UK small and medium-sized enterprises (SMEs) that are preparing to switch off for Christmas will leave themselves vulnerable to attack, according to new research commissioned by global cybersecurity company Kaspersky . The survey of 500 SME owners across the UK reveals that Christmas shutdowns have become a major cybersecurity blind spot. Nearly a third will close for three to five days, while others extend their break to a week or longer. More than four in five SMEs plan to close their business for at least a day over Christmas, while just 19% will remain fully operational throughout the festive period. Worryingly, IT oversight during holiday season downtime is inconsistent at best. While half of SMEs rely on in-house IT teams or external providers, a quarter will leave cybersecurity in the hands of non-specialist staff, and one in four admits that no one monitors their systems at all while the business is closed. This risk is sharpened by PwC’s Minimum Viable Company (MVC) concept, which highlights the essential services and systems that must remain protected to keep an organisation operational during disruption. For SMEs — whose critical functions are often concentrated in just a few technologies, processes and suppliers — even a short lapse in monitoring over Christmas can expose precisely the assets needed to stay viable. Despite this lack of specialist coverage, 82% of SMEs describe themselves as confident in their cybersecurity during the Christmas period. This over-confidence, combined with a lack of vigilance, is especially concerning, given that 35% of SMEs have experienced a confirmed or suspected cyber incident during a previous holiday season. The research shines further light on the potential for complacency, with almost a quarter (22%) of SME owners saying they are not worried about any particular cyber threat over Christmas, though phishing and ransomware remain among the most feared risks for those who are concerned. When asked what preparations they make before closing for the holidays, SMEs most commonly cited backing up data or installing routine updates, but roughly one in eight take no cybersecurity precautions at all, and only a minority test their incident response plans or warn staff about seasonal phishing scams. Looking to 2026, many SMEs acknowledge the need to strengthen their defences, but plans remain vague. While businesses express interest in improving backups, threat detection and staff training, only 19% say they will definitely invest in cybersecurity in the year ahead, and almost as many say they are unlikely to invest at all. “A toxic selection box of holiday pressures, year-end work deadlines, financial demands, and social obligations means December can be one of the most stressful times of the year. This is especially true for small business owners, who often take on more than their fair share of the workload over the festive period. IT security can slip off the ‘to do’ list for some,” warns Anna Papla, UK territory channel manager at Kaspersky. “Cybercriminals will take full advantage of vulnerabilities as many businesses shut down operations. But extended closures don’t have to mean extended exposure. With the right alerting and backup practices, SMEs can enjoy a very Merry Christmas.”

The Family Business Research Foundation (FBRF) has published a new research report, Business Property Relief and Family Firms in the UK: From Relief to Reform, which examines how Business Property Relief (BPR) is used today, what recent reforms to BPR are likely to mean for family businesses and business-owning families and the political narratives that underpin recent debates about BPR. The report highlights the research required to properly evaluate and compare the different perspectives. Drawing on official statistics, in-depth policy analysis, academic research and evidence from business organisations, the report shows that BPR has grown into a substantial and highly concentrated inheritance tax (IHT) relief. Evidence from family business and farming organisations, as well as economic impact studies, suggests that the recent reforms to BPR may lead many family firms to scale back investment, change succession plans, or restructure ownership, with potential consequences for jobs, regional economies and public revenues. The report argues that debates over BPR are not only about statistics but also about competing values and policy narratives: One emphasising continuity, competitiveness and the contribution of family firms to jobs, long-term investment and communities; and Another stressing fairness, equity and fiscal responsibility, and questioning whether generous reliefs concentrated among a minority of wealthy estates can be justified. It concludes that not only does the actual impact on family businesses and their owners of the recent changes need to be evaluated, but also that more research is required to understand the benefits (and costs) that family businesses bring to society to understand the impact of the changes made. If this is done, policy makers will be much better placed to evaluate the fairness and impact of charging wealthy estates more inheritance tax. Sir Michael Bibby, Chairman of the Family Business Research Foundation, said: “Reforms to Business Property Relief have real-world consequences for families who own and run businesses, as well as for the public finances. This report underlines that decisions about inheritance tax and reliefs should be based on robust evidence. There is a lot of work to do to properly evaluate the impact of the BPR changes and this report is the first step in outlining the research required and putting in place a framework for it to be undertaken." "To be successful - family businesses, their owners, policy makers, academics and others need to work together to properly understand the issues to ensure the best decisions can be made for the economy, society and the UK as a whole” About the Report: Business Property Relief and Family Firms in the UK: From Relief to Reform is an FBRF research report by Martin Kemp of the Family Business Research Foundation. It analyses who currently claims BPR and at what cost, tracks the evolution of BPR policy over time, explains the October 2024 reforms and their projected impacts, and analyses political, business and research community responses. The report uses narrative policy analysis to map the competing storylines that shape the current debate and sets out priority areas for future research and evaluation of the reforms. Download a copy of the Family Business Research Foundation report on their website here

