Video special report: Wealth & Tax round table discussion

EXPERTS from banking, accountancy and law came together to discuss the implications of the Emergency Budget on wealth management and taxation for entrepreneurs and business owners looking to best protect and preserve their wealth.

In a round table discussion hosted by TheBusinessDesk.com West Midlands, the panel discussed how changes to the Capital Gains Tax regime could impact the investment and income strategies of business owners – as well as the implications of new personal and corporate tax rates.

The discussion was chaired by the editor of TheBusinessDesk.com West Midlands, Marc Reeves, and the panelists were Amanda Elwell, Private Client Tax partner at Browne Jacobson, Derek Proctor, regional director of HSBC Private Bank, and Eric Williams, National Head of Private Client Tax, Grant Thornton UK LLP. First, the panel discussed what they thought were the high and low points of the budget.

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Amanda Elwell urges family businesses in particular to look beyond the current recession and consider long term issues such as succession planning. How to structure the business and plan an exit in such a way as to minimise the tax implications and preserving wealth for the future are key issues, she says.

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Next, Eric Williams reflects on the implications of the budget on the amount of drawings business owners can take, given the increasing gap between rates in the personal and corporate tax regimes. The panel discusses how the new entrepreneurs relief allowance against CGT can make a massive difference, particularly to businesses with several family member shareholders.

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Simplicity is the watchword for managing the wealth of business owners – particularly after an entrepreneur exits their business and is considering the most tax efficient options for their money, says Derek Proctor.

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Time for some crystal ball gazing as the panel anticipates future budgets and the outlook for the economy. Amanda Elwell predicts a reduction in the higher rate of income tax and eventual action on inheritance tax. But Derek Proctor warns that the economy is far from out of the woods yet and clients should be looking to protect their assets from the potential impact of a double dip recession.

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