Hypnos has been at the heart of British handcrafted bedmaking since 1904 and so The Bed Show saw celebrations to mark its 120th year, including sponsorship of the Reception Drinks and glittering Gala Awards evening. Even before visitors stepped into the show, Hypnos showed how its living out its mission to do the right thing for the wellbeing of people and the planet. A result of the brand’s new partnership with logistics supplier DFDS, its first Volvo electric articulated lorry with the new Hypnos livery was on display outside Telford International Centre, before it takes up active duty as part of the Hypnos fleet. Inside, retailers discovered new products including two new adjustable mattresses, its range of pillow tops, now in two tensions, and fabric collaborations with leading British design houses, and a new approach to Hypnos’ Project Zero – representing the future direction of beds for 2024. For this year’s Project Zero, the Hypnos team looked to pressing social issues, aiming to take positive action in reducing sleep poverty among children. With 11% of children in the UK having to share a bed or sleep on the floor in the last year, sleep poverty affects an estimated 894,000 children in the UK, impacting their performance at school, mood and mental health. The launch of ‘My First Hypnos’ sees the bedmaker start a new partnership with the aim for ‘zero’ sleep hours lost to child poverty. Hypnos and Barnardo’s are working in partnership to change children’s lives. 5% of the wholesale proceeds of the My First Hypnos mattresses and bed sets will be donated to Barnardo’s. Barnardo’s is a registered charity and to start the relationship, Hypnos has committed to supplying 200 beds. The new collection has been designed for children aged five and above and is aimed at an entry market. Awaken and Arise are made with sustainable materials including British RWS (Responsible Wool Standard) woolbarnardos-logo-in-support-of-dark-green-vertical-central-forScreens.png and are free from FR chemicals. The open storage base and headboard is available in a choice of eight Easy Clean fabrics. Hypnos also previewed the new adjustable Reviva and Restora Pillow Top mattresses, available with an easy-to-use adjustable divan base. These mattresses are specifically designed to ergonomically contour to the base thanks to the use of ReActiveForm™ pocket springs. Both are available in medium and firm tensions and combine these innovative springs with British RWS wool, natural latex, eOlus™ and Adaptiv™ comfort springs. They also feature a two-row hand side-stitched border and chemical-free 100% viscose sleep surface. Keeping Britishness at the heart of its stand, Hypnos also teased retailers with its collaborations with some of Britain’s most admired fabric companies. Showcased on beds and with swatches from Sanderson, Timorous Beasties, Harlequin and Hainsworth, the show was an opportunity to preview and gather feedback on the patterns and trends before release in February 2025. Rounding out the new introductions for this year were changes to the Hypnos Pillow Top Collection, where a new firmer tension was introduced.David-and-James-NBF.jpg David Baldry, Hypnos’ Group Managing Director, says: “I am incredibly proud of our progress this year and all the hard work that the Hypnos team have made, preparing and strengthening the business for the next 120 years. Our new management structure, investment in new systems and our approach to sustainability throughout the business, not just in our products, are aimed at improving our customer's experience of the brand and delivering Hypnos comfort with integrity." "Our new partnerships with Barnardo’s and DFDS are proof that progress happens when people and organisations work together – indeed this has resulted in £130,000 to date going to support the work of the Eden Project – partnership is leadership." “As a renowned bespoke luxury bedmaker, Hypnos is in a great position to be able to support British products, craft and design – we have introduced the Responsible Wool Standard to British farms and are proud to partner with other British suppliers and brands.”

