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Embracing the Significance of World Population Day

The combination of births, deaths, and net international migration increases the U.S. population by one person every 24.2 seconds. The projected world population on Jan. 1, 2024, is 8,019,876,189, an increase of 75,162,541 (0.95%) from New Year’s Day 2023.*

As our population expands, the world becomes more interconnected, with each individual’s actions influencing the global landscape. Human growth, akin to technological advancement, is a key factor in shaping the future global economy. However, it’s crucial to note that the overall global population is currently declining, a trend that could significantly impact the future global economy.

The issue is not whether or how the population is growing or declining; the major concern is whether we are ready to create a cleaner, safer, and better environment for future generations.

We live in a different era, but our forefathers must not have imagined the current global crisis.

Numerous reasons for this are due to the decline in the fertility rate, and they distinctly state that the increased cost of living and significant gains in life expectancy have been achieved in recent years.

International Migration is a much smaller component of population change than births or deaths. However, in some countries and areas, the impact of migration on population size is significant, namely in countries that send or receive large numbers of economic migrants and those affected by refugee flows. 

According to a study by the United Nations, on 15 November 2022, the world’s population reached 8 billion people, a milestone in human development that underscores the gravity of the global population issue. While it took the global population 12 years to grow from 7 to 8 billion, it will take approximately 15 years—until 2037—to reach 9 billion, a sign that the overall growth rate of the global population is slowing. Yet levels of fertility remain high in some countries. Countries with the highest fertility levels tend to have the lowest income per capita. Global population growth has, therefore, become increasingly concentrated among the world’s poorest countries, most of which are in sub-Saharan Africa.

Countries like India and China, with their large populations, rank as the most populated countries and contribute significantly as leading manufacturers worldwide, showcasing the influence of population on economic power.

However, the figures in Europe are shrinking, and several countries are expected to see their populations decline by more than 15 percent by 2050, including Bosnia and Herzegovina, Bulgaria, Croatia, Hungary, Japan, Latvia, Lithuania, Republic of Moldova, Romania, Serbia, and Ukraine. Fertility in all European countries is now below the level required for total replacement of the population in the long run (around 2.1 children per woman). In the majority of cases, fertility has been below the replacement level for several decades.

A twist in the human race’s development is the fast growth of the African Continent. Over half of global population growth between now and 2050 is expected in Africa. Africa has the highest rate of population growth among significant areas.

Source: https://www.worldometers.info/world-population/

Source: https://www.un.org/en/

UK Immigration Law Changes 2024: Key Updates and Their Impact on Businesses

The UK government has introduced several significant changes to immigration laws in 2024, which will impact businesses that rely on foreign talent. Key updates include an increase in the Immigration Health Surcharge (IHS) from £624 to £1,035 per year, substantially raising the cost of securing visas for foreign workers. Additionally, fines for employing illegal workers will triple, with first offenses now attracting penalties of £45,000, and repeated breaches facing fines of up to £60,000.

Skilled Worker Visa Salary Requirements:

The salary threshold for skilled worker visas will increase from £26,200 to £38,700. This significant rise is intended to reduce the number of skilled worker visa applications and address concerns over immigration levels. However, it will also pose challenges for businesses that rely on overseas talent to address domestic labor shortages.

Impact on Businesses:

  • Increased Costs: The higher IHS and fines mean businesses will face increased costs when hiring foreign workers. This could impact budget allocations and financial planning.
  • Talent Acquisition Challenges: The increased salary requirements may make it more difficult for businesses to attract and retain skilled foreign talent, particularly in industries experiencing domestic labor shortages.
  • Compliance Pressures: Ensuring compliance with the new regulations will be critical to avoid hefty fines and legal complications. This will require rigorous internal audits and possibly consulting with immigration experts to navigate the complexities of the new laws.

Preparation Strategies:

To prepare for these changes, businesses should reassess their hiring practices and budget allocations for immigration-related expenses. Reviewing and adjusting compensation packages to meet the new salary thresholds will be essential. Additionally, exploring alternative talent pools, such as domestic workers or other visa categories, can help mitigate the impact of the new regulations.