A spa resort on Windermere in the Lake District has been voted the best in North West England at the 2025 Good Spa Guide regional awards ceremony in London. Low Wood Bay Resort & Spa has won the accolade, beating off strong competition from a host of leading spas across the region. The award recognises excellence across the UK spa industry, celebrating those who deliver outstanding guest experiences, world-class facilities and exceptional levels of care. It reinforces the position of the English Lakes Hotels venue amongst the best spas in the UK. Organised in partnership with leading spa services provider ESPA and with Elemis as sponsor, the Good Spa Guide ‘Best Spa in the North West’ award was based on the organisation’s precise ‘bubble rating’ assessments, along with expert insights and opinions from its ‘spa spies'. The awards judges commented on Low Wood Bay’s calm spaces, which soak up Lake Windermere’s tranquillity, with its panoramic views and surrounding fells elevating the whole spa experience for guests. Gary Tennant from English Lakes Hotels Resorts & Venues says: "It was great to attend the awards at L’oscar London near Covent Garden and fantastic to come top in the region. The finalists were chosen through rigorous appraisal rather than a consumer-voted process. This national recognition underscores our commitment to offering one of the most exceptional spa experiences in the region." “Last year we were the first in the North West to attain the prestigious ‘Five Bubble Luxury’ standard from the Good Spa Guide. Now we’ve gone a step further, not only because of our fantastic facilities and stunning lakeside location, but also because of our hard-working team." “This award is a real reflection of the whole team’s efforts, passion and commitment to creating amazing experiences. They are what make Low Wood Bay spa truly special, and I’m incredibly proud of everything they deliver day in, day out.” The hotel group’s operations director Michael Kay adds: “Standing out in such a competitive category is a testament to the dedication, expertise and passion of our spa team, who consistently go above and beyond to create moments of relaxation, renewal and wellbeing for every guest." “We are incredibly honoured by this achievement and grateful to our teams, guests and supporters, all of whom helped make it possible. This milestone energises us to continue innovating, investing and striving to remain a leading destination for wellbeing in the North West and beyond.” Top Photo: Low Wood Bay has won the best spa in North West England award from the Good Spa Guide (L-R) Gary Tennant, Annabel Berry, Michael Kay and Ilse Bujok.

Organisations adopting AI governance measures, specifically real-time monitoring and oversight committees, are far more likely to report improvements in revenue growth, employee satisfaction and cost savings. According to the EY survey, nearly 98% of UK respondents said they had experienced financial losses due to unmanaged AI risks, with an average loss estimated at US$3.9 million. Two-thirds (64%) of UK companies surveyed allow ‘citizen developers’ – employees independently creating or deploying AI agents - but only 53% have formal policies in place to ensure responsible AI practices. Businesses that adopt advanced responsible AI practices are reporting greater improvements in revenue growth, cost savings and employee satisfaction according to findings from the latest EY Responsible AI (RAI) Pulse survey. The survey of 975 C-suite leaders across 21 countries, including 100 UK respondents, evaluated how companies perceive and integrate responsible AI practices into their business models. It found that eight in ten (80%) UK respondents reported that adopting AI has led to improvements in innovation whilst 79% said it had improved efficiency and productivity. The impact of AI was less pronounced in areas such as employee satisfaction (56%), revenue growth (50%) and cost savings (49%). Organisations who are adopting AI governance measures, such real-time AI monitoring and oversight committees responsible for overseeing the ethical and responsible use of AI, are far more likely to report improvements in revenue growth, employee satisfaction and cost savings. Of the UK respondents interviewed, those with an oversight committee reported 35% more revenue growth, a 40% increase in cost savings and a 40% rise employee satisfaction. Financial Impacts Of Unmanaged AI Risks The survey also revealed the significant financial repercussions of unmanaged AI, with almost all (98%) of the organisations surveyed reporting losses due to AI-related risks, with nearly two-thirds (55%) experiencing losses exceeding US$1 million. The most common AI risks include non-compliance with regulations (57%), inaccurate or poor-quality training data (53%) and high energy usage impacting sustainability goals (52%). C-Suite Knowledge Gaps In Identifying Appropriate Controls When asked to identify appropriate controls against AI related risks, such as non-compliance with AI regulations, accurate or poor-quality trained data or cybersecurity vulnerabilities introduced by AI systems, only 17% of UK C-suite respondents answered correctly, highlighting the critical need for effective controls. ‘Citizen Developers’ Highlight Governance And Talent Readiness Gaps The survey also revealed that many organisations are facing challenges in managing ‘citizen developers’— employees independently creating or deploying AI agents. Two-thirds of UK companies interviewed (64%) allow this activity, with 53% implementing formal policies to ensure alignment with responsible AI principles. AI Risks Set To Increase As Agentic AI Becomes More Prevalent Agentic AI - systems that autonomously make decisions and takes purposeful actions – is becoming more prevalent, and the survey found that most organisations are implementing governance policies to manage the associated risks. Eighty-one per cent of UK companies interviewed said they continuously monitor their agentic AI processes and models to ensure they adhere to responsible AI principles whilst 80% said they have incident escalation procedures in place in case an AI agent behaves unexpectedly. Despite this, only 34% of HR teams from the companies interviewed said they had started developing a strategy for managing a hybrid AI/human workforce. Matthew Ringelheim, EY UK&I AI & Data Leader, said: “UK companies that see responsible AI as a strategic advantage instead of a overhead will lead the pack. They will build trust both within and beyond their organisation and accelerate speed to market — bringing the latest technologies into production ahead of their competitors." "As organisations continue to navigate the complexities of AI integration, prioritising responsible governance will be essential for driving sustainable growth and maintaining a competitive edge in the market.”

