Payne Hicks trio set up Private Client boutique

Three Payne Hicks Beach private client partners will leave the firm next month to set up a boutique private client practice. Louise Stoten, a partner at Payne Hicks for the past 10 years, will set up New Quadrant Partners along with partners Marcus Parker and Jane Bennett, who both joined the firm last year. They will be joined by Payne Hicks associate Zoë Camp and tax and trust principal Simon Rees. Joan Major, director of wealth management at London-based multi-family office Sand Aire, will also be joining New Quadrant Partners.

First reported on TheLawyer.com

IMF proposes two big new bank taxes to fund bail-outs

The BBC has learned that financial institutions and banks face paying two new taxes in an attempt to make them more accountable for the costs of future financial and economic rescue packages. The plan is more radical than initially anticipated and includes an initial flat-rate levy, plus an additional tax on profits and pay. The finance ministers of the G20 nations will be discussing the proposals this weekend. The chancellor Alistair Darling said the IMF's proposals were "important" and should be welcomed.

For the full story visit:http://news.bbc.co.uk/1/hi/business/8633455.stm

No escape for tax exiles?

The Court of Appeal has upheld the right of HM Revenue & Customs to tax a businessman, Robert Gaines-Cooper, who has lived in the Seychelles since 1976. The judges said that he had never been exempt from UK taxes as a non-resident citizen and now should pay a tax bill of £30m relating to the years from 1993-20004. Although he had abided by the rules to spend fewer than 91 days here, he had still not cut his ties with the UK.

Thousands of wealthy UK citizens living abroad as tax exiles may now find they have to pay UK taxes after all.

A key feature of the Revenue's old guidance on whether someone was resident in the UK for tax purposes - known as IR20 - was whether they spent, on average, fewer than 91 days here each year.

"If you read the old guidance at face value, as most of us did, and you spent less than 91 days here, you would have been treated as a tax exile," said Mike Warburton of accountants Grant Thornton, who was an expert witness in the case.

However, the three Appeal Court judges ruled that it had always been the case that any would-be tax exile, first had to show they had really left the country.

Any continuing connections would mean that he had not actually cut his ties with the UK and would thus not be able to avoid UK taxes.

The 91-day rule, they said, did not in fact establish non-residency, and was "important only to establish whether non-resident status, once acquired, has been lost".

Source: http://news.bbc.co.uk/1/hi/business/8519803.stm

HMRC increasingly target HNWIs

City law firm McGrigors has undertaken research showing that HMRC collected £373 million from investigations into wealthy taxpayers in the last financial year, a 21 per cent rise on the previous year and a 360 per cent increase over five years. HMRC established a specialist HNW unit in April 2009 to focus specifically in the field.

This news comes on the back of a failed attempt by UK-born businessman Robert Gaines-Cooper, to win a judicial review of a major dispute with the UK tax authorities. HMRC refused to accept he had really left the country when he moved to the Seychelles in 1976. The case further illustrates the risks run by tax exiles who nevertheless keep some links with their home nation.

Cripps’ Partners recognised as leading Private Client lawyers

Leadng regional law firm, Cripps Harries Hall LLP are proud to announce that two of their private client partners have been recognised as Leading Lawyers in this year’s Citywealth Leaders List.

Amanda Andrews, a partner in the Family Team and Simon Leney, a Partner in the Tax, Trusts and Probate Team have both been named as Prominent Figures within their respective areas of practice.

The Citywealth Leaders List is compiled through the recommendation of peers and clients. All individuals are put forward confidentially by private clients or by their peers in law firms, accountants and financial institutions and the rankings are the result of detailed research. Those listed are acknowledged to possess a sterling reputation for expertise in their field, first class client care and sophisticated services for wealthy families and individuals.

Myles McIntosh, Head of the Private Client Group at Cripps said “We are delighted that Amanda and Simon have been recognised as leaders in their fields reflecting the high standard of expertise and client care provided by Cripps Harries Hall. This reinforces the recent excellent rankings we have achieved in other independent publications highlighting the quality of our Private Client service”.

Source: Cripps Harries Hall LLP