Private Client Newsletter


Reducing your Tax Liability - the key is to think ahead

Giving financial gifts?

Family Investment Companies

Contents 3 Welcome to our latest newsletter, covering the key tax and insurance issues facing individuals

10 Family Investment Companies

12 Is your car on the top ten list of stolen vehicles?

4 Reducing Your Tax Liability – the key is to think ahead

14 Capital Gains Tax – a reminder of the rules

6 By Royal Command

16 Home Improvements? Don’t forget to revise your insurance

8 Giving financial gifts?

18 Meet the Team


Welcome to our private client newsletter, aimed at helping you understand some of the financial issues which may be of interest to you. The past year has seen us face some considerable challenges, not least the political roundabout of three prime ministers, and a dizzying number of economic statements and reversals which left our heads spinning at what might come next.

2022 was also a momentous constitutional year as Her Majesty Queen Elizabeth II died peacefully in September, after reigning for 70 years. Many of the obituaries mentioned that a large number of her subjects had the chance to meet the late Queen during her reign. However, our client, Richard Stone spent considerably more time with her than most. As a royal portrait artist of international repute, he painted the late Queen a number of times as well as many other members of the royal family and society figures. On page 6-7, you can read more about his extraordinary career and see some examples of his portraits. Our newsletters are one way we have of keeping in touch with you, and ensuring you are informed about some of the topical issues where our teams may be able to help and provide advice. For this newsletter, we examine some of the personal tax implications to be aware of at the moment, and on page 10, we also take an in-depth look at family investment companies, which are becoming an increasingly popular way of passing on wealth, but which have some tax benefits over traditional trust arrangements.

The high rates of inflation and cost of living crisis have prompted many people to help their friends and family with cash gifts. Most of the time these won’t impact your tax responsibilities, but if you are planning to give away more than £3,000 it may be helpful to talk to a professional Tax Adviser to ensure you are doing so in a tax-efficient way. Simon Hurren, Private Client Tax Associate Partner explains more on page 8. If you are considering making some improvements to your home this year, it may be worth remembering that this will not only add to the value of your home but also increase your exposure to risk. Natasha Root Private Client Insurance Executive gives some useful pointers in her article on page 16. As well as a new office opening in Bury St Edmunds, I’m delighted to let you know about the newest member of our Private Client team. Paul Harris joins Scrutton Bland as a Private Client Tax Partner and will be based in the new Bury office. Paul has over thirty years’ experience in finance and specialises in providing advice on capital taxes and wealth management for high-net-worth individuals and their families, together with their related entities such as businesses and trusts, with a particular area of expertise, built up over several decades, in agriculture and landed estates.

The new office is located just off the A14 in a development of heritage farm buildings. Do come and see us there – we’re at The Long Barn, Fornham Business Court, Fornham St Martin, Bury St Edmunds IP31 1SL. We hope you’ll find some useful information in this newsletter and would love to hear from you if you’d like to know more about any of the subjects we’ve covered.

Jason Fayers Managing Partner


Reducing Your Tax Liability – the key is to think ahead

Ordinarily a large amount of tax planning is left towards the end of the tax year, but it is worth considering your position and taking steps now to get your finances in check. The last year has certainly provided plenty of challenges, which look to continue, with high inflation and interest rates it is worth taking some time to consider the tax planning opportunities that are available.

With that in mind, this checklist from Sam Mudd, Senior Tax Adviser, covers everything you need to consider before 6 April 2024 to put you and your family in the best possible position.

Key tax planning areas to consider As well as optimising your tax planning for the current year (2023/24). Tax planning strategies are usually most effective when implemented before the tax year begins. The following are the key areas to consider. Income tax Personal income of between £100,001 and £125,140 is taxed at an effective rate of 60% due to the loss of the personal allowance, while income over £150,000 is taxed at 45%. Child Benefit is tapered for incomes between £50,000-60,000 so for a taxpayer with two children who receives Child Benefit of £2,074.80 per year (2023/24 rates), the effective rate of tax is 60.75% in this income bracket, while for those with three children who receive Child Benefit of £2,901.60, the effective rate of tax is a whopping 69% for income between £50,000-60,000. Tax planning can be particularly effective for taxpayers who find themselves in the punishing income bands set out above.

