Pulham & Co Solicitors


TRUSTS are everywhere! And they are a unique feature of Eng- lish law. Other countries are now beginning to copy the idea of trusts, and broadly speaking they have managed without, by using their equivalent of the Law of Contract. But one wonders if they


Registration of Trusts? What’s all this about? But one major weakness is


should really be called “Don’t Trust”! For example, if you want to present an asset to some- one who you cannot trust to look after it - whether through age or infirmity, you put it in the name of someone who you can trust. That’s all. Of course trusts can be and often are, much more complicated than that. The unique feature of English Law is that the trustee automatically submits to a host of responsibili- ties, many of which are utterly unknown to the beneficiary. After all, the beneficiary may even be an unborn child.


that, strangely, there has never been an form of centralised reg- ister of trusts, so there has been enormous scope for mistakes and misdirections about entitle- ment some of which could even have been the product of devious manoeuvring. HMRC always welcomed the completion of Form 41G so that they might have details of income or capital activity, but that was nothing like a proper registration scheme. All that is changing. Over the


last couple of years the govern- ment has been trying to bring in a proper registration of all trusts so that the devolution and own- ership of assets can be publicly transparent. This will bring trusts into line with the EU’s Fourth Money Laundering Directive. Pension funds proba- bly are already registered as


such but, larger trusts set up in Wills, gifts within families and divorce settlements will, for the first time have to be registered. Because most of the activity involved in trusts is of interest to HMRC that office has been selected as the most appropriate one to hold the register. Registration can only be done


online. And must be done by an Agent through the government’s Gateway system. Each trust must have its own UTR. Initially only complex trusts


will need to be registered, those being what one would recognise as quite large ones, containing at least £2.5M assets. This thresh- old is likely to be lowered in due course so that the register becomes more comprehensive. Registration must be made


before January 31st in each year, and there are penalties for delay in registration consisting of a


fixed penalty to reflect the period of delay: Registration made up to three months from the due date – £100 penalty; Registra- tion made three to six months after the due date – £200 penal- ty; Registration more than six months late – either 5% of the tax liability or £300 penalty, whichever is the greater sum. As preexisting trusts should


have been registered by January 31st of this year HMRC have helpfully stated that they will not charge a penalty if the agent can show that reasonable efforts were being made to effect regis- tration within the due period. For further advice about trusts


and registration of the same con- tact John Pulham at:- Messrs Pulham & Co Egmere House, Market Place, Saxmundham, IP17 1AG. Telephone (01728) 602084 or Email: jsp@pulham. co.uk


Financial Focus On…… ….Wethern’s Law


fying disposals from 20% down to 10% (subject to a lifetime limit of £10 million) although tax reliefs exist for roll-over and hold-over as well. For Inheri- tance Tax (which can apply on certain gifts and not just as a result of death) the relevant relief is Business Property Relief (BPR). For example, the method of


ONE of the “Laws” of the unin- tended effects is Wethern’s Law which is more popularly known by the truism that “Assumption is The Mother of all Screw-ups”. In other words, Wethern’s Law (of Suspended Judgement) exhorts us to check and recheck, as the facts upon which we rely, and on which everything else revolves, have a habit of becom- ing untrustworthy. This is some- thing that anyone who has been in business (or tax) should learn. In the real world where busi-


ness and taxation collide, the law of unexpected consequenc- es can be triggered by changes in rules, by badly drawn legislation (giving rise to the proverbial loophole) or by your own cir- cumstances no longer fitting in, exactly as you once thought they ought. Nowhere is this more apparent than when you come to dispose of a business – either deliberately through retirement, sale or succession planning - or unexpectedly as a result of a sud- den (maybe enforced?) sale, or death. For relief against Capital


Gains Tax, the tax relief most heavily relied upon is Entrepre- neur’s Relief (ER) which reduc- es the capital gain on such quali-


www.a1carpets4u.co.uk


For the complete A1 Service


www.garyburdena1carpets4u.co.uk


Supply & installation of fine quality Carpets & Vinyls. Domestic & commercial 10 Year Stain resitant Carpets & Vinyl’s from £4.99m2 Save £££££’s - We will beat any genuine retailer quote We offer value for money. Free Uplift & Disposal. NO HIDDEN EXTRAS!