The NFU has responded to Defra’s Farm Business Income (FBI) figures which show record falls since 2022/2023. NFU President Tom Bradshaw said: “Defra’s estimated Farm Business Income figures for 2023/24, confirmed, paint a stark picture of the challenges facing many farmers, with rising input costs, significantly lower commodity prices, a reduction in direct payments and one of the wettest winters in decades leaving many businesses worse off. For example, cereal farmers have seen their income fall by 73% and income for dairy farmers has fallen by 68% compared to 2022/23." “When these figures were first estimated back in March 2024, we said that we needed a government that would create policies to support British agriculture and help farmers and growers to build financial resilience into their businesses. Profitable farm businesses are essential if we are to deliver what the country needs; food security, with food produced to world leading standards and environmental protection." “Instead, we have seen the opposite. The recent Budget announcing changes to Agriculture Property Relief (APR) and Business Property Relief (BPR) have left farmers reeling. Many will be faced with a tax bill of millions. Some will be forced to sell all or part of their farm to raise the funds." “These are the working people of our countryside, the majority of them working for little profit but happy in the knowledge their life’s work will mean they can pass the farm on to the next generation. This tax threatens to change all that. It threatens our food security and with the compounded impact of National Insurance and National Living Wage changes, it threatens to push up food prices for consumers." “There has been a clear Treasury miscalculation of the impact this will have on farmers and growers. The Treasury is working off the wrong figures. This policy won’t protect family farms, it will do the opposite." “Treasury officials have assumed that all previous APR claims are working farms, which is not the case. Nor did these claims include those eligible for BPR. Far from protecting smaller family farms, which is what ministers say they’re doing, they’re protecting private houses in the country with a few acres let out for grazing while disproportionately hammering actual, food-producing farms which are, on paper, much more valuable. Even the department responsible for farm policy, Defra, has figures which show this, with the department’s own data showing two thirds of farms could be affected. “Another key question is what impact assessment has been done ahead of this policy announcement on homegrown food production? Because if farms are being broken up and sold, British food will be hit. There is a very real threat to our long-term food security because there is no incentive to invest for the future. Any available cash will now be going into pension provisions rather than investing in the infrastructure on farm to deliver food security for the next decade and beyond." “At last year’s NFU Conference, we heard from Sir Keir Starmer that ‘Losing a farm is not like losing any other business, it can’t come back’. He was absolutely right. It can’t. And neither can its ability to produce food for the nation." “The pressure is building. Defra and the Treasury are aware that on 19 November, NFU members will be making their way to Westminster to take part in our mass lobby of MPs. We will be looking them in the eye and asking if they support this family farm tax, or if they will do the right thing for their farming constituents and support our call for it to be reversed." “The only sensible course of action is for the Treasury to reverse this decision and soon.”

Following the announcement of this year’s King’s Awards for Enterprise, JJ Smith and Archwood Group have strengthened their partnership to drive sustainable innovation in timber manufacturing. JJ Smith, recently honoured for International Trade, and Archwood Group, awarded for Sustainable Development are combining their expertise to lead the industry in eco-friendly practices and advanced production technology. Archwood Group, a leader in sustainable timber products, has invested over £500,000 in CNC machinery from JJ Smith, a trusted partner of over 35 years. This cutting-edge equipment enhances Archwood’s production capabilities for its Richard Burbidge brand, supporting increased efficiency while reinforcing the company’s sustainability targets. Josh Burbidge, Managing Director of Archwood Group, commented: “Receiving the King’s Award for Sustainable Development was a proud moment for everyone at Archwood. Strengthening our partnership with JJ Smith allows us to continue making strides in sustainability while expanding production capability. Their advanced machinery supports our goals of reducing emissions and minimising our environmental impact.” Lee Burford, Operations Director of Archwood Group, highlighted; “Investment in state-of-the-art machinery from our long-standing partner, JJ Smith, demonstrates our commitment to UK manufacturing. It broadens our manufacturing capabilities, allowing us to offer a wider range of products to our customer base including new & innovative designs." To celebrate their shared success in the King’s Awards, Archwood Group hosted JJ Smith’s Managing Director Rachael Baker for an exclusive tour of Archwood’s North Wales production facility. During the visit, both teams reviewed current projects and explored new opportunities for further automation and innovation in sustainable timber manufacturing. Rachael Baker, Managing Director of JJ Smith, added: “We are thrilled to partner with Archwood Group on their sustainability journey. Our long-standing collaboration is built on shared values and a commitment to creating positive environmental impact, and together, we are advancing what is possible in the woodworking industry.” As two of the UK’s most recognised family businesses, Archwood Group and JJ Smith are setting a new standard for innovation in the timber industry. The King’s Award achievements underscore their dedication to sustainable development and international trade, and their continued collaboration is expected to drive further advancements in environmentally friendly timber production.

