Simpsons Malt Limited has been recognised for its commitment to supply chain sustainability by winning the 2024 Farm Sustainability Assessment (FSA) Growing A Better Planet Award. The FSA is a globally recognised and trusted industry solution for facilitating supply chain collaboration. To celebrate the farmers and organisations demonstrating leadership and innovation in their efforts to continuously improve on-farm sustainability, the FSA launched its Growing A Better Planet Award. Simpsons Malt Limited has had a Farm Management Group verified to the FSA since 2020 featuring 419 directly contracted growers, with a further Farm Management Group featuring 340 directly contracted growers verified in 2022 following the company’s acquisition of W. N. Lindsay Ltd. The FSA Gold levels in each of these groups are 91% and 92% respectively. When reviewing this year’s shortlist, judges commended the company – which is also a Certified B Corporation – for how pivotal the FSA is to its sustainable sourcing requirements and how it uses the solution to deliver supply chain engagement, with the overall aim of achieving carbon neutral malting barley and distilling wheat production by 2030. Simpsons Malt Limited is aided in directly influencing sustainability practices on-farm by having agricultural merchanting division, McCreath Simpson & Prentice (MSP), integrated into the business. MSP supplies farm inputs to growers across Scotland and northern England and this has enabled strategic partnerships to be formed with major agricultural businesses, including Yara UK and OCI Nitrogen on the supply and trial of low-carbon fertilisers for harvest 2024 and BASF Agricultural Solutions on a unique carbon reduction and removals certification programme. Ben Gothorp, Sustainability Manager at Simpsons Malt Limited, said: “We are absolutely delighted to have won the FSA Growing A Better Planet Award, highlighting our commitment to driving sustainability throughout the malting barley and distilling wheat supply chains which, in turn, helps us – and also our distilling partners – tackle our Scope 3 emissions." “As both a malting and agricultural merchanting business, the FSA has been an important platform in helping us to engage directly with our malting barley and distilling wheat suppliers and we now have more than 750 growers verified to the FSA in two separate Farm Management Groups - both of which are more than 90% Gold level." “One of our overarching company objectives is to achieve carbon neutral malting barley and distilling wheat production by 2030, and we’re pleased that this global award recognises the positive steps we are making towards this.” Joe Rushton, FSA Director at SAI Platform, added: "Simpsons Malt Limited's dedication to sustainable practices and collaboration with farmers sets an excellent example in advancing agricultural resilience, and we're delighted to recognise their achievements with this award."

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.

A Staffordshire football team is preparing to celebrate its upcoming milestone anniversary in style, thanks to support from digger giant JCB. Lea Hall Football Club, which is based in Rugeley and marks 25 years of supporting youngsters into football next year, has invested in smart new kit for its Under 11s team thanks to a £1,000 donation from JCB. The club, which trains at Rugeley Leisure Centre, in Burnthill Lane, helps aspiring football players aged 4 to 16 with weekly training sessions as part of the Mid Staffordshire league. The Under 11s team, which has already had a great start to the season winning its first match 9-1, has now updated its home and away kit. Vice Chairman and Under 11s manager Anthony Wilby said: “We are all so proud of how hard every one of the team works. As a club we are committed to making sure every bit of sponsorship goes towards providing the kids with the very best opportunities. JCB’s generosity means a lot to the players." "When they walk on the pitch each weekend in smart kit it helps to build up their confidence and make them proud of their team. It has been a fantastic start to the season and as we prepare to celebrate our club’s 25th anniversary it is great to be stepping out in style.”