Family businesses are the backbone of Scotland’s economy, often built on generations of dedication and vision. Unlike other companies, family businesses typically aim to pass the enterprise to the next generation rather than sell to an external party. This unique succession model, combined with the upcoming introduction of Inheritance Tax (IHT) on business assets from 2026, presents distinct challenges. Here, I outline these challenges and propose practical financial planning strategies to ensure your business thrives for generations to come. The Unique Challenges of Family Business Succession Family businesses differ from other companies because their succession plans often prioritise legacy over liquidity. Unlike a sale to an external party, passing the business to the next generation doesn’t typically generate a cash windfall. This creates two critical issues: 1. Financial Security for the Senior Generation : Without a sale, the senior generation must ensure they have sufficient cash flow and financial security for retirement. Stepping back from the business means relying on personal wealth or other income streams, which may not be readily available if most assets are tied up in the business. 2. IHT Liquidity Challenges : The introduction of IHT on business assets, expected from 2026, will reduce the reliefs upon which a succession strategy may have previously depended. Without liquid funds, the succeeding generation may struggle to cover this tax, potentially forcing asset sales or disrupting the business. These challenges underscore the need for proactive planning to balance the senior generation’s financial needs with the business’s long-term viability. Three Areas Where Financial Planning Can Help Robust financial planning is essential to navigate these challenges. At AAB, we offer comprehensive advice that integrates business and personal finances. Here are three key areas where we can assist: 1. Optimising Cash Extraction Strategies Extracting surplus cash from the business is critical to build personal wealth for the senior generation, paving the way for succession. The three main methods—salary, dividends, and pension contributions—require a balanced strategy to maximise tax efficiency. Pension contributions remain a particularly tax-efficient option, despite the expectation that they will also become subject to IHT (from 2027). Following Jeremy Hunt’s 2023 reforms, which abolished the Lifetime Allowance and increased the Annual Allowance to £60,000, pensions contributions have, for many, become a useful option again. Contributions benefit from corporation tax relief, and the pension pot grows tax-free, providing a substantial nest egg for retirement. This personal wealth allows the senior generation to reduce their business involvement, enabling the junior generation to take the helm. Often, the senior generation may own commercial property in the pension (possibly the property from which the business operates) and that could continue, with the rent fuelling distributions from the pension throughout retirement, but some caution is required in terms of liquidity within the pension, so that it can cover its own share any IHT liability in the future. 2. Mitigating IHT Through Advance Planning Chancellor Rachel Reeves has not altered the core methods of mitigating IHT, making it one of the most avoidable taxes with timely planning. Strategies such as gifting business assets to the next generation, using trusts, or leveraging spousal exemptions can significantly reduce IHT exposure. However, mitigating the full liability can be complex, especially since gifts must normally be made seven years before death to escape the IHT assessment. Cash flow is critical to cover any residual IHT liability. A well-funded private pension can enhance liquidity for the senior generation, but it’s vital to diversify pension investments to maintain flexibility. Additionally, life assurance policies can provide immediate liquidity to cover IHT exposure during the transition period, ensuring the business remains intact until the succession strategy is fully implemented. 3. Developing a Comprehensive Family Strategy The cornerstone of successful succession is a robust strategy that considers all family finances—business and personal. At AAB, our multi-disciplinary team provides holistic advice, covering tax, wealth management, and business planning. We work with you to align your business goals with personal financial objectives, ensuring the senior generation’s security, the junior generation’s readiness, and the business’s continuity. This integrated approach involves stress-testing cash flow projections, optimising tax-efficient extraction methods, and implementing IHT mitigation strategies. By creating a clear, actionable plan, we help you establish a secure path that allows your family business to thrive for years to come. Why Act Now? The impending IHT changes demand immediate attention. Waiting until 2026 risks leaving your business vulnerable to unexpected tax liabilities, which could jeopardise your legacy. By acting now, you can leverage existing reliefs, build liquidity, and implement strategies that take advantage of the seven-year gifting window for IHT purposes. At AAB, we understand the emotional and financial complexities of family businesses. Our team is equipped to deliver tailored advice that bridges personal and business needs, drawing on the broader expertise of the AAB Group. Whether it’s optimising pension contributions, structuring life assurance, or crafting a succession plan, we’re here to guide you every step of the way. Next Steps Don’t let the upcoming IHT changes catch you off guard. Contact AAB today to schedule a consultation. Together, we’ll develop a strategy that secures your financial future, protects your business, and ensures your legacy endures for generations.

