Cash or other financial gifts might be more welcome than ever this Christmas. In grim economic times, older savers with some accumulated wealth might decide that some of their hard-earned assets should be transferred to younger generations now – rather than deferring their generosity until the reading of a will. The good news is that, done properly, this can go some way to reducing or negating inheritance tax liability, thereby increasing the benefit to all concerned. Ian Dyall, Head of Estate Planning at leading UK wealth management firm Evelyn Partners, says that this imperative is becoming relevant to more and more families as an increasing number of estates are dragged into the IHT net by asset price inflation and the frozen nil-rate bands. This allowance deep freeze was extended to the 2027/28 tax year in the Autumn Statement – and the Office for Budget Responsibility expects that IHT receipts to soar 28% as a result, from £6.1billion in 2021/22 to £7.8billion in 2027/28.[1] ‘Sharing wealth and helping loved ones financially is becoming even more of a priority as demands mount on the budgets of young families,’ says Dyall. ‘Passing on wealth during their lifetime also rewards the giver with the satisfaction of seeing the benefits being enjoyed. While it can in addition bring tax advantages, lack of familiarity with the rules could also be punished with tax penalties.’ At Christmas, the majority of casual monetary gifts will fall within the HM Revenue & Custom’s allowable limits. But more generous or ongoing transfers can cause tax issues for the recipient, so in this case some planning is advisable. Dyall adds: ‘As accumulators of wealth decide to pass on larger amounts during lifetime, whether this is announced as a festive gift or not, more care is required to make sure the Treasury doesn’t get an IHT present further down the line.’ The Tax Rules For Financial Gifts There are some basic transfers that are tax-free: Gifts up to any value between UK domiciled spouses and civil partners are free from tax. Gifts for the National Benefit, such as gifts to museums and libraries etc, are all free from tax too. Gifts to Charity of any value are also free from tax and may even qualify you for an element of income tax relief through Gift Aid. Gifts to individuals that do not fall within the above categories might also be untaxable as long as they meet the following conditions: Total gifts made by you in a tax year total less than £3,000. You can also carry forward any unused £3,000 allowance from the previous tax-year, making financial gifts of up to £6,000 possible this Christmas Small gifts of up to £250 can be made to any number of people in the tax year, provided the total to any one person does not exceed £250. If it does, this exemption does not apply and all gifts would start to use up the aforementioned £3,000 allowance Gifts out of regular income that are part of normal ongoing expenditure can also be made (see below for more detail) Money can also be given as a gift tax free in the event of a marriage or civil partnership amounting to £5,000 from each parent, £2,500 from each grandparent and up to £1,000 from any other person. These would not use up any of the other allowances What Happens If You Breach Any Of These Limits? Larger gifts can obviously be made – and without issue as long as the donor then survives for seven years, during which time such gifts remain ‘potentially exempt transfers’. If the donor dies within seven years, the nil-rate band is reduced by the value of the gifts (so in a sense they are counted as never having left the estate), and tax on assets above the NRB will be due at up to 40%. We say ‘up to’ because if the gifts put together exceeded the nil rate band then taper relief can apply, which reduces the tax paid on older gifts. If there were three-to-four years between date of gift and death, the IHT rate lowers to 32%, while at six-to-seven years the rate falls to just 8%. All of which means that large gifts exceeding the nil rate band can moderate IHT liability even if they fall foul of the seven-year rule.[2] If a gift does become liable for IHT, it is the recipient who will have to pay, and they may not have the resources to meet a surprise tax bill when it arrives, possibly having spent the money. A corollary of all this is, that if someone makes a gift of a value below the nil-rate band to one person, and then dies within seven years, then all the beneficiaries of the estate could share the liability on the lifetime gift received by one person. The only time, in the main, that a donor will be subject to tax upon a gift during their lifetime would be if they made a gift to a discretionary trust, over the donor’s available Inheritance Tax nil rate band. Gifts With Reservation – And Capital Gains Tax If a donor gives something but continues to receive a benefit from it – such as a house where they continue to reside – the donor isn’t liable in the sense that they will need to pay a tax bill during their lifetime. A ‘gift with reservation’ simply remains part of the estate for inheritance tax purposes, so the executors might need to pay more tax on the estate. But it is worth remembering that for the purpose of other taxes like capital gains tax, the gift IS effective, which could create a ‘worst of both worlds’ situation. For example, if you gift your home to your child but live in it without paying a market rent, the gift is ineffective for IHT relief, so IHT will still be paid on it on death. However, for CGT purposes, the property does belong to the recipient, but if they don’t live there – or if they had already owned a home – there would probably be no exemption for main