Novus Property Solutions is supporting its longstanding client, hospitality company Whitbread, as it reveals brand new national further education college partnerships to help young people with additional needs learn new skills and get into work. The Premier Inn owner is delighted to reveal it is partnering with The Liverpool City Region and Lincolnshire County Council as part of its Thrive programme. Thrive is an acceleration of its longstanding work with Derwen and Hereward specialist colleges supporting young people with special educational needs and learning disabilities. Novus, a leading maintenance and decarbonisation contractor, has assisted the programme through creating replica bedrooms and laundry rooms. These spaces allow the young people to practice the skills needed to work in a Premier Inn hotel. The new partnerships will help scores of young learners nation-wide and puts Whitbread firmly on the path to achieving its ambition to get 100 supported interns into paid employment from special needs educational establishments every year. In the Liverpool City Region, the partnership will eventually support six local authorities, including The Wirral, City of Liverpool, St Helens, Knowsley, Sefton and Halton. Liverpool City College and Wirral MET College will be the initial educational partners. In Lincolnshire the partnership will support the council’s Young People’s Learning Provision, which works with schools across the county. The partnerships will see students learning about all areas of hospitality through work experience and supported internships under the guidance of their job coaches with the chance to move into paid employment with Premier Inn. Skills include different aspects of working in hotels from guest relations and housekeeping – which also support the students to live independent lives and enhance their social skills and confidence, including by working on curriculum and being part of the Premier Inn team. Fittingly, the announcement was revealed at existing partner Hereward College in Coventry, as four hospitality students celebrated their graduation as interns, with permanent employment secured with Premier Inn. It is the success of this existing partnership – and Derwen College, based in Oswestry – that has inspired the acceleration of the scheme. Simon Ewins, Premier Inn Managing Director UK Hotels & Restaurants said: “Our longstanding partnerships with Derwen and Hereward Colleges – and the young people we’ve come to know through them – are an enormous source of pride for all at Whitbread." "Thanks to their success, we are absolutely thrilled to reveal new partnerships with colleges and local authorities that will support young learners with additional needs from all over the country. Our hotel teams are absolutely raring to welcome the new learners into sites across the North West and Lincolnshire”. Councillor Lila Bennett, Liverpool City Council’s Cabinet Member for Education, said: “Having a diverse workforce with people of all backgrounds and disabilities enriches the culture of an organisation and can be life changing for all involved. I hope Whitbread will inspire other organisations to take part. The scheme is a key part of our ambition to tackle inequality and maximise the life chances for residents in our city.” Councillor Mrs Patricia Bradwell OBE, executive member for children’s services at Lincolnshire County Council, said: “We want to help all local children get a good start in life. This new partnership will provide our learners with valuable work experience and provide a route into employment, helping them develop their independence. We’re very grateful to Whitbread for offering this wonderful opportunity and look forward to seeing the real difference it will make to our learners’ lives.” Gill Banks, Principal and CEO of Wirral Met College said: "We are thrilled to join forces with Whitbread in this invaluable initiative that aligns perfectly with our commitment to supporting young people with additional needs." "At Wirral Met College, we believe in empowering all our students to achieve their full potential, and this partnership with Premier Inn offers them a fantastic opportunity to gain vital skills and real-world experience in the hospitality industry. Together, we are opening doors to meaningful employment and building confidence in our students. We look forward to seeing the positive impact this collaboration will have on our community." John McMonigle, Novus Property Solutions, Head of Operations said: "As a business, we have set a vision to be a force for good and as a responsible business we are committed to playing our part in supporting the communities who need the most help." "We are proud to have supported the longstanding partnerships with Derwen and Hereward Colleges helping young people with additional needs learn new skills and get into work, and we are committed to continuing to support Whitbread's national further education college partnerships across the country to provide even more opportunities to the wider local community." Thrive is part of Whitbread’s Force for Good commitment to help people live and work well. As an inclusive employer Whitbread is committed to supporting all its colleagues, including those from under-represented groups such as those with disabilities, people who are ethnically diverse and those who identify as gay, lesbian, bi-sexual, trans sexual, non-binary or use another term. If you are an educational institution or local authority and are interested in exploring this opportunity, find out more and submit an expression of interest via the Thrive page of the Whitbread website. Thrive Programme - Whitbread PLC

