The UK Property Market in 2014: What’s in Store?

Posted on January 17, 2014

As we leave 2013 behind and we enter a new year, it is time to take stock of the latest developments that have taken place in the real estate industry throughout the United Kingdom. More importantly, this is the ideal time of the year to explore the experts’ predictions on what 2014 will bring to the British real estate sector. Take a look at our summary of the key findings and predictions.

Continued growth

Last year, the real estate market showed signs of recovery, especially during the second half of 2013. In fact, and according to chief economists at Deloitte, the UK economy is set to grow at its highest level since the onset of the recession in 2007, with predicted growth rates of 2.5 per cent according to the latest estimates.

The overall positive economic outlook will undoubtedly affect the real estate industry across all sectors. A recent report published by The Guardian suggests that average residential property prices could rise by up to 8 per cent by the end of the year. Even the most pessimistic predictions point at average price increases of 5 per cent.

The Royal Institution of Chartered Surveyors has also predicted that 2014 will see a gradual closure in the gap between the London property market and other regional markets. The latest predictions affirm that while asking prices in London could go up by 11 per cent, other parts of the country will also experience significant price hikes, reaching 10 per cent in the East Midlands and the South East of England.

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The Changing Face of Britain’s Cities: Oxford

Posted on January 3, 2014

Oxford UKFor centuries, Oxford has been internationally renowned as a centre of academic excellence. Today, Oxford’s universities still play an important role in the economic and social life of the city, but we would be wrong to assume that Oxford has nothing else to offer to both residents and visitors. Today, the city is a modern urban centre with an increasingly diverse economic base and an equally diverse demographic profile. In this article we take a closer look to the latest trends observed in Oxford in terms demography, economy, and its industrial sector.

Demographics

As in the case of Cambridge, the population figures in Oxford are highly variable given to the large amount of full-time students that spend term time in the city. According to the latest census, Oxford’s resident population (excluding students) is nearly 152,000 people. Full-time students account for nearly 24 per cent of the total population, amounting to nearly 30,000 people.

Oxford’s population is also known for having the youngest median age of all local authorities in England, with an average of 29.9 years. The number of residents aged 18 to 29 years old is twice as high as the national average, being 32 per cent in Oxford against 16 per cent in the rest of England.

The local population is also characterised by having the highest population turnover levels of any English city, as in only one year (2011) 25 per cent of the censed population moved out of Oxford. Ethnic diversity is another of the main characteristics of the local population in Oxford, since during the last census 28 per cent of residents claimed to have been born outside the United Kingdom.

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The Changing Face of Britain’s Cities: Bristol

Posted on December 20, 2013

Balloons over Bristol Clifton Suspension Bridge

The city of Bristol has been an important point of reference for other English and European cities for several centuries. Already in the 13th century, Bristol was the third most important city in the country, and its influence continued to be strong until the onset of the Industrial Revolution. In our days, Bristol continues to play an important role in the social and economic life of the United Kingdom, although the city has had to adapt to many demographic and economic changes. In this article we review the transition that Bristol has experienced in the recent past in terms of its population, economic base, and industry.

Demographic changes in Bristol

Like many other British cities, the population of Bristol increased dramatically during the second half of the 19th century, when young people and families were drawn to the city and its surrounding area due to better employment prospects. In just the forty years that elapsed between 1851 and 1891, the city’s population grew by more than double, and nearly reached the figure of 300,000. A new population peak was reached in the 1970s, when the population went over 428,000 people. After two decades of decline, population numbers are on the rise again. During the last decade, Bristol has experienced population growth levels of 10 per cent, a figure that is higher than the national average. The latest census (July 2012) shows that the current population is in the region of 432,000.

Bristol’s population is predominantly young, and the largest age group is made up of people aged 20 to 24, which comprise nearly 12 per cent of the total population. The numbers of Bristol residents aged 30 to 44 are also significantly high. The median age at the time of the last census was 33.7 years old. On the other end of the scale, the number of residents aged 85 and over is also slowly increasing.

