News & Insights

Article by LUCY WARWICK-CHING in The Financial Times

Graham Harrison, Executive Chair of ARC Group, was recently featured in a prominent Financial Times article. The article delves into the intricacies of gifting art collections and explores the tax implications to consider, such as...

1. Gifting artwork before death can have tax implications, with potentially exempt transfers (PET) for inheritance tax (IHT) purposes.
2. Surviving the PET by more than seven years exempts the gifted art from IHT, but dying within seven years may result in a chargeable gift subject to IHT.
3. The gift should be fully enjoyed by the recipient to avoid gift with reservation of benefit (GROB) rules, where retaining possession may require paying rent.
4. Valuations are crucial for IHT and capital gains tax (CGT) purposes, and gifting to a lifetime trust can provide options for IHT planning.
5. Assessing an investment manager's performance requires evaluating portfolio returns, understanding risk profiles, and comparing against appropriate peer group indicators like the ARC Private Client Indices.

In the article, Graham Harrison shared his valuable insights on evaluating investment managers' performance, stating, "Judging an investment manager's performance when one feels disappointed at the returns delivered requires two pieces of data: portfolio performance over a defined time period and an understanding of the risk profile followed by your investment manager." 

If you are a subscriber, the full article can be found here