Capital Gains Tax Most individuals have a Capital Gains Tax allowance of £6,000 for the 2023/24 tax year. Any assets that are sold at a loss can reduce gains for the year or be carried forward and set against future capital gains. Importantly, any of the annual exemption not used cannot be carried forward and will be lost. Assets can be transferred between spouses and civil partners tax efficiently to ensure both exemptions are used fully. From April 2024 the Capital Gains Tax allowance will be reduced further from £6,000 and to £3,000 making it even more important to utilise the higher annual exemption whilst it is available.

If you wish to avoid the higher rate of tax, you should consider steps to reduce your taxable income to below these levels if you can. Increasing your pension contributions might be an effective way to do that. Alternatively, you could consider:

Transferring an income-generating asset to a spouse with lower income

• •

Pension contributions

Deferring income to a later tax year, if your income is going to be lower

• •

Making Gift Aid payments

Tax efficient investments such as Enterprise Investment Schemes (EIS), Seed Enterprise Investment Schemes (SEIS) and Venture Capital Trusts (VCT)

Annual allowance for pension contributions

Other steps you can take to reduce your income tax liability include:

Investments in your pension are free from Income Tax and Capital Gains Tax, but there is a limit to the amount you can pay in. The current standard tax-free pension allowance has increased from 6 April 2023 to £60,000 or 100% of earned income, whichever is higher. The carryforward rules allow you to make use of any annual allowances that were not used during the last three years. That makes 5 April 2024 the last opportunity to use unused allowances from 2019/20.

Ensuring married couples / civil partners both have sufficient income to use their full personal allowance: £12,570 in 2023/24 or claim the Marriage Allowance where it is not possible to redistribute income. The Marriage Allowance could give a tax saving of up to £252 for the current year. Redistribute investment capital between spouses / civil partners to reduce the tax incurred on income and capital gains. No tax is payable on transfers between married couples and civil partners.


Savings and investments Ensure the savings income for both individuals in a married couple or civil partnership is sufficient to use their full £500 or £1,000 personal savings allowance and £1,000 dividend allowance. Shareholding directors of private companies can pay themselves up to £,000 of dividend income for 2023/24 tax-free. After this date the dividend income allowance will reduce to £500 for the 2024/25 tax year. If interest on investments or savings is due to be paid just after 5 April 2023, closing the account before the end of the tax year can bring the interest forward. That will allow you to use up any surplus personal savings allowance you have for the current tax year.

If your adjusted income i.e. your taxable income plus employer pension contributions, is over £260,000, your annual tax-free pension allowance falls away by £1 for every £2 of income. There is a minimum tax-free pension allowance of £10,000 for those with adjusted income of more than £312,000. You can also pay up to £3,600 into a pension pot for your spouse, a civil partner or a child and benefit from basic rate tax relief on the contributions. Gift Aid Tick the box to say you are a UK resident and taxpayer when making Gift Aid payments and you’ll receive 20% or 25% of the donation as a reduction in your tax liability. To make the most of Gift Aid, the person with the highest tax rate in your family should ideally make the payment. Tax-efficient investments Income tax relief is available to reduce your tax liability on the following investments:

until 2025. You will be able to benefit from capital allowances, car benefits in kind (determined by the vehicle’s CO2 emissions and fuel type) and zero tax on fuel benefits in kind. Your financial future is in safe hands At Scrutton Bland, ensuring that our clients and their families get the best outcome from their efforts is part of the process of providing clear and effective advice to help you maximise your wealth and make informed tax planning decisions. Whether you are a business owner or private individual, making informed decisions and utilising the allowances available to you can make a dramatic difference to your wealth in the long-term. Get in touch with Sam or one of the tax team to arrange a free, confidential consultation at a time that works for you by calling 0330 058 6559 or emailing

ISA allowances You should increase your savings if

necessary to make the most of the £20,000 tax-free ISA allowance per person. Married couples can invest £40,000 over the year with no Capital Gains Tax or Income Tax to pay. Any unused allowance cannot be carried forward.

