FINANCE: Property and Its Returns Have Been Removed; Managing Personal Wealth Constantly Evolves. Narinder Paul, Head of KPMG's Entrepreneurial Tax Team in the Midlands, Looks at How the Needs of the Region's Entrepreneurs Have Changed in Relation to the Management of Their Wealth
Byline: Narinder Paul
"A decade ago, one of the main worries facing local entrepreneurs was the threat of a new Government restricting the environment in which they could thrive. In particular, they were concerned about the threat of damaging legislation that could have had a negative impact upon managing their personal and corporate finances.
"Ten years on, those worries are no longer present as the Labour Government has, by and large, shown itself to be committed to helping entrepreneurs. The concept of the serial investor has been seen to be understood by Government and as a result, most of these worries for the time being have gone away.
"Today, however, as we enter in to an unprecedented financial and economic climate, there are many other issues keeping the region's innovators awake. The two biggest centre on a loss of capital and a loss of income.
"For many, the issue of capital losses centres on their investment in the property market.
For a number of years, local wealthy individuals invested in the booming property market, with nearly all having some form of exposure. While market conditions were favourable and rewards forthcoming as values rose, the current climate is significantly different.
"The churn in property has slowed and values have dropped significantly. As a result, the property comfort blanket of regular returns has now been removed.
When you add this to the fact that equities have had a patchy decade, it is fair to say that there are some wealth management issues facing the region's successful entrepreneurs. …