NEWS – TUESDAY 10TH NOVEMBER 2020

NEWS ROUNDUP

TAX NEWS – TUESDAY 10TH NOVEMBER 2020

Businesses profiting from Covid could be taxed more in Scotland

The Scottish Human Rights Commission (SHRC) has suggested that industries making “extra profits” as a result of COVID 19 – such as the digital economy and pharmaceuticals – should be considered for tax hikes as a means of maximising revenues and addressing social inequalities which have been exacerbated by the pandemic.

The Scotsman, Page: 9

Will the UK axe private equity tax break worth millions?

The FT considers whether the UK will tax payouts for private equity dealmakers as income rather than capital gains and how this could change the way the financial sector is taxed post-pandemic.

Financial Times, Page: 23

FINANCIAL SERVICES NEWS – TUESDAY 10TH NOVEMBER 2020

Sunak announces post-Brexit financial services regime

The Chancellor yesterday made a statement in the Commons on financial services in post-Brexit Britain, telling MPs that the UK would unilaterally grant equivalence to EU and EEA states on financial services, despite the failure of the EU to provide “clarity about their intentions.” Rishi Sunak outlined a vision for how the UK could renew the country’s position as the “world’s pre-eminent financial centre” following Brexit, with a focus on green finance and digital currencies. The UK would launch its first green government bonds next year to raise money for low-carbon infrastructure projects and would require large listed and private companies disclose the threats to their business from climate change by 2025, including banks, insurance companies and pension schemes. A consultation would also be held on how digital currencies could be regulated. Listing requirements would also be reviewed with the aim of attracting fast-growing tech firms to London.

Daily Mail Financial Times Sky News City AM

CORPORATE NEWS – TUESDAY 10TH NOVEMBER 2020

Covid rescue funds propping up unviable businesses

Figures from the Government’s Insolvency Service show the number of companies going bust in the third quarter of 2020 was 39% down on the same period in 2019, leading Sir Desmond Swayne, a former Tory minister, to suggest the natural failures of businesses were being prevented by the government “at huge expense.” He said: “If they are not viable, and many businesses will not have been viable, that is an enormous bill that we are all going to have to repay over a long period of time. Best we get on with it.”

Daily Mail

Johnson launches UK investment office

Boris Johnson has announced the creation of a new office for investment to encourage foreign direct investment in the UK post-Brexit. Mr Johnson said the unit will be established in Downing Street as part of the Department for International Trade and will be led by innovation minister Gerry Grimstone. He said the office was being launched “to make sure everyone knows global Britain is not just open for business but the best place in the world to conduct it”.

Financial News Financial Times, Page: 3

EMPLOYMENT NEWS – TUESDAY 10TH NOVEMBER 2020

Self-employed seek more secure employment

A survey by the London School of Economics has found that one in five self-employed workers plans to switch to other forms of employment because of the pandemic, which saw a significant proportion taking a hit to income. Almost 60% of those aged under 25 saying that they no longer wished to be self-employed.

The Times, Page: 42

TAX NEWS – TUESDAY 10TH NOVEMBER 2020

Businesses profiting from Covid could be taxed more in Scotland

The Scottish Human Rights Commission (SHRC) has suggested that industries making “extra profits” as a result of COVID 19 – such as the digital economy and pharmaceuticals – should be considered for tax hikes as a means of maximising revenues and addressing social inequalities which have been exacerbated by the pandemic.

The Scotsman, Page: 9

Will the UK axe private equity tax break worth millions?

The FT considers whether the UK will tax payouts for private equity dealmakers as income rather than capital gains and how this could change the way the financial sector is taxed post-pandemic.

Financial Times, Page: 23

PERSONAL FINANCE NEWS – TUESDAY 10TH NOVEMBER 2020

New Experian service could boost credit scores

The Open Banking regime will enable Experian to launch a service in the UK through which personal borrowers can opt into a system that will allow it to take into account factors not used at present when assessing creditworthiness. Experian says people signing up could lift their credit scores by up to 66 points.

The Times

Consumers’ credit complaints jump over summer

There was a surge in complaints to the Financial Ombudsman Service about credit services in the three months to September, with claims management companies said to have driven a big rise in complaints upheld.