Venture Capital Trusts (VCTs) - Investments of up to £200,000 per year qualify for income tax relief at 30%. There’s no capital gains tax payable on any profit made when selling the investment and dividends are received tax-free. Enterprise Investment Scheme (EIS) - Annual investments of up to £1 million in qualifying companies attract income tax relief at 30% (or up to £2 million if at least £1 million is invested in knowledge intensive companies). If the investment is held for over three years, then any capital gain is free from CGT. Seed Enterprise Investment Scheme (SEIS) - Investments of up to £200,000 per tax year can be made in start-up companies that qualify for the SEIS. Income tax relief is available at 50%. No CGT is payable on disposal if the investment is held for more than three years.

Additional tax planning areas to consider

While the points we’ve covered are likely to be relevant to most people, there are also some specific tax planning areas that may apply to others: Trading and property allowances Two £1,000 tax-free allowances are available, one for income from property and the other from trading and miscellaneous income. They can reduce your tax liability if you generate a modest income, for example, by renting out a room on Airbnb or selling items on eBay or Amazon. Electric cars If you are thinking of switching to an electric car for business use, the tax benefits are well worth exploring and include enhanced capital allowances, lower benefits in kind (determined by the vehicle’s CO2 emissions and fuel type) and £0 road tax for 100% electric vehicles

Both EIS and SEIS investments can be carried back to the previous tax year to obtain income tax relief in the previous tax year.


By Royal Command

Richard Stone is one of the foremost international portrait painters of our times, and the most prolific royal painter of his generation. Since his first royal commission in 1973, when he painted the Queen Mother, almost every member of the Royal Family has sat for him, often on multiple occasions. They have included the late Queen, the late Duke of Edinburgh, the Prince of Wales (as he then was) and the Princess Royal.


Photo credit: Alet van Hysteen

I n 1989 Colchester Borough Council anniversary of the town’s first royal charter. The resulting work took three years, spaced over three summers when the Queen sat for him at in the Yellow Drawing Room at Buckingham Palace, with a large piece of canvas spread over the carpet to prevent paint stains. “The Queen was a perfect sitter,” says Richard. “She took the job very seriously, although to start with I couldn’t get her look quite right. One morning she came in and lifted the George IV diadem from its tray and placed it on her head. The transformation was immediate. Suddenly it was the Queen before me – I had the look!” The resulting portrait has been described as one of the finest of her reign and was used by the BBC as their iconic screen image during the two weeks of mourning following the Queen’s death in September 2022. commissioned him to paint the Queen as part of their celebrations for the 800th Did the Queen ever let him know what she thought of the portrait? “At the end of the sittings I showed her the finished work and just as she was leaving the room, she turned to me and said: “That would make a good stamp!” says Richard. “Sure enough, the portrait was used over a decade later by the Royal Mail as part of their 2013 issue to commemorate the 60th anniversary of the Queen’s coronation.” The royal family are by no means the only famous subjects that Richard has painted. Other commissions have been for portraits of Nelson Mandela, Luciano Pavarotti, Archbishop Desmond Tutu and Margaret Thatcher, whose portrait he painted six times. “We talked about everything except politics,” comments Richard. The portrait, which depicts Baroness Thatcher

at the peak of her powers, was commissioned by the then Prime Minister, Gordon Brown. It was unveiled in 2009 and now hangs in her former study in 10 Downing Street which is used for meetings with foreign dignitaries. Closer to home, Richard has painted gardener and plantswoman Beth Chatto, and two of the former partners at Scrutton Bland: Eric Bland and Geoffrey Lockhart. Richard recalls: “In the 1970s when my first commissions were starting to come in, I realised that I needed someone to look after my accounts. I asked around about who the best accountants were, and I was told ‘Bland Fielden’. Of course, they are now known as Scrutton Bland, and I have been with them for almost fifty years – which seems extraordinary!” Richard’s artistic talents extend to animal portraiture too. His most famous animal portrait was of Koko the gorilla, created to raise funds for the Gorilla Foundation in America. The

experience had a profound effect on him, as he was invited into the enclosure to ensure that Koko liked and trusted him enough to be near her while he worked. “She was an amazing creature, and had over 2,000 words of sign language, so I could ‘speak’ to her and vice versa. Sometimes she didn’t know how to verbalise what she wanted to say, so she would make up a word up to try and explain what she wanted to communicate.” Sustaining such a successful career in such a competitive field has taken both hard work and considerable discipline. Richard works on about six projects simultaneously, although he says he is relieved not to have to travel quite so extensively these days. But does he still love what he does? “Undoubtedly! I told my mother I would paint the Queen when she took me to visit Buckingham Palace when I was four years old. How many of us can say our childhood dreams came so true?”


