As featured in The Scotsman Annual Deals Supplement AAB's Edinburgh Managing Partner & Head of Deals in the Central Belt, Lyn Calder, reflects on M&A activity in the family business sector.
The last few weeks have been filled with speculation about what the Chancellor’s expected October budget would contain and everyone was braced for increased tax rates in some shape or form. However, with the budget now pushed back to the Spring of 2021 the Chancellor instead delivered his Winter Economy Plan with a range of measures to support jobs and businesses over the next few months.
It has been widely speculated that there may have been Capital Gains Tax (‘CGT’) reforms announced in this year’s Autumn Statement, which could have had a significant impact on the net proceeds on transactions from late 2020 onwards.
Before lockdown, a member of our specialist food & drink team dined at The Kitchin in Edinburgh where they were impressed by a brilliant document (see below) illustrating where Michelin Star Chef, Tom Kitchin sources each of the ingredients used in his kitchen. While many Scottish restaurants take pride in sourcing local, fresh ingredients that diners very much appreciate, we often don’t extend this principle to the foods stacked in our fridge and served on our dining tables.
HMRC have confirmed this week that another two people have been arrested in connection with a suspected £70,000 Coronavirus Job Retention Scheme (“CJRS”) fraud. These follow the first arrests in July in connection with alleged furlough fraud with a suspected £495,000 unlawfully gained.
Effective Joint Venture Accounting and Contract Compliance in an E&P Operator are vital for all parties involved and those who share in a venture. They are the first line of defence processes that provide assurance and comfort to the owners and partners that outgoing payments are valid and reflected accurately.
An increasing number of scam phone calls are being made, where the caller pretends to be from HMRC in order to try and obtain bank details from their victim. These callers can be extremely convincing, even sometimes coming from a ‘cloned’ HMRC telephone number and more and more people are being caught out by them.
From the 6 April 2018, the treatment of termination payments changed with the calculation of the Post Employment Notice Period ‘PENP’ becoming a legislative requirement in order to establish the correct tax and National Insurance treatment of payments being made. Furthermore, in April 2018 changes were also made to the availability of the Foreign Service Relief for individuals who have carried out all or part of their employment overseas, introducing a requirement whereby the individual must be non-UK resident in the year in which the termination takes place in order to benefit from the relief.
The zero-rate relief for charity advertising has provided significant benefits for charities since its introduction for newspaper advertising in 1986. Over the years, there have been a number of changes to the relief which have generally extended the scope to cover broadcast media and all advertising, whether it be fundraising or recruitment adverts.
With April 2021 creeping up on us, businesses in the private sector must ensure they are ready to face the delayed IR35 off-payroll working reform head on to ensure compliance with the legislation. This will mean taking the time now to implement robust processes and procedures for managing contractors going forward, including the completion of employment status assessments where required.