
2016 is the year of the client review, says James Ward
Over the last year, private client practitioners have been awash with new laws which in some way will affect the succession planning of their clients. In 2015 alone, we had the proposed residential nil rate band, introduction of capital gains tax for non-residents, proposed changes to the domicile rules, introduction of the EU succession regulations and the proposed changes to stamp duty for second homes that has a direct impact on trust ownership. On top of this, the case of Ilott v Mitson [2015] EWCA Civ 797, [2015] All ER (D) 290 (Jul), arguably setting new precedents around the concept of “reasonable financial provision”, was relayed to the public at large.
Now comes the enviable task of digesting the implications of the various changes. With this in mind, 2016 will no doubt be the year of client review and re-assessment of their affairs. This will be particularly focused on the following:
Residential nil rate band
The introduction of this extension to the nil rate band in 2017 will be welcome for clients with assets under £2.35m,