Article for the Harrogate Advertiser

25 September 2009

By Mark Jones, Partner, Private Client Law

This month's Talking Point on page 2 focuses on the steps that businesses can take to ensure that they are in the best shape possible to make the most of an eventual upturn in economic conditions.

It is important however, that a natural concern to focus on the wellbeing of your business in difficult times is not at the expense of neglecting your personal finances.

In fact, the recent downturn, with its falling asset values, has made this a particularly good time to review various aspects of your personal affairs.

The recent stagnation of the property market has meant that rather than moving house many clients have chosen to make the most of what they already have.

In doing so the support of our Planning Department is invaluable in maximising the value and potential of houses, business premises and land.

As well as seeking our assistance with planning applications and planning appeals, many clients ask us to promote their interests in relation to the review of local development plans by planning authorities to ensure that their land and property can be well placed for future development.

Recent falls in asset values have also meant that this can be a good time to consider inheritance tax planning through gifts.

Passing on such assets at relatively low values could potentially save inheritance tax in due course.  Capital gains tax problems, which in recent years have been a barrier to tax planning that might otherwise be desirable, could also be minimised by present low asset values.

Whilst taking advice, it is often also wise to review your will.  Changes to the inheritance tax laws over the last couple years mean that even wills that were made as recently as 18 months ago might now be well out of date.

Similarly, Lasting Powers of Attorney are well worth consideration, particularly as they could be crucial to the smooth handling of the affairs of your business should you lose capacity.

All in all, as painful as the present downturn might be, it provides a perfect opportunity to review and re-evaluate your personal affairs in a way which might not be possible once the recovery comes about.

The message is take advice now!