One of the many things to set family-owned businesses apart from other commercial enterprises is the question of legacy. However, in a wider sense, the concept of legacy runs deeper than simply the financial footprint a business leaves, and involves the degree to which it gives back to the wider community, either directly or indirectly. While business success and social interaction may seem distinct, the fact is that they are often closely intertwined. A large part of establishing a trusted reputation may be based squarely on traditional business virtues such as competence and value, but the modern consumer demands much more of their most trusted businesses than simply delivering what it says on the tin. Knowing What Is Important To Your Customers Issues such as environment, social and governance (ESG) and diversity, equity and inclusion (DEI) are increasingly driving consumer choices, as highlighted by PR Week, which cited research showing that: 78% of people felt that companies have a responsibility to be good citizens 71% of people expect companies to launch ESG action 46% of people would be prepared to pay more for better ESG performance 46% of consumers said environmental concern was the most important ESG issue 28% of consumers said that social action was the most important issue The growing demand for action on these issues is much more prevalent amongst consumers who are part of the Millennial and Gen Z generations (those aged between 12 and 43 years old) so any family business building for the future and with legacy in mind needs to focus on the kind of issues which consumers in this cohort regard as being vital to building trust. An in-depth report published by the Enterprise Research Centre took the form of a wide ranging review of existing evidence on the social-economic contributions that family businesses make in the United Kingdom. Almost 3 in 5 family businesses in the UK state that their long term goal is to make a contribution to the community and leave a positive legacy; and many avoid short term strategies that might impact negatively on stakeholders, pursue business strategies which improve community relationships and build positive relationships with external stakeholders. The instinct to give something back is hard wired into the way they operate! Engagement Any family business wishing to give back to the wider community needs to carefully plan the various ways in which it engages, rather than simply relying on ethos and instinct to lead it in the right direction. A good start is an audit of existing community engagement activities and any planned additional activities. Ask yourself whether the engagement with the community can be delivered via general business activities or needs a specific initiative, what resources will be required, and whether extra engagement value can be added to anything you’re already doing. Then maximize the chances of delivering value and impact by: identifying the communities or individuals you want to reach on the basis of factors such as geography or common interests. Alternatively, your target could be a community or group with a link to your employees; another business or an advocacy group that resonates with you. identifying the prospective benefits you hope to gain from engagement. As well as increased sales driving higher profits thanks to the appeal of ESG, or the ability to attract the best new recruits, for many family businesses, the motivation behind engagement will involve wider legacy-based impacts such as enhancing the family’s reputation as an important cog in the local community and as people who give back to society. Actions designed to give something back will also help to embed the business’ values across the business and into the next generation. planning your activities in detail on the basis of needs identified in the wider community and the ability of your business to meet those needs. establishing a system of on-going monitoring to evaluate the impact of what you do against the resources needed making the most of the marketing potential of your activities by reporting across a range of channels, from in-depth reporting to social media postings - within your business as well as externally, as this will help to ensure buy-in for your on-going efforts ESG Regulations The UK currently lacks a unified ESG law or regulation, relying instead on a mix of domestic and EU-derived laws, many of which are not explicitly focused on ESG. The Companies Act serves as a principal regulation for ESG disclosures, mandating annual reports from large companies meeting specific criteria, such as having over 500 employees or exceeding £500 million in turnover. However, recent updates to the Act now also require these companies to include sustainability details, such as energy use and carbon emissions, in their reports. Certain sectors and large organisations face industry-specific standards, such as the optional Sustainability Reporting Standard in the housing sector, pointing towards a more specialised approach to ESG reporting. The introduction of Sustainability Disclosure Requirements (SDRs) in 2023, marked a significant step towards more detailed ESG reporting in the UK, with mandatory disclosure anticipated by 2025. Whilst mandatory ESG disclosures are predominantly only required of large companies, there is a trend towards expanding these obligations to include smaller firms. Some smaller companies are starting to report on ESG matters voluntarily, either to anticipate future regulatory requirements or in response to investor demands and to appeal to a more informed workforce. This shift highlights a growing trend in the importance of ESG reporting across businesses of all sizes and sectors. Should you require assistance or support in any aspect of your family business, the team at Buckles  can offer impartial, experienced guidance on all aspects of ownership transferal. Contact us now to discuss the options available.

