Where the heart is - The gift of giving Green and pleasant land Private healthcare in numbers 2018
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News and updates from Alan Boswell Group Summer 2018 Where the heart is Priscilla Bradley-Watson tells us about the highs and lows of living in a Grade-II-listed property The gift of giving Green and pleasant land Private healthcare in numbers
Company news | 2 Company news | 3
Fantastic fundraising
We’re proud to report that a massive years, donated an additional £50,000 to Alan comments: “Everyone has a story
£15,000 was raised for our charity of the support a Big C-funded research project. about somebody close to them who has
year, Big C, in 2017. Dr Dan Brewer will work with Professor been affected by this disease. We’re
Colin Cooper to research and discover extremely proud to support the amazing
Alongside the usual mix of dress-down new sub-types of cancer. research undertaken here in East Anglia.”
days and bake sales, there was an annual
golf day, Boswell Cup football tournament Understanding these sub-types of the As a result, we’ve now raised more than
and ‘80s themed cake sale. disease is important to help predict £100,000 for the Waveney and Norfolk-
Alan Boswell survival, inform treatment options and based charity and are intending to pull
Group Chairman
But it didn’t stop there. Group Executive suggest new drug treatment strategies out all the stops again this year, with a
Chairman Alan Boswell, who has to improve the lives of those affected vast array of fundraising initiatives being
supported the charity for more than 20 by cancer. planned across the business.
Welcome to the 2018
edition of Telegraph
magazine. As you
may have noticed,
this issue has been
published earlier than
in previous years.
That’s because we wanted to
RESEARCH REVEALS IHT
share our latest news while KNOWLEDGE GAP
event-season is in full swing,
which begins with this year’s Royal Recent research conducted by Alan Says John Whitehead, MD at Alan Boswell In support of
Norfolk Show (we’re at stand 75). Boswell Group has found that less than Financial Planning: “Inheritance Tax affects
Norfolk’s
30% of over-50s in the UK understand key more people than ever before, and it is
To tie in with that, this issue Inheritance Tax terminology. concerning to find that the majority of
features a fascinating interview over-50s, who will be most affected by the
Cancer Charity
Tax treatment depends on your individual circumstances and may be subject to change in future.
Credit: Big C
with Kevin Bowes, a well-known The findings showed that only 27% trend, are unaware of the key facts. As a
farmer and a member of the of respondents were able to correctly result, they are likely to pass on less to their Since 1980
Royal Norfolk Agricultural identify that ‘nil-rate band’ referred to the heirs than they were expecting.”
Association Council. He explores threshold at which an estate becomes
the challenges facing the farming liable for Inheritance Tax (IHT), and that In addition, the research also found that
industry and the importance of this threshold is set at £325,000. only 30% were aware of Business Relief
Industry recognition BUSINESS RESERVES CONTINUE TO GROW
conservation. (also known as Business Property Relief),
This is in addition to only 44% being whereby an individual can invest in
We’re pleased to announce The news came after we were Group Finance Director growth of six percent, which, as
We’ve also got charity golf days, aware that the current rate of IHT qualifying businesses and pass the shares
that we have been shortlisted presented with Feefo’s Gold- Alastair Drew provides an in recent years, has largely been
risk management webinars and is 40%. on tax-free if they have been held for
for the Customer Care – Trusted Merchant Award for overview of the group’s driven by client acquisition.
financial planning seminars in more than two years at the time of death.
Company Award at the the third year running, thanks performance in 2017/18
the diary for coming months, so The data comes following a survey Of the respondents that had heard of it,
Insurance Post Claims Awards to our ongoing commitment to In order to continue providing
I hope we get the chance to see into public awareness of IHT, which only 31% were correct in stating that the
2018. outstanding customer service. Another 12 months have an outstanding service to our
you soon. If we can help with your was launched when the Government IHT benefits only apply after two years.
passed, and I’m pleased to clients, our staffing figures have
insurance or financial planning in announced record IHT receipts of £5.2bn
It’s a hotly contested category Marketing Manager Lee report that the group’s reserves also increased. As a result, we
the meantime, don’t hesitate to in the year to May 2017. John continues: “There is a real need for
and we’re up against five other Boswell comments: “We’re have increased for another have recently gone over the
get in touch. financial education, not just about the
businesses delighted to year. These were in excess of 350-employee mark across our
We have growing concerns because basics, but how families can pass on their
for the title, have been £12m, which represents an 10 offices.
increasing property prices are pushing estates in a tax-efficient way. Without an
which will be “We’re delighted to have shortlisted for increase of 25% on the previous
many more estates over the £325,000 understanding of the terminology, it’s
announced this prestigious year. It remains group policy
threshold (a figure that has been frozen difficult to know how it affects you and your been shortlisted for this
on 21st June award. It’s to hold substantial capital
since 2010, although UK house prices family. Although it’s a subject that may be
2018 – just prestigious award” a great over regulatory requirements
have increased by 33% on average in that difficult to discuss, there are professionals
as Telegraph endorsement, (approx. £1.5m combined).
time) incurring tax at a rate of 40% on available to help you to understand your
Alan Boswell, Group Chairman goes to press. especially after
sums that exceed the threshold. risks and how to minimise their impact.”
being highly commended in the Income increased by 28%,
The winner will be a company Insurance Times Broker of the largely driven by the impact
Telegraph is published by Alan Boswell Group that demonstrates an excellent Year category at the end of two recent acquisitions
© Alan Boswell Group Opinions expressed in Telegraph are not necessarily the opinions of
Editor: Lucy Mowatt level of customer care, of 2017.” (S-Tech Insurance Services
Harbour House, Alan Boswell Group. Material contained within this publication may
Contributor: Matthew High backed by clear standards in Cambridge and Sutcliffe
126 Thorpe Road, not be reproduced in whole or in part without the express permission Alastair Drew
Designer: Simon Taylor and consistent monitoring Stay tuned to our website to Solloway & Co in Lincolnshire).