Staying informed and proactive in adapting to these changes will be crucial for maintaining operational efficiency and compliance in 2024 and beyond.

Estate Planning: Why It’s Never Too Early to Start

For high-net-worth individuals, starting estate planning early is not just prudent—it’s essential. With considerable assets and complex family dynamics, ensuring your wealth is managed and distributed according to your wishes requires sophisticated strategies and legal expertise. Here’s why starting your estate planning early is critical and how GSC Solicitors can assist you.

The Foundations of Estate Planning

1. Comprehensive Wills

A will is fundamental, specifying how your estate is to be distributed. For affluent individuals, a will must address complex asset structures and potential international holdings. Key considerations include:

  • Appointing Executors: Selecting trusted individuals or professionals to manage your estate.
  • Beneficiary Designations: Clearly defining beneficiaries, including trusts for younger or vulnerable family members.
  • Guardianship: Nominate guardians for minor children, ensuring their well-being and financial security.

2. Advanced Trust Structures

Trusts offer unparalleled flexibility and control over your wealth, providing significant benefits:

  • Discretionary Trusts: Allow trustees to make decisions about distributions, adapting to beneficiaries’ changing circumstances.
  • Tax Efficiency: Strategically structured trusts can mitigate inheritance tax liabilities, preserving wealth for future generations.
  • Asset Protection: Shield assets from potential claims by creditors or through divorce settlements.

3. Estate Management and Business Succession

Managing a large estate involves strategic planning to ensure smooth transitions and continued growth:

  • Asset Inventory: Detailed documentation and regular updates of your asset portfolio.
  • Power of Attorney: Assigning trusted individuals to handle financial and healthcare decisions if you become incapacitated.
  • Business Succession Planning: Ensuring the continuity of family businesses through structured succession plans.

The Advantages of Early Estate Planning

1. Preserving Wealth Across Generations
Early planning allows for the implementation of sophisticated strategies to preserve and grow your estate, ensuring long-term financial security for your heirs.

2. Minimising Tax Liabilities
Proactive estate planning can significantly reduce your tax burden through the utilisation of trusts, charitable donations, and other tax-efficient structures.

3. Avoiding Family Disputes
A well-structured estate plan minimises the risk of conflicts among beneficiaries, ensuring your wishes are respected and reducing the emotional and financial strain on your family.

4. Ensuring Privacy
High-net-worth individuals often seek to maintain privacy concerning their financial affairs. Trusts and other private arrangements can keep estate matters out of the public domain.

How GSC Solicitors Can Help

GSC Solicitors specialises in providing bespoke estate planning services tailored to the needs of high-net-worth individuals. Our expertise includes:

1. Personalised Advice
We offer comprehensive, personalised advice, taking into account your unique financial situation, family dynamics, and long-term goals.

2. Expertise in Complex Estates
Our team is adept at handling large and complex estates, including international assets and intricate trust structures.

3. Tax Planning and Mitigation
We employ advanced tax planning strategies to minimise liabilities and preserve wealth across generations.

4. Ongoing Support and Review
Estate planning is not a one-time event. We provide ongoing support and regular reviews to ensure your estate plan remains aligned with your objectives and compliant with current laws.

Conclusion
For high-net-worth individuals, early and strategic estate planning is crucial for managing and protecting significant wealth. GSC Solicitors is dedicated to helping you navigate the complexities of estate planning, ensuring that your legacy is preserved and your wishes are honoured. Contact us today for expert guidance tailored to your unique needs.

Welcome Shahrzad Atai as a Partner in the International Private Client Department

GSC Solicitors LLP Welcomes Shahrzad Atai as a Partner in the International Private Client Department

London, UK – May 22, 2024 – GSC Solicitors LLP is pleased to announce the appointment of Shahrzad Atai as a Partner in the esteemed Private Client Department. With a wealth of experience and an impressive portfolio, Atai joins the firm to strengthen further its capabilities in serving International High-Net-Worth clients.

Atai has extensive expertise in advising high-profile individuals and entities, particularly in the banking sector. Her nuanced understanding of the complexities surrounding international wealth management, multi-jurisdictional assets and estate planning makes her an asset to the firm and its clientele.