Financial Times

PENSIONS NEWS – TUESDAY 10TH NOVEMBER 2020

Spike in personal pension cases at ombudsman

The Financial Ombudsman Service logged 825 new personal pension cases between July and September this year, an increase of 136% on the 349 cases between April and June. The FOS said the number of complaints relating to suitability and administration of personal pensions had both more than doubled to around 130 and 380 respectively over the period. Other areas of complaint which increased related to charges, fund management and delays.

FT Adviser

SPORT NEWS – TUESDAY 10TH NOVEMBER 2020

EFL clubs given green light for non-payment of PAYE

English Football League (EFL) clubs are preparing a mass deferral of tax payments after the EFL board ruled that non-payment of PAYE will not be punished with a transfer embargo until February at the earliest. The introduction of a new “Covid PAYE liability rule” will enable clubs to default on their tax arrangements if they are unable to pay due to the impact of the virus or have agreed a new repayment schedule with HMRC. The Government are yet to respond to an official request sent by the EFL last month for a tax holiday for their 72 clubs.

Daily Mail, Page: 82

WEALTH MANAGEMENT NEWS – TUESDAY 10TH NOVEMBER 2020

Chris Jelf and Paul Jackson lead new wealth management firm

Beavis Morgan Chairman, Paul Jackson, has co-founded Integrity365 Ltd, a new wealth management firm which has over £320m funds under management. Chris Jelf, founder of Jelf Group, who takes on the role of Client Relationship Director, comments: “Building client trust and fostering long-term relationships with my clients has always been a priority for me. I am passionate about this and consider my partnership approach to working with clients a key differentiator.”

Press Release

ECONOMY NEWS – TUESDAY 10TH NOVEMBER 2020

Vaccine roll-out will spur double digit growth

The Centre for Economics and Business Research (CEBR) has said GDP growth could reach double digits next year after Pfizer announced its COVID-19 vaccine was 90% effective. Douglas McWilliams, an economist at CEBR, said: “We’re now at the top end of the range of possibilities.” He said the “game changer” could allow GDP to recover to 2019 levels by next summer and reduce the peak in unemployment, adding: “We’ll have to see exactly how fast the vaccine gets rolled out but I think GDP will recover pretty quick. “We could have double digit growth next year. It depends how much gets shoved into the tail end of this year.”

The Daily Telegraph, Business, Page: 3

Second lockdown will trash retail progress

A report by KPMG and the British Retail Consortium suggests the second lockdown will reverse progress by the retail sector, which saw sales up 4.9% last month. Helen Dickinson, chief executive of the consortium, said: “During an incredibly challenging year for the industry, many retailers had finally thought that they were finding their footing. The new lockdown in England will throw away this progress as we enter the crucial Christmas trading period and we estimate that £2bn of sales a week will be lost this month.”

The Times, Page: 42 Financial Times, Page: 3 Yorkshire Post, Page: 4

REPORTING NEWS – TUESDAY 10TH NOVEMBER 2020

FRC calls for global climate disclosures rules

The Financial Reporting Council (FRC) has called for global rules to improve how companies inform investors about how their activities relate to climate change and cutting carbon emissions. The regulator published a review of how companies and their auditors consider climate-change in their activities. It found that although minimum legal reporting requirements are often met, investors are calling for additional disclosure to inform their decision making. The FRC said it was the company board’s responsibility to consider climate-related issues, but there is “little evidence” that business models and company strategy are influenced by integrating climate considerations into governance. “Auditors need to test and, where necessary, challenge the board and management’s assessment of the financial statement implications of climate change,” it said.

Yahoo! Finance MSN Investing Nasdaq Reuters

007 NEWS – TUESDAY 10TH NOVEMBER 2020

Connery’s widow faces jail over an alleged tax fraud in Spain

Sean Connery’s widow, Micheline Roquebrune, 91, faces jail and a £21m fine over an alleged tax fraud in Spain. The case relates to the sale of the couple’s Marbella home which was demolished to make way for 70 flats despite rules saying only five could be built.

The Sun, Page: 16

Contact Paul Southward

Paul Southward