Norwich NR1 1UL of Alan Boswell Group. For more information about the magazine Finance Director
Cover: Priscilla Bradley-Watson by Julian of performance. see if we’re named winners. Within that figure is organic
and its contents, email marketing@alanboswell.com
Claxton Photography
Industry news | 5
INDUSTRY NEWS
financial planning
noun
1. the devising of a program for the allocation
CARILLION COLLAPSE:
SIX MONTHS ON
and management of finances and capital
through budgeting, investment, etc.
2. the business of devising such programs. S-Tech Director Laurence Hill takes a look back over the first
half of 2018 and reflects on the shifting economic landscape
More than six months have elapsed On top of that, more than 30% of payments In cases like this, it’s also worth considering
since Carillion ceased trading and the are typically late and the average value dispute cover. This allows you to make
UK is still reeling from its demise. of each late payment is £6,142. a claim, even if you’re taking legal
Although investigations into the failure action to pursue the late payment and
of the contracting giant are ongoing, According to FSB figures from 2016, late the customer disputes the invoice. The
more than 2,300 people have lost payments cost the UK economy £2.5bn insurer will often seek to recover the debt
their jobs to date, and the Association and causes 50,000 small businesses once the dispute has been resolved.
of British Insurers (ABI) predict that to permanently close their doors.
there will be at least £31m-worth of But the cover can also help you before
claims as suppliers and contractors PROTECTION FOR you have to make a claim. Credit
seek to recoup their losses. TROUBLED TIMES insurers have access to large databases
of financial information so they can
But Carillion’s not the only big-name So what can business owners do to help you set credit limits and minimise
business to have gone under in the safeguard their own cashflow, without your risk. The insurer will monitor the
past six months. Since January, several being negatively affected by the situation and alert you to any changes
Your money matters companies, including Toys R Us, Multiyork, difficulties of their customers? to your customers’ risk profiles.
Maplin, Monarch Airlines and Palmer
No matter what your age, it’s never too early to start & Harvey, have become insolvent, Trade credit insurance is a vital As a policyholder, you could even request
thinking about the significant events in your life. Investments causing widespread disruption. consideration. It is a way of moving a credit check on a customer before you
the risks away from your business arrange payment terms. Your insurer
Whether it’s a house, wedding, lifetime adventure Retirement planning At the time of writing, Carpetright, and over to an insurer, even if would assess the risk and send back
or retirement, it’s important to plan ahead to ensure Mothercare, New Look and House of you’re trading internationally. a decision on the levels of credit you
you can achieve your goals and aspirations.
Tax planning Fraser have entered a form of insolvency, should extend. It may not be what you
known as a CVA, while Wickes is For instance, if a customer goes bust, an hoped for, but you’re able to minimise
With a wealth of financial planning experience,
we're ideally placed to help you reach your goals. Protection experiencing financial difficulties. insolvency practitioner will get in touch the risk of late payment or insolvency.
to explain what’s happening, allowing
Consequently the Federation of Small you to make a claim for outstanding At S-Tech we’ve worked with leading
Business (FSB) has called into question payments. This also applies if a customer credit insurers for decades. Our
the use of the Prompt Payment Code, defaults on an invoice and, depending experience can help you to arrange
Speak directly to our team stating that it isn’t stringent enough; on your policy, you could make a claim cover for your risks in turbulent times.
some suppliers have to wait up to 120 even though your customer hasn’t gone Call me direct on 01603 967960 to
01603 967959 days to be paid what they are owed. bust, so your cash flow remains healthy. discuss your exposure to credit risks.
www.alanboswell.com/fp18
alanboswell.com | Telegraph | Summer 2018
Industry news | 6
PRIVATE HEALTHCARE IN THE UK
Telegraph takes a look at the vital statistics of the private medical care industry
GDPR UPDATE
With news headlines dominated by doom and gloom As a specialist in arranging both group schemes and
Whatever your business, it’s Data breach, whereby that a business will fall victim “You should seek a company stories about the state of the National Health Service, individual medical cover, this infographic shares some
unlikely that the General personally identifiable data to a breach at some point.” with a first response team it’s only natural to be curious about your private key statistics about the current size of the industry in the
Data Protection Regulation falls into the wrong hands, is that will supply you with healthcare options. UK and some of the reasons behind its growth.
(GDPR) has passed you by. a particular concern, because Capturing and managing appropriate IT network,
Launched on 25th May, GDPR there are so many ways it the incident is key to how legal and forensic support, A recent study found that the size of the UK private If you have any questions about private medical
gives individuals more power could happen. Alongside a business emerges from as well as management of healthcare market is due to increase 2.8% year-on-year insurance, how it works, or to get a quote, give us a
over their data and how it’s human error, there is also an the crisis. A cyber liability any ransom demands. until 2025, estimating that it will be worth £14bn. call on 01603 967967.
processed. As a result, GDPR ever-evolving risk of cyber- policy can play a vital
will affect any business that crime. From phishing emails, role in this instance. “They should also manage the
handles personal data. to imitation and ransom, there notification to the Information
are various risks to be aware of. Phil recommends looking Commissioner’s Office (ICO)
If a business fails to comply for a policy that will cover and the people affected,
with the regulation, it could be As S-Tech Director Phil Thorpe your repair costs; your while providing monitoring
presented with a fine for up explains: “No matter how loss of income; claims services. Ideally this will be
to €20m, or four percent of its rigorous the data management from affected parties; and accompanied by call centre
turnover, whichever is greater. practices introduced, it’s likely regulatory costs and fines. and public relations support.”
