Following the Chancellor’s announcement that the non-dom tax regime would be abolished in the Spring Budget, current proposals would allow foreign-held assets that meet specific criteria to be exempt from Inheritance Tax, and offer a 50 per cent income tax discount in the first year of new rules to those non-doms that have previously been taxed on the remittance basis.

However, the Shadow Chancellor plans to abolish both of these measures with plans to raise a further £2.6 billion for the Exchequer.

Nimesh Patel, Tax Partner at Grunberg & Co, said: “The Shadow Chancellor’s plan to remove the exemption on 50 per cent of foreign income would mean more income tax is payable by non-domiciled individuals in the 2025/26 tax year. Therefore, the income tax liability for the 2025/26 tax year will be higher.

“In many cases, this will result in individuals having their cashflow heavily reduced in a short space of time as the income after tax will drop significantly in the space of one year.

“The purpose of transitional period is to avoid cases like this and allow individuals time to adapt to the new rules.”

What does this mean?

The firm advised those impacted by new regulations surrounding non-doms to complete and implement any tax planning early, as the new rules do not take effect until 6 April 2025.

The firm also urged non domiciled individuals to give thought as to how their investments are structured, as income is taxed at a higher rate than capital gains.

Nimesh said: “If there are opportunities to bring forward non-UK income and capital gains so they are taxed in the 2024/25 tax year, it will enable more income and capital gains to potentially benefit from the remittance basis if the level of foreign income and capital gains is large enough to justify the cost of claiming the remittance basis.”

Additionally, for individuals who spend a lot of time out of the UK each year, there is the option to reassess the amount of time spent in the UK, potentially reducing it to a level where such individuals are not considered UK resident for tax purposes. This would mean that their non-UK income and capital gains would not be taxable in the UK.

The issue of inheritance

Proposed new rules would also dictate that domicile status does not determine which assets are liable to Inheritance Tax (IHT), instead moving to a residency-based system which uses an individual’s tax residence history to determine which assets are liable to IHT.

“It should be noted,” said Nimesh, “that even under the current rules, long term residents of the UK are eventually liable to IHT on worldwide assets.

“The impact of the new rules is that it would take less than 15 years for non-domiciled individuals to become liable to IHT for non-UK assets, meaning that IHT planning would need to be implemented sooner.”

Ultimately, concluded the firm, the transitional period allows impacted individuals to adapt to the change in rules and manage their cashflow.

Nimesh finished: “Many non-doms have significant financial commitments, so they will need to ensure they have time to do any necessary restructuring of their finances.

“By not having a transitional period, non-UK domiciled individuals who are not as wealthy may struggle. Providing a buffer is one of the main purposes of the transitional period.”

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With their diverse skill sets and passion for excellence, Nikhil and Helena bring invaluable expertise to our firm, further enhancing our capabilities in delivering top-tier services to our clients.

Nikhil joins us as an Audit Senior, boasting a wealth of experience and a strong foundation in audit.

His dedication to continuous learning and his meticulous approach to problem-solving make him a valuable asset to our team.

Nikhil’s commitment to excellence is evident in his proactive leadership style. He ensures clear communication and guidance for junior staff members, fostering a supportive work environment where everyone can thrive.

Outside of the office, Nikhil’s passion for fishing exemplifies his ability to find joy in life’s simple pleasures—a quality that undoubtedly enriches our workplace culture.

Helena’s extensive expertise in audit, accounts, taxation, inventory, and VAT brings a comprehensive understanding of financial processes to our firm.

Her genuine enthusiasm for building client relationships and her adeptness at project management make her a valuable addition to our team.

Helena’s positive and proactive approach to problem-solving ensures that challenges are met with resilience and strategic planning. Her adaptive management style and genuine interest in supporting junior staff members reflect her commitment to fostering growth and development within our team.

Helena started her accountancy career as a school leaver and in doing so became one of the youngest qualified Chartered Accountants in South Africa which is a testament to her dedication and perseverance—a quality that resonates with our firm’s ethos of excellence and ambition.