As of today (November 13) there are just 102 working days left for entrepreneurs to cash in before new higher rate on capital extraction kicks in to 14% from current 10%. Thousands of business owners in the UK are now in a race against time to wind up their companies solvently and extract capital before the Chancellor’s tax guillotine falls on 6 April. That’s the cut-off date in the new year before the tax rate on Business Asset Disposal Relief (BADR) rises from 10% to 14% on the first £1m of qualifying gains. Announced in the Autumn Budget, the red-ink deadline of 5 April has already resulted in a surge of get-the-ball-rolling enquiries to Azets, the UK top 10 accountancy and advisory firm, as founders look to minimise their tax bills. “Any business owners who are contemplating winding down and extracting capital are urged to take immediate action,” said Chris Tate, an Azets partner who advises business owners on solvent liquidations. “Leaving it much longer to kickstart such plans could risk missing out on what can be life-changing amounts of money.” He added: “Whilst the changes represent a further tax grab, the silver lining is that the lifetime allowance of £1 million and existing qualification rules have not been tampered with, providing a further window of opportunity for business owners to maximise their tax savings." “Many business owners have spent years building their businesses, working hard and taking risks, so they understandably want to keep as much of the fruits of their labour as possible.” For distributions above the first £1 million BADR threshold, the capital gains tax rate of 24% applies. Chris, who works out of Azets’ South Coast offices, said: “What might not be appreciated by Westminster is that the 5 April deadline could have wider unintended consequences with a wave of well-run companies calling it a day on trading in order for owners, worried by the financial implications of the Autumn Budget, to accelerate retirement plans and exit earlier than planned." “If you own a business and have worked tirelessly to build it up over the years, generating jobs and employment taxes, you can be forgiven for feeling a tad sore about the impending tax relief reductions." “By way of basic example, if you qualify for BADR and your business has net assets worth £500,000, you’d receive £450,000, with a tax bill of £50,000 at the current 10% tax relief." “From 6 April, at 14%, you’d receive £430,000, with a tax bill of £70,000, and from April 2026, at 18%, that is a tax bill of £90,000, leaving £410,000 for you." “There will be many businesses with assets worth millions of pounds – and these can be life-changing sums of money which could end up needlessly being taxed at the higher rate of 14%.” Chris added: “As of Friday, 15 November, there will be only 100 working days left until 5 April, which is a Saturday – it is going to be tight for many unless they act now as there are many compliance hoops to jump through. They don’t want to be on the wrong side of that date.”

Spirit of Gallo continues to grow its luxury spirits portfolio through a strategic partnership with Mezcal Derrumbes, becoming the brand’s exclusive importer in the United States. The announcement comes as the mezcal category has seen significant growth, reaching 803K cases in the U.S. last year*, and ISWR data projecting the category to grow 10% by 2027. Grown in the most biodiverse appellation in the world, Derrumbes represents a mezcal journey through the heart of Mexico. Each of the seven expressions in the portfolio highlight the unique terroir, flavours and styles of a different Mexican state where it was crafted. “The growth of the mezcal category is driven by consumer exploration and, with seven different expressions, Derrumbes offers a uniquely diverse portfolio,” said Britt West, Chief Commercial Officer Gallo Wine and Spirits. “This range, paired with their commitment to premium ingredients, authenticity and tradition, makes them the perfect addition to our portfolio.” Mezcal’s rise in popularity has also been fuelled by growing consumer interest in artisanal spirits and Mexican culture combined with an increased presence on cocktail menus. “As a family-owned brand, we have found the perfect partner in Gallo to help us, and all the mezcaleros families we know, continue to grow,” said Esteban Morales, Co-Founder of Derrumbes. “We look forward to expanding our distribution in the U.S. and putting many incredible mezcal regions on consumers’ radars.” The full Derrumbes portfolio includes three core expressions: Oaxaca, San Luis Potosí and Durango, and four small batch expressions: Michoacán, Zacatecas, Tamaulipas and Guerrero, ranging from an SRP of $39.99 to $99.99. For more information on Derrumbes, visit here .Spi *Source: Impact Databank 2019-2023 About Spirit of Gallo: Spirit of Gallo is the second largest spirits supplier in the United States by volume and represents some of the most iconic brands in the industry including: High Noon Hard Seltzer, New Amsterdam Vodka, E&J Brandy, RumChata, Camarena Tequila, RumHaven, Stratusphere Gin, The Dalmore Scotch Whisky, Tequila Komos, Don Fulano Tequila, Horse Soldier Bourbon, Amaro Montenegro and Condesa Gin. The entire portfolio is featured on www.spiritofgallo.com.