WORKPLACE PENSION to note that you qualify for tax relief on “With an ageing population and a
CONTRIBUTIONS RISE pension deductions, which will make
up part of the total contribution.
shrinking birth rate, this situation is
likely to be exacerbated for future
If you make auto-enrolment contributions generations. Auto-enrolment helps
to a workplace pension scheme, For instance, if you contribute £24 from to ensure you have more saved for
it’s likely that you’ll have noticed your salary, you’ll get tax relief of £6 (on retirement than just your State Pension.”* Source: www.aviva.co.uk – LaingBuisson 2016 market report
a change in your pay packet. the standard Income Tax rate), as well as
an employer contribution of £20. That
That’s because, on April 6th, means £50 will go into your pension.
the minimum contribution
53% 60,000
levels changed, as You should be notified of
the government these changes by your
encourages us all employer. If you’re
to save more for concerned about the
retirement. of people would pay for private impact these will have The number of houses in multiple
healthcare treatment if they on your income, it is occupation (HMOs) in the UK
Gross could afford it possible to opt-out
contributions of your workplace Turn to page 14 for more on the Source: www.aviva.co.uk
were set at a See page 7 for more vital pension by speaking challenges facing the buy-to-let
1% minimum for statistics to your HR department. market in 2018
employees and However, if you are
1% for employers unsure you should seek
until April 2018, when professional financial advice
they increased. The before making this decision.
new level is a 3% minimum
for employees and 2% for employers Dee Myhill, Auto Enrolment Consultant Source: www.digital.nhs.uk
– and these rates will jump to 5% at Alan Boswell Financial Planners *The value of an investment and any income
from it can go down as well as up and you might
and 3% respectively in April 2019. explains: “The limits have been increased Source: www.ons.gov.uk
not get back the original amount invested.
to ensure that the population has
The past is not a guide to the future. The value
As such, there will be increased sufficient funds when they come to of tax benefits depends on your individual
deductions from your salary, which retire. The 2018/19 State Pension is a circumstances and the laws concerning these
will affect the amounts you take home maximum of £8,546.20 a year, which can change.
every month. However, it’s important is unlikely to be enough to live on.
Source: www.ons.gov.uk Source: www.ons.gov.uk
alanboswell.com | Telegraph | Summer 2018
Cover story | 9
“I’d like this to be my forever home,” house in the wide open Norfolk “The garden was dreadful too. It was
Priscilla Bradley-Watson muses as she countryside; a stunning combination really overgrown with brambles and you
Telegraph speaks to Priscilla Bradley-Watson sits outside her wisteria-clad property. of Georgian architecture and Victorian couldn’t get around the paddock.”
about both the joys and challenges of “It’s a lot to manage though. It’s a faux-Tudor façade, set in several acres of
full-time job to live here – that’s the grounds, which are filled with animals. Now the garden’s been restored, it’s
owning a Grade-II-listed property problem.” Priscilla’s two-year-old Rhodesian a breathtaking sight, with lush green
Ridgeback bounds around the pond, lawns, a pond filled with rudd, carp,
The Norfolk-born businesswoman setting fright to the Indian runner ducks tench and perch, while the horse
returned to her native county in the and Guinea fowl, while alpacas roam the chestnuts are alive with fresh leaves,
year 2000, following a brief spell in rear paddock and miniature ponies keep the false acacia is covered in vivid
Suffolk, having spent two decades the grass in check. blooms, and it’s all watched over by
living in London while working in the one of the largest Oriental plane trees
fashion industry. She now runs her own “The property has evolved over in the country.
business, The Bradley Collection, from different periods,” she continues. “I
Suffolk, creating luxury curtain tracks, think there was a house here in the Says Priscilla: “I try to keep a bit of
poles and rods for customers around Tudor times, but then a Georgian house it wild, so that we encourage wildlife
the world. was put on one side and a Victorian to come here; I don’t keep it too
façade was added in the 19th century. manicured. We’ve got owls nesting in
“Originally I thought we would live the woods, we’ve got woodpeckers
nearer to Norwich, but we fell in love “There’s always something that needs and lots of little birds, as well as deer
with the house and ended up moving repairing or replacing, that’s for sure! coming through. We try to keep it as a
here, which wasn’t quite the plan! My It was pretty neglected before the last haven for wildlife.
commute to work now takes about an owners moved in. I believe it was on the
hour and 20 minutes. Thankfully I don’t Buildings at Risk Register because no “I live outside in the summer,” she adds.
go in every day – I’m on email and the one had spent any money on it and left “I’m an outdoor person, so I love the
phone. As I say, I ended up coming here it to rot away. Local authority personnel garden. We follow the sun around the
completely by mistake!” have been very supportive because I house; we have breakfast on the terrace
think they’re pleased to have someone in the morning and then the sun goes
“Here” is a Grade-II-listed country here who’s looking after it. round the side, so we have afternoon
Cover story | 10 Cover story | 11
I
love
the
garden
tea there and then, when the sun a look around and he managed to was about 10 years ago. We knew who
comes round by the summer house in arrange comprehensive and competitive it was, which made the claims process
the evening, we sit out there and have cover – and that was in 2006. simpler.
dinner before it sets.”
“I’m still with the same insurer, even “The next one was when a lot of work
Reliable relationship though Mark regularly searches the was going on down the lane and they
market for a better deal. It’s great had these big bits of equipment with
Having owned the house for 18 years,
Priscilla has added to and restored much
working with him. I enjoy the personal
service and being able to pick up the
I enjoy the booms on the back. I think a tractor
pulled over to let someone by and the
personal
of the property, including renovating the phone and speak to him. He is very boom hit it. The driver probably didn’t
coach house and putting a roof over the reliable and gets straight back to me. He know anything about it.
courtyard. The footings are also in place comes to see me every year to review
for the reconstruction of the orangery,
which will be built to the original
the policy – he stops by for a cup of tea
and a few biscuits.
service and “About 20ft of the perimeter wall caved
in. That was quite tall, about 10ft high,
being able to
specifications. and a whole section of it keeled over and
“[Alan Boswell Group] now insures the smashed my greenhouse.
“Getting home insurance used to house, the cars and even the business,
be a problem,” she explains. “When
I first moved here I continued with the
as well as most of my family’s insurance.