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The Changing Face of Britain’s Cities: Bradford

Posted on December 13, 2013

Bradford UK on a mapThe city of Bradford has been firmly positioned in the international map for a couple of centuries. Bradford was among the first British cities to be transformed by the industrialisation process, and became known around the world as an international wool capital. Much has changed in Bradford since those days, as textile manufacturing has largely been replaced by a thriving and diverse economy that has attracted people from many parts of the UK and the world. In this article of our series “The Changing Face of Britain’s Cities”, we take a detailed look at Bradford’s population and its economy.

An overview of recent demographic trends in Bradford

The main characteristic of Bradford’s demographic trends has been a steady increase in population numbers, especially from the early 1800s onwards. Historic records show that in 1801, Bradford’s population barely reached the 13,000 mark. Just fifty years later, the city’s population had grown to 104,000. Another fifty years of continued growth brought Bradford’s population to 280,000 in 1901. These figures show that Bradford grew at a faster pace than some of the largest English cities, such as Manchester, Liverpool, or Birmingham.

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The Changing Face of Britain’s Cities: Newcastle

Posted on December 6, 2013

Newcastle UK

The city of Newcastle upon Tyne is one of the largest metropolitan areas in the north of England. The city has played an important role as a trading port for over 200 years, and undoubtedly this has contributed to turning Newcastle into a populous metropolis with a thriving industrial and economic scene. Over the decades, Newcastle´s face has been transformed due to demographic and economic changes that in a way, are common to those experienced by other English cities. In this article we review the latest demographic, economic, and industrial trends that have recently taken place in Newcastle.

An overview of Newcastle´s demographic makeup

Newcastle´s population experienced a large increase from the mid-1800s onwards. This was mostly due to the economic boom brought about by the industrialisation of Newcastle´s export and trade operations. According to historical records, in 1801 the city only had 33,000 inhabitants. By 1850, the city´s population had more than doubled, standing at 80,000. The increase was even more spectacular during the following fifty years, as in 1900 the city´s inhabitants totalled 246,000. From then onwards, Newcastle´s population kept growing, peaking during the 1950s, when the city reached a population mark of 340,000. After this point, and much in line with the demographic trends that took place in other English cities, the local population experienced a decrease, motivated by economic difficulties and rising unemployment levels. This situation forced many locals to move elsewhere.

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The Changing Face of Britain’s Cities: Leeds

Posted on November 29, 2013

Leeds City CentreThe city of Leeds has been an important economic and transportation centre since the 17th century. Over the years, Leeds has emerged as one of the most important urban centres in Yorkshire, and consequently, this has brought about demographic, industrial, and economic changes that have modified the face of the city. Continue reading for a detailed overview of the latest information concerning demographic, economic, and industrial trends in this West Yorkshire city.

Leeds’ demographic background

As of 2012, the city of Leeds had a population of just over 800,000 people. This figure alone positions Leeds as one of the top five largest cities in the United Kingdom, but Leeds ranks even higher in terms of its population size once the Leeds-Bradford metropolitan area is included. The Leeds region, which includes Leeds, Bradford, and a number of surrounding towns, has a population of nearly 3 million. This means that the region is the fourth largest urban centre in the country. The population density figures for Leeds are also higher than those in other parts of Yorkshire, as the city has 10,500 people per square mile.

Demographic changes in Leeds have followed a pattern similar to that experienced by other former industrial English cities. At the turn of the 19th century, Leeds population was barely 94,000. As employment opportunities grew in the area, people became drawn to the city, and by 1831 the population had doubled to 183,000. For the following thirty years, the city saw annual population increases of up to 24 per cent. More people continued to arrive to the city, and the population reached a peak in 1971, when it was 739,000. However, over the following decade, the population shrank by nearly 6 per cent, mostly because of economic hardship and high unemployment levels. During the past ten years, the population of the city has started to increase again, although at a slower rate.