residence relief when it is sold on any capital gains since they received it. Donors considering such steps would be well served by some specialist tax advice as these are complex areas. Gifting From Surplus Income Many donors like to give ongoing regular amounts, to young relatives for instance, into a savings or investment vehicle – such as a Junior ISA, pension or trusts[3]. But to be IHT-efficient, regular gifts must meet certain rules. What Is Surplus Income? Surplus income is what remains after all of your outgoings have been paid: funds left over which are surplus to needs and have no bearing on your standard of living. Your income includes earnings from employment and pensions, but it can also include interest, dividends and rental income. But some regular payments which savers might think of as ‘income’ are not counted. Two of the most common examples of this are regular withdrawals taken from a life assurance bond and if you have a purchased life annuity (i.e. it was not purchased with pension funds and was bought through other sources). Only part of the annuity will be considered as income and the remainder will be a return of your invested capital, as will all the withdrawals made from life assurance bonds. How Do I Make Regular Financial Gifts? It can be as simple as setting up a regular standing order directly into the recipient’s bank account. Alternatively, you might want to set up some sort of policy for the recipient, such as a life insurance or pension plan, and you could pay the regular premiums out of your surplus income. Parents or grandparents can pay into a JISA, an early-years pension or a trust to house accumulated regular gifts for their offspring. The Inheritance Tax Outcome The ‘normal expenditure out of income’ exemption will apply even if you die within seven years of the last gift, as long as three key rules are met: The gifts must be made out of your income They form a part of your ‘normal expenditure’ and are paid out on a regular basis The payments should not have any impact on your own standard of living Then the gifts will be exempt from IHT and neither the recipients nor the estate will pay tax on these gifts. Normal expenditure can be a grey and difficult area, and a possible source of dispute with HMRC when executors come to deal an IHT liability. The best policy for a donor is to set out their intentions around regular gifting and to keep clear paperwork recording the gifts, alongside their overall income and expenditure. The Use Of Trusts – And Bare Trust vs JISA Many older savers want to transfer wealth during their lifetime but prefer to retain some access or control over the assets. For this purpose two types of trust are of particular interest. A discretionary trust can allay some concerns that a beneficiary might squander assets, or lose them through divorce or a business insolvency – or simply to limit access until a child is of age. The beneficiary will be listed as one of several possible beneficiaries and will only benefit at the trustees’ discretion, so the trust can protect the assets, and the timing and size of any payments made from the trust can be controlled. Each person can gift up to the £325,000 nil rate band into discretionary trusts in any seven-year period without triggering an IHT liability. Gifts exceeding this will be immediately liable to IHT at 20% with further tax due if they die within seven years. A bare trust can also be useful, particularly where grandparents wish to invest for grandchildren. When investing for minor beneficiaries, the natural instinct is to use tax-beneficial wrappers such as a Junior ISA, but these are limited in size and can’t be accessed before age 18, even for the child’s benefit. If a grandparent invests for a grandchild using a bare trust, the invested amount is unlimited and money from the trust can be used for the child’s benefit before 18 if required. The investments are taxable, but it is the minor beneficiary who is liable, and their personal income tax and capital gains tax allowances usually eliminate any liability.[4] "Clearly, this can be a complex area and it is recommended that advice is sought to ensure individual circumstances are understood prior to embarking on any path or action." NOTES [1] IHT paid to HMRC ballooned from £2.3billion in 2009/10 to £6.1 billion in 2021/22. HMRC recently revealed that IHT receipts for April 2022 to October 2022 were £4.1billion, which is £0.5billion higher than in the same period a year earlier – an increase of 14%. (Source: HMRC/Gov.UK) [2] Gifts under the nil rate band simply erode the nil rate band pound for pound for the whole seven years. It’s only if gifts in the seven-year period exceed the nil rate band that tapering has any effect. If the gift(s) exceeds the nil rate band then it creates a liability for the recipient, and their liability is eligible for taper relief. [3] Starting a pension for a child means they get basic rate tax relief, even though they may not be paying any tax. A gross pension contribution of up to £3,600 can be made for a child, meaning the parent or grandparent makes a subscription of £2,880 which is topped up by £720 by the government in tax relief. Investment growth and compound returns can make early gifting like this very powerful but access to the funds will be restricted by pension rules. [4] While bare trusts can be as tax efficient as a JISA but less limiting, anti-avoidance legislation does exist where the money is provided by a parent rather than a grandparent. If the income exceeds £100 the income is taxable against the parent. The JISA has a slight tax advantage for parental investments as they are not caught by these measures.