It’s all in the family!”
pick up the “Like the house, the wall is listed. So
when we came to replace it, we had to
phone and
previous owners’ insurance because use original bricks and lime mortar and
it can be difficult to arrange. A place More than bricks and mortar put it all back the way it was so it looks
like this is so unusual. There aren’t many in keeping with the rest of the property.
companies out there that are interested
in taking it on. Most insurers would
When it comes to making claims on
her insurance, Priscilla is quick to state
speak to him I know some really good builders, so
once I had a few quotes from them ABG
rather focus on a standard four-bedroom how lucky she has been, pointing out helped me to manage the claim.”
house. This house needs something that there have only been two claims at
more bespoke. the property. When she reflects on all the work that
she has put into the property and
“My brother recommended Alan “We’ve only had a couple of things maintaining it she laughs: “I’m having
Boswell Group because he was using happen. We’ve had two different people a holiday from the building – I can’t do
them. Mark [Linehan] came out to have drive into the wall outside. The first time anymore for a while!”
alanboswell.com | Telegraph | Summer 2018 alanboswell.com | Telegraph | Summer 2018
Financial planning | 12 Financial planning | 13
THE GIFT OF
more than seven years from when you When you give a gift, the law dictates simple steps. “When actively gifting, the
made the gift, it will not incur Inheritance that it must be an outright gift that is key is to follow the correct steps and be
Tax when you pass away. Of course, if you away from your personal use – you can’t sure that you document the gifts at every
don’t live for seven years, Inheritance Tax gift your house to your children and step of the way, as well as what your
GIVING
may apply. continue to live in it, for example. “This intentions for those gifts are,” says John.
Alan Boswell Financial Planners’ is one of the most common reasons for “Making gifting easier really comes down
Managing Director John Whitehead people to be reluctant to gift, because to thorough planning and a considered,
begins by explaining current exemptions whatever you are gifting technically has well-thought-out process around exactly
to the tax, before exploring how gifting to go. From the outset there must be a what you wish to do.”
can help mitigate any tax bills. willingness to understand that what you One simple way of avoiding some
“There is more revenue generated are gifting is gone and you can’t get it of the burden of Inheritance Tax is to
for the government by Inheritance Tax back,” John explains. make sure you have an appropriate will
Making a gift to your family when you are still alive is than there ever has been, largely due “People find it difficult to hand in place – this also makes the process
to rising estate values, which is a result over something they may want – or of gifting more straightforward. John
an effective way of passing on your wealth that needn’t
of increasing property values,” he says. perhaps need – to use in the foreseeable recommends that you have your will
be confusing, as John Whitehead, Managing Director “There are, however, some generous future. They also worry that they may finalised because it ensures that, at a very
of Alan Boswell Financial Planning, explains exemptions for anyone with an estate need the capital later in their lifetime, basic level, you have many of the key
worth less than £1 million, which may usually for care, which raises additional considerations covered.
mean you don’t actually face Inheritance concerns about not wanting to be a “We do occasionally encounter apathy
Tax, depending on the circumstances.” burden on those same family members when dealing with finances after the death
Other, smaller exemptions allow you that you are gifting to. When you consider of a loved one. However, the big issue
None of us likes to think that the assets and
to give money away to family members that, as a population, we are living longer, is that if you die and you’ve not made a
wealth we have accumulated during our lives
too, regardless of the seven-year rule. The you can understand why it’s a hard will, your assets don’t always pass to the
will not benefit our loved ones when we have
annual exemption, for example, allows an decision to make.” people you’d expect,” John comments.
passed on. And while it is a subject that few
individual to make gifts of up to £3,000 in “People have the belief that if they’ve not
of us want to dwell on, with careful planning
total in each tax year, completely free of made a will their assets automatically pass
and preparation, it’s possible to support your
Inheritance Tax. to their spouse or their children, but that’s
family with as little lost to Inheritance Tax
as possible.
To set the scene, Inheritance Tax is
Overcoming concerns “People are not the case. It may fall to people they
didn’t intend to get it.”
currently 40% and is typically paid by
your heirs. The threshold at which it is
“A little-known way of gifting is related
to surplus income over expenditure,” reluctant Put plans in place
payable has been frozen at £325,000
John continues. “To illustrate, when an
individual receives more net income than
to delve too There are many things to consider when
making a gifting plan and if you are
deeply into
since 2010, which has seen a growing
they need to live on – if you earn £50,000 cautious about making any decisions
number of individuals face tax bills upon
but only spend £25-30,000, for example – you’re not alone. However, it’s important
The value of tax benefits depends on your individual circumstances and the laws concerning these can change
finance”
the death of a loved one – HMRC is said
they are able to make regular gifts of that to remember that it is a sensible way of
to have collected a record £5.1 billion in
‘surplus’ income. In this case you must ensuring that as much of your estate goes
Inheritance Tax in the year ending May
be able to show that the payments are to those you want it to as possible. As with
2017 alone. Further, the number of families
regular and that the gift comes directly anything of such importance, we advise
paying Inheritance Tax increased by a
from your income, but it allows you to that you seek professional advice and plan
reported 160% between 2010 and 2016.
give a lot of your money away without Family finances thoroughly, so that you fully understand
Considering the scale of those
incurring Inheritance Tax when you die.” You can gift from any age and to whom the impact of the choices you’re making.
figures, it may seem surprising that
As such, there are several ways in which you wish but, as John explains, for some “When we’re providing advice, we
some people are still cautious about
you can distribute your wealth to ensure this raises concerns about the impact typically make sure the will is in place
the concept of gifting. Admittedly,
your family are financially supported of gifting to children and grandchildren first,” John highlights. “Then we work
estate and tax planning are
when you’re still alive. However, a number when they are ‘too young’ or not yet in conjunction with solicitors to gather
complex areas, but making gifts
of rules apply to gifting that make it ready to receive the money. information on the assets and what is
to your friends and family in
pertinent to obtain professional advice. Naturally there are family-related issues left in relation to the exemptions we’ve
a controlled, planned way
It is that complexity that makes some that affect gifting decisions too. “A already discussed. We then consider what
while you’re still alive is an
people nervous about how to best growing factor affecting gifting is that of happens to those assets if our client does
effective way of protecting
approach gifting, says John: “People divorcing children and grandchildren,” nothing, before planning how they want
your estate so you can pass
are reluctant to delve too deeply into says John. “The main concern is if a people to benefit, what their expectations
on your wealth with minimal
finance because they feel like they don’t child or grandchild gets divorced, they are and how financial planning can help to
taxation.
understand it enough. It is complicated, could lose the value of what they have achieve that.
