PwC in the North

Yorkshire landowners to benefit from new ruling

PwC — Wed, 19 Jun 2013 08:33:00 +0100

Following a recent overruling by The Upper Tribunal, landowners in the Yorkshire region will be able to benefit from agricultural property relief (APR) more easily where the ownership and occupation of farmland has been split across family members and trusts.

A number of factors apply when determining whether agricultural property is of ‘appropriate character’ to apply for ARP, including having a physical connection between the property and the land.

However following the recent decision by the Court, APR can now be used to reduce the tax burden on property that doesn't form part of a larger estate.The decision results from a case in Milton Keynes where 25 acres of farmland was left in a will along with a farmhouse in a life interest trust. Despite family members living in the farmhouse and farming the land, HMRC argued that APR wasn't available on the transfer of the farmhouse on death. This is because they felt 25 acres did not reflect enough land to give associated buildings the appropriate farming character.

The Court however ruled that APR can be used to reduce the tax burden on agricultural property and to qualify for relief properties don't need to form part of a larger estate which would be charged inheritance tax at the same time.

Commenting on the case, Katherine Bullock, PwC’s national head of private client tax and Leeds partner, said:

“This is great news for landowners in the region. Despite the recession, farmland values have risen 22% over the last few years with land seen as one of the best performing assets to have.

“Being able to access APR more easily therefore makes a significant difference to the numerous landowners in Yorkshire and they should now look closely to understand what this ruling means for them. To help them do this the Court has outlined a wide number of other owner/occupier splits which they feel should attract APR."

For more information please contact Katherine Bullock Tel: 0113 289 4268 Email: katherine.bullock@uk.pwc.com

PwC’s marathon man raises money for children’s charity

PwC — Tue, 18 Jun 2013 16:03:54 +0100

Kingsland School in Wakefield are the proud owners of a brand new Variety Sunshine coach which was presented to the school by PwC partner Steve Denison, who ran in this year’s London marathon, raising over £20,000 for Variety, the children’s charity.

Since the programme started more than 50 years ago, Variety Sunshine Coaches have become a symbol for what children and young people can achieve when they are given the opportunity to explore the wider world.

Kingsland School has 75 pupils aged between 2 and 11 years old and support children with severe or profound learning difficulties many of whom have complex physical or medical conditions.

The school’s head teacher, Paula Trow, said:

“The children are very excited about the new coach and looking forward to getting on board. We will be using the coach, which has a wheelchair tail lift, for a wide range of activities including trips out into the community and educational visits which will help to develop their social and learning skills.”

Steve Denison said:

“Taking up marathon running at nearly 50 isn’t something I would recommend but the atmosphere on the day was amazing and kept me going. I would like to thank everyone for their fantastic support and generosity in helping me smash my £20,000 target - it's going to a great cause!”

Ian Leach, chairman of the Yorkshire committee of Variety, the children’s charity said:

“We are indebted to Steve Dension for his support of Variety. I am sure that the happy smiling faces of the children made him feel all his sterling efforts were worthwhile.”

For more information, please contact Steve Denison Tel: 0113 288 2255 Email: steve.denison@uk.pwc.com

Data management maturity: Are you ready for Big Data?

PwC — Tue, 18 Jun 2013 13:34:00 +0100

Data is growing at an exponential rate from diverse and complex sources. It is becoming extremely difficult to manage using traditional data management systems. Data tools and techniques can offer analysis of previously undervalued or unexploited data, giving fresh insight into customer behaviour and business performance which in turn drives competitive advantage.

Many organisations are unsure of what Big Data could mean for their business, how mature their data governance and processes are, and how mature they need to be to best leverage both their own structured data and the wider unstructured (Big Data) to their advantage. Big Data is a hot topic, but few businesses have their own internal data management processes in order to maximise the potential of their own data. For example, only businesses which can gain new and faster insight into customer sentiment will be most successful.

Big Data will give you the information you need to change the way you run your business.

