Introduction to James Robertson, Senior Advisor at A&M Taxand

We are delighted to welcome James Robertson as a Senior Advisor to our team in Glasgow.

James has more than 30 years of experience in providing advice to families, entrepreneurs, and partnerships, including extensive experience in advising on capital taxation, complex land development projects, renewable energy and heritage businesses, and helping families develop succession strategies.

Before joining A&M, James spent over 30 years with EY in Inverness and London. He was the partner-in-charge of EY’s Landed Estates Group, part of the national private client team acting for estates across the UK. Latterly, he had responsibility for international law firm clients.

Since retiring from EY, James has acted as a trusted business adviser to several estates. He is currently a member of the family council of a major estate.

James earned a degree (honors) in history from Edinburgh University and a post-graduate certificate in accountancy studies from Aberdeen University. He is a member of the Institute of Chartered Accountants of Scotland (“ICAS”) and, as a former convenor of the tax practices committee, represents them, along with Scottish Land & Estates, on a working group of professional and other industry bodies focused on rural business issues. He is a current member of the Scottish Land & Estates tax committee.

Contact James at jrobertson@alvarezandmarsal.com

Key highlights from UK “Tax Day” on 23 March 2021

On 23 March 2021, the Treasury published several documents and consultations on future tax policies following the Chancellor’s Budget on 3 March.

These announcements are usually made simultaneously with the Budget, but were delayed this year to allow for greater scrutiny of the documents.

The documents were perhaps notable in their lack of any indication of significant changes from a Capital Gains and Inheritance Tax perspective.

The key announcements from an asset management perspective include:

Capital Gains & Inheritance Tax

The documents do not provide any detail or indication surrounding the future of Capital Gains Tax or Inheritance Tax. However, the Government may still consider legislative changes as early as Autumn 2021 following the various reviews and calls for reform, including the Office of Tax Simplification’s Call for Evidence on Capital Gains Tax last year. Therefore, the next few months may still present a window of opportunity to review capital assets and potential succession plans.

Funds

There were no material announcements on Tax Day in the context of Funds. However, we have responded to the Government’s “Review of the UK Funds regime” this month, recognising the importance of a strong regulatory and tax framework in the UK. If it were of interest, we would be delighted to run through our response with you.

Employment Related Securities (“ERS”) reporting reminder for 6 July 2021

We wanted to provide a reminder that following the end of the 2020/21 UK tax year, annual ERS returns should be submitted to HMRC by 6 July 2021.

The ERS annual return will report any new or existing share plans (including co-investment and carried interest entitlements) to HMRC for 2020/21 and involves many key tasks, including:

• Registering new share plan arrangements;
• Verifying or self-certifying the tax-advantaged plans in place; and
• Submitting annual returns with all reportable events (including nil returns).

All ERS annual returns should be filed with HMRC on or before 6 July 2021 for the tax year 2020/21. Any late filings will result in an automatic penalty and potentially significant consequences for tax-advantaged plans.

If you need any assistance or if you are unsure whether you are required to file an ERS annual return for 2020/21, please don’t hesitate to get in touch.

An insight on HM Revenue & Customs (“HMRC”) Enquiries into the Tax Treatment of Carried Interest

We are aware of an increase in the number of enquiries into the tax treatment of carried interest HMRC are raising at a House level and an individual level. These enquiries are typically aimed at several investment management professionals, and we expect this scrutiny to grow in light of the Budget.

The rules on the tax treatment of carried interest are complex. The recent introduction of the Disguised Investment Management Fee, Income-Based Carried Interest and Capital Gains Tax carry rules marked a great change in the taxation of carried interest for investment management professionals working in the UK. In addition, HMRC published its long-awaited updated guidance on carried interest in October 2020, however, further clarification is still needed on interpretation of the rules. In an article that summarises some key areas of HMRC focus, we explain how these enquiries can be dealt with and how we can help.