How much you gift to
so some people prefer not to look into it. gifted because a partner could end up “I don’t think people are fully
your family and when is
“It’s also a commonly held belief taking some of the capital. It’s something aware of what they can do to mitigate
your decision, but to make
that seeking professional advice is I’ve seen on a few occasions and it Inheritance Tax. The information available
sure that gift is tax-free
very expensive. But that’s not the case traumatises the grandparents.” is not always the easiest to find or
involves careful planning and
because, ultimately, what you will save in While that example is a reminder that straightforward to follow, but with the
forethought. It is important to
tax is a significant sum of money, which there are circumstances we cannot plan correct planning and professional advice
understand and pay attention
more than offsets the costs of organising for, when it comes to gifting you can be you can effectively gift significant amounts
to the seven-year rule, which
your affairs.” secure in your choices by following a few of money to prepare for the future.”
says that as long as you live for
alanboswell.com | Telegraph | Summer 2018 alanboswell.com | Telegraph | Summer 2018
Landlord challenges | 14 Landlord challenges | 15
‘Being a landlord is easy’. Regardless the size of your rental “The changes are driven by the increasing political power of
portfolio, it’s likely an opinion you’ve heard before. Put simply, the rental class,” he adds. “Many people now rent privately for
it’s wrong. While the rental market still offers considerable a considerable period of time, or permanently – it’s become
opportunity for proactive landlords who stay on top of the housing tenure option for a sizeable part of the population.
ever-evolving rules and regulations, it has also changed The latest projections are that a quarter of households will rent
immeasurably in recent decades. privately by 2021, with home ownership at a 30-year low, and
that’s driving the political pressure for change.”
Chiefly, a developing regulatory environment has made the
job of being a landlord more challenging, requiring increased “It’s certainly become more difficult to be a landlord
administrative processes, a more professional stance on renting and the onus is on really keeping up with these changes,”
property and an ongoing awareness of how legislation can says Tessa Shepperson of Landlord Law. “Being on top of
affect both your business and your tenants. records, processes and paperwork is now a vital part of being
successful. To be safe from any action, landlords must make
Of course much of this has been driven by the seismic change sure they not only comply with every rule and regulation,
in the nature of home ownership in the UK. While there may but that they can prove that they comply with every rule
be more rental properties on the market today, the number of and regulation.”
tenants looking to rent continues to rise. For many, the concept
of being a tenant has changed from being a short-term bridge TAX RULES
WHY IT’S
to a permanent way of life.
This year sees ongoing changes from new tax regulation
The last two years in particular have introduced in 2017, which addressed
seen a number of new regulatory the way income tax is levied on rental
HARD TO BE “Some landlords
and legislative decisions introduced properties. “Landlords are no longer
that, if not fully understood, can have able to offset all of their mortgage
an impact on landlords. Last year interest costs against their rental
A LANDLORD
saw a record number of government
consultations on the private sector and
I know are profits,” Chris explains. “It’s a big
rule that landlords really need to take
considering
notable changes include amendments note of.”
IN 2018
to mortgage-interest tax-relief that
will continue to be rolled out over The implementation of new tax rules
successive years; the introduction of
no-deposit insurance; and tougher
leaving the sector commenced in 2017, reducing the
amount of mortgage interest that
could be offset against tax to zero
altogether”
standards for landlords with four or
more mortgaged properties. In the by 2020. This affects all residential
properties, although landlords who
The introduction of new regulations and latter instance, it’s now tougher to get
funding, due to stricter underwriting hold their rental properties in a
laws means that landlords must take a criteria, introduced by the Prudential company are exempt. However, some
Regulation Authority. higher-rate landlords, says Chris, could see “a devastating
proactive approach to understanding their impact on their cashflow and wider business model”.
industry in 2018 It’s a trend that looks set to continue. In 2018, landlords have
already seen new minimum energy efficiency standards and Mark Leach is a landlord with 30 years’ experience. With around
banning orders come into effect. Later this year, wide-ranging 80 residential tenants and some commercial properties, he’s
changes to Houses in Multiple Occupation (HMO) will be put witnessed many industry developments. Despite that, he points
in place, which are likely to have significant impact, as will the to the new tax rules as “one of the biggest problems facing
changes to Section 21, as decreed under the Deregulation Act. landlords this year”.
RIGOROUS RECORD-KEEPING “Some landlords I know are considering leaving the sector
altogether if interests rates continue to rise,” he says. “One
“There are a number of changes that are hitting the statute books method for dealing with the new tax laws is turning their
at the same time in 2018,” says Chris Horne, landlord, developer property portfolio into a limited company. Doing that means you
and creator of PropertyHawk.co.uk, an online resource for only pay 20% corporation tax and you can put all the costs of
landlords. “Many landlords have existed in a benign environment refurbishment, building and other work against your earnings.”