GAP Group’s Head Office has moved premises to Citypoint 2, located at 25 Tyndrum Street, G4 0JY, on the northern periphery of Glasgow City Centre, visible from the M8 Motorway when travelling from east to west. Due to significant growth over the last few years, the hire company has outgrown their previous premises at Carrick Street, at which they were based for 30 years, with the new property being twice the size of the previous. Following the acquisition of the property in 2021, the UK’s largest family-owned hire company has made the move to a bright new office, occupying four floors of the 38,836 sq ft office space, which has been extensively refurbished to Grade A quality at a cost in excess of £2.5m. GAP currently employs almost 2,000 people operating from 175 locations across the UK, with a turnover of £240 million. GAP worked with industry leading suppliers to create an office that is slick, modern and bright, including: 1. Advanced Building Contractors – Main Contractors 2. MacKinnon & Co – Project Management 3. AKD – Electricians 4. AVOne Solutions – Audio Visual Solutions 5. Studio 42 Design – Interior Design 6. Troop Bywaters + Anders – Mechanical and Electrical Consultant 7. Clarke Signs – Signage 8. DT Gen – Generator Install 9. Wagstaff – Furniture Provider Douglas Anderson, joint Managing Director, commented: “During Covid many office workers experienced home working for the first time. Encouraging staff to return to the office can sometimes be challenging, however post-Covid, company efficiency coupled with employee mental health requires a return to the office for all. For this to happen the office must be a place where people want to come back to, and I believe we have achieved exactly that at Citypoint 2.” GAP Group has made significant investment in expansion over the past year with the opening of seven brand-new depots including Tilbury, Caerphilly and Derby, with plans for a further depot opening, in Norwich, in the new year. The hire company also plans to build a new depot located in Bournemouth in early 2023. GAP Group provides products and services from 10 specialist divisions, including our latest addition, Pump Services. The Group is eager to continue to introduce further specialist divisions across the industry.