Giving financial gifts? Simon Hurren, Private Client Tax Associate Partner, explains what you need to know if you’re thinking of giving large sums of money as gifts. A s high inflation and the cost-of-living crisis continue to affect many people, it is tempting to give large cash gifts to friends or relatives to help them to manage. Whilst for most people the cash presents they give are very unlikely to have any tax consequences, As with IHT, there is also an annual exemption for CGT, which is currently £12,300 for individuals, in addition to a number of other exemptions which apply to particular circumstances. Any gains falling into this annual exemption are currently exempt from Capital Gains Tax, but it is important to note that capital gains can still

If you are considering making substantial gifts in excess of the £3,000 exemption this year, then it might be a good idea to take some professional advice, particularly if these gifts are part of a strategy to reduce an estate for IHT. Estate planning, and the making of gifts is a complex area, and our specialists are happy to have an initial no cost, no obligation meeting with you to determine whether your situation might benefit from some professional advice. Get in touch with Simon or one of the tax team by calling 0330 058 6559 or emailing

if you are thinking of gifting larger sums of money, there may be some tax considerations which shouldn’t be overlooked. If you are planning substantial cash gifts, the first considerations are the potential Inheritance Tax (IHT) and Capital Gains Tax (CGT) implications. As far as IHT is concerned, there are a number of reliefs and exemptions, but perhaps the most useful in this context is the £3,000 annual IHT exemption. This exemption means that you can give away cash or assets up to the value of £3,000 each year, without any IHT implications. If you haven’t used the previous year’s exemption, then that can be used too. Capital Gains Tax (CGT) doesn’t come into play where the gift is cash, or where a new item is purchased and gifted before its value has had a chance to change. This should cover the vast majority of gifts. However, if you are gifting perhaps a family heirloom, the value of which may well have changed since you acquired it, then a potential capital gain (or possibly even a capital loss) could occur.

arise on assets which are gifted rather than sold. It is also worth noting that the annual CGT allowance will be reduced to £6,000 from April 2023. Finally, and perhaps now more than before, many of us have been thinking of others less fortunate than ourselves, and many people will make charitable gifts. Where an individual who pays tax at 40% or 45% makes a charitable donation, tax relief at that individual’s highest marginal rate should be available. Basic rate (20%) taxpayers do not receive any fiscal benefit from making a Gift Aid donation, but if the donor doesn’t pay tax, then a tax charge is likely to arise as a result of making one. Couples where one person pays less or no tax should therefore consider which of them should make the donation, so that both you and the charity benefit from it.