Nestled in the rolling hills of the Scottish Borders, Stobo Castle Health Spa stands as a majestic symbol of history, luxury, and rejuvenation and is now recognised as one of the most renowned destination spas in the UK. The story of Stobo Castle’s transformation into a wellness retreat is one of vision, perseverance, and a deep respect for the history that has shaped it. Paul Andrews spoke to Stephen Winyard and his wife Mandy, the current owners of Stobo Castle and the next generation, Mitchell, Elliott and Taylor who are all actively involved in the business today. The story of Stobo Castle begins long before its days as a luxury spa. The land surrounding the castle dates back thousands of years when the original building would have been used a defensive fortress to protect the Scottish Borders from invading forces. Despite changing hands many times over the years, and falling into disrepair before the purchase by the Winyard family, much of the history still shapes the castle and the estate today. The estate’s picturesque setting, overlooking tranquil lochs and surrounded by lush woodlands, adds to its charm, making it a real symbol of the grandeur, beauty and opulence of the Scottish Borders but like many grand estates, Stobo Castle faced a period of uncertainty in the 20th century. Following World War II, the upkeep of such vast properties became increasingly difficult, and many Scottish estates either fell into disrepair or were sold off. By the 1970s, Stobo Castle’s future was in question and it was unclear what would become of this once-great property. As Stephen explains, “During the war my father Robert was a RAF pilot instructor and during the early days of his relationship with my mother, Gaynor, she visited him in Errol where he was based and this is where her love of Scotland undoubtedly began. My father then had a number of postings overseas so they travelled together and during their travels my mother began her training in beauty therapy which became a real passion.” “I was pursuing my own career and was working in the casino industry in the Bahamas when I got a call to say that my mother had bought a derelict castle in Scotland! She had always wanted to run a business in the field of beauty therapy and had been looking for a property to base the venture and her vision was to create the first health farm in Scotland,” continues Stephen. “It seemed like a great opportunity to be involved in something truly innovative and the lure of being part of the ‘health farm’ revolution proved too hard to resist,” he continues, “so I returned to Scotland to pursue the dream and am to this day probably the only person who has ever purchased a one-way ticket from Nassau to Peebles!” At the time, the concept of a luxury spa hotel was relatively new in the UK, and the idea of turning an ancient Scottish castle into a modern wellness retreat was ambitious. But the Winyards were committed to blending the historical beauty of the castle with the comforts of a modern spa. They began extensive renovations to transform the interior into a space that would offer guests both relaxation and indulgence, while preserving the historic charm that made the castle so special. As Stephen continues, “We worked really hard to transform the castle but we did what we set out to do and in 1978, three years after the purchase, Stobo Castle opened its doors as Scotland’s first health farm. The transformation resulted in opening with sixteen bedrooms as a place for health and relaxation. It was also a place for treatments and my mother was the pioneer of the spa industry in Scotland, entrepreneurial and driven to fulfil her ambition. Guests would arrive and be given a consultation, their medical history noted and a diet agreed with the aim for every guest to leave Stobo utterly relaxed, looking trim, feeling vibrantly alive and radiating good health,” he continues. “Once the consultation was concluded, a programme of treatments was agreed with each guest having a minimum of five hours treatments a day including massage, steam and sauna baths, yoga sessions, aromatherapy and a range of other health-promoting activities.” The early success of Stobo Castle as a destination spa was due in large part to its innovative offerings. From the beginning, the spa focused on combining the latest in health and beauty treatments with traditional Scottish hospitality. Guests could relax in opulent surroundings while enjoying treatments designed to promote both physical and mental well-being, an idea that was revolutionary at the time, all set in the beautiful and tranquil setting of the Scottish Borders. Like many families in business, the Winyards had a long-term vision for Stobo Castle and the business from day one has been built on three pillars: 1. Continuous reinvestment in guest facilities 2. Continuous training and development of staff 3. Continuous promotion of the brand These pillars continue to be the drivers of the business. Stephen Winyard, took over the management of the hotel in the early 1990s and continued to build on his parents’ legacy. Under his leadership, Stobo Castle underwent a new phase of expansion, solidifying its position as one of the leading destination spas in the UK. Stobo Castle remains very much a family business with Stephen and Mandy at the helm today. As Mandy explains, “Stephen and I lived in a cottage here in Stobo and I initially worked from the age of 16 as a spa assistant, trained and qualified as a beauty therapist and now am responsible for the retail side of the business.” The business further evolved in 2000 with the passing of both Stephen’s parents and the decision was taken to remove the consultations that all guests had previously had upon arrival and Stephen networked at spas around the country, capturing ideas and innovations to bring back to Stobo, resulting in continuous improvement and the evolution of the business from a health farm to a destination spa. As Stephen continues, “We need to constantly invest in the business, the facilities and the brand and in 2003 we built a new spa which was vital for us to maintain our place as a destination spa.” This investment saw the completion of a £5 million state-of-the-art spa with 40 treatment rooms, hydrospa, experience facilities, 25 metre infinity pool and a fully equipped gym and exercise studio. Stephen also spearheaded the access to Stobo’s Japanese Water Gardens, a stunning addition to the castle’s grounds that offer guests a serene and tranquil space to unwind. The gardens, featuring waterfalls, ponds, and traditional Japanese landscaping, add to the sense of calm and rejuvenation that permeates Stobo Castle, blending Eastern philosophy with Scottish natural beauty. Family involvement remains very much at the heart of the Stobo experience and although difficult to let go, it