Family Business United (FBU) is calling on the UK Government to urgently rethink proposed changes to inheritance tax reliefs that risk undermining the stability, continuity and growth of family-owned firms across the country. Ahead of the upcoming Budget on 26 November, FBU is reiterating industry-wide concerns over key measures in the Finance Bill 2025–2026, specifically proposed reforms to Agricultural Property Relief (APR) and Business Property Relief (BPR). FBU warns that these proposals will have a disproportionate and detrimental impact on family businesses and older family business owners who have long planned in line with previous government policy. “The proposed reforms create uncertainty at a time when family firms need clarity and stability,” said Paul Andrews, Founder and CEO of Family Business United. “Younger owners may be able to take out insurance or plan ahead, but many elderly farmers and long-standing business owners simply do not have that option. They now face unexpected and potentially devastating tax bills which threaten the future of their businesses.” These changes also come at a time when all businesses are faced with increasing costs associated with National Insurance, the Living Wage, Business Rates, supply chain increases and the effects of energy price increases which are already putting a strain on firms. Under the current government proposals, set to take effect from April 2026, family businesses and farms would only receive full inheritance tax relief on their first £1 million of qualifying assets. Assets above this threshold would face a 20% tax charge, despite previously being exempt. Unlike other inheritance tax allowances, this relief cannot be transferred between spouses, a change that FBU believes unfairly penalises many long-established family enterprises. For decades, elderly farmers and business owners have been encouraged by government policy to transfer assets on death, often avoiding both Capital Gains Tax (CGT) and Inheritance Tax (IHT). The sudden policy shift leaves many with no viable path to mitigate the impact, particularly those who are unwell, elderly, or unlikely to survive the seven-year period required for lifetime gifting reliefs. Family businesses make up the backbone of the UK economy, producing goods, services and employment opportunities throughout the UK, as many have done for generations. Yet the uncertainty created by the proposed reforms is already affecting business confidence. “We are hearing from firms across the UK that investment is being paused, recruitment is on hold, and long-term planning, the very foundation of family business success, is being derailed, some of it permanently,” Paul added. "These measures are not decisions that families in business taker lightly but they are having to find solutions to pay for the potential tax liabilities that may arise and provide for them accordingly. With no business sale or other liquidity event for many this provision will have to come from the business and for some may result in some, or all, of the business to be sold." FBU is urging the Government to engage meaningfully with the family business sector and reconsider the current approach to inheritance tax reform. The organisation is calling for proper consultation to ensure that any future policy continues to support long-term, responsible family ownership. As Paul concludes: “Family businesses think in generations, not quarters. They deserve policies that reflect their commitment to the UK economy and the communities they serve." "We urge the Government to consult, listen and find a sensible approach that protects the continuity of family firms and helps to fulfil the growth agenda for the nation.”

New research from European software provider Forterro has found that skills shortages and sluggish digital transformation are putting the UK’s industrial midmarket at risk of falling behind its European peers. The findings, from a new Forterro report - The Digital Future of the European Industrial Midmarket - reveal that almost half (49%) of UK manufacturers and wholesalers say the digital skills gap has directly impacted business growth or projects. More than one-third (34%) admit they lack confidence in finding recruits with the right digital expertise. The most significant gaps are in AI literacy (42%), cybersecurity (41%), and data analysis (40%) – precisely the capabilities needed to deliver on the industry’s digital transformation goals. “The digital skills gap is becoming the single biggest barrier to digital transformation in the UK’s industrial midmarket,” said Thomas Knorr, Vice President Cloud Transformation, Forterro. “Most firms recognise the potential of AI and automation for efficiency gains and growth, but many don’t have the people or infrastructure to make it work. The risk is a growing divide between businesses that modernise and those left behind.” According to the research, 57% of UK respondents have a digital transformation roadmap, and 56% say they have a fit-for-purpose cloud and data strategy, slightly ahead of the European average. Yet progress remains uneven: 30% rated their digital transformation performance as poor over the past three years, with a further 34% calling it merely adequate. AI, however, is seen as a crucial part of the solution. UK firms cited predictive maintenance, predictive logistics and document management as their most popular ERP add-ons, while AI-driven analytics and risk detection are expected to deliver the greatest future value. “AI isn’t about replacing people and taking jobs, it’s about empowering those people to do their jobs better and allowing them to shape their role in a way that brings greater rewards,” added Thomas Knorr, Forterro. “When the right digital skills and technology are harnessed together, AI becomes a practical tool for improving operations, predicting issues, strengthening competitiveness and powering growth." "That’s what we’re helping our customers achieve, offering tools that offer tangible and practical benefits.” The report also reveals that one-third of respondents say that keeping pace with competitors and future-proofing the business are the main drivers for digital transformation. More than half (57%) believe resisting cloud adoption will damage market share, further evidence that the UK industrial midmarket understands the stakes but struggles to act decisively and even hire the people to help them. “Digitalisation is no longer a project for tomorrow; it’s the price of staying relevant,” concluded Thomas Knorr, Forterro. “AI, cloud and ERP modernisation go hand-in-hand, but without retraining or upskilling in the business, digital transformation will continue to stall.”