Family Investment Companies Traditionally parents and grandparents choose to pass on their wealth by putting money into a trust for their offspring. It is a way to ensure that their cash or other assets are held safely, and that only the trustees can access and/or distribute its contents, according to the terms of the trust. T rusts are a valuable and common way to pass on your money in a controlled way, whilst providing for income and minimising the chances that family members will fritter it away, or have to hand it over in the case of a divorce. However, there are some downsides to trusts, not least the complex tax rules that they are subject to. The income from the trust is subject to income tax, and a 6% inheritance tax charge applies every ten years on the value of the trust, plus a 20% tax charge to pay up-front if the initial cash transfer of the trust exceeds £325,000. The tax rates and allowances vary considerably according to the type of trust and how the trust’s beneficiaries stand to benefit from it. One alternative that is gaining in popularity is family investment companies (FICs). All the family own the shares in an FIC, with the parents (and/or grandparents) holding overall control and voting rights. The benefits of a conventional trust are mirrored in an FIC, but there are tax benefits, notably that income from the trust is subject to corporation tax of 19%, rather than higher rate income tax, and individual shareholders can receive up to £2000 of tax-free dividends each year. There is also tax relief paid on mortgages and transferring cash into an FIC is not subject to the up-front inheritance tax charge of 20% which many find prohibitive when setting up a trust which breaches the £325,000 threshold. There are also no limitations on the lifespan of an FIC, or the amount that can be invested, and they are considered to be an effective investment choice where funds exceed £1 million. It is therefore no surprise that FICs are a popular structure for investment planning for families, and we are seeing an increasing number of enquiries from our clients about them. However there are still some downsides, and it is worth noting that FICs are a complex investment structure that will have bespoke articles of association, and usually a shareholders’ agreement as well. There will still be professional fees to pay to set up and manage the FIC, and company accounts need to be prepared and taxes paid in accordance with HMRC regulations. If a property is put into the FIC rather than cash, there may well be capital gains tax to pay, and potentially stamp duty as well – so it is always advisable to get professional independent advice before embarking on setting up a family investment company. Finally it is important to point out that in April 2019 HMRC set up a specialist unit to examine the use of FICs as an inheritance tax planning vehicle. As of yet (summer 2023) there have been no major changes announced to the taxation regulations of FICs, but given the economic challenges currently facing the country, it is likely that tax amendments may be coming, especially in areas where HMRC may consider the current position to be overly generous. For more information on Family Investment Companies please get in touch with Graham Doubtfire, Private Client Tax Associate Partner, or one of the Personal Tax team who will be happy to talk through your options. Call 0330 058 6559 or email



Is your car on the top ten list of most stolen vehicles

New data from the Driver and Vehicle Licensing Agency (DVLA) shows worrying theft levels of high-end motor vehicles. Natasha Root, Private Client Insurance Executive looks at the implications for luxury car owners of increasingly sophisticated criminal methods.

B y far the most stolen car brand in the last twelve months was the Land Rover, according to the DVLA. The twelve months to March 2023 highlighted that almost one in every hundred Land Rovers licensed in the UK was stolen, and Land Rovers were three times more likely to be targeted than Mercedes Benz, the second most sought-after brand targeted by car thieves.

Most stolen car brands in the UK for the twelve months to March 2023:

Make of car

Number of stolen cars

Number of licensed cars

Cars stolen per 100,000

Land Rover




Mercedes Benz








































DVLA data, analysed by

The data obtained by shows that as well as Land Rover being the most popular brand of vehicle for thieves, it also featured in six of the most popular car models that were stolen in the past twelve months. The Land Rover Range Rover Velar R-Dyn HSE D180 A and the Land Rover Range Rover Sport HSE Dyn Black P400E A were the top two stolen car models, with the Lexus 450H CVT and the F Sport CVT coming in at third and fourth place, and the Ford Fiesta Zetec S (red and black editions) taking eighth and ninth places.


What colour is your car? DVLA’s data also revealed, perhaps

What can you do to help protect your vehicle from thieves? •

Car theft is a distressing crime and it’s important to do all you can to prevent it happening. Setting up robust security measures to deter thieves is an obvious way to reduce your risk of car theft, and this may help reduce your insurance premium, at a time when costs are going up. It is also important to have the correct cover for your vehicle and the way you use it, so that should the worst happen you are covered. Scrutton Bland’s Private Client Insurance team understands that everyone’s lifestyle is unique, so we provide policies tailored to your own individual circumstances. Thanks to our industry knowledge and understanding of the personal insurance sector, we’ll work with you to get the right insurance for your luxury vehicles at the best possible premium. Get in touch with Natasha or one of the insurance team by calling 0330 058 6559 or email

unsurprisingly, that black cars are the most specifically targeted colour for theft, with 18,000 black cars stolen in the last twelve months. Enhanced vehicle security As vehicle security systems become more sophisticated, so are the hi-tech methods the thieves use to overcome them. Current techniques for stealing a vehicle include key cloning, or relay theft, where transmitters are used to intercept the security signal from a car and redirect it to a second transmitter which is then directed at the car. Insurers are reporting that relay transmitters are now so advanced they can clone and amplify an unlocking signal from a car key, even when they are outside a house. How will rising car theft figures affect my insurance premium? There is no doubt that the rise in vehicle thefts will have an impact on insurance premiums across the board, and especially for high value cars under five years old, which are the most desirable to thieves. Working with a specialist insurance broker such as Scrutton Bland will help, as they have the knowledge and experience to access the whole of the UK insurance market, can identify the cover you need and negotiate the best premiums for you.

