erwer

More estates to fall into Inheritance Tax net as threshold is frozen for further five years

Palmers Solicitors in Essex

Many more estates could attract Inheritance Tax (IHT) after the threshold was frozen for a further five years, experts have warned.

It was confirmed in this year’s Spring Budget that the IHT threshold – currently £325,000 for individuals – will be frozen until at least 2026.

But with the property market continuing to soar in value, estates previously valued below the threshold could quickly rise above it – attracting significant amounts of tax.

IHT is currently charged at 40 per cent on the value of an estate that exceeds the IHT threshold – currently £325,000 for individuals or £650,000 if combined with a spouse or civil partner.

If you give away your primary residence to children (including adopted, foster or stepchildren) or grandchildren the threshold can increase to £500,000, or £1 million if combined with a partner.

But experts say the IHT threshold has failed to keep up with inflation and rising property values.

If inflation had been taken into account since April 2009, the individual threshold would now stand at £446,000.

Likewise, the latest statistics show that UK average house prices increased by some 8.6 per cent in the year to February 2021 – tipping many estates into the IHT “danger zone”. And over the next five years, thousands more estates could fall into the tax-paying bracket.

Families who fear they may have to pay significant amounts of IHT should start planning for later life now. Our experts can help you pass down more of your hard-earned wealth to your children and grandchildren and keep your tax bill as low as possible.

For help and advice, get in touch with our expert later life planning team today.

Tech Nation Report 2021: London ranks fourth globally for venture capital tech investment

Palmers Solicitors in Essex

The UK capital has placed fourth for annual venture capital (VC) investment in tech for the second year running.

The finding forms part of the Tech Nation Report 2021, which highlights the “remarkable resilience and growth” of the UK tech sector over the last year.

According to the paper, the UK tech sector as a whole attracted some $15 billion (£10.8 billion) in VC investment in 2020, behind only the United States and China, but ahead of all of Europe.

London, meanwhile, ranked fourth for tech VC investment in 2020, behind only San Francisco, Beijing and New York.

By industry, the UK ‘Deep Tech” sector recorded the largest annual rise in investment at 17 per cent, representing the fastest rate of growth globally.

The report also found that the UK is “more attractive to international investors than ever”, with foreign investment accounting for over 63 per cent of investment in UK tech firms – up from 50 per cent in 2016.

Welcoming the report, Digital Secretary Oliver Dowden said: “With record levels of investment secured and UK listings gaining momentum, this report shows Britain’s tech sector continues to go from strength to strength, solidifying our position as one of the world’s top tech hubs.

“We want to bring about a golden age of UK tech through a raft of supportive measures and funding to help businesses thrive. This will help fuel a booming tech sector – creating jobs and improving services so that we can build back better from the pandemic.”

Separate research published last week revealed that the number of new tech companies established in the UK rose by 13 per cent in 2020, from 12,696 new incorporations in 2019 to 14,301 new incorporations last year.

For commercial support, including advice on start-ups, mergers, acquisitions, investment, and corporate finance, please get in touch with our expert team today.

LPA registrations decline during coronavirus pandemic, figures reveal

Palmers Solicitors in Essex

The number of annual Lasting Power of Attorney (LPA) registrations fell sharply during the coronavirus pandemic, a major study has revealed.

The figures, published by the Ministry of Justice (MoJ), suggest that later life planning has taken a back seat, despite the risk of accident and illness remaining the same.

An LPA is a legal document that allows someone – usually a family member or close friend – to make financial and healthcare decisions on your behalf if you’re no longer able to do so.

For example, someone diagnosed with dementia can ask their Lasting Power of Attorney to pay their bills for them or decide where they should live and what medical care they will receive.

Importantly, LPAs should be established and agreed upon ahead of time, as gaining similar rights after an unforeseen accident or illness may require permission from the courts, which could take several months.

Despite this, the latest research shows that the number of registered annual LPAs has fallen “significantly” during the pandemic – placing families at risk in the event of unforeseen events.

According to the MoJ, there was a 30 per cent drop in LPAs registered between April 2020 and February 2021, compared to the previous 12 months.

Commenting on the figures, Rachael Griffin, of wealth management firm Quilter, said coronavirus disruption may have led to the fall in registered LPAs.

“Things such as getting a wet signature became problematic. In the instance of applications for Lasting Power of Attorney it took the Office of the Public Guardian (OPG) about a month to produce guidance on how to apply in the Covid-19 environment,” she said.

“On top of this, the OPG expressed they were seeing large levels of enquiries and it was taking longer than usual to process applications.”

She added: “For those who were put off by the difficulty of registering an LPA at the beginning of lockdown, or haven’t had the chance to have what can be a difficult conversation, you must put the task back at the top of the to-do list. An LPA can only be registered while you have mental capacity – once you’ve lost capacity it’s too late.”

For help and advice with related matters, please get in touch with our expert later life planning team today.

UK tech sector booms despite Covid-19 impact, study reveals

Palmers Solicitors in Essex

The number of new tech companies established in the UK rose by 13 per cent in 2020, despite the global pandemic, a major study has revealed.

The research, published by auditors RSM, highlights the underlying strength of Britain’s thriving technology sector.

According to the report, more than 14,000 tech businesses registered with Companies House in 2020, up 13 per cent compared with 2019.

Unsurprisingly, the bulk of these new formations took place in the capital, which recorded 7,480 annual incorporations – up 24 per cent compared to the previous year. It was followed by the South East at 1,520 and the North West at 888 new formations.

However, the largest regional increase was found in the West Midlands. The figures show that 585 new tech companies staked their claim in the area in 2020 – up 40 per cent compared with 2019.

Scotland (up 12 per cent), Northern Ireland (up 10 per cent), the North East (up seven per cent) and the East Midlands (up three per cent) also proved popular among tech entrepreneurs.

But they come at the expense of Wales, Yorkshire and the Humber, the North West, and the South West, which all saw formations fall compared to the previous year.

Commenting on the figures, David Blacher, head of technology at RSM, said: “Despite the acute impact of the Covid-19 and lockdown restrictions, it’s encouraging to see growth in the UK tech sector as entrepreneurs seize the opportunities that the pandemic has revealed for technology to support new ways of working and digital entertainment.”

He added: “The UK continues to stride ahead of other European countries, despite Brexit, and remains the first-choice tech hub after the US and China.”

According to the latest statistics, the UK tech sector attracted some $15 billion (£10.8 billion) in investment and placed third internationally for tech incubations in 2020.

For commercial support, including advice on start-ups, mergers, acquisitions, investment, and corporate finance, please get in touch with our expert team today.