On 17 November Mishcon de Reya hosted a Mishcon Private Next Gen event titled, "Sharing Knowledge: Advising Clients in the Current Climate".
For many, 2020 has been one of the most professionally challenging years on record. Many of us will have felt overwhelmed by the prospect of operating our businesses and careers from our living rooms. Now that we have reached the end of Lockdown 2.0 and the landscape is quite different. We have been challenged in ways that we could never have imagined.
At the event, two main topics were discussed, summarised below.
"Moving to the UK", including, tax residence, domicile and Indefinite Leave to Remain and other immigration issues, as well as overseas divorce and its relevance in England and Wales.
An encouraging aspect of 2020 is, despite the double impact of COVID-19 and Brexit, Britain remains one of the most attractive places for people to move to. The purpose of this brief discussion, led by James Rees (Family), Elnara Ismagilova (Immigration) and Nicola Simmons (Tax), was to flag some of the issues that our clients face and how we can assist in resolving them.
Non-doms arriving in the UK have several tax planning opportunities available to them, but to use them effectively they need to be prepared – especially in light of the regular changes in the tax rules and HMRC practices. Working alongside the Immigration team allows us our private tax team to advise clients moving to the UK at the earliest possible point of their relocation plan, ensuring that they are better prepared to live in the UK as tax efficiently as possible.
As a consequence of moving to the UK, individuals may find themselves falling within the jurisdiction of the English family court. The fact that a client is already divorced in their native country doesn't necessarily offer protection from a future claim. The Matrimonial and Family Proceedings Act 1984 allows parties who are divorced in their native country to apply for further financial provision in England if they meet the jurisdiction requirements and feel that their divorce settlement in their native country was inadequate.
We work with our clients to alert them to these issues before they move and can also assist by liaising with our tax and immigration teams to minimise their potential exposure once they arrive.
"Futureproofing: COVID-19 – where are we headed?", including BD in a post-pandemic world, financial investments and the future of Central London and purchasing a property in the UK.
The COVID-19 health crisis has caused unprecedented disruption to our daily lives, transforming social and economic systems around the world. While challenging, this year has also provided an opportunity for collective reflection in respect of our business practices and, in some cases, a reimagining of the future. What is clear is that the effects of COVID-19 on the economy are likely to be felt long after the pandemic has receded. As companies emerge from crisis mode, it may be that some of the fundamental shifts in the way in which people work remain, for example in video communication technology.
In relation to the Residential Property sector, COVID-19 has had an impact but we have also had some of our biggest deals this year. COVID-19 has presented our clients with not only challenges but opportunities.
The impact of COVID-19 on Family law has resulted in the courts seeing an increase in new cases as the impact of parents working from home and more flexible working patterns may have resulted in them having greater ability to care for their children on an equal basis, as opposed to one (non-working) parent taking on the majority of the care. Another effect of COVID-19 is that disruptions from the pandemic are affecting company valuations, which can impact on the timing of a divorce. Depending on personal circumstances, some individuals may wish to wait before pursuing proceedings involving the valuation of matrimonial assets.