Ensure you have an operational tracker on your vehicle and that the subscription is up-to-date Keep your vehicle keys in a faraday pouch to help prevent the signal being cloned Invest in an aftermarket immobiliser which will prevent the car engine from starting, even if the key signal has been cloned Keep your vehicle parked in a secure location such as a locked garage or gated area. If this isn’t possible, park in a well-lit busy area where potential thieves can be easily seen For extra security, use a steering wheel lock. A visual deterrent is sometimes enough to put off a thief, where they have just a few seconds to steal your car Don’t leave anything on display in your vehicle. It sounds obvious, but anything worth stealing which is visible will enhance its attractiveness to crooks Be careful where you keep your car keys. They shouldn’t be stored near the front or back doors, or in the garage.


Capital Gains Tax – a reminder of the rules

It is now three years since the introduction of strict new rules for the prompt disclosure of UK residential property disposals by UK residents. Paul Harris, Private Client Tax Partner takes stock and provides some useful pointers.


S ince 6 April 2020, UK tax residents disposing of UK residential property have had to file a special Capital Gains Tax (CGT) return and pay any tax due within a very short period after completion, or risk incurring interest and penalties. Despite all the current economic and political turbulence and uncertainty, there are still plenty of residential property sales going through which fall within the scope of these rules. With average UK house prices having doubled over the past twenty years, and a top CGT rate of 28%, the potential sums involved can be little short of eye watering. Initially the time limit for filing the return and paying the tax was just 30 days, and while this has since been extended to 60 days, the time soon flies by – especially in the aftermath of a sale, when your mind will be on other things. The situation is not helped by the complexity of the tax rules; the ‘clunkiness’ of the digital reporting system; short staffing at HMRC, and a general lack of awareness on the part of the taxpaying public. Although HMRC took a lenient approach in the early days, the gloves are now most definitely off when it comes to penalties for late filing. The rules catch a wide variety of properties, including buy-to-lets and second/holiday homes, and they apply not only to individuals but also to trustees, executors, and partners in partnerships.

Points to remember

If you struggle with the online submissions then it is possible to file a paper return, but you should allow plenty of extra time to complete the process. It will also take HMRC more time to respond to the filing and ultimately to finalise your position. There is no need to file a return where no tax is payable – for example if the gain is covered by Private Residence Relief, or if a loss arises. That said, it may make sense to file a return in order to ‘bank’ the loss for relief against future gains. Filing a 60-day CGT return does not necessarily eliminate the obligation to file a normal self-assessment tax return after the end of the tax year. Indeed, filing a normal return will reveal whether the original CGT payment was under or overestimated. There is a separate regime for non- residents, which also extends to commercial property. Unlike UK tax residents, non-residents must file a 60-day CGT return even if there is no tax to pay and/or a loss arises.

If you do need to file a 60-day CGT return, please start gathering information immediately – especially if the property has a complex history of occupation and/ or improvements, or if there is a risk of records going astray while moving house. Let your Tax Adviser know of your plans straight away. Private Residence Relief will not automatically cover more than half a hectare of garden and grounds. If therefore you are selling a substantial property, an early meeting with your Estate Agent and Tax Adviser should help to maximise your claim for relief and lay the groundwork for dealing with any challenge from HMRC. HMRC may seek penalties if you do not take proper care to submit an accurate CGT return. If the tax calculation includes valuations – where the property was owned on 31 March 1982, for example, or where it is necessary to allocate the sale proceeds between those parts that qualify for Private Residence Relief and those that do not – then I strongly recommend that a professional valuation is obtained. Except in the case of gifts (see below) or where substantial secured debt needs to be repaid, cash flow should not normally be a problem because the CGT is only payable once the completion monies have been received. That said, the tax can be substantial – especially on properties which have been held for many years – and so the sooner you have a clear idea of the amount due, the better. Most gifts are taxed as if they were sales at market value, so do make sure that you have sufficient funds set aside to settle the tax in good time. If your property meets the conditions for treatment as a Furnished Holiday Letting, then you could benefit from certain CGT advantages such as a reduced 10% tax rate and the ability to defer CGT by reinvesting the proceeds into new qualifying assets. When calculating your 60-day CGT payment, you can offset any capital losses on disposals which took place earlier in the same tax year, but not capital losses realised later in the year. It, therefore, makes sense to look for opportunities to crystallise losses before exchanging contracts for the property sale.