Get inspired by the traditional apple drink enjoyed by generations of West Country Wassail revellers with the new cider from the Thatchers Cider Barn range. Thatchers Spiced Apple Cider is a traditional apple cider infused with the flavour of warming spices, creating a smooth, rich, full flavoured cider. Crafted from a blend of British bittersweet apples from their West Country orchards including Dabinett and Tremlett’s Bitter, the taste of cinnamon, cloves and ginger bring a sweet and warming character to this 4.0% Somerset cider, balanced with spicy citrus notes. “Spiced Apple has been inspired by the traditional style of rich, round, warming cider enjoyed by generations at West Country Wassail ceremonies. Apple and cinnamon is a classic combination, and there’s good reason for that – the fruity sweetness and spice balance perfectly,” says Head Cider Maker Richard Johnson. The Wassail is a traditional ceremony held in January that sees revellers celebrate the orchards and bless the trees for a healthy crop of apples that year. Mulled, spicy cider was traditionally served to help keep out the winter cold. This cider can be served chilled but try adding a splash of rum and warming through for a delicious mulled cider.

Perdue Farms and the Harry K Foundation joined the Food Bank of Delaware in its annual “Holidays For All” tradition to deliver more than 400 meal boxes and Perdue chicken roasters to children and families in partnership with local schools ahead of the Thanksgiving holiday. Perdue’s support is part of the company’s “Delivering Hope To Our Neighbors®” outreach focused in part on hunger relief and improving quality of life and building strong communities where its associates live and work, and beyond. “It’s partnerships like this that provide a perfect way to give back to so many of our neighbors who struggle with putting a meal on the table this time of year,” said Food Bank of Delaware President and CEO Cathy Kanefsky. “I am grateful for two valuable partners in the Harry K Foundation and Perdue who share our vision of a community free of hunger.” In Delaware, more than 93,000 people are facing hunger, including one in seven children, according to Food Bank of Delaware data. The Harry K Foundation’s support of “Holidays for All” is part of a larger year-round commitment to ending hunger. “For most of us, it’s hard to comprehend how many of our Delaware neighbours, including children go hungry every day,” said Harry Keswani, founder of the Harry K Foundation. “Our partnership with the Food Bank of Delaware and Perdue Farms brings our vision to end childhood hunger to life.” Perdue, the Food Bank of Delaware and the Harry K Foundation volunteers helped pack and load the food boxes and chicken into vehicles from various school that picked up the boxes at the Food Bank of Delaware’s Milford branch. Boxes were filled with a variety of shelf stable items and a Perdue chicken roaster completed the holiday meal. “Hunger does not take a break around the holidays, and we know for many Delawareans it’s a daily struggle. It takes all of us as a community to help meet the needs of those struggling to put a meal on the table,” said Bill See, senior manager of community relations for Perdue Farms. “At Perdue, we are thrilled to join the Food Bank of Delaware and the Harry K Foundation to deliver a little hope to our neighbours.”

Hiring staff is a key component in growing your family business and as your business grows, you will start to develop your own on boarding practices. Crucially however, you must ensure that you are aware of, and carry out, right to work checks on all new joiners. Right to work checks need to be completed on all new hires regardless of an individual’s nationality or whether they are related to you or anyone else in the business. They must also take place before your new hire starts work. The onus of carrying out these checks falls on the business owner, or if available, an HR professional or consultant. We spoke to by Lisa Uttley, immigration solicitor at Gherson Solicitors LLP to find out more. If you are carrying out right to work checks, and more importantly, carrying them out correctly, your business will be protected from liability in the event that you do hire any individual who turns out not to be legally employable in the UK. Failing to carry out right to work checks altogether and/or incorrectly can expose you to severe penalties that could prove to have a very negative effect hit on your business. Home Office fines can reach up to £20,000 per illegal worker, for example. Recent Changes The Home Office is responsible for designing right to work check policies and recently have made a number of changes to how checks must be carried out. COVID-19 concessions ended on 30 September 2022, and on 1 October 2022 the ‘new’ right to work regime came into force. Historically, right to work checks have been a source of confusion for business owners and HR professionals alike due to a lack of streamlined guidance from the Home Office. The changes introduced on 1 October 2022 left those undertaking the checks to pick from one of three following types: Online Right to Work Service (ORWS) You must use this service where your new hire holds a valid Biometric Residence Permit (BRP), Biometric Residence Card (BRC), Frontier Worker Permit, or e-visa (for example, under the EU Settlement Scheme). The ORWS cannot be used on British citizens or Irish nationals. Using the ORWS has two parts. Firstly, you must request for your new hire to generate and send you a unique share code. Their most recent Home Office approval letter will provide guidance on how they can do this. Then, once you have received your employee’s share code, it needs to be inputted via the relevant ORWS website for employers, along with the employee’s date of birth. If your new hire has the right to work in the UK, this will display immediately on screen, including a summary of the types of work that they are allowed to do in the UK and for how long they are able to work. Online Employer Checking Service (ECS) You must use this service where your new hire has a pending immigration application with the Home Office and they are therefore unable to use the ORWS described above due to not possessing a valid BRP/BRC/e-visa etc. By using the ECS, you are seeking confirmation of the individual’s right to start employment directly from the Home Office, meaning that you will not get an immediate response. Manual Checks Manual checks can only be completed on British citizens or Irish nationals holding valid passports. In response to the COVID-19 pandemic, the Home Office had introduced flexibility for employers to complete manual checks over video call and for scans of immigration documents to be accepted. These flexible measures have now been revoked, so in order to manually check a British/Irish national’s right to work, you must have them physically attend your offices with their original valid passport for your verification. Third Party Checks The Home Office has introduced ‘certified digital identity service providers’, also known as IDSPs, into the right to work process. They can undertake the checks on an employer’s behalf. IDSPs are Home Office-authorised private companies who will charge a business to undertake checks on their behalf. This does not shift the liability for incorrectly undertaken checks to the IDSP, which will remain with the business, as will any penalties. Ultimately, whilst the new right to work check regime might feel daunting now, taking the time to familiarise yourself with how it works and staying up to date will put you in good stead for ensuring your business complies with all relevant laws and can confidently grow its employee numbers in the future.