The PwC Data Maturity assessment provides an enterprise-wide view of governance, people, processes and technology which will both guide and inform on the opportunity for data, areas of required improvement, and the current maturity of the organisation when dealing with data in general.

Gaining a view of maturity across all data processes will dictate the next steps towards fully realising the potential of your data.

For more information Download PwC Data management maturity .

Or join us at one of our forthcoming Risk Agenda events on Cyber serurity and Big Data - How prepared are you?

Or contact Dave Williams on Tel: 07734 959 115 or by Email: dave.g.williams@uk.pwc.com.

Connecting Networks: Calling all Manchester trainees - 3 July

PwC — Mon, 17 Jun 2013 13:35:54 +0100

PwC Manchester is delighted to invite all Manchester trainees who joined their training scemes from September 2012, to a unique and exciting networking event on the 3 July 2013.

The aim of the event is to help build and develop networks amongst graduates on trainee programmes at firms in Manchester.

The event takes place in and around Manchester city centre and will see teams compete a 'themed' challenge.

The event takes place on 3 July between 4.30pm - 7.00pm. For more information or to register for this event please email nw.events@uk.pwc.com with your details including company name, year you joined your training scheme and any dietary requirements.

We look forward to seeing you on 3 July.

Contact details
Email: Iwan Griffiths
Tel: +44 (0) 161 245 2288

Corporate optimism over M&A prospects

PwC — Mon, 17 Jun 2013 11:00:41 +0100

Confidence in the UK deals market seems to be returning according to PwC’s Deal Index Survey which found that 56% of corporates think that the number of deals would significantly increase over the next three to six months.

The survey also saw half of the corporates interviewed believing their business would undertake a transaction before the end of the year.

Andy Parker, corporate finance partner at PwC in Manchester said:

“2012 represented a black hole in UK deal-making. Deal completions were at their lowest levels since the start of the financial crisis and those that did happen were driven largely through corporates which had ready access to cash either from their lenders or from their balance sheets."

But according to the survey, things are looking more positive this year with 39 % of PE investors expecting to see more deals this year.

Andy Parker added:

“With nearly £1+ trillion of cash on the balance sheets of UK and other European companies, plenty of cash reserves in PE funds, and signs of the banks’ growing appetite for deals, we anticipate a steady recovery in the UK deal market.

“This is also fuelled by the continuing high levels of appetite amongst overseas investors, which has been demonstrated by recent deals in the region such as the acquisition of Good Goody Stuff by Cloetta and Norcros PLC’s acquisition of Vado.”

For more information please contact Andy Parker Tel: 0161 245 2388 Email: andy.parker@uk.pwc.com

Market capital global Top 100: US companies emerge as clear winners post- financial crisis

PwC — Mon, 17 Jun 2013 07:00:00 +0100

The most valuable publicly listed companies are from the technology, consumer services or the health care sectors- and they are mostly US companies. After the financial crisis, there are now 43 US companies in the top 100, up from 35 in 2008, PwC has found.

In terms of increases, technology (c35%) and consumer services (almost 400%) are the most improved sectors by market capitalisation in the top 100. Companies from the Eurozone have proved to be the biggest fallers in this analysis with only 14 companies now in the top 100 compared with 26 in 2008.

From a level of $13.5 trillion dollars in 2008, the financial crisis wiped off more than $5 trillion by 2009. Market capitalisation values have taken four years to recover and top pre-crisis levels, PwC has found. From a low of $8.4 trillion in 2009, the world’s 100 biggest companies now have a combined market capitalisation of $13.6 trillion.In its latest report, PwC ranked the top 100 global companies by market capitalisation and compared the movements from March 2008 annually to March 2013.

After identifying the biggest rises and falls, the report also examines country and sector dynamics and analyses how the global landscape has changed.The top five risers added a collective $ 701 billion in market capitalisation in just five years. Technology giants dominated the ranks of the best performers – Apple increased by $290 billion alone over the period and Google $125 billion. However the top five fallers saw their market cap drop by a collective $737 billion. Oil and gas and energy companies took four of the five losing spots.

