More than ever, businesses are having to make decisions against a backdrop of changing tax legislation, evolving accounting standards and continued economic uncertainty.
These issues came into sharp focus in July when we held two Finance Focus webinars, one for finance directors and their teams and the other for business owners, and our experts shared insights into the legislative, financial and commercial changes shaping decision-making today. While each webinar was tailored to a different audience, common themes emerged: early planning, informed decision-making and joined-up advice are more valuable than ever.
Planning ahead
Finance Focus for Business Owners opened with its own poll which set the tone for the morning: 42% of attendees described their business as established and stable, and a further 37% as growing. Relatively few business owners appear to be actively preparing for sale or succession.
From April 6th 2026, the rules around Agricultural Property Relief (APR) and Business Property Relief (BPR) changed materially. 100% relief is now capped at £2.5 million per individual (transferable between spouses), with 50% relief above that threshold. AIM shares fare worse, with Inheritance Tax (IHT) relief cut to 50% and with no equivalent allowance.
Pensions add a further layer of urgency. Currently outside the scope of IHT, pension funds will be drawn into the IHT net from April 2027. Our wealth planning team urged attendees to revisit their expression of wishes now, warning that some existing arrangements, spousal bypass trusts being just one example, will themselves become liable to inheritance tax under the new rules.
The advice was consistent throughout: know what your lifestyle actually costs to fund and build a plan around that figure. Keep wills and powers of attorney up to date, lean on our joined-up advisory team spanning tax, legal, and wealth planning, and revisit your plan regularly.
For owners weighing succession, sale or simply protecting what they’ve built, the message was equally clear: act on the current rules now because the window for planning under them is closing.
Supporting finance directors through increasing complexity
Corporate tax rates may have remained stable, but Finance Focus for Finance Directors made clear that stability at a headline level masks growing complexity underneath.
Quarterly Instalment Payments (QIPs) are catching fast-growing groups out earlier than expected: one case study showed a group, with one company tripping the QIPs threshold, resulting in three tax payments landing in a single year and materially affecting cash flow. Materially higher HMRC late-payment interest rates raise the cost of getting the timing of tax payments wrong.
On audit, audit quality remains firmly in regulators’ sights. New standards on fraud and going concern mean auditors are asking more detailed questions earlier, particularly about cash flow forecasting and downside scenarios. Businesses with well-structured digital data are best placed to benefit as AI and data analytics reshape how audits are delivered.
Internationally, the widening of transfer pricing rules and a mandatory shift to territorial taxation of permanent establishments from 2027 all add to the compliance burden.
A section on financial risk management captured most attention, setting out the red flags finance leaders should watch for - declining dividend reserves, mounting tax liabilities, over-reliance on short-term borrowing - and the discipline of monitoring and documented decision-making that should follow.
A common message
Although the audiences differed, both our sessions reinforced the same message: businesses that review their position regularly, seek advice early and understand the changing regulatory landscape are best placed to protect value and seize new opportunities.
Whether the priority is succession planning, tax structuring or audit readiness, the businesses best placed to act are those already having these conversations early and well before a deadline forces the issue.
Our Finance Focus webinars for business owners and finance directors are part of an ongoing series of events and content designed to navigate an ever-changing economic and political landscape.