over the last 20 years, so these changes will come as quite a
shock. Adjusting their ways of working to accommodate the new ENERGY EFFICIENCY
legislation is now really important, but it will take some getting
used to. Many landlords are not ‘professional’, so the increased Two key new pieces of legislation to take note of this year are
complexity and legislation only confuses them, and also increases new banning laws and minimum energy efficiency standards
the likelihood that they’ll make potentially expensive mistakes. (MEES). The former, says Chris, are essentially to “root out rogue
alanboswell.com | Telegraph | Summer 2018 alanboswell.com | Telegraph | Summer 2018
Landlord challenges | 16 Landlord challenges | 17
landlords and letting agents. It is, in some respects, the regulatory as a way in which landlords can legally obtain possession of their “Presently, only the larger HMOs – three or more storeys and discussed in this article are knowledge and actively staying up
price to pay for landlords not having to pay for a landlord licence, property from a tenant – it’s one of the most important pieces of five or more tenants – need a licence,” Tessa explains. “In to date with the sector.
which effectively penalises the vast majority of good landlords – legislation protecting landlords, providing it is served correctly. October the law is changing to widen the scope. There will be
not just the bad ones we all want excluded from the industry.” no specific storey requirements and all properties with five or “Landlords have a responsibility to keep themselves informed,”
The new rules, brought in by the Deregulation Act, which Tessa more tenants in two or more households will be applicable. says Tessa. “Ignorance isn’t a defence. There are plenty of
Do your job properly and you shouldn’t be affected by the describes as “perhaps the most significant changes to be aware Essentially, a lot more HMOs are going to become subject to services out there to help, so be sure to keep your eye on what’s
banning laws. But the key thing to take away from this is that it’s of this year”, have made Section 21 more complex, introducing licencing, and I see a fair few landlords getting quite a shock if happening. To put it simply, if you don’t keep yourself informed
important to avoid complacency as, according to Tessa, banning a number of hurdles that landlords should be aware of. they are not prepared.” you are at risk. The key to mitigating regulation changes is to be
laws can unwittingly catch you out. “Yes, they are targeting criminal proactive rather than reactive.”
landlords but they are worthy of fully understanding. A simple “The main scenarios where this can now be an issue,” Chris says, The widening of the HMO laws to cover more properties
example being that if you make a mistake related to another law or “are if you fail to serve a Gas Safety Certificate; fail to provide an means many landlords will be affected. There will likely be According to Chris, governments generally publish consultations
regulation and get prosecuted, you could be subject to a banning EPC where applicable; fail to serve the How to Rent booklet; or a grace period because of the volume of new licences it on such matters prior to legislation coming into effect, sometimes
order that effectively takes your business away.” prevent retaliatory eviction. In addition, you can no longer serve will require, but landlords that haven’t sorted their licensing by as much as 12 to 18 months, meaning that the savvy landlord
the Section 21 notice within the first four months of the tenancy, requirements – changes typically revolve around health and has access to a valuable source of information.
The beginning of April also saw the introduction of minimum and once it is served it only lasts six months.” safety issues and similar – could face penalties of up to £30,000
energy efficiency standards, aimed at private landlords in and criminal prosecution. “All landlords should consider themselves professional, as they
possession of properties that do not meet the lowest energy To avoid, where possible, the impact of Section 21 changes, are providing a large part of the population with their homes,”
efficiency standards. The legislation makes it illegal to create or the above stipulations must be correctly put in place at the start DATA PROTECTION Peter adds. “Any prospective landlord needs to fully understand
renew a tenancy in homes with EPC energy ratings of F and G. of a tenancy; be sure to protect the deposit within 30 days, for how to run their business.”
From 1st April 2020 landlords won’t be able to continue letting example, and provide a Gas Safety Certificate, booklet and While the changes discussed thus far are solely focussed on the
the property at all. accompanying paperwork before tenants move in. If there is any rental market, according to Peter Littlewood of iHowz, there From a landlord’s perspective, Mark notes the importance of
confusion, seek professional advice to make sure you are covered. are wider developments that landlords should pay attention to, professional bodies and market forums as an indispensable
This is, in many respects, easier to mitigate than other laws – namely the changes to the General Data Protection Regulation way of keeping up to date: “We are members of the National
for landlords it will require investment to ensure the property The new rules will make gaining possession for a landlord more (GDPR), which was introduced in May. Landlords Association (NLA) and iHowz, both of which provide
meets those standards. “If you wish to continue letting the complex and potentially more problematic – they also make it really useful and timely updates. There are also a number of
property, energy efficiency improvements have to be made to much easier for a well-advised tenant who is looking to make a “Some landlords are struggling with the changes to data landlord forums that are filled with useful information. But
meet the minimum E rating,” says Chris. “In terms of advice and claim against the landlord and defend themselves. Preparation protection laws,” he says. “Although it is aimed at large aside from that, every landlord would do well to not forget that
the best ways in which to do this, it’s worth noting that you’re and a proactive approach are essential. companies, landlords have certainly been swept up in this due they have Google – it’s really important to stay ahead of what’s
not necessarily expected to finance the changes yourself – you to the sensitive personal information they hold about tenants. changing in the industry any way you can.”
can use third-party resources such as the Green Deal and local HMO LICENSING We have prepared a fact sheet for our members and an
authority improvement grants to get the property up to the appropriate privacy statement they can use, so I hope they Tessa’s Landlord Law advice service at landlordlaw.co.uk is
required legal standard.” Later this year a key piece of legislation will come into effect, are better prepared.” another useful source of information, while Tessa answers
bringing changes to mandatory licensing for houses in multiple member questions on the forum herself.
SECTION 21 occupation (HMOs), which is expected in October. Currently it BE A PROACTIVE LANDLORD
is estimated that there are 60,000 HMOs in the UK requiring a If you’d like to find out more about the landlord insurance
Further changes to be aware of in 2018 are those made to licence – that figure could see a fourfold increase once the new The nature of the rental market means that change is a constant. options available to protect your buy-to-let property, give our
Section 21 under the Deregulation Act of 2015. Section 21 serves rules are in place. The key to overcoming any challenges posed by regulations specialist team a call on 01603 216399.
alanboswell.com | Telegraph | Summer 2018 alanboswell.com | Telegraph | Summer 2018
Farming in focus | 18 Farming in focus | 19
Having farmed the Norfolk countryside for generations,
the Bowes family is well known in the eastern region. Lucy
Mowatt speaks to Kevin Bowes about the biggest challenges
facing the industry and the importance of community
Fluffy white clouds drift across a brilliant With around 1,000 cattle and up to “The Beast from the East was a
blue sky, while swallows dart and chase 5,000 sheep on the land in winter, there is nightmare for farmers. Just when you
over the lush green fields at Bowes Farms a team of 14, including a farm secretary, a thought you were ready to go [and the
in south Norfolk, as we set up a photo manager and a foreman, on hand to keep bad weather was over], you’d get another
shoot in the midst of lambing season. the business running smoothly. 4-5mm of rain and it would be bad again.