We are delighted to announce that Graham Richardson of Johnsons of Whixley has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leader Multi-Generational Family Business Leader Next Generation Graham worked all his free time in the family business from the age of 12, and gained two year’s experience at Gledstone Gardens, Skipton. When the company bought Endfield Nurseries in East Yorkshire, Graham was appointed Manager, quickly doubling the turnover. After 4 years Graham returned to the parent nursery with a management role in the office, which made best use of his organisation and computer skills. Sales reached £1 million in 1995 and Graham has been instrumental in taking turnover to £15 million in the current year. Graham’s ability to motivate the 130 staff, create new markets and develop sophisticated computer systems, as well as developing successful BSI Quality and Environmental systems since 1990, has ensured an annually profitable and successful business, which is now one of the major wholesale suppliers of Nursery Stock in the UK. "Graham became Group Managing Director in 2010, and continues to motivate all staff by the provision of his personal approach, clear leadership style and culture that sees the family firm go from strength to strength and he fully deserves his place in the Family Business Top 100."

We are delighted to announce that Charlotte Gatward of Gatwards of Hitchin has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leader Next Generation Member/Champion Family Business Steward Multi-Generational Family Business Leader Gatwards are the oldest independent jewellers in the UK and until lockdown had never closed in 260 years. While devastated to have to shut, nothing was going to stop them bringing some much-loved sparkle in people’s lives. 8th generation Gatward Charlotte worked hard to improve the business’s online service and started offering other services like Click & Collect. A blessing and a curse as their flagship showroom is one of the most beautiful buildings in Hitchin, and people were no longer permitted to step inside (which is all part of the magic). Charlotte’s a true champion of the high street and regularly appeared on TV talking about how small businesses like hers were tackling the challenge of the pandemic, and fighting to stay in business while global brands like Amazon and the supermarkets were charging ahead. She inspired her local community and beyond, and it’s down to her true grit and determination that Gatwards is still here today, and hopefully will be for another 260 years! "Charlotte is an inspirational individual and a positive force within this long standing family firm and is fully deserving of her place within the Family Business Top 100."

We are delighted to announce that Stuart Dantzic from Caribbean Blinds has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leader Champion of Change & Innovation Stuart’s hard work, dedication, determination and forward thinking are key to the company’s success, filtering through the entire team who take great pride in delivering high-end, quality products. Stuart took the reins of the family business in 2017, implementing an ambitious development plan to increase market share, growing the business from £1m turnover at the end of 2016 to projected £5m turnover by end of 2021, increasing net profit margins to 15.21% (as at 2020), well above the typical 9.4% margin for manufacturing. "Key to the firm’s extraordinary growth and profitability is Stuart’s fresh, dynamic approach and deep understanding of the business, together with the implementation of a strategic investment in both machinery and personnel development to enhance exacting quality and efficiency. Also a clever digital and in print marketing strategy to increase brand and product awareness." "Whilst Stuart’s passion continues to burn, Caribbean Blinds will flourish."