Robert Bean, Managing Partner at Grunberg & Co, said: “We take pride in nurturing talent and fostering a culture of continuous growth and excellence. Nikhil and Helena embody these values wholeheartedly, and we are excited to see their contributions propel our firm to new heights.

“Please join us in extending a warm welcome to Nikhil and Helena as they embark on this exciting journey with us.”

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Although the headlines have been dominated by the news that employee National Insurance Contributions will be cut further to eight per cent, Mr Hunt also announced several measures, which changed how certain property taxes will be applied.

Largely impacting owners of second or additional homes and Furnished Holiday Lets, the new measures attempt to balance individual tax cuts and bolster The Treasury in other areas.

Capital Gains Tax

From 6 April 2024, higher-rate taxpayers will be subject to a lower rate of Capital Gains Tax (CGT) on the sale or disposal of second or additional residential properties that they own.

Currently, gains made on the sale of these properties are subject to a special rate of CGT of 28 per cent for those who pay tax at the higher rate (with an income of £50,271 or more).

The Chancellor’s new measure will bring this rate down to 24 per cent, with the basic rate unchanged at 18 per cent.

This policy aims to encourage and incentivise disposals of second homes and buy-to-let properties and enhance the residential property market for homebuyers.

Multiple Dwellings Relief

A key relief for Stamp Duty Land Tax (SDLT) has been abolished in the Spring Budget.

Multiple Dwellings Relief (MDR) will cease on 1 June 2024. This means that anyone purchasing two or more properties in a single or linked transaction will no longer be eligible for SDLT relief on this basis.

The Chancellor said that little benefit has come from MDR under its original goal of reducing barriers to investment in residential and rental properties.

Furnished Holiday Lets tax regime

Following consultations with a number of MPs from key constituencies, the Chancellor outlined the abolition of the Furnished Holiday Lets (FHL) tax regime.

The measure comes as those in holiday hotspots raise concerns over the supply of residential homes in areas such as Devon, Cornwall and the South Coast.

Previously, owners of qualifying properties were eligible to be taxed under special rules that carried significant tax advantages, including:

• Plant and machinery allowances on items of fixtures, furniture, furnishings and equipment, including the Annual Investment Allowance and Full Expensing
• CGT benefits, such as Business Asset Rollover or Disposal Reliefs
• Profits counted as earnings for pension purposes.

From 6 April 2025, the FHL scheme will be abolished, ostensibly saving The Treasury around £245 million per year.

The implications for holiday let owners could be wide-ranging, including making owning a holiday let financially unviable for those without significant reserves to cover additional costs.

In collaboration with a lower level of CGT for higher-rate taxpayers, the Chancellor hopes to encourage early disposals of holiday homes or second properties, thereby enhancing the housing supply in certain areas.

We understand that changes to property taxes can be complex, so we’re always here to offer advice to those who own property or are considering investing.

For expert, tailored advice, please get in contact with us today.

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The headline measure for businesses, a rise in the threshold at which businesses and sole traders must register to pay VAT from £85,000 to £90,000, while beneficial, still suffered from widespread fiscal drag.

Although it will push many SMEs back below the threshold and represent a significant saving, it is the first change in seven years to the VAT threshold, which substantially reduces the overall benefit to businesses.

Additionally, as widely predicted, Mr Hunt again reduced the main rate of employee and self-employed National Insurance to eight and six per cent respectively from 6 April 2024.

In a bid to avoid a tax shortfall, the Chancellor also announced the transition towards a residency-based tax system – essentially abolishing the ‘non-dom’ status that allows non-UK domiciled individuals to avoid tax on foreign income and gains if they have been a UK resident for less than 15 out of the previous 20 tax years.

This has been replaced with a system which will require, from April 2025, those coming to live in the UK to pay tax on foreign income and gains after four years.