If ever there was an archetypal vision of “We have wheat, winter barley, spring That’s farming though – you can never
an English idyll, this would be it. barley and sugar beet. We also have quite tell what the weather is going to do
Having farmed the 4,500-acre site since parsnips on the farm, carrots and potatoes. in this country.”
the 1970s, Kevin Bowes is at home in the There’s also some maize grown for
landscape, taking the gambolling days- anaerobic digesters. I think that’s about it.” Industry challenges
old lambs in his stride, while we coo over As he walks through the fields, he
them, distracted from setting up the lights explains that the last of the sugar beet From here, conversation naturally turns to
for the first round of photos. had only just been planted in mid-May. other challenges faced by the UK farming
“My family have been farmers for The ideal planting time is early March industry and Kevin highlights the impact
generations,” Kevin says. “It has always onwards, which could have a knock-on of current negotiations to leave the
been a mix of arable and livestock, effect to Bowes Farms’ yields. European Union, which he hopes will have
although we did have a meat business, “Weather is one of our biggest a positive outcome.
which we sold to Cranswick in 2009. challenges. This spring has put a hell of a “I suppose my glass is nearly always
“We run a mixed farm basically because lot of pressure on us – and I mean a lot of half-full,” he muses. “We’re currently
we have very light land. Being a mixed pressure – because it came very late. It’s importing a lot of food into this country.
farm helps improve the fertility of the soil been so wet that we won’t have the yields As a result, Brexit should help [UK]
in a natural way.” that we did last year. farming. I hear the downsides, but it can’t
alanboswell.com | Telegraph | Summer 2018 alanboswell.com | Telegraph | Summer 2018Farming in focus | 20 Farming in focus | 21
Safe and sound
Farming matters
all be bad, there has to be some upsides buy and we only use it during one month
as well. We’ll see what happens – that’s all of the year, on just one or two days,”
we can do.” he explains. “What other industries do With so many different facets to the
Of course it’s hard to avoid the ongoing that? It gives people more idea of what’s business, there’s lots to manage and
headlines around supermarkets squeezing involved and the costs of farming.” insure.
producers, looking to increase their own Almost fortuitously, this is the moment “We’ve been with Alan Boswell Group
With more than 25 years’
profit margins, while continuously seeking he pauses to speak to Farm Foreman for insurance since 2011. Zoe [Kerswill]
experience as an insurance
to lower their prices. David Bales to discuss a part needed for came out to see us to arrange cover. We
broker, and with agricultural
“We have a policy in this country of a piece of machinery. It’s going to take have had a couple of claims but we’ve
clients all over the country,
wanting to feed people cheaply. And we a week to manufacture and cost around been pleased with how they’ve been
Account Executive Zoe
will import from anywhere in the world £1,000. He acknowledges the coincidence handled.”
Kerswill explores the
to achieve that aim – and that’s mainly and explains that it’s a regular occurrence. With so much heavy equipment,
challenges faced by British
done by the supermarkets. They also try Kevin is also a council member for the livestock and buildings, as well as
farmers
to squeeze their UK suppliers where they Royal Norfolk Agricultural Association and people, on site, health and safety is also
can. They’re very efficient buyers.” is currently in the final year of his tenure. a significant consideration for Bowes
The two biggest challenges
He points to the ASDA-Sainsbury’s “It’s a support role. Members can ask Farms. This recently led to Alan Boswell
faced by farmers right
merger, which was making headlines days us for advice, or suggest more ways Risk Management providing support on
now are the increase in farm thefts and the Environment
before we speak, explaining that it will to support the industry. Plus it raises rebuilding surveys and plans, as well as
Agency. All farms are vulnerable to theft and we’re seeing
have ramifications for UK producers. awareness of farming with young people. health and safety audits.
equipment theft across the board – it’s not so much about
“It’s a shock. They’ll be a huge company It’s very important.” “We’ve had health and safety and
diesel anymore.
and their buying power is going to be even His involvement with both associations engineering inspection support [from Alan
stronger. And they will both have favourite mean that he’s a familiar face at the Royal Boswell Risk Management]. You have to
When it comes to the Environment Agency, they have
suppliers, so it’s a bit of a melting pot. Norfolk Show – and last year took home do that today because of the legislation.
increasing power and are levying bigger fines for pollution.
“People talk about the Aldis and the an award for his conservation work. [Farm Foreman] David Bales looks after
If the Agency is alerted to contamination, they will identify
Lidls of this world and I welcome them. “I was presented with the Grey health and safety. We try and keep up
who is responsible and charge them for clearing it up,
Knowing the industry, they are well run; Partridge Award, of which I was extremely to date as far as we can, but it’s like a
before issuing a fine.
they source a lot locally and their way of proud,” he states. “We don’t have a great moving target. We take advice and do
buying is far more efficient than the big number of grey partridges in East Anglia, what we can.”
As a result, there’s now an insurance product available
supermarkets. They have a model that is but we do have them and it’s important
called ‘environment impairment liability insurance’. Five
working really well.” that we do all that we can to conserve
years ago it was unheard of, but now it’s the norm for
That said, Bowes Farms no longer them. We are growing all sorts of crops
farmers. This policy will cover the cost of the clean-up and
deals with the big supermarket chains. and running stewardship schemes for
the legal defence costs – although it won’t cover the fines.