was a logical step for their son Elliott to take over Stephen’s role in the business, a transition that took place gradually over the course of eighteen months with Elliott shadowing Stephen and learning on the job. As Stephen adds, “It was, and still is, important for the next generation to flourish and for them to be seen to be doing the job and to become an integral part of the brand, and the journey that Elliott and I went on during that transition was an important part of that process.” Today, Elliott has been joined in the business by brother Mitchell who is Stobo’s archivist and has spent time collating the history and evolution of the business and is also actively involved in projects and sister Taylor who gets involved in the operational aspects of the business too. Stobo Castle continues to deliver experiences to guest and today is regarded as one of the finest destination spas in Europe, a reputation that has been solidified by numerous awards and accolades. Over the years, Stobo has been recognised for its exceptional service, luxurious accommodations, and world-class spa treatments. In addition to its spa facilities, Stobo Castle is celebrated for its gourmet cuisine, offering guests healthy, locally-sourced meals designed to complement the wellness experience. The combination of top-tier treatments, luxurious surroundings, and outstanding service has made Stobo a firm favourite for those wanting to experience the spa. The past few years have seen plenty of change and it has not always been easy. As Stephen adds, “We had to completely close during the pandemic and when it came to being allowed to reopen there were so many hurdles to overcome. It was not easy but being a family business certainly helped as we worked together and shared the load, and we have a shared vision to deliver the best experiences to our guests which was always the most important concern.” As Stobo Castle looks to the future, it continues to innovate and evolve while staying true to its roots. In recent years, Stobo has embraced more eco-friendly practices, reflecting a growing awareness of sustainability within the hospitality industry. The spa has introduced organic treatments and has committed to reducing its carbon footprint by implementing energy-saving measures and sourcing more sustainable products. Stobo Castle remains a family-run business, with the Winyard family’s passion for wellness and hospitality still at the heart of its operations. Their continued investment in the property and its facilities ensures that Stobo will remain a leading destination for wellness and relaxation for years to come. As Stephen continues, “Now the next generation are actively involved in running the business there is always a family presence which is so important, and we have grown to over 200 staff so are now a big business to manage and I am delighted that the family presence now continues into the next generation. I have put my stamp on Stobo Castle, built on the vision and legacy of my mother so that it lives on and ensured that we have created a delightful destination spa.” “We really have created something very special that our guests, many of whom return time and time again, love. Reinvestment is important to keep us at the top of our game and the location that we are in really does add to the unique and unequivocal charm of Stobo Castle." The story of Stobo Castle is one of reinvention, vision, and dedication. From its origins as a stately home to its modern incarnation as a world-class spa, Stobo Castle has retained its historical charm while continually evolving to meet the needs of contemporary guests. Whether visitors come for a weekend of pampering or a longer wellness retreat, Stobo Castle offers an escape from the stresses of everyday life, inviting guests to relax and rejuvenate in one of Scotland’s most beautiful settings. Steeped in history yet constantly moving forward, Stobo Castle stands as a testament to the enduring appeal of luxury, wellness, and the serene Scottish countryside, and to a family dedicated to providing high standards of service and continued reinvestment for the future. The next generation are aware of the history that has gone before and ready for the challenges that lie ahead. “We want to be the best spa in the country,” adds Elliott. “It is also important to maintain the legacy that has already been established and to use it to build a better business going forward,” explains Mitchell. “We need to continue to work together, fully committed to doing what we need to do,” adds Taylor. As Stephen concludes, “As Chairman I am delighted to say that today, Stobo stands proud, a magnificent example of Scottish Baronial architecture and an oasis of hospitality for all our guests and staff." "In fact, Stobo has become the amalgam between history and health and something that I am proud to have helped create.”

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:

Croots Farm Shop in Derbyshire has won two awards in this year’s Great British Food Awards. The farm shop near Duffield scooped a silver medal for its dirty brisket burger in the burgers category and a bronze medal for its lamb and mint large pie in the savoury bakes category. These are the latest in a long line of Croots Farm Shop products which have won accolades in national awards. In the Great British Food Awards alone, last year Croots scooped a silver medal for its steak and ale pie and a gold for its Croots pork pie – making the pork pie the joint national winner in the savoury bakes category. Croots Farm Shop’s lemon drizzle cake and its Bakewell tart have both previously won the best sweet bake in the Great British Food Awards, in 2021 and in 2015 respectively. Kay Croot, who runs the farm shop at Farnah House Farm, Wirksworth Road, said: “We are so excited to hear that two of our products have won awards on the national stage. The Great British Food Awards has entries from across Britain, so we were up against significant competition. To learn that our dirty brisket burger won a silver award, and our lamb and mint large pie took a bronze medal is wonderful for the team here at Croots, who make and bake such a stunning range of great-tasting products for our customers.” The Great British Food Awards were launched in 2014 to celebrate the country's finest artisanal produce, as well as the hard-working people behind the scenes. The judging panel comprised celebrity chefs, Michelin-starred restaurateurs, popular food critics, influencers, buyers and food writers, all known for their love and knowledge of British food and produce. The farm shop is open Monday to Saturday from 9am to 5pm and on Sundays and Bank Holidays from 10am to 4pm. The café is open Monday to Saturday from 9am to 4pm (food served until 2.30pm), and on Sundays from 10am to 3pm (food served until 3pm).

