Tax is “the price you pay” for the stability of living in the UK, which remains an “incredibly attractive” place to reside, partner at Irwin Mitchell Private Wealth Nick Rucker told eprivateclient.
On the topic of non-dom tax reforms, Mr Rucker, who runs the firm’s private wealth London and international team, said that tax rules are getting less generous, stating that it is “inevitable” that as much tax as possible would be garnered for the Exchequer following the financial crisis nearly ten years ago, particularly after the banks were bailed out.
In 2014/2015, non-doms contributed £6.9 billion in tax to the UK, and there could be a shortfall of £1.6 billion over the next four years if all those affected by the reforms leave the UK, according to research by the firm. However, Mr Rucker noted that non-doms “should not feel they are being unfairly targeted” and that the new rules are “still pretty generous”.
He added: “The UK is still incredibly attractive for people to come, especially high net worth individuals and people who want to build businesses. Tax rates are probably going south for corporates.”
With regard to people who seek to create businesses in the UK, Mr Rucker continued: “The government is generous in relieving tax for people who are creating jobs and wealth, the UK is safe politically, and has got the rule of law and access to capital.”
Ben Xu works as a solicitor in Irwin Mitchell Private Wealth’s immigration team, where he works with non-EU nationals with regard to their relocation to the UK as well as clients in the EU on protecting their rights to remain in the UK post-Brexit said Irwin Mitchell Private Wealth was unconcerned with “who got in” in the 2017 General Election, but wanted stability and clarity particularly in relation to Brexit.
However, the firm has seen more people seek advice on their rights as immigrants living in the UK since the Brexit vote on 23 June 2016, despite the government safeguarding the rights of people that arrived in the UK prior to the vote as well as a two year grace period following the UK’s departure from the EU which will be followed by a “hard line” approach to immigration.
In terms of the crossover between private clients needing tax and wealth advice, as well as immigration advice with regard to their position in the UK, Mr Rucker said Irwin Mitchell Private Wealth is on the way to becoming a “one stop shop”.
He stated: “A lot of clients want [a one stop shop service] and are looking for a lot more advice – mainly due to uncertainty - but most clients don’t know it exists.”
The firm’s private wealth business is part of its diversification away from its two core strengths: corporate tax and personal injury. The private wealth arm, or “third leg” of the business as Mr Rucker calls it, has turnover of over £30 million and over 340 people working in it, making it the second largest private wealth business in the UK.
Over the next five years, the arm has plans to grow by around 40 percent and offer a ‘holistic’ private wealth offering in all of its offices.
Mr Rucker concluded: “Irwin Mitchell wants to make a business that is user-friendly and approachable and deals with complex issues, offering help that clients are willing to pay for.”
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