The Bank of America Family Office Study: Perspectives on the Modern Family Office reveals that the next decade will be a defining era for the world’s wealthiest families. Generational transitions, economic optimism, and rapid technological advancements are reshaping how family offices manage and preserve multigenerational wealth. With 87% of family offices yet to be passed down to the next generation — and 59% expecting that transition within the next 10 years — leadership handovers are poised to bring new approaches to investing, philanthropy, and the use of technology. In fact, among family offices with less engaged principals, 73% of those surveyed expect the next generation to redefine the office’s mission or purpose. “As younger generations step into leadership roles, they are poised to redefine what it means to manage multigenerational wealth — from integrating Artificial Intelligence to expanding philanthropic missions,” said Elizabeth Thiessen, Head of Family Office Solutions, Bank of America Private Bank. “This evolution will shape the modern family office for generations to come.” The inaugural study surveyed 335 family office decision-makers across North America to understand how these organizations are evolving. Key findings include: Top Challenges For Family Offices Today Family offices identified their most pressing challenges as investing, growing and preserving wealth (64%), planning for the future (56%), the strategic use of credit (50%), and navigating technology (44%). Innovation through AI and automation : More than half (57%) of family offices have utilized artificial intelligence for investment research and strategy. Automation is widely used for forecasting (76%), alternative investment analysis (74%) and portfolio modelling (73%). Philanthropy’s next chapter : As younger leaders prioritize social impact, 51% of family offices expect philanthropic goals and strategy to play a greater role following succession. Seven percent of offices were founded primarily to serve philanthropic or legacy missions. Economic optimism is strong : Over 60% of family offices expect growth in U.S. stock markets, private equity, and M&A activity in the coming year. Among offices managing $500 million or more, more than half anticipate an increase in U.S. GDP. Alternative investments are a growing priority : Family office portfolios are now nearly evenly split between marketable securities and alternatives. Private equity, direct investments in companies, and real estate are viewed as the most promising opportunities. Operational complexity : Family offices oversee intricate operations that go far beyond investment management. Many handle daily banking, estate planning, tax filings, household staffing, and manage dozens — or even hundreds — of bank and investment accounts. Family businesses remain foundational : Sixty percent of family offices were founded with assets from a family business, and 85% continue to generate income from family-owned enterprises. These businesses often share infrastructure, personnel, and platforms with the family office. Cybersecurity a critical concern : Nearly one-third of family offices or supported family members have experienced a cyberattack, with 40% reporting a significant impact on family assets. Larger offices face greater risk, and 10% of offices managing less than $500 million have no formal cybersecurity protections in place.

If you're a business owner with significant value tied up in a family trading company, AIM shares, or other Business Property Relief (BPR) qualifying assets, the clock is ticking on a valuable inheritance tax (IHT) planning opportunity. From 6 April 2026, the UK government will impose a £1 million lifetime cap on BPR, including for transfers into trusts – dramatically altering the IHT landscape. Until then, there's a unique opportunity window to transfer unlimited value in BPR qualifying assets into trust with no IHT charge. Whether you're considering direct gifts to family or using trusts to retain control and flexibility, now is the time to act strategically. We consider in further detail what you need to know about gifting to individuals vs trusts below, and how to capitalise on this opportunity before the rules change. What Is Business Property Relief (BPR)? For assets which have been held for two years, BPR reduces or eliminates IHT on certain business assets, including: Unquoted trading company shares Interests in partnerships or sole trades Gifting To Individuals Or Trusts: What’s The Difference? Gifting to an individual is classed as a Potentially Exempt Transfer, meaning there is no IHT due if you survive seven years after the gift. By contrast, gifting to a trust is treated as a Chargeable Lifetime Transfer, with no IHT due if BPR applies. When you gift directly to an individual, you lose control over the assets immediately. With a trust, control is retained by the trustees, who can decide how and when beneficiaries benefit. A direct gift is fixed to one recipient, whereas a trust can provide flexibility by allowing a single gift to benefit multiple or even future beneficiaries. In terms of IHT exposure, assets gifted directly fully leave your estate after seven years, while trust assets are generally outside your estate immediately—provided the BPR conditions continue to be met. In terms of planning, gifting to individuals is relatively simple but can trigger Capital Gains Tax, depending on the gift. Gifting to a trust is more complex and requires formal legal and trust documentation. Finally, gifts to individuals are exposed to donee risks such as divorce, creditors, or poor health. Assets held in trust, however, are protected within the trust structure and therefore offer an additional layer of security. Why Act Before 6 April 2026? From that date: A £1 million cap per person will apply to BPR for lifetime transfers into trust Only 50% relief will apply to amounts above the £1 million cap AIM shares will only qualify for 50% BPR, regardless of value. However, until 6 April 2026, there is no cap on any BPR-qualifying assets (including AIM listed shares), and so you can transfer any value of BPR assets into trust without charge. To illustrate the difference, consider a married couple transferring £3 million of shares in a family-owned trading company shares into a trust: If they act before 6 April 2026, the gift qualifies for 100% BPR, there is no lifetime cap, and the transfer is exempt from IHT under current rules. The trustees retain full control of the £3 million of shares, with no immediate tax cost. If they wait until after 6 April 2026, the same £3 million gift still qualifies for BPR, but only the first £2 million (two £1 million lifetime caps) is fully relieved. The remaining £1 million is subject to 50% relief, meaning £500,000 becomes chargeable. This results in an immediate 20% lifetime IHT charge of £100,000. The trustees still receive the full £3 million in shares but must fund £100,000 in IHT at the time of transfer. Periodic and exit charges would then be calculated under the new rules, taking into account the two £1 million allowances. Planning Opportunities For 2025/26 Here’s how to make the most of this window: Consider transferring BPR assets into a discretionary trust before 6 April 2026: No IHT charge on entry if assets qualify Trustees must usually hold assets for 2 years to retain BPR If the settlor dies within 7 years and after the 6th April 2026 the new rules will apply Exit and 10-year charges will apply using the new rules Use both spouses’ allowances by splitting ownership and settling assets separately Review AIM portfolios to confirm BPR eligibility (e.g. trading vs investment activity) Key Considerations: Trusts must retain BPR-qualifying assets to avoid periodic or exit charges without the allowances Selling BPR assets in trust may result in future IHT unless reinvested in qualifying assets Gifts to individuals are still a useful technique – in the right circumstances. Final Thoughts There remains an opportunity to pass on significant business wealth without triggering IHT, but it closes on 5 April 2026. If you own AIM shares or business assets, now is the time to review your wealth and estate plan. We know that trusts can be a daunting topic for those who have not previously utilised this tool. We are able to guide you through this process from start to finish. While trusts are not suitable for every situation, they can be a powerful part of an estate planning strategy. If you wish to discuss whether trusts may be a viable option in your personal circumstances, then please do not hesitate to contact your usual Crowe contact or by reaching out to us.

Family Business United (FBU) is delighted to announce the publication of the fourth report in its Global Family Business Think Tank series, bringing together insights from leading family business academics, advisers and practitioners from around the world. The report explores a series of critical questions that continue to shape the future of the global family business sector, including: Whether family business leaders truly consider how to ensure their businesses thrive beyond their own leadership. The extent to which families in business understand the difference between the financial balance sheet and the family balance sheet. The influence of unconscious baggage from upbringing on leadership styles today. The role of non-family leaders and board members in determining the long-term success of family firms. Whether the lack of formal succession planning is putting the future of family businesses at risk. If family ownership provides a genuine competitive advantage. The influence of history, heritage and legacy on major business decisions. How well-prepared family firms are to deal with the unexpected death of a leader. The ongoing risk of inheritance disputes. The extent to which family businesses are committed to doing business responsibly, particularly with respect to sustainability and environmental impact. Paul Andrews, Founder and CEO of Family Business United, said: “Family firms continue to play a fundamental role in economies around the world, creating employment, driving innovation and fostering long-term, responsible business practices." "This latest Think Tank brings together a global panel of experts to discuss the real issues facing family firms today, from leadership succession to sustainability, and to share perspectives that help shape the future of the sector.” “We really enjoyed pulling this report together, and the findings are both insightful and thought-provoking. Statistics demonstrate the degree to which the panel feel family firms are prepared for the issues at hand and we have included some of the specific thoughts from the panel members to aid discussion, as well as feature articles on the topics too." "Our hope is that it sparks meaningful conversations within family firms, their advisers and across the wider community about how best to ensure continuity, good governance and sustainable success.” The report once again demonstrates FBU’s ongoing commitment to supporting family businesses through research, collaboration and thought leadership. By exploring the issues that matter most, from governance and succession to environmental responsibility, the Global Family Business Think Tank continues to provide a valuable platform for discussion and shared learning. The fourth Global Family Business Think Tank Report is available now from the Family Business United store here

In today’s business environment, the notion of ‘value’ for a family business stretches well beyond the profit and loss account. For many family-run firms, social value — the positive contribution made to employees, communities, supply chains and wider society — is no longer a side concern; it has become central to strategy, reputation and long-term viability. With investors, regulators, customers and employees increasingly attuned to non-financial performance, family businesses are discovering that measuring and reporting social value is not just a moral imperative but a commercial one. The Growing Imperative for Measuring Social Value Historically, family businesses have demonstrated their social value instinctively rather than strategically: creating jobs in local communities, supporting charities, mentoring young people and fostering loyal supply chains. Yet without systematic measurement, these contributions often remain invisible — anecdotes of goodwill rather than data-driven evidence of impact. In fact, for many family businesses, social value is an inherent part of their identity, deeply rooted in their legacy, long-term vision and strong community ties. At the same time, the corporate and regulatory environment has evolved. The shift from traditional CSR initiatives to the more data-driven ESG (environmental, social and governance) frameworks means that businesses of all sizes are expected not only to do good, but to prove it — quantifying and reporting their impact in tangible, comparable ways. The social and environmental dimensions of ESG are becoming increasingly significant for family-owned businesses, especially as stakeholders demand transparency and accountability. In the UK, government guidance on measuring social value reinforces this direction of travel, noting that ‘capturing social benefits is both possible and meaningful’ for organisations across all sectors. Against this backdrop, family firms can no longer afford to rely solely on their