LEGAL VIEW: Navigating change is a team game

Change, whether due to external or internal forces, is the lifeblood of many businesses, whether they are looking to expand into new products, services or geographies, or to develop and upskill their workforce.

What we have seen in the corporate team at Napthens over the last three years is an increasing number of mergers and acquisition transactions that are now being driven by, what some would say, is the continuing changes in the legal, tax and regulatory framework that UK companies and their shareholders have to navigate.

The changes to the rates of capital gains tax last year, and again this year, have undoubtedly accelerated shareholders, who qualify for business asset disposal relief, to bring forward qualifying disposals.

The changes announced and expected to be made to business property relief (BPR) and agricultural property relief (APR) for inheritance tax (IHT), have already driven companies and shareholders to look at their shareholding structure, and in particular for family-owned companies, which will be looking at succession planning and the ability to pass on generational wealth.

Before and after every Budget announcement the speculation around how any changes will impact businesses, coupled with near daily briefings across the political spectrum of new policy announcements related to tax and legal matters, means we are firmly in a period of significant change in the legal and tax landscape underpinning UK companies and their shareholders.

From speaking to our clients, a common theme is that businesses want certainty and stability in the legal landscape so they can plan accordingly; giving them time and budget to adapt and continue to build for the future.

With so many recent changes already in force and indications that we’ll see change
continuing into 2026 at least, companies that are not impacted, either directly or indirectly, will be few and far between.

The common consensus that we have seen, along with other advisors, particularly with reference to owner managed or family-owned companies, is that to do nothing is not an option.

In uncertain times, especially where changes are being made to the legal and tax implications for companies and their shareholders in areas that have remained untouched for a significant period of time previously, the advice to businesses is simple.

Speak to your advisors to ensure that you understand the upcoming changes, so you can prepare now, deal with those changes and maximise the opportunities available to your company and/or its shareholders.

Each company and its shareholders are unique and will have different challenges and complexities to face.

We are regularly advising on company sales and acquisitions, internal share reorganisations, the use of family investment companies (FICs) and/or family trusts for wealth and estate planning, working with our colleagues and other trusted advisors to enable clients to mitigate any adverse consequences of the upcoming changes and/or maximise potential opportunities going forward.

Navigating change is always a team effort, and a business’ advisors are a key part of that journey.