Arif Ahmad, incoming senior office partner, PwC Leeds said:

“The US is dominating the ranking, but what is truly remarkable is the ability of the US to create new trailblazers. 15 years ago companies like Apple and Google had either just been founded or were not recognised as having that potential.

“Today these companies rank first and third in the list of the 100 most valuable global companies. US companies in growth sectors like Health Care and Consumer Services are similarly successful. These companies are capable of setting and recognising new trends and – most importantly – creating business models that make these developments pay on a global scale. With this innovative drive, other regions and countries will have their work cut out to compete with the US on the same level.”

Eurozone companies have been worst hit by falls in market capitalisation. Of the 26 companies present in the top 100 in 2008, only 14 remain in 2013. Those that fell out were from Germany (5), France (5), Spain (3) , Italy (2) and one each from Netherlands, Finland and Luxemburg.

This also partly reflects the fall in the value of the Euro against the dollar.Despite the size and significant growth in the Chinese economy, Chinese/Hong Kong companies did not feature as highly as perhaps expected. There are just 9 companies from China/Hong Kong in the Top 100, and there was no real upward trend since 2008 (then 8).

The nine companies represented on the list in 2013 are mostly from the Banking, Insurance and Energy sectors. These companies are of huge local and regional significance but have yet to expand globally.

Arif Ahmad, PwC Leeds added:

“Within the UK, technology market values remain under pressure when companies only operate in their local markets. Those which are truly global benefit from global trends and their value reflects this. “In addition, those with real intellectual property and emerging technology which results in those businesses becoming market leaders, the drive up market values.”

Click here to view the report Download TOP 100 MKT CAP RISERS AND FALLERS

For more information please contact Arif Ahmad Tel: 0113 289 4716 Email: arif.a.ahmad@uk.pwc.com

Being better informed: financial regulatory, accounting and audit bulletin: June 2013

PwC — Fri, 14 Jun 2013 09:59:06 +0100

The pace of regulatory developments remained unabated in May, with important consultations on the Capital Requirements Directive (CRD IV), particularly examining how to define material risk takers, which may great expand the definition of which employees are subject to the new remuneration cap introduced in CRD IV. In other news from May:

Download Being better informed June 2013

We saw a number of publications on the Alternative Investment Fund Managers Directive (AIFMD) from the European Commission, European Securities and Markets Authority (ESMA) and Her Majesty’s Treasury (HMT) in the UK. In particular, ESMA focused on the reporting obligations and HMT focused on transitional questions.
The European Commission published its second consultation on reforming the European banking sector. The Commission is taking a steady approach to any reforms, which we welcome given the fast progress in other areas.
The Commission also published a proposal for a single market in retail bank accounts across the EU.
The Credit Rating Agency Regulation (CRA III) was published in the Official Journal of the European Union. CRA III particularly seeks to reduce reliance on credit rating agencies and increase competition in the sector.
The European Council published another progress note on the revision of the Markets in Financial Instruments Directive (MiFID II). Progress here has been slow, although it now seems we might finally be reaching compromise.

Related to MiFID II and its new proposals, this month’s feature article focuses on high frequency trading and how it is regulated.

Contact details
Email: Fiona Kelsey
Tel: 020 721 22822

Email: Ian Morrison
Tel: +44(0)113 289 4228

Performance visibility...Wishful thinking?

PwC — Thu, 13 Jun 2013 17:19:31 +0100

Do you have the business insight you need to make the right decisions? Our analysis shows you how.

For more information please get in touch with your local PwC contact of Phil Goodwin on Tel: Direct: 07712 137 314 or by Email: phil.m.goodwin@uk.pwc.com.

53% of North West commuters curb lifestyle to fund transport costs

PwC — Tue, 11 Jun 2013 11:40:29 +0100

Beleaguered commuters across the UK are making lifestyle changes to fund spiralling transport costs, with 53% of North West commuters cutting back on essentials to be able to fund their travel costs.