Supply & installation of fine quality


Carpets & Vinyls. Domestic & Commercial 10 Year Stain Resistant Carpets & Vinyl’s from £4.99m2


We bring the shop to you - Home sample service with hundreds of ranges to chose from in the comfort of your home


Tel: 01728 604396


Save £££££’s - We will beat any genuine retailer quote Mob: 07419 375720


For the complete A1 Service


Find us on facebook for special promotions www.facebook.com/a1carpets4u


www.garyburdena1carpets4u.co.uk


We offer value for money. Free Uplift & Disposal. NO HIDDEN EXTRAS!


We bring the shop to you - Home sample service with hundreds of ranges to choose from in the comfort of your home


Supply & installation of fine quality Carpets & Vinyls. Domestic & commercial 10 Year Stain resitant Carpets & Vinyl’s from £4.99m2 Save £££££’s - We will beat any genuine retailer quote We offer value for money. Free Uplift & Disposal. NO HIDDEN EXTRAS!


We bring the shop to you - Home sample service with hundreds of ranges to chose from in the comfort of your home


Tel: 01728 604396 LEI 3/FRAM 3


Find us on facebook for special promotions www.facebook.com/a1carpets4u


Find us on facebook for special promotions www.facebook.com/a1carpets4u


Mob: 07419 375720 Mob: 07419 375720


Save your feet, no need to go to the high street. Call us today on 01728 604396


ownership of business property can be a major factor in how much tax relief you could receive on a planned or unplanned disposal of a busi- ness. In years past, good tax planning advice was often for partners or directors to hold business property personally (outside the partnership or lim- ited company), with the owner charging rent to the business for the use of the asset Holding the property personally was also good practice where different people were bringing different levels of capital to the business or the business’s sustainability was of less sound footing (and therefore keeping personal own- ership of the property protected the asset). But disposing of a business


may not be at the forefront of every business owner’s thoughts as they seek to grow their busi- ness and they may not be aware that what was good practice then is less so now and the rules sur- rounding ER are somewhat tighter than the earlier Business Asset Taper Relief. For exam- ple, the payment of rent for the use of a business property will limit or even fully deny ER on that asset. Restrictions to ER also apply for any non-business use of an asset during its period of ownership (for example an area above a shop being used for residential purposes rather than as surplus business storage). If you have a “tainted history”


connected with a property that the business uses, you might therefore consider whether greater ER at a future date could be obtained by transferring own- ership of an asset into the com- pany or partnership which would then give a clean start to owning the asset. For ER, the property being


disposed of must have been used for the purpose of the partner- ship’s/company’s business for at least the whole year up to the disposal date. There is also a new minimum three year owner- ship period if assets were acquired in recent years. The disposal of the property must take place either at the time the business is sold or ceases or within the period of three years after this date (known as an asso- ciated disposal), provided not used for another purposes post business cessation/sale. There is an added benefit in


holding the property within a business. By increasing the level of business assets on the balance sheet, you could also propor- tionately reduce the size of any non-business assets held (e.g. cash and sundry investments) which is another factor that has to be taken into account when claiming ER or BPR. For limited companies share


ownership is another issue, especially with jointly owned (husband and wife) companies. The current rules for Entrepre- neur’s Relief are that to qualify the individual must be an officer or employee of the company, hold 5% of the ordinary share capital and can exercise at least 5% of the voting rights. This is on an individual level, and not in association with a spouse, fami-


ly member or any form of settle- ment. Therefore, a husband and wife team owning 9% of the shares jointly will not qualify at all, but one of them owning 5% and the other 4% would give a measure of relief – but the best result here is for all the shares to be held by one individual. So is it time to review your


asset ownership structure or your longer term exit routes to ensure that your expected tax reliefs would be forthcoming if you were to sell? If not, Weth- ern’s Law could be lurking in the background to trip you up. But just before you rush to change your property or share owner- ship structure, remember that gifts or sales of assets to a busi- ness or individual can them- selves give rise to capital gains tax implications, or potentially even to issues with settlement or VAT legislation. I’m pretty sure that there is a


name for that law as well…. but it might not be printable. For further information on


any of the above points or to dis- cuss your tax affairs generally, please do not hesitate to contact Robin Beadle at Ensors Char- tered Accountants, Saxmund- ham on 01728 603005. This article seeks to address


general business and financial issues and due care has been taken in its preparation. Ensors cannot accept responsibility for loss incurred by any person, company or entity as a result of acting, or failing to act, on any material in this publication. Specialist advice should always be sought in relation to your par- ticular circumstances.