“We are delighted to welcome Shahrzad Atai to our team,” said

Saleem Sheikh, Senior Partner of GSC Solicitors LLP. Her exceptional track record and deep understanding of the needs of International High-Net-Worth clients align perfectly with our commitment to delivering top-tier legal services.

Shahrzad’s joining marks an exciting chapter for our Private Client Department, and we are confident that her contributions will further elevate our capabilities.”

Atai’s appointment underscores GSC Solicitors LLP’s dedication to providing comprehensive and tailored legal solutions to its diverse client base. With her joining, the firm aims to expand its reach and deliver exceptional value to clients seeking sophisticated wealth management and estate planning counsel.

Before joining GSC Solicitors LLP, Atai held prominent positions where she successfully navigated intricate legal landscapes, earning recognition for her strategic insights and client-focused approach. Her appointment solidifies the firm’s position as a leading destination for bespoke legal services in London’s legal landscape.

“I am happy to rejoin GSC Solicitors LLP and contribute to their exceptional work,” said Mrs. Atai. “I look forward to collaborating with the talented team here and leveraging our collective expertise to deliver unparalleled service and results to our clients.”

Shahrzad Atai’s appointment signifies GSC Solicitors LLP’s ongoing commitment to attracting top-tier legal talent and furthering its reputation as a premier destination for legal services in the heart of London.

Spring Budget 2024: Highlights

On 7 March 2024, Jeremy Hunt, Chancellor of the Exchequer, delivered the Spring Budget 2024 setting out his plans to continue working to decrease inflation, grow the economy and ensure that the tax system in the country is fair, simple and rewards hard work as the United Kingdom is still facing the legacy of the COVID-19 pandemic, the energy price spike and the globally high inflation.

Below is a summary of the key announcements for the private client world.

 

Inheritance Tax (IHT)

  • From 1 April 2024, the IHT requirements for personal representatives (PRs) of estates who wish to obtain a ‘grant on credit’ from HMRC will be relaxed.

 

Capital Gains Tax (CGT) 

  • A change in CGT on residential property gains has been announced.
  • The rate of CGT on chargeable gains arising from the disposal of residential property will decrease from 28% to 24%.
  • The change will be applicable to the disposals on or after 6 April 2024.
  • The rate for basic rate taxpayers will stay at 18%.

 

Stamp Duty Land Tax (SDLT) 

  • From 1 June 2024, the multiple dwellings relief will be abolished. The relief will still apply to any property transactions where contracts that were exchanged on or before 6 March 2024 regardless of the completion date.
  • The first-time buyers’ relief from SDLT in England will be extended for purchases taking place on or after 6 March 2024. Transitional rules may apply to transactions where the exchange of contracts takes place on or before 6 March 2024.

 

International Aspects 

‘Non-dom’ Regime

  • The remittance basis of taxation will be abolished. The country will switch to a residence-based regime.
  • This will be a major change for the individuals who are resident but not domiciled in the UK (‘non-doms’), and have foreign income and gains. These individuals will not pay UK tax on any foreign income and gains arising in their first 4 years of UK tax residence as long as they have not been resident in the UK for tax purposes for the last 10 years.
  • The new regime will come into effect on 6 April 2025 and will apply UK-wide.
  • Transitional arrangements will apply to the existing ‘non-doms’ claiming the remittance basis.

 

IHT Regime 

  • The IHT regime will be switched to a residence-based one replacing the current regime where IHT liability depends on domicile.
  • The consultation along with the draft legislation will be published later in the year.
  • No IHT changes that are supposed to take effect before 6 April 2025 have been announced.

