COMPANY NEWS JANUARY 2017
NOVOSTI JANUARY 2017 – COMPANY NEWS
Busy old year
2016 was a very eventful year for Red Square London. We moved our offices to central London and expanded both our team and our client base. Our Team worked on a wide variety of projects this year, with a few of the more unusual being purchase of a hotel business, sale of an apartment block (subject to existing tenancies), sale of 100% of share capital of a company owning a restaurant, sale of 5 acres of agricultural land for development, and setting up trust arrangements relating to the clients’ legal and beneficial ownership of real estate. We also assisted clients with their pre- and post-nuptial agreements, personal self-assessments and corporate accounts for HMRC, and setting up their new UK businesses. We wrote a number of articles for various publications, sharing with you our knowledge and experience in Immigration, Corporate and Real Estate matters. You can read all of our articles in the Red Square London’s Media Room.
Our team now includes Oliver Westmoreland, who joined us this month. Oliver has a wealth of experience of immigration matters and is a prolific writer on the intricacies of the subject. His first article for Novosti is in this issue.
On the wider scene the United Kingdom voted for Brexit – to leave the European Union – and the United States has voted in a new President with policies that seem certain to be different to what has gone before.
The immediate effect of the Brexit vote was a very big drop in the value of the pound sterling. That was to be expected. The currency was over-valued at its previous level and would have dropped to some extent in the natural order of things, but political uncertainty always affects a currency, hence the initial large percentage fall and the more recent dip as the government’s Brexit priorities become more apparent. The benefit for our overseas clients is of course that investing in the UK is now more attractive because it costs less – “more bang for the buck” as our American friends say.
While the pound has fallen, the stock market remains buoyant, reaching record levels. There are several factors involved in that, but confidence in the future British economy is a major one of them.
The period of uncertainty is likely to last for at least two years until the full terms of the Brexit arrangement are known. Demands from those who want to know the full details of the UK Governments negotiating position in order to reduce the level of uncertainty are likely to be disappointed. No competent negotiator is going to reveal their hand before the negotiation starts. What we are seeing at the moments is some ‘pre-negotiation conditioning’, with both sides seeking to destabilise the negotiating strategy of the other: it should not be taken as a blueprint for a final settlement. While the uncertainty lasts there will be many business opportunities for those prepared to invest in the future of the UK.
The effects of the US election are much less easy to predict. President-elect Trump appears to be an anglophile, offering direct support from the US for our economy as we move towards Brexit. We will not be at the back of the queue for advantageous trading terms with the US.
We live in interesting times. 2016 was a year of change for our company and the country, with more change to come as Red Square London grows and the country moves forward to a life outside the EU. We would like to take this opportunity to wish you all, our clients and friends, all the best for 2017. Thank you for your continued support.