That’s according to a new consumer survey from advisors, PwC

PwC’s Voice of the Consumer (VoC) survey published this week; found that 57% of North West full-time workers have experienced increased travel-to-work costs over the past year with 33% telling researchers their travel costs had increased, ‘a great deal’.

Across the UK, around half of those in full-time employment said that they had cut back on living essentials and luxuries to fund their rising travel expenditure.

And despite the North having the lowest travel costs amongst the eight UK regions, with annual travel costs averaging £1,009 compared to the South East (£1,422) and the Midlands (£1,376), 54% of the region’s commuters have reduced socialising and going to the pub to fund travel. With 64% having cut back on eating out to afford commuter costs.

Commenting on the survey findings, PwC’s Jonathan Cooper, a partner in the transport and logistics team in Manchester said:

“The findings of our research have highlighted that in this era of austerity, many people are having to make difficult decision across their essential spend and lifestyle choices. In the North West this has particularly impacted spend on leisure activities and groceries. It has also affected the number of people who are saving for the long term, such as a deposit for a house, with 23% of respondents sacrificing saving to afford commuter costs. ”

“Another interesting trend is a proportion of respondents are looking at relocating and or finding alternative transport modes to make the cost of travel cheaper.”

Andrew Sentance, PwC’s Senior Economic Advisor, added:

“Transport costs have been rising for a number of years. Since 2009 the transport component of the Consumer Prices Index has risen on average by 5.4% a year, and is one of the areas where prices have risen the fastest over this period. This is nearly three times the 2% inflation target and way ahead of the modest wage increases employees are seeing in their pay-packets.

“For many people, travelling is an essential area of expenditure which is required to get to work and to maintain contact with family and friends. It is not surprising therefore, that this survey suggests that consumers have had to make cutbacks in other areas of spending to pay for higher travel costs."

The survey also examined people’s preferred transport modes for commuting, leisure and personal use across the country which will be released later this month.

For more information please contact Jonathan Cooper: Tel:0161 245 2313 Email: jonathan.e.cooper@uk.pwc.com

Welcome to Human Resource Matters

PwC — Fri, 07 Jun 2013 21:54:00 +0100

We are pleased to announce the launch of our new Human Resource Matters series. The aim of this site is to bring together Human Resource professionals from across the North West business community, providing a forum for education and debate, and the sharing of experinences and challenges.

At PwC we understand that managing employees can be one of your biggest challenges but also your greatest asset. The challenges of responding to relentless demands for increased efficiency improvements, a highly competitive recruitment market, and new legislation and corporate governance codes have pushed people issues to the top of the agenda.

Whatever the business, all organisations - whether public or private sector, start-up or spin-off, acquired or de-merged - need to position themselves as employers of choice. Achieving this is no easy matter: an organisation's ability to attract, motivate and retain employees will be unique, but may crucially depend on areas as diverse as, for example, reward, learning and development, organisational culture, performance improvement, leadership style, and HR effectiveness.

At a time when the trend towards globalisation and increased competition shows no signs of abating, organisations that fail to make the most of their most expensive and most essential asset - their people - will be at a severe disadvantage. Recruiting, retaining, and gaining the commitment of the very best people is no longer an optional extra, for it is these people that can make the critical difference between long-term sustainability and short-term failure.

In the North we are able to provide the full range of Human Resource Services through locally based teams and expertise. Organised across Pensions, Reward, Employment Solutions, Human Resource Management and International Assignee Services we are able to provide an integrated service to meet your human resource needs.

Our Human Resouse Matters page will bring you all of the latest news, insight and forthcoming events relating to your employee matters. If you would to receive the latest news and updates direct to your inbox, email nw.events@uk.pwc.com confirming your details and subscription to our monthly newsletter.

Contact details
Email: Peter McDonald
Tel: +44 (0)161 247 4567