Case No. BV20D07073

34.Strutt and Parker were the Single Joint Experts instructed to value NN. Originally, they valued the property, on 23 November 2020, at £18 million. The Husband was unhappy with this valuation so he instructed Savills as his sole expert and the Wife then instructed Carter Jonas as hers. Fortunately, the end result was that the experts were able to agree a valuation for the estate on 16 February 2022 in the sum of £21,600,000. This was then followed by the report of the SJE as to the value of the stock and assets of the farming business of BT Ltd, with the final report delivered on 21 February 2022. The SJE was critical of the Husband in relation to the delay in finalising the insurance claim following the natural disaster in late 2019/early 2020. The Husband therefore filed a statement dated 25 March 2022 in which he explained his position, namely that there had been delays due to Covid-19; the fact that the Husband was not in the same country; that there were real staffing issues following the natural disaster; and that the priority had been in keeping the farm running. He also made the point that, unlike some businesses in the area, who were short of funds and had to settle quickly with the insurers, BT is cash rich and was able to play a long game. He mentioned that, following the natural disaster in 2009, he had been offered only 36 cents per C$ of damage, which many other businesses had accepted. He refused and eventually managed to extract an offer of 90 cents per C$. He did then question whether the working model for the farm was appropriate any longer given that there had now been two such calamitous natural disasters in eleven years. He did also say that he anticipated that the costs of rebuilding will exceed the insurance claim. He installed high quality fencing last time, which costs between C$20,000 to C$25,000 per kilometre. Two cottages and the Homestead need to be rebuilt.35.In fact, the issue of the insurance claim has not really featured during the case. The matter has proceeded on the basis that the claim is worth a further C$1,359,786, with an additional sum of C$650,383 already having been paid. As I understand it, the first payment was primarily in relation to the value of lost livestock. Following the report of the SJE, his figures had to be incorporated into an overall valuation by a firm of accountants. The accountant’s report is dated 25 April 2022. He came to the conclusion that the valuation of the shares in the company, over and above the value of the land, is C$16,510,000, on the basis of an orderly realisation by sale. He was unable to distinguish between the two classes of shares and did not therefore ascribe any valuation to either the Husband’s shares or those of the Wife. He noted that the turnover of the business had been C$7.2 million in 2019, followed by C$4.5 million in 2020 and C$1.4 million in the first 8 months of 2021. Profit levels have varied considerably with a high point of C$5.3 million and a low point of only C$15,000 but both were on the basis that the farm was not charged rent, which would, on a market value basis, have been C$1.15 million. In essence, the valuation is comprised of the net tangible assets of C$8 million and the cash at bank of C$7.1 million. An EBITDA valuation was not possible due to the huge fluctuations in the results. There is tax payable of C$3,062,475.Tax36.Mr Paul Huggins of Rawlinson and Hunter prepared a tax report dated 28 April 2022. On the basis that both parties are UK tax resident and they separated in April 2020, any transfers between them will be deemed to be at arms length with consequent tax consequences. The Capital Gains Tax payable on NN depends on whether it is sold or not. If it is transferred to the name of the Wife, the Capital Gains Tax payable by the Husband will be £171,381. If the property is sold, the overall CGT will be £632,956. The tax liability on a sale of the BT land will depend on the turnover of the business at the time. If the turnover is less than C$2 million, the tax liability will be C$9,179,919 on the basis of the land valuation of C$55.18 million but this liability will increase to C$18.378 million if the turnover exceeds C$2 million. There will be no CGT in the UK if the higher figure is paid in Country C, due to the double taxation treaty but the UK tax would be £5.5 million. It can be rolled over if invested into another business. Mr Huggins had been told there would be no tax in Country C on the sale of the farm business but there would be English CGT of £836,000 which could be r reduced by £100,000 if business asset disposal relief is used. The report also deals with Capital Gains Tax payable on the parties’ other assets. In the Husband’s case, the figures are modest. The Wife’s overall gain is £799,107 but, as she is non-domiciled and the assets are held offshore, she would only be taxed on a remittance basis. Various private equity investments, namely Investment A and Investment B, would attract higher levels of tax, which has been factored into the asset schedule.