For many, 2020 has been one of the most professionally and personally challenging years on record. Many of us will have felt overwhelmed by the prospect of operating our businesses, careers and personal lives from our living rooms. We have been challenged in ways that we could never have imagined. Now that we have reached the end of Lockdown 2.0 the landscape is quite different.
On the 17th November we hosted an event where some of these challenges and opportunities were discussed. We have summarised the two main topics below.
"Moving to the UK", including, tax residence, domicile and Indefinite Leave to Remain and other immigration issues, as well as overseas divorce and its relevance in England and Wales.
An encouraging aspect of 2020 is, despite the double impact of COVID-19 and Brexit, Britain remains one of the most attractive places for people to move to. The purpose of this brief discussion, led by James Rees (Family), Elnara Ismagilova (Immigration) and Nicola Simmons (Tax & Wealth Planning), was to flag some of the issues that our clients face and how we can assist in resolving them.
Non-doms arriving in the UK have several tax planning opportunities available to them, but to use them effectively they need to be considered carefully and monitored – especially in light of the regular changes in the tax rules and HMRC practices. Working alongside the Immigration team allows our private tax team to advise clients moving to the UK at the earliest possible opportunity and ahead of any relocation, ensuring they manage their affairs in the most tax efficient way.
As a consequence of moving to the UK, individuals may find themselves falling within the jurisdiction of the English family court. The fact that a client is already divorced in their native country does not necessarily offer protection from a future claim. The Matrimonial and Family Proceedings Act 1984 allows parties who are divorced in their native country to apply for further financial provision in England if they meet the jurisdiction requirements and feel that their divorce settlement in their native country was inadequate.
It is important to consider these issues before moving to the UK and also obtain advice on tax and immigration to minimise potential risks.
"Futureproofing: COVID-19 – where are we headed?"
The COVID-19 health crisis has caused unprecedented disruption to our daily lives, transforming social and economic systems around the world. While challenging, this year has also provided an opportunity for collective reflection in respect of our business practices and, in some cases, a reimagining of the future. What is clear is that the effects of COVID-19 on the economy are likely to be felt long after the pandemic has receded. As companies emerge from crisis mode, it may be that some of the fundamental shifts in the way in which people work remain, for example in video calls rather than travelling, and often flying for meetings.
In relation to the Residential Property sector, COVID-19 has had an impact on the market but we have also seen some of our biggest deals this year.
Family law has been impacted by COVID-19, for example court cases are suffering increasing delays. On a potentially more positive note, more parents working from home or having more flexible working patterns going forward may result in them having greater ability to care for their children on a more equal basis, as opposed to one (non-working) parent taking on the majority of the care. This may well influence outcomes on separation.