrutinised by the HMRC in 2011, along with other celebrities and footballers, for possibly exploiting tax loopholes.
Small business and enterprise
The pitfalls of crowdfunding investing – The Sunday Telegraph examines the risks and rewards of equity crowdfunding. It says crowdfunding can generate returns approaching 50% for investors in a position to benefit from the tax reliefs on offer, but warns that the risks are high, with 40% of start-up businesses failing. It adds that crowdfunding is not a ‘get-rich-quick’- scheme. Of the businesses started since the major platforms launched three years ago, few have reimbursed their investors to date.
UK economy, finance and markets
IPOs expected to pick-up – A report by EY predicts UK stock market listings are poised to recover following a post-Brexit slump. Only six IPOs took place in the third quarter, down from 13 in the previous quarter, but in line with the same period last year. However, EY believes higher valuations and lower volatility could spark a pick-up in IPO activity in the near future.
Mortgage lending hits 21-month low – Figures from the Bank of England show that the number of mortgage approvals in August sank to its lowest level in 21 months in the wake of the Brexit vote, and net lending to small businesses contracted for the first time since late 2015.
CIMA: The “intangibles” of the Great British Bake Off sale – Writing in City AM, Tony Manwaring, executive director of external affairs at CIMA, considers the “intangibles” of Love Productions’ sale of the BBC’s Great British Bake Off (GBBO) show to Channel 4. Assets not recorded on a balance sheet that, if lost, could damage brand reputation and threaten longevity, are called “intangibles” he states, and for long term success it’s essential to understand all value drivers to ensure the right ingredients to take good decisions. “Love Productions’ decision to opt for money and ignore the brand value of the BBC may ultimately hurt GBBO’s long term success, particularly if the current ‘boycott’ pledge among upset viewers holds firm next year,” he concludes.
Thirst for craft beer grows – A report from UHY Hacker Young shows the number of breweries has increased by 8% to around 1,700 in the past year amid a surge in the popularity of craft beer. The firm said breweries are becoming increasingly profitable and targets for acquisition.
French taxman’s grave mistake – A demand for property tax has been sent to the grave of a deceased woman in the Brittany town of Sarzeau, according to the local mayor, David Lappartient. Mr Lappartient said he was “dumbfounded” by the demand from the regional tax office, which was addressed to “Grave 24, Row E, Cemetery Road.”
Christian Elmes, Partner
Christian Elmes trained at PwC and qualified as a chartered accountant in 1999, before moving to Morgan Stanley (2000-2002) as Associate in the Investment Banking Division (IBD).
He was appointed Director of Finance, Teather & Greenwood Investment Management in 2002 and moved with the Tax Efficient Solutions team to Smith & Williamson in 2004, becoming Deputy head of the department. He left to co-found Enterprise in 2011.
Over the last ten years, Christian has been responsible for developing a number of tax efficient products, particularly Enterprise Investment Schemes (EIS). He is able to lead on tax efficient product development from inception through to completion, because of his financial and tax background and commercial experience.
Christian is competent across a broad range of sectors including, leisure and hospitality, media, property and renewable energy.
Christian is a non-executive board member to a number of leisure and hospitality companies, Casper & Cole Ltd, Wright & Bell Ltd, Ruth & Robinson Ltd, Camm & Hooper Ltd and Darwin & Wallace Ltd.