Westlands Farm Shop has officially opened on Winchester High Street, marking a significant milestone for the family-run business, which has served the Hampshire community from its original Wickham location for more than two decades. Among the first attendees was the Mayor of Winchester, Russell Gordon-Smith, who came along to officially open the store. He said: “I am absolutely delighted to welcome this new shop to the high street in Winchester. I’m really pleased this farm shop will be bringing fresh food from selected sources into the city centre - it’s something we really do need.” The new shop boasts a team of local talent who share a passion for sustainable farming and high-quality produce. This team is led by Head Butcher Suzi Howard, who brings five years of butchery experience from the original Wickham shop. The Grade II listed property at 154 High Street recently underwent renovations to create a welcoming space that reflects the charm and quality associated with Westlands Farm Shop, retaining original features like wooden beams. Graham Collett, owner of Westlands Farm Shop, said: “We’re thrilled to finally open our doors in Winchester, and the support we’ve received from both the local community and our loyal customers from Wickham has been overwhelming.” “Visitors can expect to find diverse and quality offerings, with highlights such as British free-range meats, daily-baked bread, and freshly harvested fruits and vegetables sourced within a 40-mile radius." About: Westlands Farm Shop has been nurturing local supply chains and supporting small businesses in the community since opening in 2001. The business is dedicated to ethical and sustainable farming and aims to reduce plastic waste.

Independent family brewer Shepherd Neame is delighted to unveil its latest limited-edition brew, Table Beer (2.7% ABV). Light golden in appearance, Table Beer offers delicate malts and fruit on the palate with hints of citrus and a slight spicy, herbal finish. It is the fifth beer crafted in the Small Batch Brewery, a 15-barrel kit at the heart of its historic Faversham site which was commissioned last year. In comparison, its main brewhouse has a minimum batch size of 110 barrels. Drawing inspiration from medieval small beers once brewed and enjoyed in Britain, a table beer is, historically, its continental counterpart. Table beers were often brewed in French or Belgian farmhouses to offer nutrition and hydration for the workers. The name derives from the lower alcohol lending itself to be enjoyed by all around the table at communal gatherings. A combination of three malts – Ale, Crystal and Caramalt – allows Shepherd Neame’s new Table Beer to retain a fuller body despite its lower ABV. Hops are added at three stages – Challenger for bitterness, Saaz and US Centennial at late hopping, and dry hopping with Hallertau Tradition – crafting the gentle flavours. Brewing Manager, Rupert Hodgkins, who was instrumental to the brew, said: “Following on from our popular limited-edition Saison (5.5% ABV), released last month, we continued the theme of brewing traditional continental styles with our Table Beer." “Big on taste and refreshment, the lower ABV of Table Beer offers discerning drinkers a lighter alternative to our core range. We think we have struck the balance between flavour and mouthfeel just right for all to enjoy a pint or two.” Table Beer will be available at 20 of Shepherd Neame’s managed pubs from Monday (November 11), including the Jamaica Wine House, London; Pier Five, Chatham; Royal Crown, Rochester, Market House, Maidstone; Duke of Cumberland, Whitstable; Bricklayers Arms, Bromley; Botany Bay Hotel, Broadstairs; and The Limes, Faversham, for a limited time.

Analysis and commentary from AAB’s team of tax experts, identifying the key changes and outlining the practical implications of the Autumn Budget 2024 for you and your business are available in the attached guide. Some of the Main Changes: Increase in Capital Gains Tax rates from 30 October 2024.  Personal tax rates and allowances on income continue to be frozen at current levels with no increases until 2028/29. Substantial increases in Employers’ National Insurance Contributions from 6 April 2025. Stamp Duty Land Tax surcharge for buying additional dwellings increased from 31 October 2024. Confirmation that VAT will apply to private school fees from January 2025.  IHT agricultural and business property reliefs restricted from April 2026.  In their Autumn Budget Guide, they explore the impact of these changes on you and your business. Navigating these changes can be challenging and professional advice should be sought prior to making any decisions based on the changes announced. Download A Copy Of The Guide Here:

For well over 30 years, death has actually been an effective form of inheritance tax (IHT) planning with business assets (such as shares in a trading company or farmland and farm buildings) passing free of IHT on death. However Chancellor Rachel Reeves’ first budget has ushered in some significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) that are going to cause alarm in the family business and farming communities. What Was The Pre-Budget Position? Prior to the budget, APR and BPR provided a 100% relief from any IHT liability for certain assets. For APR, this comprises agricultural property, including farmland and certain buildings if they are used for farming or agriculture, and for BPR, this includes qualifying business assets, such as shares in unlisted trading (not investment) companies, sole trader businesses, and interests in some partnerships. The effect of APR and BPR was that the relevant assets did not attract any form of IHT and as such, on death, those assets could be passed on to spouses or to the next generation free of any IHT liability. What Has Changed? APR and BPR will remain, but the 100% relief now only applies to the first £1m of relevant assets per estate (i.e. per person). Beyond the first £1m, the 100% relief is reduced to 50% meaning any value above that attracts IHT at the 40% rate, albeit discounted by 50%. This gives an effective IHT charge of 20% on all relevant business assets above £1m. By way of example, if someone dies holding shares that are worth £3m (which would have historical qualified for BPR), then there is no IHT on the first £1m but the IHT charge on the £2m balance would, at the effective rate of 20%, be £400,000. Prior to the budget, the IHT charge in the same scenario would have been £0. What Does This Mean For Family Businesses? This is a significant change for any family business or farming business, and one that goes against well-established tax planning advice that has stood for the past 30+ years, and long-standing principles that many family businesses will have adopted (e.g. wills between couples that simply leave everything to one another on the first death, and to children on the second death). Additionally, any potential IHT will need to be funded. HMRC usually allow IHT to be paid over a period of up to 10 years, but HMRC do charge interest which currently stands at circa 7%. This means the IHT either needs to be paid from other assets in the estate of the deceased (reducing what is immediately available for distribution to beneficiaries), needs to be financed by the business (where a £400k liability on a business valued at £3m is significant), needs to be funded, along with interest, over time out of the cash flow of the business (a potentially significant long term overhead), or in the worst case scenario, may involve selling off assets (e.g. farmland in the context of farmers) to meet the liability, although this is more difficult for a traditional trading business where it may be virtually impossible to simply sell off part of the business. So what should family businesses be doing now and what trends will we see going forward? Whilst we are still waiting for the final form of the relevant legislation and digesting the finer detail of the proposed changes, family businesses will need to look at what arrangements they currently have in place and take advice on what may need to change. Valuation First and foremost, there is a need to understand the value of the business concerned. This may involve speaking to the business’ accountants to understand what the business is worth and what each individual shareholding may be valued at on death. Share valuations can be complex and depend on whether the interest held by each individual in the family business constitutes a majority or a minority interest. Minority interests are often valued on a “discounted” basis, which for IHT purposes helps reduce down the value of the shares held by the deceased below the figure that a straight-line pro-rata valuation would give. The lower the valuation, the lower the IHT exposure will be. Understanding the business valuation and the valuation of each individual’s shareholding helps understand if there is a potential issue as a result of the changes announced in the October 2024 budget, and if so, the potential size of the issue and IHT exposure. For example, a £3m business where the shares are split equally 5 ways between say mum, dad and 3 children, does not pose an issue at this point in time as each individual shareholding will be less than £1m. However, if you have a company valued at £10m, where the shares are simply held between spouses, then that presents a potential IHT issue under the new rules. Wills Will Need To Be Reviewed Wills which simply leave everything between spouses on the first death may no longer be appropriate. By way of illustration, if a husband and wife each own 50% of a family business worth £2m (simplistically £1m worth of shares each) then if the husband were to die, there would be no IHT charge on his £1m interest in the family business, if this was left to his wife under his will. However, at that point the wife would hold shares worth £2m, so if she were to subsequently die, there would be a £200,000 IHT charge on her death. Updated wills could provide that on the death of mum or dad, the shares are left direct to the children instead of being left to their surviving spouse. In that scenario if husband were to die first and leaves his £1m worth of shares to the children, then there would be no IHT charge on his death, and that would leave his wife with shares worth only £1m. As such, on her death there would be no IHT charge if she then left her shares under her will, to the children. Many wills that are already in place, particularly for business owners, will probably include some form of trust (often referred to as a “will trust” or “business property trust”), which comes into existence on death. These are designed to take in assets (such as shares in a family business) that are exempt from IHT. Given the changes, these may no longer be suitable, particularly where the value of the shares is in excess of £1m and therefore still attract a IHT liability. Accordingly, reviewing wills is an absolute must for anyone holding shares in a family business. Succession Will Need To Be Discussed Discussions around succession (and in particular the transfer of ownership – which may be different to day-to-day control or management) may need to be advanced. As a general rule, if a person gifts assets and then survives 7 years, then the gift of the assets is what is known as a Potentially Exempt Transfer (PET) and, providing they survive 7 years, the value of the assets won’t form part of their estate for IHT purposes. As a result, there is probably going to be a trend of gifting assets down to the next generation much earlier on as a PET to try and make the most of this “7 year rule”. Transfers of assets between spouses are also exempt. Therefore, if say one person holds most of the shares in a family business, then it is worth considering a transfer of some of those shares to their spouse, so each can make use of the first £1m free of IHT. This means family businesses will now have to actively discuss and plan ahead for succession of ownership, rather than simply waiting until someone passes. If it is agreed, ownership is to transfer early to the next generation, but day-to-day control or management, is to remain with the current generation. Articles of Association for the company, and Shareholders’ Agreements will then need to be drawn up (or updated if they already exist) to reflect the newly agreed structures and provide each generation with the appropriate protections. Insurance Could