reputation. In reality, family businesses are the backbone of the UK economy and contribute significantly in so many ways. But unless you can track and communicate how you create value for your people, your community and your supply chain, family businesses will miss out on the full commercial advantage of their legacy. What Social Value Means For Family Businesses For a family firm, social value encompasses a broad spectrum of initiatives and outcomes. It includes the economic and social benefits created through employment, training and local procurement; the environmental gains from sustainable practices; and the community impact generated by volunteering, charitable giving and civic leadership. Apprenticeship schemes, local recruitment, supplier partnerships, staff wellbeing programmes and environmental stewardship are all part of the equation. For family firms, these activities align naturally with their inter-generational ethos: a focus on stewardship, continuity and the long view. In other words, social value isn’t an afterthought — it’s embedded in the DNA of how family businesses operate. The Core Components Of Social Value Across different methodologies, several core components consistently emerge: Community: Activities that build stronger, more resilient local communities are central to social value. Well-being : Initiatives that focus on the health, happiness, and overall quality of life for individuals and communities. Sustainability and environment : Environmental improvements are a key component of social value. This includes supporting climate action, prioritising responsible consumption and production and reducing waste. Ethical employment and skills : Providing opportunities for work, developing skills, and tackling inequalities in the workforce. Diversity and inclusion : Fostering an inclusive environment and addressing inequalities based on factors like age, gender, race, or disability. Economic growth and innovation : Projects that contribute to a healthy and resilient local economy. This can involve supporting local and social enterprises, encouraging innovation, and strengthening supply chains. Capturing the Data and Turning It into Commercial Advantage If social value is part of a family firm’s DNA, the challenge lies in making it measurable. The first step is defining what social value means in the context of that particular business — whether it’s supporting local employment, reducing carbon emissions, or improving employee wellbeing — and aligning those goals with their overall strategy. Once defined, firms can start gathering relevant data: tracking numbers of apprentices, training hours, volunteering time, local supplier spend, staff retention rates and wellbeing scores. Measurement systems need not be complex or bureaucratic. Integrating data capture into existing HR, procurement and finance processes can ensure accuracy without excessive cost. Frameworks for measurement provide structure and credibility. For many family firms, however, the most powerful reports blend numbers with narrative: stories that bring the data to life, demonstrating the human impact behind the statistics. The commercial rewards are tangible. Evidence of social value strengthens brand reputation, aids recruitment and retention, improves access to finance and can even influence tendering outcomes. Many public-sector and corporate procurement contracts now include social-value criteria, giving well-measured family firms a distinct advantage. Moreover, analysing this data helps businesses identify areas for improvement — linking social investment to business resilience, customer loyalty and productivity gains. For a family business, social value is not charity — it’s part of their commercial model. If family businesses can show how they create value for their people, the broader community and the supply chain in which they operate, they’re not just doing good, they’re building a stronger business. Why Measurement Matters Measurement brings visibility and credibility to what family firms have long done instinctively. Without it, good work remains anecdotal, hard to benchmark or replicate, and potentially undervalued by customers, employees or investors. Family businesses that fail to measure social value risk being excluded from opportunities where proof of impact is now required — from public tenders to investment partnerships. Research consistently shows that family businesses with strong socio-emotional wealth — the sense of identity, continuity and shared values across generations — outperform peers across financial and non-financial indicators. By quantifying their social contribution, these firms make visible the ‘hidden equity’ of trust, loyalty and purpose that underpins their resilience. Conversely, silence on social impact can weaken reputation and obscure a key differentiator in an increasingly competitive market. Building the Framework For The Future The process of embedding social-value measurement is a journey, not a one-off project. It begins with leadership buy-in and clear communication of purpose, followed by the establishment of metrics that align with the firm’s strategy. Over time, as data maturity improves, family businesses can introduce more sophisticated benchmarking, external assurance and year-on-year targets to demonstrate progress. This evolution is not only necessary but inevitable. Family firms have always been values-led. The difference now is that those values must be made visible, measurable and reportable. When businesses capture social value properly, they’re not just proving worth but helping to protect the family business legacy. Creating Family-Business Advantage What sets family businesses apart is their inherent alignment with long-term sustainability and local community impact. Their rootedness gives them a natural credibility that larger corporates struggle to emulate. Measuring and communicating that impact simply makes explicit what has always been implicit — that these businesses are not just engines of profit, but anchors of social capital. In short, the move toward measuring and reporting social value plays to the strengths of family businesses. It allows them to showcase the full scope of their contribution, strengthen relationships with stakeholders and build competitive advantage in an economy where transparency and purpose increasingly drive success. Family businesses that embrace and capture social value in the right way see that is not something that is simply wrapped around the business but something that truly matters. Undeniably, social value is an asset that can no longer be ignored and when shared family businesses are not only telling their story, but they are also helping to shape their future too.