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The Changing Face of Britain’s Cities: Birmingham

Posted on November 22, 2013

Birmingham UKBirmingham has had a leading position as one of Europe’s largest and most important manufacturing centres for nearly two centuries. The role that this Midlands city played during the industrial revolution marked the future development of its population, economy, and industry. Following a series of regeneration projects, modern day Birmingham is at the forefront of socio-economic development in the United Kingdom. In this article we cover the demographic, economic, and industrial changes that the city has recently experienced.

Demographic trends in Birmingham

With a total population of over 1 million and a population density of more than 10,000 people per square mile, Birmingham is the second most populous city in the UK. The city’s population reached the 1 million mark in 1951, although economic deprivation and rising unemployment levels forced many families to leave the city. However, the declining population trend has been recently reversed, and population growth has been a constant trend in Birmingham for over a decade. Since 2001, the local population has grown by 9.1 per cent, at an average rate of 0.9 per cent every year. There are three main factors that account for this trend: an increased birth rate, a lower number of deaths, and the number of migrants that have moved to the city.

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A Simple Pensions Guide for Tax Planning

Posted on November 15, 2013

Pensions are still the best option to secure stable retirement income. In 2013-2014, Her Majesty’s Revenue and Customs have created great conditions for anyone who wants to save into a pension for retirement, to maximise their tax planning efforts. This is especially boosted by the increase in the personal taxable allowance minimum to £10,500 in 2013-2014. There is also the possibility this figure will rise for 2014-2015 when the Chancellor releases the Offical Budget Statement in March 2014.

Originally written in 2006, the treatment of pension savings for taxation purposes remains true to the idea that anyone can save an unlimited amount into a pension fund.

Employee Pension Schemes and Tax Relief

Employers can make contributions of up to £255,000 a year on your behalf, and you can top up contributions by up to £3,600 per year, or the equivalent of 100% of your salary, and claim tax relief on those payment contributions.

State Pension Arrangements

Everyone in the UK who has a PAYE tax code or tax code reflecting pension entitlement, usually ten years or more of employment National Insurance contributions (Classes 1 to 4), can receive the State Pension. You can claim the state pension from the time of retirement age, and it is paid as a fixed amount each year, in installments (weekly). While the state pension money is not taxed at source, if you earn over the minimum threshold of income, which includes the state pension, of £10,500 (from April 2013 – 2014 allowance), you will have to pay income tax on your earnings.

Planning for Annual Taxable Income of under £10,500 in 2014

If you are retiring for the tax year 2014-15, you will need to carefully arrange your pension income, if you want to avoid paying tax on any amount regarded as income over £10,500. One way of doing so is to continue working, but to be self-employed, whereby you can make deductions towards the cost of your employment, and submit a reduced gross income figure.

Loss of Pension Entitlement (State)

Once your overall retirement income exceeds £25,400 you will not be entitled to the State Pension any more, so be aware that if you are getting close to this figure, you will need to make up the shortfall of approximately £6,000 per annum. You would need to aim for an income to match this amount or improve upon it. To avoid going over this amount of income, you might consider transferring assets, including cash bonds or shares to other members of your family with some room in their own tax allowances.

Claiming State Pension after Retirement

It is worth noting that you don’t have to claim the State Pension when you retire, if your income is going to exceed £25,400. This is a common scenario, as the first few years of retirement could see you well provided for, with prosperous annuities in place and a good amount of savings behind you. Looking ahead, you can still claim the State Pension if your income falls below the £25,400 amount. This can happen if, for example, you require care home treatment, or are met with large medical bills if you’ve fallen ill. You do not have to claim the State Pension immediately, however it is good to know it is available to you if you need it at some point in future (provided you have the tax code entitlement previously mentioned.)