Potentially Help Insurance is something else to be considered. A life insurance policy could potentially provide the necessary funds to cover any IHT liability on family business or agricultural assets, without this having to be funded from ether the family business or elsewhere in the estate. Whilst there will be premiums payable that will be a cost to the business, and potentially, a benefit in kind for the individuals concerned, the premiums could well be far less than having to find 20% of everything over £1m. On the flip side, as we all know, insurance premiums increase as we get older and are impacted by medical conditions (such that for some, the insurance premiums will simply be too high to justify paying), however for the younger generation with a clean bill of health, this may be cost effective solution to provide some comfort that IHT is not going to be an issue if something unexpected were to happen. Trusts Trusts are another complex area but have historically been widely used in IHT planning. The usefulness of Trusts for IHT planning going forward, will very much depend on the small print following on from the budget, as the budget did hint at some specific measures aimed at trusts, which would potentially limit their usefulness. An example here was a budget announcement that for trusts set up prior to 30/10/2024, each trust would have the benefit of the £1mallowance, whereas going forward, the £1m allowance would be split across all trusts set up by an individual post 30/10/2024. This area is very much “watch this space”. Articles Of Association And Different Classes Of Shares Family Investment Companies (known as FICs) have share structures where typically the older generation have voting control via their shares, whereas the next generation tend to have shares that carry the capital value of the FIC and its assets/investments. These are established structures suitable for investments and wealth management and form an integral part of IHT planning – if done correctly. However, simply trying to mirror these types of provisions in an established trading company, where everyone simply holds “ordinary shares” is potentially fraught with danger, and if done incorrectly, may even lead to triggering tax charges in excess of the IHT effective rate of 20%. This is because, suddenly, reclassifying a full capital and full voting share into, say, a voting only share with no capital rights, could actually be deemed to be “value shifting” or a “deemed disposal” which would trigger other tax liabilities. Take Advice Above all else, this is a complex area, where rushing to do something, or doing something in isolation, may not work as envisaged or could result in unintended consequences. It is therefore vital that any agricultural or family businesses seek advice from professionals such as accountants, lawyers and independent financial advisors, who can advise holistically and in a joined up approach on firstly identifying any issues arising out of the October 2024 budget, and then explore the best options (which could include a package of different measures such as updated wills, gifting of shares, life insurance and the set-up of a trust) to help address the issues arising from Chancellor Rachel Reeves’ first budget. About The Author - Christian Mancier is a partner at Gorvins and head of the Family Business team. Find out more by visiting their website here

Responding to the Budget Statement by the Chancellor of the Exchequer, Dr. Roger Barker, Director of Policy at the Institute of Directors, said: “At first blush, there is precious little in the government’s first Budget which offers anything other than short-term pain for the business community. The government has chosen to impose a significant new tax burden on business as a means of achieving an immediate boost to its public sector spending priorities. The risk is that this will exert a negative impact on business confidence, with worrying implications for the economy’s future growth trajectory." “On the positive side, the government has made changes to its fiscal rules, in order to accommodate borrowing for the purposes of investment, and published a corporate tax roadmap, both of which we called for in our Budget submission. The protection of public spending on R&D and the announcement of various transport infrastructure projects are also welcome. The role of the National Wealth Fund in directing investment towards the industries of the future will hopefully make a positive contribution to the economy’s long-term growth prospects." “However, after a difficult few years, business leaders will undoubtedly find it hard to look beyond the imminent tax increases set out by the Chancellor, particularly the increases in employers’ National Insurance and capital gains tax." "Whilst these broad changes had been largely pre-briefed ahead of the statement, the magnitude of the National Insurance tax rise is greater than expected and further adds to the burden on business." “Business leaders can only hope that this is a big bang now, to wipe the slate clean, and that there will be no further shocks of this magnitude in the lifetime of this Parliament, enabling business to plan with more confidence.” On changes to employers’ national insurance, Dr. Barker added: “The changes to employers’ National Insurance represent a straightforward increase in business costs and take no account of whether a business is profitable or not. At a time when business confidence is low, hiring plans have already been hit by the government’s employment rights reforms, and the minimum wage is set to rise by more than inflation, this will hit employment prospects and earnings." “The government is seeking to make a distinction between taxes on working people and taxes on business, with the former being exempt from tax increases following manifesto commitments. However, this is a false dichotomy. The effects of higher National Insurance costs will hit profits in the near-term before being passed on in lower wages and lower employment. “Although the increase in the employment allowance will alleviate the hit for the smallest enterprises, there is no doubt that this increase in employers’ National Insurance is a major blow for most businesses.”