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

For family businesses, the question of “what’s next?” can be as complex as it is personal. Many families are currently weighing whether to transition the business to the next generation or consider a partial or complete sale. With recent changes to Business Property Relief (BPR) and Agricultural Property Relief (APR), there’s a renewed need for thoughtful planning. Enter “patient capital,” a form of investment that offers family businesses the time, flexibility, and stability to grow at their own pace, allowing them to keep sight of their long-term vision and legacy. This type of investment, often provided by private investment or family offices, is proving a valuable option for families looking to balance today’s challenges with tomorrow’s opportunities. Today, an increasing number of family businesses are being drawn to patient capital as they consider their next steps. Why Patient Capital? Patient capital is different from conventional financing, like bank loans or traditional private equity. It’s designed to support businesses over a longer timeframe, allowing for strategic growth without immediate pressure to deliver returns. Instead, the focus is on sustainable, measured growth that respects the unique values and goals of the family business. For many family-owned businesses, this approach is appealing. Patient capital enables them to develop without quick-return demands, helping the family stay connected to both the heritage they’ve built and the stability they wish to maintain. How Patient Capital Supports Family Businesses Patient capital’s strength lies in its adaptability and alignment with the values that matter most to family businesses: Creating a Path for Generational Transition Many families want to see their business continue under the stewardship of the next generation. Patient capital offers a financial base that supports a steady, well-planned transition, giving the next generation both time and resources to step into leadership confidently. Providing Options for Gradual Ownership Transition For families who are considering liquidity but not a complete exit, patient capital can be structured to accommodate gradual transitions, like management buyouts or minority stake sales. This approach allows families to reduce risk without stepping away completely, making space for thoughtful change. Respecting Legacy and Values Patient capital providers often appreciate the importance of continuity and tradition in family businesses. By understanding the value of legacy, they offer the expertise families may seek without disrupting the identity or culture that has been carefully built over generations. The Impact of BPR and APR Changes on Family Planning The recent changes to Business Property Relief and Agricultural Property Relief have created new tax considerations for families thinking about succession. These reliefs have traditionally helped families manage tax obligations during generational handovers, supporting the viability of family succession. Now, as the regulatory environment changes, many families are reassessing whether to continue in this direction or explore other options, including partial or full sale. Patient capital may offer a way forward in this new environment, providing tax-efficient structures and flexible funding options that can help families manage their immediate needs while preserving their long-term plans. How Patient Capital Compares to Traditional Finance Choosing the right financial approach is often about much more than funds; it’s about protecting the family’s values, legacy, and vision. Here’s why patient capital may stand out to families at this stage: Customised Capital Structures Patient capital can be adapted to the unique needs of the family business, with options for flexible share classes and tax efficiencies that benefit both family members and outside stakeholders. This ability to tailor the structure is particularly helpful when supporting multi-generational interests or accommodating diverse family goals. Expertise and Strategic Input Many patient capital providers have years of experience in family business matters, offering guidance on governance, succession, and growth. They often bring in knowledgeable advisors and can introduce proven individuals to enhance the leadership team, respecting family values and lending valuable perspective. Time for Meaningful Growth Unlike traditional private equity, which is focused on short-term gains, patient capital supports a steady growth approach. It allows families to prioritise sustainable growth without the immediate return pressures that can sometimes disrupt the natural evolution of a family business. Considering Patient Capital for the Road Ahead For family businesses planning the next stage of their journey, patient capital may offer a pathway that respects their legacy, goals, and values—whether the family envisions passing the business down, exploring a partial sale, or staying closely involved in the company’s future. In a time of economic and regulatory change, patient capital can provide a way for families to maintain control over their business’s evolution while adapting to new realities. For those at the crossroads of succession and sale, patient capital is an option worth exploring—an approach that understands the family’s past and supports its future with stability and thoughtfulness. About the author: David Twiddle, Managing Partner at TWYD & Co , is a seasoned entrepreneur and family business owner with direct experience in generational transitions, as well as partial and full exits through trade sales and private investment. Today, David advises families on the ‘people’ side of family business, collaborating with advisors and finance providers to create solutions that meet both immediate and long-term family needs while safeguarding their values and preserving their legacy.