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The Changing Face of Britain’s Cities: Edinburgh

Posted on November 8, 2013

Edinburgh Cityscape at DuskEdinburgh is Scotland’s capital city and one of the most economically active cities in the United Kingdom. As such, change and transformation are essential elements in the social and economic life of this city. In recent years, Edinburgh has won a number of accolades that have attracted further investment and new residents, such as the European Destination of the Year 2012 award, the Best Large City for Foreign Direct Investment 2012-2013 recognition, and the Best UK City award. In this article we look at the changes that the Scottish capital has gone through in the recent past in terms of demographic, economic, and industrial patterns.

Demographic changes in Edinburgh

Today, Edinburgh is a bustling metropolis with a population of over 482,000 people, a figure that indicates that over 9 per cent of Scotland’s total population lives in the city. Edinburgh’s larger urban zone has a population of more than 817,000.

Population growth indexes have been rising in Edinburgh for more than two decades. Growth indexes were significant in the decade of the 1990s, when year-on-year population numbers increased by up to 7 per cent. Currently, growth trends have been rather moderate (yet still positive), with a 1 per cent increase in population between 2011 and 2012.

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Tax Tribunals Explained

Posted on October 25, 2013

Compliance with tax-related matters is one of main concerns of business people, and at the same time, one of the most complex aspects of running a business. In the United Kingdom, tax law and taxation requirements tend to change regularly, so it is always wise to entrust these matters to a professional with ample knowledge of the subject. However, it is also important to be familiar with certain basic aspects of business taxation in order to avoid unpleasant surprises. One of the most common scenarios for individuals and businesses is being subject to mistaken tax decisions. What can you do if this is your case? Below you will find all the necessary information.

About tax tribunals

If you or your company want to dispute a tax decision made by HM Revenue and Customs, you must be aware that the appeals procedure was modified in 2009. Up until then, tax disputes were dealt with by the VAT and Duties Tribunal. After 1 April 2009, a two-tier system of tax tribunals was introduced in an attempt to streamline procedures and simplify the handling of tax disputes. The tax tribunal’s jurisdiction is much wider that the one had by its predecessor, as tax tribunals have also come to replace the High Court and the role of General Commissioners in tax-related cases.

The two-tier system of modern tax tribunals is comprised of a First-Tier Tribunal, which in turn comprises six units, including the Tax Chamber; and the Tax and Chancery department of the Upper Tribunal, where unresolved disputes are heard. All cases brought before a tax tribunal are heard at the relevant HM Court.

What kind of issues can be brought before a tax tribunal?

UK tax tribunals are authorised to handle any disputes brought up by taxpayers, whether they are individuals or organisations. In addition, the tribunals concern themselves with both indirect taxes (Customs Duty or VAT) and direct taxation (such as corporation tax or income tax). Other tax-related matters that the tribunals can deal with include national insurance contributions, inheritance tax, stamp duty land tax, PAYE notices, capital gains tax, statutory payments, excise duties, climate change levy tax, and landfill taxes. The Tax Chamber of a tax tribunal cannot deal with disputes concerning tax credits, as these are the jurisdiction of the Social Security Chamber.

A tax tribunal can handle appeals related to both initial decisions and concluding reviews made by HM Revenue and Customs.

What is the procedure involved in appealing to a tribunal?

If you think that you have been subject to an erroneous tax decision, or if you believe that HMRC is conducting an unnecessary enquiry into your company’s direct taxation affairs, you must complete the form that can be found here. The appeal must be filed within 30 days of the HMRC’s decision you are disputing. Once received, the appeal will be allocated to the most adequate track: default, basic, standard, or complex.

The appeal will be acknowledged within 10 days of it being sent, and once the judge has made a decision, the parties involved will be notified within 5 working days of the sentence being signed. Under this legal regime, each party is responsible for paying their own costs. Complex cases or appeals sent from the First-Tier Tribunal’s Tax Chamber will be handled by the Upper Tribunal.

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