One minute with Mamuna Farooq, partner and the head of Middle East at Child & Child.
What’s keeping you busy at work?
As a result of the shock appointment of the new chancellor and rumours surrounding the upcoming Budget, I have been dealing with an increasing number of enquiries from international clients about potential changes to the tax regime.
Tax and structuring advice in connection with property purchases has been particularly in demand, following comments in the Conservative’s election manifesto and the proposal to introduce a SDLT surcharge of 3% for non-residents investing in UK real estate.Based on our previous experiences of SDLT changes being abruptly introduced, we are prudently working hard to complete client transactions before the Budget announcement.
Notwithstanding Brexit and the proposed tax changes, in the last year I have seen a notable rise in the number of Middle Eastern clients investing in London due to instability in their domestic regions. We have been busy assisting our clients with their tax and legal needs, among many other things. But as our department’s strategy is relationship driven, we are also being increasingly called upon to advise international families from a holistic perspective, providing a bespoke service akin to that of a private family office. We may advise clients on the different UK immigration visa options to obtain residency or the impact on their global estate from a UK tax perspective, as well as assisting entrepreneurial clients to set up UK businesses, purchase a UK family home and move their families across to London.
If you could make one change to tax, what would it be?
It’s a very unlikely change and a tall order – but, if I could, I would create a uniform worldwide tax system. Personal tax is a virtually non-existent concept across the Arabian Gulf. I spend a considerable amount of time educating clients on the basics of tax and the UK tax system. For some international clients, it is a totally new concept. Having a simple, uniform tax system would allow for a more streamlined process for those with cross-jurisdictional assets and assist with tax declarations and global transparency.
What do you know now that you wish you’d known at the start of your career?
I wish I had appreciated the importance of networking and business development. Networking is not a skill that is taught, rather being one you develop over time. But networking skills can help to build your own client base and lead to new business development opportunities. In the early stages of my career, I focused more on building the technical skills to ensure that I was proficient in my trade. I have no regrets because it is all part of the learning curve, but I now have a burning ambition to support the ‘next generation’ in developing these skills at the outset. I am focused on mentoring the next generation of young professionals to give them the confidence to get out of their comfort zone and confidently network.
What should we look out for in 2020?
In the Budget, we should look out for any SDLT changes for oversees property investors and whether they will have an impact on inward investment to the UK and a further impact on property prices.
Inheritance tax has always been a hot topic and one of the least popular taxes. The Institute for Fiscal Studies suggested recently that the Treasury would need to increase taxes in order to manage the current fiscal target for the UK. There has been speculation and discussion about modifying the current inheritance tax regime, perhaps implementing restrictions on valuable reliefs, such as business property relief and agricultural property relief.
Another interesting discussion point, which goes against the grain of increasing taxes, is the concept of ‘cohabiting siblings’ finding themselves free of inheritance tax, which was mooted by the House of Lords earlier this year – definitely a case of ‘watch this space’.
One minute with Mamuna Farooq, partner and the head of Middle East at Child & Child.
What’s keeping you busy at work?
As a result of the shock appointment of the new chancellor and rumours surrounding the upcoming Budget, I have been dealing with an increasing number of enquiries from international clients about potential changes to the tax regime.
Tax and structuring advice in connection with property purchases has been particularly in demand, following comments in the Conservative’s election manifesto and the proposal to introduce a SDLT surcharge of 3% for non-residents investing in UK real estate.Based on our previous experiences of SDLT changes being abruptly introduced, we are prudently working hard to complete client transactions before the Budget announcement.
Notwithstanding Brexit and the proposed tax changes, in the last year I have seen a notable rise in the number of Middle Eastern clients investing in London due to instability in their domestic regions. We have been busy assisting our clients with their tax and legal needs, among many other things. But as our department’s strategy is relationship driven, we are also being increasingly called upon to advise international families from a holistic perspective, providing a bespoke service akin to that of a private family office. We may advise clients on the different UK immigration visa options to obtain residency or the impact on their global estate from a UK tax perspective, as well as assisting entrepreneurial clients to set up UK businesses, purchase a UK family home and move their families across to London.
If you could make one change to tax, what would it be?
It’s a very unlikely change and a tall order – but, if I could, I would create a uniform worldwide tax system. Personal tax is a virtually non-existent concept across the Arabian Gulf. I spend a considerable amount of time educating clients on the basics of tax and the UK tax system. For some international clients, it is a totally new concept. Having a simple, uniform tax system would allow for a more streamlined process for those with cross-jurisdictional assets and assist with tax declarations and global transparency.
What do you know now that you wish you’d known at the start of your career?
I wish I had appreciated the importance of networking and business development. Networking is not a skill that is taught, rather being one you develop over time. But networking skills can help to build your own client base and lead to new business development opportunities. In the early stages of my career, I focused more on building the technical skills to ensure that I was proficient in my trade. I have no regrets because it is all part of the learning curve, but I now have a burning ambition to support the ‘next generation’ in developing these skills at the outset. I am focused on mentoring the next generation of young professionals to give them the confidence to get out of their comfort zone and confidently network.
What should we look out for in 2020?
In the Budget, we should look out for any SDLT changes for oversees property investors and whether they will have an impact on inward investment to the UK and a further impact on property prices.
Inheritance tax has always been a hot topic and one of the least popular taxes. The Institute for Fiscal Studies suggested recently that the Treasury would need to increase taxes in order to manage the current fiscal target for the UK. There has been speculation and discussion about modifying the current inheritance tax regime, perhaps implementing restrictions on valuable reliefs, such as business property relief and agricultural property relief.
Another interesting discussion point, which goes against the grain of increasing taxes, is the concept of ‘cohabiting siblings’ finding themselves free of inheritance tax, which was mooted by the House of Lords earlier this year – definitely a case of ‘watch this space’.