As family-owned companies grow, they face increasingly complex challenges, and none may be as important as the issue of executive remuneration. Attracting and retaining top talent while ensuring that pay structures support long-term business growth is a delicate balance. How a family business handles executive pay can either accelerate leadership development and smooth generational transitions or serve as a roadblock to future success. Advantages of Family-Owned Firms in Executive Pay One of the distinct advantages family businesses have is the freedom to design their executive pay packages. Unlike public companies that are under constant scrutiny from shareholders, private family businesses can create tailored, long-term incentive plans. This flexibility allows remuneration to be strategically aligned with the unique goals and values of the family enterprise. There’s no pressure to follow the same "one-size-fits-all" approach often seen in public firms, where plans are often driven by external expectations rather than what’s best for the company. Moreover, family businesses can offer executives a more stable environment when it comes to equity-related remuneration. With private stock valuations less affected by the fluctuations of the public markets, long-term incentives tied to the value of the business become more meaningful. This stability can be very appealing to senior executives who prefer a long-term view over the short-term volatility often associated with public companies or the short-term value maximisation preferred by private equity. Perhaps one of the most underrated advantages is the culture within family businesses. The sense of legacy and long-term thinking creates a work environment that feels more personal and less political than what executives might experience in larger, more bureaucratic public firms. This positive culture often becomes a key selling point for talent looking for meaningful work and long-term loyalty. The Challenges of Executive Pay in Family Businesses However, there are challenges as well. One common issue is that remuneration governance can be more informal in family firms. Without the independent oversight required in public companies, discussions around executive pay can become highly personal and, at times, contentious. Many family businesses lack a structured process for setting pay levels, and the involvement of family members in these discussions can complicate matters. In some cases, the executive remuneration packages in family firms are not as transparent as they could be. Executives may not fully understand the total value of their remuneration, particularly with regards to long-term incentives or unique features like phantom stock. This can lead to confusion and dissatisfaction, as the full picture of their rewards might not be clear. Another significant challenge is offering competitive long-term incentives. Public companies often have deeper pockets and are more willing to share equity with senior management. Family businesses, understandably, may be reluctant to dilute ownership, which can make it harder to offer the same level of rewards. Yet, remuneration that falls short of market rates can make it difficult to attract and retain the best talent. How to Get Executive Remuneration Right So how can family businesses improve their approach to executive pay while playing to their strengths? Formalise the Pay Governance Process : While it may be tempting to keep things informal, introducing a clearer structure to remuneration discussions can make a big difference. This might involve establishing a remuneration committee, even if it's only made up of family members, and ensuring they are equipped with up-to-date market data and best practices. Communicate Clearly and Transparently : Make sure executives fully understand the value of their remuneration packages. The benefits of unique pay structures can only be felt if they’re appreciated. Clarity around how long-term incentive plans work is essential for aligning executive goals with those of the company. Develop a Cohesive Remuneration Strategy : Don’t just rely on the goodwill and loyalty of long-serving executives. Family culture is important, but it doesn’t replace competitive remuneration. A well-thought-out remuneration strategy should cover base salary, annual incentives, long-term incentives, and benefits, ensuring that all elements fit together coherently. Stay Informed About the Market : Just because a family business operates differently from its public pr private equity counterparts doesn’t mean it should ignore the market. Regular benchmarking against comparable firms, both private and public, ensures that remuneration remains competitive and relevant. A Balanced Approach to Remuneration In the end, family-owned companies have a unique opportunity to craft executive remuneration packages that align with their long-term vision and values. By leveraging their flexibility, offering a compelling culture, and maintaining a clear, structured approach to pay, they can attract the talent needed to secure the business's future success. Balancing these advantages with thoughtful solutions to common challenges is key to winning the war for talent and continuing to grow across generations. About the Author: David Twiddle is Managing Partner at TWYD & Co , a private talent advisory firm partnering with founders, family businesses, and family offices. David and his team specialize in recruiting non-family executives and navigating the unique people challenges within family-owned and closely held enterprises.

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.