“This was very much a Budget for individuals,” said Nimesh Patel, Tax Partner at Grunberg & Co. “There’s a general election coming up, so it’s unsurprising that many of the measures announced by the Chancellor prioritise the financial wellbeing of the people.”

In particular, the firm highlighted the heavy emphasis on the High Income Child Benefit Charge, which saw its threshold increase from £50,000 to £60,000, in addition to plans to move the Charge to a household model and reduce the burden on families with high income disparity.

“It is excellent to see individuals benefitting from this Budget through enhanced public services spending and tax reductions,” said Nimesh.

“However, considering recent high inflation, it would have been great to see further measures to support SMEs and businesses outside of high-growth sectors which have long been targeted by the Chancellor.

“Beyond the new VAT measure, businesses, particularly those which are small and independent, may well benefit from nominally ‘voter-oriented’ policies,” said Nimesh, citing the fuel duty freeze as a prominent example.

Additionally, the ‘back to work’ thread running throughout the Chancellor’s statement will invariably have a positive impact on growing businesses looking to take on additional staff.

“We also saw tax reliefs and investment for performing arts and film and television production, as well as a freeze in alcohol duty, which will be highly welcomed by those within these sectors.

“The eventual extension of Full Expensing to leased assets may do more for more, but this has no date attached to it and will come in ‘when fiscal conditions allow’.”

“While we welcome measures which support high-growth sectors in the UK, we would also like to see ongoing support for all SMEs, particularly in the realms of National Insurance costs and rates.

“This was not a negative Budget for SMEs, rather it highlighted pre-election priorities which naturally target individuals.

“What we now urge business owners to do is proceed with caution as it is evident that The Treasury’s attention is on the needs of individuals through tax cuts and reliefs.”

To find out more about Grunberg & Co’s full range of accounting, tax and business advisory services, please visit www.grunberg.je-hosting.co.uk.

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Grunberg & Co is thrilled to announce the addition of three outstanding professionals to our team – Mummun Chowdhury, James Thomson and Shirley Chan.

Joining us as Tax Manager, Mummun brings over a decade of accountancy experience. Her expertise spans tax planning, personal tax, corporate tax, and VAT. Mummun’s academic background in Applied Accounting, along with her ACCA (Partly Qualified), AFA, MIPA, and BA (Hons) qualifications, provide her with a profound understanding of tax principles.

Her approach to work is both inspiring and motivating, focusing on fostering a collaborative and communicative environment. Mummun is dedicated to her continual professional development, aiming to complete her ACCA and CTA qualifications.

Notably, she’s also an accomplished communicator in British and Bangla sign language and has made significant contributions to charity, particularly in supporting individuals with hearing disabilities in Bangladesh.

We are also thrilled to welcome James to our team as Tax Manager. James brings a unique blend of expertise and dedication, being CTA qualified and holding a BSc (Hons) in Biochemistry.

His specialisation lies in handling complex tax issues for high-net-worth individuals, trusts, and estates. James is renowned for his commitment to delivering superior quality work, a trait consistently reflected in the glowing feedback from his clients and colleagues.

As a highly dedicated manager, James excels in navigating the intricacies of advisory tax cases, particularly those with niche aspects. His exceptional research skills and adaptability enable him to tackle the most challenging scenarios.

Moreover, James has a proven track record of actively pursuing opportunities to bring new work into firms, showcasing his initiative and business development acumen. We’re excited to see how his expertise and proactive approach will contribute to our team’s success.

Our new Audit & Accounts Senior, Shirley Chan, brings a rich background with seven and a half years of experience in auditing, mainly from Hong Kong. Specialising in the retail and property sectors, Shirley is known for her clear goal-setting, methodical problem-solving, and effective solution implementation.

Her trilingual proficiency in Cantonese, Mandarin, and English enhances her ability to manage diverse clients and complex projects.

Shirley’s impressive career includes extensive audit work across Hong Kong, China, Singapore, and Malaysia – her contributions to companies listing on the US Nasdaq market are particularly noteworthy.