Three years in, HMRC may feel entitled to assume that every UK taxpayer has had ample time to understand and meet their obligations under the 60-day CGT reporting regime. In my experience, this is very much not the case, and even for the well-informed taxpayer pitfalls abound, and opportunities for tax mitigation may be missed. Anyone planning to sell or gift a residential property should speak to their advisers sooner rather than later. To get in touch with Paul, or a member of the Scrutton Bland Private Client Tax team, please call 0330 058 6559 or email


Home Improvements? Don’t forget to revise your insurance

When undertaking a home renovation project, people often forget to review their insurance needs, too. Whether your renovation is large or small, undertaking this work means you are both adding to the value of your home and increasing your exposure to risk. To help ensure that your project goes smoothly and that you have the appropriate cover you need, Natasha Root, Private Client Insurance Executive, explains a number of useful points to bear in mind. H ome renovations can be a daunting undertaking, although the rewards, both aesthetic and financial can be considerable. However, When you alert your home insurer of your impending renovations, you must also specify whether you (the homeowner) are the one managing the renovations or if they are being handled by contractors. What kind of insurance you need will In addition to contacting your home insurance provider, there are several pieces of general guidance to consider before you begin your home renovation: 1. Set a hard budget 2. Research contractors and obtain multiple quotes

before you or the contractors raise any tools to begin renovations, you should review your home insurance policy. The reason for this is that your policy may not cover renovations, which means that any damages that occur during the process may not be covered. In fact, 90 per cent of homeowners are unaware that not only do they need to advise their home insurer of any potential building works, but that if they were to carry out the works, their policy may automatically be invalidated.

depend on who is responsible for the renovations, however, regardless of who is conducting the renovations, you should provide your home insurer with the following information:


Organise a storage plan for your furniture and possessions

The timescale for the work—including a start and end date


Install temporary security devices— such as locks

The cost of the project

A thorough outline of the project

Names of the individuals conducting the renovations

On average underinsured buildings are covered for only 66% of the amount they should be, and Zoopla data for homes with a market value exceeding £1 million suggests approximately 610,000 high-value homes in Britain are currently underinsured.

of UK properties are underinsured. This will severely reduce the amount paid to you following a property damage claim.

of UK properties are overinsured , meaning the homeowner is paying on average 132% of the correct amount for their insurance.

*Data derived from 26,861 valuations by between September 2021 and August 2022


Remember to ensure your property is insured accurately – over 9 out of 10 UK buildings are insured for the wrong amount*. For more information on property insurance, get in touch with Natasha or one of the insurance team by calling 0330 058 6559 or email *Data derived from 26,861 valuations by between September 2021 and August 2022


Meet the Team

We’ve been helping our clients manage their finances for over 100 years. We seek to build long-term, trusted relationships with our clients, by understanding their personal aims and objectives, so that we can provide bespoke and personal advice. Get in touch with a member of our team to see how we can help you.

Jason Fayers Managing Partner and Tax Partner jason.fayers@ 01473 945817

Simon Hurren Private Client Associate Tax Partner simon.hurren@ 01473 945822

Natasha Root Private Client Insurance Executive natasha.root@ 01206 417184

Graham Doubtfire Private Client Tax Partner graham.doubtfire 01206 417267

Sam Mudd Senior Tax Adviser samantha.mudd@ 01206 417269

Paul Harris Private Client Tax Partner paul.harris@ 01473 945824

David Collins Senior Tax Adviser david.collins@ 01206 417268

0330 058 6559


Scrutton Bland Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Our FCA registered number is 828934. 0785/06/2023/MKTG

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18

Made with FlippingBook Learn more on our blog