Instead they choose to send most of their them. This includes headlands and wild
There are three levels of EIL cover and all insurers offer
livestock to a local abattoir. bird special mixes, which we’re planting
something slightly different, so it’s worth speaking to an
“All our trade is UK based. We do quite for them.
insurance broker to get the right cover.
a lot with a local abattoir, Blakes, so we’re “Why are the numbers declining? I think
not running around the whole country to because 50 years ago our crops weren’t
Rebuilding blocks
sell our animals.” as dense as they are now.
“We also have predators, which don’t
Owing to the nature of agriculture, there is a multitude of
Supporting local issues help. And when I say predators, you can
risks to be aware of and reduced. That’s why I introduced
bring man into that. That’s because there
Kevin to our risk management team.
An active figure in the farming community, are 37.5 million vehicles registered in the
Kevin has been President of the Wayland UK, and these kill thousands of insects
They carried out various risk assessments and health and
Agricultural Society for a number of every day – and they are a vital food
safety audits for the farm before conducting a rebuild
years. This voluntary organisation runs an source for these birds from day one. Plus,
survey, whereby we created a scale plan of every building
annual one-day show in Watton, which you need sunshine for 10 days because
on the site. This included reviewing what the buildings are
is one of the oldest in the country, with they hatch between the 10th and 20th of
used for now and the future intentions for the buildings.
heritage dating back to the 1780s. Held June, and it’s a vital time. Grey partridges
in August, there’s shopping, food and lay tiny little eggs and the conditions
For example, lots of people would insure a £200,000 brick
drink, equestrian qualifiers and livestock have to be absolutely spot-on for them to
building to be rebuilt in the same way, even if it’s obsolete.
showing. survive. The conditions need to be right.”
However, it could be replaced by a breezeblock building
When asked why he chose to get And that’s not the first award that
that will cost £50,000 to build. As such, we offer a modern
involved, he explains that it’s important he’s been given for conservation; he is
replacement/rebuild option if that’s viable. After the Bowes
for people to come along and learn more rightly proud of the fact that he was joint
Farm survey, I spoke to the insurer and negotiated different
about where their food comes from. winner of a bronze Purdey Award for
rebuild rates and modern replacement basis of settlement
He points to a nearby tractor and Game and Conservation in 2014. The
for some buildings.
combine harvester in the yard and national awards recognises those that
explains that he takes equipment along to have made a positive impact in the world
One of the biggest benefits of building strong relationships
the show to demonstrate the scale of the of shooting, as well as on flora and fauna.
with clients is that we know what the farmer’s interests and
job and the costs involved. “Being a shooting man makes you
plans are and use our experience to get the right cover for
“Take the combine harvester; that can respect wildlife. No hunter kills all his
them, so their policies aren’t stuck in the past. Insurance
cost hundreds of thousands of pounds to prey,” Kevin adds.
has to evolve and sometimes the insurance you’ve always
had isn’t the right thing anymore.
alanboswell.com | Telegraph | Summer 201860-second interview | 22
60-SECOND
INTERVIEW
S-Tech Account Executive Dick Culpin speaks to
Telegraph about biotech, museums and fishing
First up, tell us a bit about your insurance career... We don’t tend to get involved with collections or buildings
because these are covered by the government, as is their
I joined Legal & General in 1972 and worked out of their City employers’ liability insurance. The main things I am really
office for about seven years. After that, I went on the road involved with are the liability covers; things like slips, trips
as a General Insurance Inspector, promoting commercial and falls for visitors.
Because your home is more
products and looking after a panel of brokers.
They also have to report their spending to the Department
I left them in 1985 and held broking roles at W Adams for Culture, Media and Sport and demonstrate that insurance
Insurance Brokers and Heath Group, before joining S-Tech provides value for money. To be honest it’s fairly easy to
than just bricks and mortar
in March 2000. do this when you have a claims record. Before they had
insurance, incidents were not well managed and they were
I have a lot of biotech clients in Cambridge, but I’m also paying high levels of compensation and legal costs. Now their
involved with a number of national museums and that takes insurance covers this, they are in a much better place in terms
me to London, York, Liverpool and Manchester. I cover a fair of the management of incidents.
bit of the country!
What’s your favourite part of the job?
What’s your experience in the biotech sector?
Without a doubt it’s the client-facing element. I really enjoy
I got involved with it when I joined S-Tech, because it was getting out, looking after my existing clients, seeing new
an area they specialised in. The majority of clients are R&D people and getting involved with new business.
companies, many of which are developing drugs for all sorts
of conditions, including cancer and dementia. A lot of the time What do you get up to outside of work?
I’m talking to start-ups in the early stages of research, but there
are also more mature companies, which may be starting clinical I do a lot of fishing – mainly pike, which is predominantly
trials. They will have very different insurance requirements. a winter pursuit. My dad introduced me to it when I was a
nipper, so I think I’ve probably fished since the age of four.
How do museums differ from other organisations?
Over the past 16 years I’ve organised a charity fishing match
Museums are diverse places and no two are alike. My clients on the River Great Ouse in Ely. For 15 years it was for Marie
include the Science Museum Group (which includes the Curie and we raised about £30,000. This year we did it in aid
Science Museum in London), the National Railway Museum in of the Arthur Rank Hospice in Cambridge and we raised about
York and the Museum of Science and Industry in Manchester. £1,700. I got involved because I had a cancer many years ago.
I also look after the Liverpool Museums and the V&A. It’s my way of giving something back.
3 tips for avoiding business interruption
Get high-quality, affordable
Carry out a risk assessment Create a business continuity plan Take out business interruption cover
home insurance cover today
Make a list of all the potential dangers Put a detailed, written plan in place Business interruption insurance can cover
to your business and then take steps to
minimise them.
explaining how your business will cope
with various disruptive scenarios.
lost revenue, as well as repair and renovation
costs while you get back on your feet.
01603 967958
www.alanboswell.com/bricks
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