104001 Pierce UDS Advert _A5_Layout 1 09/04/2021 10:38 Page 1
THE GROWING COMPLEXITY IN
MATRIMONIAL FINANCES by George Horley
Forensic director, Pierce
Couples marrying later in life can bring significant accumulation of wealth and assets into the marriage.
This has contributed to the growing complexity in matrimonial finance.
Easy access to financial and tax advice has facilitated intricate personal financial arrangements such as complex pension arrangements, trusts, and other investments.
Business and corporate structures can include group companies, joint ventures and trusts, often governed by detailed shareholders’ agreements.
Assessing the value of these assets and navigating their disposal or transfer in the event of a divorce, including consideration of the tax implications, can be a daunting prospect if expert forensic advice is not sought.
As forensic accountants, we are often instructed in divorce proceedings as a single joint
expert to value the relevant companies, including consideration of maintainable earnings or sustainable income. In such cases, we are independent of both parties and their duty is to the court.
We are also instructed as a shadow expert in matrimonial cases. The role of the shadow expert is to provide expert assistance and advice directly to the instructing party.
As well as assisting with the preparation of questionnaires in respect of disclosures on the Form E and the further information required to understand the financial position of the parties, we regularly advise on raising questions on the report of the single joint expert or clarifying aspects of the valuation process.
For over 30 years, our reports and advice have helped clear the muddy waters of matrimonial finance and divorce proceedings.
SELLING A STAKE IN THE FAMILY BUSINESS
VIA EMPLOYEE TRUST by Stephen Harding
Tax partner, Beever and Struthers
Family businesses face the same issues as non-family businesses but also have to consider other challenges.
These include conflicts, lack of control of the business, separating business from family, nepotism, family members leaving without notice or reasons, and unclear succession plans.
When family members have decided that the business should be run by people other than the family, selling a stake to an Employee Ownership Trust (EOT) could be a solution for all parties.
Although employee ownership has been championed for many decades it was only when EOTs were introduced in 2014 that significant tax advantages could be accessed by both the shareholders and employees.
The main tax incentive to shareholders is that no tax will be payable on the sale provided more than 50 per cent of the shares are sold to the EOT.
For employees of an EOT owned
company they can each receive income tax free bonuses of up to £3,600 per tax year.
We are finding that a lot of family businesses are adopting the employee ownership model as there are other advantages such as: motivating employees and increasing production; allowing the founders legacy to continue; and increased innovation.
HMRC is currently consulting with various parties to make sure that EOTs are achieving the objectives they were originally created for and make the rules governing them simpler.
There are a number of potential pitfalls that impact on a family- owned business transitioning to Employee Ownership.
Beever and Struthers has advised on over 20 successful sales to EOTs of family-owned companies helping this be a relatively stress- free experience compared with selling to another company such as a competitor.
What does it take to be better? Not just a little better, but award winning better?
At Beever and Struthers, we have a simple theory. We believe that offering exceptional support and considered advice leads to better accounting and business outcomes. We exist to achieve better things for our clients, adopting an equitable business approach for both local businesses and global organisations. There’s nothing new in this. After all, we’ve been doing it succesfully for well over a century.
Contact us today. You’ll find that talking to us will be a far better use of your time.
Manchester 0161 832 4901
manchester@beeverstruthers.co.uk
Blackburn 01254 686 600
blackburn@beeverstruthers.co.uk
Birmingham 0203 478 8400
birmingham@beeverstruthers.co.uk
London 0203 478 8400
london@beeverstruthers.co.uk
www.beeverstruthers.co.uk LANCASHIREBUSINES SV
IEW.CO.UK
We’re more than an accoutancy firm.
We’re more than an accoutancy firm.
We provide solutions Providing core accountancy services with quality and
swiftness whilst focusing on the future of your business and finding solutions to your problems.
Some of our solutions: •Business Strategy
•Re-structuring your business
•Management / family buy outs
•Acquisitions
•Pre year end planning •Staff incentives
•Selling your business •Buying a business
•Raising finance •Forecasting
•Trust and estate planning •Tax investigations
Give us a call to discuss
how we can help your business 01254 688100
Email:
l.kennery@
pierce.co.uk www.pierce.co.uk
•Research & Development •Business Valuations
49
FAMILY LAW
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