As flexible working continues to transform the UK workforce, BizSpace highlights the impact of new employment laws on employee rights, sick pay, and tax implications. With regulations around flexible working and statutory sick pay set to take effect within the next 100 days, employees need to be aware of how these changes may affect their financial and workplace entitlements. The Rise of Flexible Working in the UK Flexible working is now a central part of the modern workplace. An increasing number of UK companies are offering flexible options to meet employee demand for work-life balance, better productivity, and job satisfaction. With flexible working now established as a day-one entitlement, understanding its effects on taxes, workplace rights, and financial planning is crucial for employees. Key Employment Law Updates for Employees Sick Pay from Day One Under new regulations, statutory sick pay (SSP) is now provided from an employee’s first day, eliminating previous eligibility criteria. This change ensures that all employees, regardless of tenure, have access to SSP from day one, offering more financial stability during illness and reducing the risk of income gaps. Flexible Working as a Default Right Flexible working has become a right from the start of employment, enabling employees to request remote, part-time, or alternative schedules immediately. Employers must consider these requests fairly and provide clear reasons if they cannot accommodate flexible arrangements. This policy replaces the former six-month waiting period, making flexibility more accessible and transparent from the outset. Enhanced Rights and Compliance Focus Employees now benefit from stronger protections if their flexible work requests are handled unfairly or dismissed without legitimate reasons. As companies adjust to these new requirements, employees have a clearer pathway to request and expect fair consideration for flexible work arrangements. Flexible Working and Tax Implications Employees should also be aware of how flexible working arrangements can affect their taxes: Home Office Tax Relief : Those working from home may be eligible for tax relief on household expenses such as heating, internet, and electricity. However, eligibility is contingent on remote working being a necessity rather than a personal choice. Reduced Commuting Costs : Flexible working often reduces the need to commute daily, lowering travel costs. Employees who receive travel allowances may need to review how flexible working impacts any associated benefits on their tax returns. National Insurance Contributions (NIC): Employees working remotely, especially from locations abroad, may see an impact on National Insurance Contributions (NIC), depending on their residency status and work location. Adjustments in NICs could provide potential savings for those working internationally under certain circumstances. Why These Changes Matter for Employees BizSpace highlights that these updates bring significant improvements for employees, fostering a more supportive and balanced work culture. “Flexible working has moved from being a perk to a necessity, transforming workplaces across the UK,” say the experts at BizSpace. “Our flexible workspaces are designed to support this shift, giving employees the opportunity to work in adaptable, convenient spaces that meet their unique needs.” Employees stand to benefit from: Increased Financial Stability : With sick pay available from day one, employees gain added financial security during times of illness. Improved Work-Life Balance : The right to request flexible working from day one allows employees to design work arrangements that better fit their personal lives, reducing stress and improving overall satisfaction. Greater Clarity and Protection : Stronger protections are now in place to ensure that flexible work requests are fairly considered, providing employees with more transparency and support in securing arrangements that work for them. BizSpace believes these changes will help shape a balanced, adaptable future for UK workers, allowing them to thrive both professionally and personally. Flexible workspaces are a key part of this transformation, offering employees a space to work that suits their needs.