As we close out 2024, it’s remarkable to reflect on how dramatically the landscape for UK Private Client services has shifted. At the start of this year, the UK’s “Non-Dom” regime seemed firmly entrenched, with over 110 years of history suggesting it might endure for years to come. Yet by the time the 6th March Conservative budget had come around (less than 10 weeks into 2024), it seemed clear to all concerned that, whoever was going to win the election on 4th July, all those involved in UK Private Client would be facing something very new.
For all those who love to look at detailed tax legislation, what came after the Labour victory is a treasure trove – a whole new residency-based system for Inheritance Tax to examine, plus a new four year “Foreign Income and Gains” package for wealthy individuals arriving in the UK after April 2025. For others who remain convinced that the Non-Dom system brought real opportunities to their businesses (and to UK plc), there has been a fair amount of complaining!
At HIGHVERN, we approach these shifts with rationality and perspective. While we are not tax advisors—working instead alongside technical specialists to complement their expertise—our role as Trustees and Family Office practitioners has always been to adapt to change with resilience and positivity. The evolution of the UK tax system reinforces a trend we’ve long observed: International Finance Centres like ours have steadily diversified beyond a UK-centric client base, ensuring a robust and flexible foundation for navigating such transitions.
Our relationships with clients in the Middle East and Far East have deepened over the past decade, and the majority of referrals now come from entrepreneurial families with truly global footprints. This diversification means that UK “RND” clients represent only a modest proportion of our overall business, allowing us to remain steady amid these changes.
The changes are also occurring at a time when “wholly UK” clients have become a regular section of our client base, perhaps contrary to expectation. After all, many would ask, what can the likes of the Crown Dependencies and Overseas Territories offer those who are subject to all UK taxes? The answer is skill, service and flexibility – we have spent 60-70 years training our workforce to be well-versed in international commercial affairs and skilled at supporting clients in their ambitions. More than ever, wealthy families need to rely on their service providers to bring high standards of governance, accountability, transparency and communication to their affairs. Note that “Tax” didn’t feature in this list of attributes – another theme of the last decade is how low down this often comes on the list of requirements from our clients.
Having said all that, it hasn’t been a year of plain sailing – lots of clients have been affected by the changes and it’s fair to say that many who might have readily structured with Highvern have really taken their time about doing so! We have had our share of “stops and starts” when it comes to new clients in 2024. Still, experience shows that our industry is always adaptable and agile, and we must trust to our passion for delivering excellent client service to ensure that we keep on growing.
As we look ahead to 2025, we remain optimistic and resolute in our belief that change presents opportunity. On behalf of all of us at HIGHVERN, we wish you a joyful festive season and a prosperous New Year.
-Naomi and Richard
