One minute with Julia Lloyd, partner at Norton Rose Fulbright LLP.
What’s keeping you busy at work?
2021 has continued to be really busy, and I advise on anything and everything real estate tax and funds related. I am fortunate to act for a number of innovative long-standing clients in relation to ongoing projects, and that continuity and high-quality work has been very welcome over the last year.
As well as acting on a number of real estate M&A transactions, I have also been involved with two fund IPOs with differing underlying asset classes; it has been really pleasing to see activity in the listed funds space, and to work closely with clients to develop the fund structure and bring the product to the market. This type of work is often the start of a new phase of our working relationship with a client, and it is very rewarding to see that relationship develop.
If you could make one change to a tax law or practice, what would it be?
If you had asked me that question a couple of years ago, I probably would have said I would reverse the once in a generation changes to bring non-UK resident property investors within the scope of UK corporation tax on both income and gains – not least because advising such clients on the UK tax rules and investment structuring prior to this change was significantly less complex!
However, once the policy decision was made, it was actually very interesting to see the legislative process and to be involved with the engagement with HMRC. What particularly stood out was trying to ensure that real estate funds and REITs, in particular, were not put at a competitive disadvantage versus direct investment.
Tax is even more front of mind for such investors now, and it can open many doors to conversations with clients.
What do you know now that you wish you’d known at the start of your career?
Be brave, challenge yourself and re-evaluate your priorities every few years.
When I started as newly-qualified tax lawyer, it never occurred to me that I would do anything other than work my way up the career ladder as fast as I possibly could but, in fact, I have learnt that it is important to maintain a sense of balance in your life. I have this year been promoted to partner on a four-day week basis, giving me more opportunity to strike this balance between work and family life.
You need to take bold moves and be ready to embrace new challenges along the way; it certainly helps to have a supportive team and network behind you.
Are there any new rules that are causing a particular problem?
The recent changes to the residential rates of SDLT – for example, the introduction of the 2% surcharge for certain non-UK resident purchasers – mean that we now have a dizzying array of rates, and in anything other than the most simple of acquisitions there are many permutations and combinations of rules which can seemingly produce a range of SDLT results.
The complexity here is unhelpful, but I am not expecting the rules to get any easier any time soon.
What are you looking out for later this year?
The outcome of the UK asset holding company regime consultation and, in particular, the ongoing discussions in relation to possibly simplifying the UK REIT rules. This could have a very positive outcome for certain UK property investors, who might otherwise have used a partnership or JPUT.
Finally, you might not know this about me but...
I spent one of my university summers out in Borneo studying the play behaviour of juvenile orangutans. It was an amazing experience, and it inspired a love of travel and adventure that has taken me to all corners of the globe, from Madagascar to Belize, Sri Lanka to Namibia and many other special places along the way. I look forward to planning more travel adventures as the world continues to open up again.
One minute with Julia Lloyd, partner at Norton Rose Fulbright LLP.
What’s keeping you busy at work?
2021 has continued to be really busy, and I advise on anything and everything real estate tax and funds related. I am fortunate to act for a number of innovative long-standing clients in relation to ongoing projects, and that continuity and high-quality work has been very welcome over the last year.
As well as acting on a number of real estate M&A transactions, I have also been involved with two fund IPOs with differing underlying asset classes; it has been really pleasing to see activity in the listed funds space, and to work closely with clients to develop the fund structure and bring the product to the market. This type of work is often the start of a new phase of our working relationship with a client, and it is very rewarding to see that relationship develop.
If you could make one change to a tax law or practice, what would it be?
If you had asked me that question a couple of years ago, I probably would have said I would reverse the once in a generation changes to bring non-UK resident property investors within the scope of UK corporation tax on both income and gains – not least because advising such clients on the UK tax rules and investment structuring prior to this change was significantly less complex!
However, once the policy decision was made, it was actually very interesting to see the legislative process and to be involved with the engagement with HMRC. What particularly stood out was trying to ensure that real estate funds and REITs, in particular, were not put at a competitive disadvantage versus direct investment.
Tax is even more front of mind for such investors now, and it can open many doors to conversations with clients.
What do you know now that you wish you’d known at the start of your career?
Be brave, challenge yourself and re-evaluate your priorities every few years.
When I started as newly-qualified tax lawyer, it never occurred to me that I would do anything other than work my way up the career ladder as fast as I possibly could but, in fact, I have learnt that it is important to maintain a sense of balance in your life. I have this year been promoted to partner on a four-day week basis, giving me more opportunity to strike this balance between work and family life.
You need to take bold moves and be ready to embrace new challenges along the way; it certainly helps to have a supportive team and network behind you.
Are there any new rules that are causing a particular problem?
The recent changes to the residential rates of SDLT – for example, the introduction of the 2% surcharge for certain non-UK resident purchasers – mean that we now have a dizzying array of rates, and in anything other than the most simple of acquisitions there are many permutations and combinations of rules which can seemingly produce a range of SDLT results.
The complexity here is unhelpful, but I am not expecting the rules to get any easier any time soon.
What are you looking out for later this year?
The outcome of the UK asset holding company regime consultation and, in particular, the ongoing discussions in relation to possibly simplifying the UK REIT rules. This could have a very positive outcome for certain UK property investors, who might otherwise have used a partnership or JPUT.
Finally, you might not know this about me but...
I spent one of my university summers out in Borneo studying the play behaviour of juvenile orangutans. It was an amazing experience, and it inspired a love of travel and adventure that has taken me to all corners of the globe, from Madagascar to Belize, Sri Lanka to Namibia and many other special places along the way. I look forward to planning more travel adventures as the world continues to open up again.