A Bright Future at Grunberg & Co

With Mummun and Shirley on board, Grunberg & Co strengthens its position as a leading firm in the accountancy field.

Their diverse skills, experience, and innovative approaches to their work will undoubtedly contribute to our continued success and growth.

We warmly welcome Mummun and Shirley to the Grunberg family and look forward to their contributions in making our firm even more robust and dynamic.

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Last year, London Challenge Poverty Week aimed to raise awareness of poverty rates in London, estimated to be around 25% of the city’s residents after housing costs, and the reality of those living in poverty.

Delivering a holistic view of poverty in London, individuals and organisations are encouraged to confront issues such as hunger, income levels, discrimination, housing and childcare through digital content, events, artwork, or research.

Marcos, who joined Grunberg & Co in June 2023, represented Christians Against Poverty (CAP) Enfield during the week, organising two well-attended community events that reflected key themes of challenging poverty.

Wednesday’s theme, “Childcare and Education”, fed into the CAP Enfield Life Skills Launch, taking a deep dive into community organisations which reach those struggling with the cost of living and debt – attended by local people, organisations, and Cllr Mohammad Amirul Islam.

Integral to the event’s planning, Marcos described the event and the information provided as “invaluable to local people and the community, providing the building blocks of poverty alleviation.”

Reflecting Thursday’s “Poverty, Dignity and Discrimination”, Marcos was a part of a team that invited church leaders in the local borough to join together with the interim Bishop of Fulham, Jonathan Baker, and get to know CAP’s work in the local community – and sharing a prayer for those experiencing and challenging poverty.

Marcos said: “It’s a real honour to be working with CAP to raise awareness of poverty in London and highlight what we can all do to fight it. For the community, this week was a great opportunity to get involved with challenging and alleviating poverty on a local level. It’s our duty to question assumptions made about poverty and to continually innovate to find a solution.

“On a personal level, it’s also great to be able to support my wife, an area manager for CAP and a committed believer in combatting poverty. I’d like to say a huge thank you to all those who came along to both events and supported us with advice and information. We look forward to continuing our work against poverty through community involvement, compassion, and collaboration.”

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A longtime supporter of local people and communities, the firm has again supported Colindale Foodbank.

We have been providing regular donations throughout 2023. However, our support doesn’t stop there. We have been embracing the spirit of the season all year round.

March saw our team donning their purple apparel and holding a cake sale for International Women’s Day – ultimately raising £200 for Solace Women’s Aid.

In May, we took the opportunity to support staff and the wider community by holing a range of special events for Mental Health Awareness Week, including a refreshing nature walk and fun-filled Pizza Day.

By Friday, our team were celebrating its crowning achievement– raising £300 for SHOUT, the UK’s first 24/7 mental health crisis text service.

Despite this success, our team weren’t resting on their laurels, organising further fundraising events to provide a total of £1,575 for SHOUT and its service users.

On an individual level, the firm has also encouraged team members to get involved with charity initiatives through their interests.

Leading by example, Senior Partner Alain Stechler took part in RideLondon, tackling a 103-mile route in seven hours on behalf of the Shaare Zedek Medical Centre in Jerusalem.

Managing Partner, Robert Bean, said: “It’s been a wonderful year for us at Grunberg & Co, for both client work and the work that we do beyond our desks, for staff, for charity and the local area.

“We recognise our responsibility towards our community in North London and we’re proud to be in a position to offer the range of support that we provide.

“In particular, we’ve been working on our environmental initiatives in-office, using small changes to make a big impact. Our commitment to the Net Zero Now programme has been supported by everyone’s willingness to adapt, with paperless operations, recycling initiatives and persisting with virtual meetings where possible.

“I’d like to thank everyone at the firm and beyond that have helped us this year. Whether that’s supporting our green initiatives or getting involved in charity, our team has made a difference in the community.

“I also want to call on other firms and local businesses to get involved in supporting local people and organisations.