The impact of these announcements will depend on individual circumstances. We suggest that if you have any questions or would any further advice GSC Solicitors would be delighted to be able to assist and suggest you contact James Cohen on 0207 822 2222. Or e-mail on [email protected]

 

Disclaimer: Rates are for guidance only. Whilst we take care to ensure the accuracy of this document, no responsibility for loss occasioned by any person acting or refraining from action as a result of this information can be accepted by the authors or fir

GSC Queensway Tristan Deal

GSC SOLICITORS ADVISES LONGSTANDING CLIENT QUEENSWAY ON TRISTAN CAPITAL PARTNERS £420M ACQUISITION OF POINT A HOTELS

City law firm GSC Solicitors LLP is delighted to announce that it advised longstanding client Queensway in the £420M acquisition of a majority holding in Raag Hotels Limited which owns Point A Hotels, by Tristan Capital Partners’ European Property Investors Special Opportunities 6 (EPISO 6) Fund. Queensway will remain a minority partner but with management and development responsibility.

The Point A portfolio comprises 1,520 rooms in 10 hotels, with 80% of its value in London and in Glasgow, Edinburgh and Dublin. Under the new partnership, Queensway will co-invest and act as hotel operator, asset manager and development partner for future sites.

Commenting on the transaction, Lead corporate partner Clive Halperin/Peter Belcher, Head of GSC’s Hotel & Leisure team said: “We were delighted to assist our longstanding client Queensway in respect of this complex matter. Under Queensway’s management, the Point A Hotels brand has developed a high-quality product at great value. We look forward to assisting our client further with its expansion plans in the future.”

Naushad Jivraj, CEO, Queensway said:
“GSC Solicitors has acted for Raag Hotels since its inception in relation to all seven London properties. We, at Queensway, are pleased to have been supported by them to form this new partnership with Tristan Capital Partners. We are excited by the next chapter of the Point A Hotels story as we, together with Tristan, continue to develop our product, brand and service to the ever-evolving needs of our guests.”

The Tristan EPISO 6 fund was advised by BCLP, Maples, Brodies, PWC, Savills, Artelia and Longevity.
Raag Hotels was advised by CBRE, Eastdil, Derek Gammage, DLA Piper, BDO and Voisin Law.
Queensway was advised by GSC Solicitors.

-ENDS-

For further information please contact Paul Jaffa at Myddleton Communications, London on +44 7957 433312 or [email protected].

Notes for editors
About GSC Solicitors LLP
GSC Solicitors LLP is a Legal 500 recommended commercial law firm based in the City of London. With a client base of innovators and thought leaders, home grown entrepreneurs, global brands and ultra-high-net worth individuals, the firm’s lawyers provide a wide range of services, from wealth management to corporate commercial, real estate, intellectual property and immigration to private client and trusts. The firm has a global portfolio, undertaking work in Asia, the Middle East, Africa and the Far East and in celebrating its 50th Anniversary in 2022.

About Queensway
Queensway is a family-owned business that acquires, develops and operates a broad portfolio of real estate across the hospitality sector.
Founded in 1973, Queensway exists to bring teams together to create meaningful and memorable hospitality experiences for customers. The portfolio comprises a residential property business, Point A Hotels, Montagu Place Hotel, Sloane Place Hotel, The Sloane Club, ibis Styles Hotel Nairobi, sole franchisee for KFC in Austria and Slovakia and a franchise partnership with Starbucks in the UK. The Queensway organisation is made up of over 800 individuals across 50 locations in 5 countries, united by a shared DNA and core values.
For more information on Queensway, please visit www.queensway.com

About Point A Hotels
Small Hotels. Big Heart.
Point A Hotels believes a hotel should never just be a room. Across its 10 properties in central London, Glasgow, Edinburgh and Dublin, the brand aims to deliver heartfelt hospitality to everyone, no matter their budget. They define and customise their hotel offering to provide the best possible experience and value to their guests through thoughtful design, sincere service and active contributions to the local communities in which they operate.
Find out more: www.PointAHotels.com

Another successful event – celebration of International Women’s Day

Last week GSC Solicitors hosted hand-picked female guests for a networking evening with inspirational women while celebrating IWD and having a sushi-making master class.

Seena Williams of GSC’s Real Estate team gave a small speech on buying leasehold and ground rent and Private Client‘s Sana Sheikh gave practical tips on how to safeguard assets and pass down wealth to the next generation.

A short video from the event can be viewed here:

For further information on property-related issues or wealth/assets/wills, please do not hesitate to contact us on 0207 822 2222.