With their sense of legacy, long-term thinking and deep community links, family businesses are different from corporates in that they often have several different ways to measure success beyond short-term profit. Many family businesses are firmly established and invested in the local communities, which means they understand the importance of social value - the family business’s impact on the community and wider society. That social value can cover a wide range of options, including apprenticeship and supporting local causes - but measuring and reporting that social value in an organised, credible way is a challenge many firms face. That’s where Axiom Sustainability Software comes in. As the only all-in-one platform that integrates social value, ESG, procurement, supply chain mapping and employee engagement, it gives family firms the tools they need to actually measure their impact beyond the balance sheet. What Is Social Value - And Why It Matters Social value is the benefit an organisation creates for its community, employees and wider society. For family firms, that can mean apprenticeship programmes, volunteering, local procurement, fair employment practices, charitable donations or employee wellbeing initiatives. These contribute not just to the companies’ reputation, but are also important to recruitment, employee retention, stakeholder trust and stability. Demonstrating And Embedding Social Value In Family Firms Family firms have a unique opportunity to create and measure social value in ways that strengthen both their businesses and their communities. This can take many forms: Apprenticeships and Training  – Taking on apprentices, mentoring young people or investing in staff development builds local skills, supports succession planning and helps create a feeling of loyalty. Auditing what you already do often reveals you’re contributing more in this area than you might realise! Volunteering and Community Engagement  – Encouraging employees to give time to local charities or support community events demonstrates values in action and builds strong relationships. Tracking and reporting hours volunteered provides real evidence of impact. Local Procurement and Supply Chains  – Sourcing from smaller local businesses or socially responsible suppliers keeps economic benefits in the community. Highlighting these buying decisions as part of your ESG and social value reporting makes these choices visible to stakeholders. Fair Employment and Wellbeing  – Inclusive hiring practices, flexible working, good pay and a focus on wellbeing create a positive workplace culture and help retain talent. Selecting relevant metrics, such as diversity measures or staff satisfaction scores, ensures these values are measured and recognised. Measuring and Communicating  – The most powerful step is turning good intentions into measurable outcomes. Platforms like Axiom can capture real-time data, link social value to ESG, procurement and emissions, giving you a full reporting capability. Sharing these stories through case studies, sustainability reports or weaving them into your family business narrative builds trust. Legacy is not only about what you’ve built, but also about what you are building for others. Where Axiom Makes A Difference As we mentioned at the start, Axiom is the only all-in-one sustainability platform. What that means is we can measure your social value and help you improve your sustainability performance. We’re proud members of the FBU and already work with several FBU members. Here’s what we offer: All-in-one platform covering ESG, social value and carbon footprint Axiom integrates social value alongside environmental and governance metrics, emissions, procurement and more. That means everything from apprenticeship schemes to scope-3 emissions can be tracked in one place, removing duplication and blind spots. Practical tools and support We offer a free carbon emissions calculator  for Family Business United (FBU) members to help firms measure where they are and set realistic goals. Expert guidance also helps family businesses navigate complex regulatory requirements. Strong family business roots and credibility Co-founder Joe Oughtred comes from a long line of family business, and is sixth generation in the William Jackson Food Group. This background means Axiom’s leadership has many of the same values - and challenges! - that family firms face, meaning they often have a good understanding of your business and your background. Trusted by fellow family firms Since our working relationship with FBU, we’ve started helping several family firms with their sustainability work, including the John Good Group and Bagnalls. For family businesses, social value isn’t optional - it’s part of the legacy. But without structured measurement, it can be invisible. Axiom’s all-in-one platform gives family firms the tools to capture, manage and report social value as part of a broader ESG and sustainability strategy. With leadership deeply rooted in family business, and practical tools like the free carbon calculator, Axiom understands and supports FBU members and their social value needs. About Axiom Sustainability Software - Axiom sustainability reporting software has been designed to help organisations reduce their carbon emissions, achieve net zero quickly, and accelerate their sustainability performance. Axiom is a powerful, cloud-based sustainability and environmental accounting platform that helps businesses monitor, analyse and improve sustainability performance. It provides a complete suite of tools to help organisations in every industry gain complete visibility and control over sustainability performance. For additional information visit their website here