“As we look forward to 2024, we remember that we’re all part of a community, one that is not just for Christmas. Our team has already seen the value of giving year-round, and this is something we’ll be pushing for even more of in the new year.”

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Through our subsidiary Reanda UK, as the UK representatives of Reanda International, we were delighted to be part of their celebrations together with the Annual meeting of the International Network in China.

Our Managing Partner, Robert Bean, was joined by another of our partners, Alex Kossoff, for this landmark occasion.

Jetting off from the UK, our team touched down in Beijing on Friday 17 November. Robert, as Director of Reanda International, was selected to compere the 30th Anniversary Gala Dinner at China World Summit Wing Hotel, thanks to the high regard in which our firm is held within the Network.

However, before that Alex and Robert got to rub shoulders with fellow members at the Belt and Road” Business Services Forum.

Then came the main event and Robert, joined by three Mandarin co-hosts, led the festivities at this incredible event in front of an invited crowd of more than 500 delegates, Chinese businesses and representatives of member firms from around the world.

In the two following days, Alex and Robert took part in several International Partner meetings and talks, where members shared insights and their knowledge with fellow members.

Off the back of our Net Zero initiative, Robert led a session on the importance of reducing emissions and commitments to ESG.

Alex and Robert also enjoyed and took part in talks about the impact of AI on the accounting profession and the wider world, which was insightful.

Interspersed between these talks and meetings, Alex was invited on to guided tours around Beijing that allowed him to engage with other members and learn more about the city’s past and exciting future.

On the final evening before travelling back to the UK on Tuesday 21 November, Alex and Robert were treated to a traditional Chinese hotpot meal at an exclusive restaurant in the heart of Beijing, where they got to sample many local delicacies.

Speaking of his experiences of the trip and Grunberg & Co’s position within Reanda International, Alex said: “We are a pivotal part of Reanda and over the years, we have cemented ourselves as a key member.

“Our services and expertise are valued by our fellow members, as we have serviced and continue to service International and Chinese clients well.”

“Many of the other members were complimentary of the experience and support we bring to this global network and how the nurturing of relationships by the different members of our team has helped to grow client referrals.

Reflecting on his experiences of this celebration and conference, Robert added: “It was great to be able to meet with once again so many of our peers from around the world and get together to commemorate the success of the Reanda International Network.

“The talks and events that we took part in were not only informative, but enjoyable, and have helped to further broaden our understanding of fellow Reanda members and the direction that our profession as a whole is looking to take globally.

“We remain extremely proud of our relationship with Reanda and the many benefits and opportunities it brings to our practice and the ability it offers for us to provide global expertise to businesses in the UK.”

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For nearly a decade, Grunberg & Co has consistently been featured on this prestigious list compiled by Accountancy Age, a testament to the firm’s continual growth and excellence in the industry.

This recognition is not just about size but also a tribute to Grunberg & Co’s dedication to evolving and investing in its future.

In the last year, the firm has appointed lots of new starters and promoted several new Associate Directors from within, laying a solid foundation for the next generation of leadership.

The firm also promoted Herman Hang as its new Partner, as it looks to build on its success in the audit market.

Robert Bean, Managing Partner at Grunberg & Co, expressed pride in the firm’s achievements: “Being named among the Top 100 accountants again is a significant accomplishment that mirrors our firm’s progressive development.

“We’ve not only attracted new clients but also expanded our service offerings in the last 12 months with cutting-edge solutions – enhancing the value of the services we deliver to our clients. With a clear and focused vision for our future, I am confident in our continued growth and success.”

For more information on Grunberg & Co’s comprehensive tax, accounting, and business advisory services, please visit www.grunberg.je-hosting.co.uk.

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Located in the heart of London at 80 Coleman Street, the office is all set to welcome you back.

We know how much this office means to our staff and clients alike, so we are delighted to be re-opening it.

We look forward to seeing you soon and resuming our services at 80 Coleman Street.

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