One minute with Katherine Bullock, private client tax partner at EY.
What’s in your in-tray?
At the moment, a whole variety of different things, mostly driven by changes anticipated on Budget day and at the tax year end. The international entrepreneurs and family businesses I work with also have an ongoing interest in inheritance tax and how that compares across different countries. CRS changes are another consistent theme, so I am regularly looking at enquiries about health checks and subsequent restructuring. Also from 1 July, I am taking over as the leader of EY private client for Europe, Middle East, India and Africa, so I am working on our strategy going forward.
What caught your eye in the Finance Bill?
For me, it was the clauses to expand the scope of the transactions in securities rules and to introduce a targeted anti-avoidance rule for distributions made on a winding up. The changes are intended to apply to tax motivated transactions, but they could also affect genuine commercial arrangements, like demerger transactions and the use of SPVs for separate projects or business divisions. On the assumption that the legislation remains as currently drafted, it is going to be essential that all planned returns of shareholder value or transactions with shareholders are reviewed as soon as possible in case they fall within the scope of the changes.
You specialise in personal taxation. What big development should we be looking out for in 2016?
The differential between income tax rates and capital gains tax rates could be the key theme for 2016. We are already seeing taxpayers trying to capture lower tax rates by accelerating dividends before 6 April. Going forward, the changes to dividend taxation will only increase the incentive to take returns as capital rather than income. It will be interesting to see what happens to entrepreneurs’ relief, particularly given its unprecedented impact on UK tax revenue. And I wouldn’t rule out similar restrictions to business property relief. How will the tax authorities prevent taxpayers hoarding cash in corporate structures? Will we see a return to some form of apportionment?
You lead EY’s regional private client services practice. What direction do you see yourself taking the team in the coming year?
I’m focusing the private client team on working with entrepreneurs and private business owners based in the UK but with global interests. To do that, we’re investing in recruitment at senior levels across the UK, bringing exceptional depth and expertise to our clients. We have been a leading accountancy firm for many years, but we’ve recently made a differential investment in our private client business – taking it to an exciting new level.
Looking back on your career to date, what key lesson have you learned?
Every person and every situation is different. You gain more understanding with experience – more tools that you can use, but each situation is still fresh. For me, one of the great attractions of private client tax work is the intellectual diversity and the number of areas you need to understand in order to advise your clients effectively – different aspects of law, accounting, financial planning and international divergence. The really interesting ideas and ground-breaking work is where those disciplines connect and overlap.
Aside from your immediate colleagues, who in tax do you most admire?
I couldn’t single out one particular person or group, but I look up to all those who lend their time and professional expertise to charitable causes. Some of the work that is done by tax professionals pro bono to protect the vulnerable is hugely inspiring.
Tell us a secret.
I am happiest playing tennis. I am not a great player but being in the fresh air with friends is a great way to spend an afternoon.
One minute with Katherine Bullock, private client tax partner at EY.
What’s in your in-tray?
At the moment, a whole variety of different things, mostly driven by changes anticipated on Budget day and at the tax year end. The international entrepreneurs and family businesses I work with also have an ongoing interest in inheritance tax and how that compares across different countries. CRS changes are another consistent theme, so I am regularly looking at enquiries about health checks and subsequent restructuring. Also from 1 July, I am taking over as the leader of EY private client for Europe, Middle East, India and Africa, so I am working on our strategy going forward.
What caught your eye in the Finance Bill?
For me, it was the clauses to expand the scope of the transactions in securities rules and to introduce a targeted anti-avoidance rule for distributions made on a winding up. The changes are intended to apply to tax motivated transactions, but they could also affect genuine commercial arrangements, like demerger transactions and the use of SPVs for separate projects or business divisions. On the assumption that the legislation remains as currently drafted, it is going to be essential that all planned returns of shareholder value or transactions with shareholders are reviewed as soon as possible in case they fall within the scope of the changes.
You specialise in personal taxation. What big development should we be looking out for in 2016?
The differential between income tax rates and capital gains tax rates could be the key theme for 2016. We are already seeing taxpayers trying to capture lower tax rates by accelerating dividends before 6 April. Going forward, the changes to dividend taxation will only increase the incentive to take returns as capital rather than income. It will be interesting to see what happens to entrepreneurs’ relief, particularly given its unprecedented impact on UK tax revenue. And I wouldn’t rule out similar restrictions to business property relief. How will the tax authorities prevent taxpayers hoarding cash in corporate structures? Will we see a return to some form of apportionment?
You lead EY’s regional private client services practice. What direction do you see yourself taking the team in the coming year?
I’m focusing the private client team on working with entrepreneurs and private business owners based in the UK but with global interests. To do that, we’re investing in recruitment at senior levels across the UK, bringing exceptional depth and expertise to our clients. We have been a leading accountancy firm for many years, but we’ve recently made a differential investment in our private client business – taking it to an exciting new level.
Looking back on your career to date, what key lesson have you learned?
Every person and every situation is different. You gain more understanding with experience – more tools that you can use, but each situation is still fresh. For me, one of the great attractions of private client tax work is the intellectual diversity and the number of areas you need to understand in order to advise your clients effectively – different aspects of law, accounting, financial planning and international divergence. The really interesting ideas and ground-breaking work is where those disciplines connect and overlap.
Aside from your immediate colleagues, who in tax do you most admire?
I couldn’t single out one particular person or group, but I look up to all those who lend their time and professional expertise to charitable causes. Some of the work that is done by tax professionals pro bono to protect the vulnerable is hugely inspiring.
Tell us a secret.
I am happiest playing tennis. I am not a great player but being in the fresh air with friends is a great way to spend an afternoon.