News from Framlingham and Saxmundham Cats Protection


NOW approaching the autumn with holidays over, we antici- pate adoptions will pick up again after the slower homing during the summer months. As men- tioned previously, it was again a busy time for our fosterers who had to take in many families of kittens; both from feral colonies and unwanted domestic litters. We are disappointed and frus- trated that there is still a great lack of awareness of the impor- tance of having cats, both male and female, neutered before they become sexually active. We are able to help with advice and in certain circumstances, with the cost. Call us for more informa- tion or speak to your vet. Feline behaviours: Why do


cats hunt? A cat is naturally a predator. Over many genera- tions they may been selectively breed for their cute domestic attributes but let any cat out and it is likely to do what comes naturally. In the wild, mothers bring their kittens dead animals to eat. As they start to get a bit older, the mother then brings home live prey so the kittens can learn how to hunt and kill. Cats who fill up at home with


food will still potentially hunt; appetite may only affect the level of enthusiasm in their endeavours. Bringing the prey back home to you indicates that your cat feels secure there and it’s a safe place to leave food to eat now or keep for later. Why do cats play with their


prey? It has been suggested that cats play more with ‘dangerous’ prey such as rats in order to prac- tise manipulation and handling while avoiding being bitten. Optionally, it may be that the cat hasn’t learned how to kill it properly and so can’t quite reach


that final stage quickly and cleanly. Movement is then nec- essary in order to maintain the cat’s interest in killing the prey and throwing it around causes movement. Of course, it could be that cats simply enjoy the hunting game. Cats are more likely to hunt at


night, and Cats Protection rec- ommends that cats are kept in between dusk and dawn. Also, some studies show that more road traffic injuries happen to felines at night. Therefore, keep- ing cats indoors at night will pro- tect them from the hazards of the roads too. Cat Quote: “Nobody who is


not prepared to spoil cats will get from them the reward they are able to give to those who do spoil them.” - Compton Mack-


enzie, (1883-1972), author. Looking for a home: Sebas-


tion is a five year old male who has had a tough time in the last few years. He is now ready to find a new home but needs an experienced owner as, although he is a friendly boy, he likes attention on his own terms. If you think you can give Sebas- tion the care and love he needs, please call us soon. See our website: framandsax.


cats.org.uk or telephone 01728 723499 for more information about adopting cats in our care; event dates; neutering; cat-care leaflets; how to become a volun- teer fundraiser or fosterer and other ways you can support us. Also find us on Twitter, Face- book and YouTube.


JOHN BALLS GARAGE Tel: (01728) 688 509 Fax: (01728) 688500


MINISTRY APPROVED MOT TESTING STATION M.O.T. TESTING TO PETROL &


DIESEL VEHICLES FRISTON


• SERVICING • REPAIRS • MOT TESTING • BATTERIES • EXHAUST • TYRES


Church Garage, Snape Tel: (01728) 688 327 For all your forecourt requirements, petrol and accessories etc. Quality Used Cars for Sale


ALSO AT Travel Lodge-style accommodation Pulham & Co Solicitors


A FULL RANGE OF LEGAL SERVICES EFFICIENT AND PERSONAL


Egmere House, Market Place, Saxmundham Telephone: (01728) 602084 Contact: John Pulham


ALAN ROSS REMOVALS & STORAGE


Full & part packing services available. Experienced in moving pianos & fine antiques. Packaging materials supplied.


“Don’t risk doing it yourself...let us take the strain!”


 01728 668900 /  sales@alanrossremovals.co.uk www.alanrossremovals.co.uk


Units 1 & 2, Station Works, Main Rd, Darsham 0505825


& ALDEBURGH Suitable for adults and children aged 13+


FOR DELIVERY ROUNDS IN LEISTON


For details call: Josie on 01502 725858


Email: josie.lawes@micropress.co.uk Names required for our waiting list.


Please provide name, address, date of birth, telephone and email SEPTEMBER 2018


Free collection & delivery service 10 mile radius


701389


086594


089283


05135261


NEED


££££? DELIVERY PEOPLE W


EXTRA ANTED


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16