We are delighted to announce that Jason Rockett of Potter Space has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leadership Champion of Change & Innovation Family Business Steward Potter Space is a family-owned business with five business parks across the UK. Each is connected by road or rail to major business arteries, offering links to the UK’s key cities and ports. They are home to over 40 businesses occupying 1.6 million square feet across a range of commercial properties including warehouse space, factories, offices and small business lets and they also have the capability to build bespoke warehousing on their extensive land portfolio. "In over 50 years of business, building good relationships and supporting customers has been at the heart of Potter Space. Jason is the non-family Managing Director and is overseeing the next phase of the Potter Space journey bringing a wealth of experience and ideas to the table. His leadership is inspiring the next phase of the development of the business and he is well deserving of his place in the Family Business Top 100."

We are delighted to announce that John Tordoff of JCT600 has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leader Family Business Ambassador Champion of Change & Innovation Multi-Generational Family Business Leader With a history that stretches back more than 75 years, JCT600 has come an incredibly long way since it started life as a single garage on Sticker Lane in Bradford. Four generations later, and JCT600 remains a proud family business, despite now being one of UK’s largest and most highly respected motor retailers. JCT600 represents 24 of the world’s most iconic brands at more than 50 locations throughout Yorkshire, Lincolnshire, Derbyshire, and the North East, and yet its ambition remains the same as ever – to be the best, not necessarily the biggest. John is an inspirational leader and presides over a business that has family values at its core with the values permeating all aspects of the business where every member of staff lives and breathes their values, delivering magic moments to customers and their fellow colleagues. "This business has come so far from the days when it started out as a single garage which is due to the incredible leadership, vision and ambition which has created a culture of empowerment and growth, all supported by family values, history and heritage. John is a fantastic ambassador for the family business sector, Yorkshire and the broader business community and thoroughly deserves his place in the Family Business Top 100."

We are delighted to announce that Fergus Bailie of Bailie Group has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leadership Next Generation Bailie Group is a family owned group of agencies and consultancies with the collective mission to improve people’s lives by sharing knowledge. They want to make a difference. They work on projects which keep people safer, helps the UK transport system move effectively, connects citizens with social services in their local area, provide content channels for industries like the automotive sector and get equipment to the front line so it’s safe to use and train our military to be the best they can be. Their Group mission is to create an entrepreneurial organisation of collaborative specialists. The companies are empowered to utilise technology and expert knowledge to create solutions which enable our customers to maximise their potential through intelligent use of information, content and data. As a Group their purpose is simple: invest in ideas and people which make a positive difference and properties that inspire. They have invested millions of pounds into projects to enable their group companies to thrive and grow, whilst making a positive contribution to their communities. "Fergus is the CEO and recognised as an inspirational leader, empowering the business to continue to evolve and grow under his leadership and he is a worthy inclusion within the Family Business Top 100."

We are delighted to announce that Richard Wilsdon of Britcab Ltd has been included within the inaugural Family Business United ‘Family Business Top 100,’ which recognises the exceptional contribution of individuals and their work within a family business. Recognition in respect of: Inspirational Leader Co-founding the business back in 2007, Richard has played an integral part in the establishment and progression of Britcab Ltd, helping the company grow from just 3 people around the table in 2007 to three sites, £10 million turnover and 50 employees today. "Richard is a leader that inspires others and is constantly pushing and encouraging the team to progress and develop further. Richard applies a humanistic approach to business, embracing his leadership role wholeheartedly and continues to be an inspiring example to those around him and he totally deserves his place in the Family Business Top 100."