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Tag: pound

  • Charting the Future of Data Protection Regulation

    Charting the Future of Data Protection Regulation

    There was a time when data protection was virtually a byword for something dull, boring and technical.

    Data Protection: The Hot Seat of 2024

    Data protection has finally stepped out of the shadows and onto the main stage. From high‑profile breaches at well‑known brands to the latest drama over GP records and vaccine passports, privacy news is no longer the quiet teenager of the industry.

    Law Fires and Power Plays

    Two seismic legal shifts have reshaped the game: the General Data Protection Regulation (GDPR) kicked in 2018, and the post‑Brexit tweaks gradually pulled the UK away from the EU playbook.

    But as the spotlight grows brighter, so does the frustration over how the law gets enforced. Elizabeth Denham, the current Information Commissioner, has become the target of criticism for allegedly playing it too soft.

    Telegraph Hits the Fan

    The Telegraph ran an op‑ed, “The Information Commissioner’s Office is letting us down,” blaming Denham for chasing headlines instead of cracking the law. The ICO retaliated with an lengthy rebuttal on its own website.

    Timing Is Crucial

    Denham’s term ends in October – a transition period that invites speculation. The likely successor is John Edwards, New Zealand’s Privacy Commissioner, but his approach might shift the UK’s regulatory compass.

    What the Complaints Mean

    “Soft” enforcement may have won favor with businesses initially, but now many complain that the regulator’s leniency is a loophole for competitors. Clients are “frustrated to see rivals gain advantage by bending rules with apparent impunity.”

    EU vs. UK: A Tale of Two Approaches

    Across the Channel, regulators are relentless: Amazon just got a record €746 million fine from Luxembourg. Other fines follow. While the ICO’s advisory role remains vital, the public need tangible consequences to believe that privacy matters.

    The Political Pitfalls

    Some voices inside the UK government champion a “low‑profile” regulator, citing cost, compliance burden, and economic opportunity in data usage. Even though the Commissioner is independent, post‑Brexit, the government can shape policy direction, making these internal opinions hard to dismiss.

    Crossroads Ahead

    Is the future a “friendly advisor” or a “fire‑bringer” who yells at companies (and even the government) for missteps? The next Commissioner will need:

    • A thick skin to weather political attacks
    • Diplomatic finesse for smooth negotiations
    • The poise of an Olympic gymnast to balance enforcement and guidance

    Good luck, Commissioner—world’s watching!

  • Landmark inheritance tax ruling could save families six-figure sums

    Landmark inheritance tax ruling could save families six-figure sums

    A landmark tribunal ruling could provide major inheritance tax relief for families who engaged in historic ‘home loan’ schemes, potentially saving them six-figure sums in tax bills, according to national law firm Clarke Willmott LLP.

    The ruling in Elborne v HMRC overturned a previous decision that would have allowed HMRC to claim inheritance tax on properties placed in trust decades ago. The case involved the estate of Leslie Elborne, who used a ‘home loan’ scheme in 2003 to transfer his £1.8 million property into a trust. The successful appeal means the estate will avoid an estimated £700,000 tax bill.
    “These were very popular schemes, but it’s difficult for an individual taxpayer to take on the huge resources of the state and win,” said Paul Davies, a partner in Clarke Willmott’s private capital team. “HMRC has been able to steamroller people for years.”
    Widely used in the 1990s and early 2000s, ‘home loan’ inheritance tax schemes involved homeowners transferring their property into a trust in exchange for a loan note, which was then gifted to a second trust. The aim was to remove the property’s value from the owner’s estate, as gifts made more than seven years before death are generally exempt from inheritance tax.
    However, in recent years, HMRC challenged these arrangements, arguing they constituted aggressive tax avoidance. Although legislative changes in 2003 and 2004 effectively ended the use of such schemes, many families who entered them decades ago have faced uncertainty over their tax liabilities.
    The tribunal’s decision sets a precedent that could benefit thousands of families in similar situations. However, HMRC is reportedly disappointed with the ruling and is considering an appeal, meaning the legal battle may not be over.
    For now, the verdict provides a significant win for taxpayers, offering potential relief to those who participated in inheritance tax planning strategies that have been under scrutiny for years.