My big break MY BIG BREAK
ADVERTORIAL
Investing in our children’s future Did you know that a parent or grandparent can fund a child’s pension from birth - and gain them tax relief on the contributions?
> WORDS BY NIKI TENNANT
A home away from home In today’s global society the patterns of the business traveller are changing. In some industry sectors companies are addressing local skills shortages by sending key personnel overseas to work on a variety of projects. With companies concerned about their carbon footprint and rising travel costs, it is becoming increasingly common for these people to stay for the duration of the project, rather than commute on a weekly basis. With many projects lasting for months, rather than weeks, the prospect of a standard hotel bedroom is becoming less than appealing. More and more now these people are looking for a home away from home.
It would be a rarity for the Aberdeen socialites who frequent the acclaimed Simpson’s Hotel not to see its effervescent general manager, Martin Brown, in amongst the thick of it. You see, the hospitality business runs through his veins…
Here’s an example: the grandparents of new-born Jessica want to put some money aside for her future. Under the current rules, they can pay £3,600 a year into a pension. This contribution would receive basic rate tax relief, so they need only contribute £2,880 this tax year (08/09). Also, there are no Inheritance Tax or Capital Gains Tax complications.
It was in 1992 when a fresh-faced Martin Brown joined entrepreneur Ricky Simpson’s business as an ambitious young trainee manager. Drinkray Limited had in its portfolio Aberdeen hospitality stalwarts, the Craighaar Hotel, the Palm Court, Charlie’s Bar and the Word on the Web. He worked his way up through the line management ranks and was charged with the ‘Simpson’s Project’ in early 1998 as a senior manager. Martin’s big break came nearly six years ago when he took the helm of Simpson’s hotel as general manager. “Ricky obviously saw my potential in those early days”, said Aberdeen-born Martin. “I treated every decision and looked after every customer like it was my own business. I live and breathe the career, and believe that you’re only as strong as the people you hire.” 36
By making annual contributions until Jessica is 16 (assuming a 7% rate of growth), Jessica’s pension fund at age 16 will be £94,900. Not a bad start…
Simpson’s Hotel celebrates its 10th birthday this year with a 7.4% increase in turnover and a staff complement of nearly 100. “It’s been exciting times. After a change of ownership to Manorisms LLP, of which I am a director, we brought Kepplestone luxury apartments under the same umbrella. I’m now working on amalgamating the businesses and making them stronger and better,” enthused Martin (34), whose company is investing a six-figure sum in the refurbishment of Simpson’s Hotel’s 50 bedrooms. Despite flirting for a while with thoughts of a career in TV production, the hospitality
industry is Martin’s vocation. Although he frequently works an astonishing 70 hours a week, he shrugs that off – the way he sees it, it comes with the territory.
Should Jessica and her grandparents make no further contributions, leaving the fund to grow, the fund will be worth £1.3million by the time Jessica reaches 60 (again, assuming a 7% growth rate). What you get back, though, will depend on how your fund grows and the tax treatment of the investment.
A firm believer in supporting local businesses, he insists that all fresh produce is sourced from North-east suppliers, many of whom he knows personally.
Based on current rules, she would then receive £325,000 (25% of the fund) as a cash sum at her retirement age of 60. The remainder would be taken as an income for life, and taxed as earned income.
The farmer who supplies the kitchen’s prime beef, for example, recently treated his wife to lunch in Simpson’s restaurant. So, did he order the steak? “No,” grinned Martin. “He chose the fish!”
Gary Walker is a Partner of the St. James's Place Wealth Management, which is a provider of a wide range of quality financial services. Tel: 01224 202400 gary.walker@sjpp.co.uk
This has led to a rise in popularity for serviced apartments where guests can relax and unwind in the comfort and space of their own apartment while enjoying home comforts with their own kitchen, bathroom, bedroom and lounge. These factors, combined with current demand for business accommodation in Aberdeen, have led to Aberdeen solicitors and property agents K.W.A.D setting up a new serviced apartments division. K.W.A.D Property Managers Limited are now offering business travellers, relocating professionals or families the option of two bedroom executive apartments with fully equipped kitchens, spacious living accommodation, flat screen televisions, complimentary broadband connection, twice weekly maid service and on-site car parking. Director of Serviced Apartments, Anita S. Hastie says: With the modern decor, space and comfort you would expect in your own home environment, these apartments really are a home away from home. For further information contact Anita S. Hastie on 01224 656330 or ahastie@kwad.co.uk
Property managers limited