The ERB is not expected to pass into law until this summer at the earliest and many of the reforms will not take effect until 2026.
However, Victoria Mitchell, partner and head of employment at Farleys, believes the changes are already at the forefront of many business owner’s minds.
She says: “The government announced plans for a huge overhaul of existing employment laws in its Employment Rights Bill as well as increases to the National Living Wage rate and employers’ National Insurance contributions.
“Some of these will come into effect as of April, while other changes as part of the bill are still going through Parliament.”
She advised employers to review their staffing structures as well as their employment contracts, policies and procedures “to ensure they are compliant with any changes in the law.”
In her Autumn Budget statement, the chancellor maintained the £1m lifetime limit on capital gains from the sale of all or part of a company under business asset disposal relief (BADR).
However, BADR will rise from 10 per cent to 14 per cent this April and to 18 per cent from 2026/27.
This could have a significant impact on asset distributions to shareholders and insolvency practitioners are witnessing a ‘rush’ by shareholders to have their company put through a Members Voluntary Liquidation process before this date.
It is a process that enables shareholders of a Expert View
PROTECTION FROM THE UNEXPECTED
By Katy Shakeshaft, Senior associate, Farleys Solicitors
One thing that many business owners don’t consider when planning for their business is what happens if you become incapacitated due to illness, accident or other unforeseen circumstances.
One of the most effective ways to ensure your business can continue operating smoothly in your absence is by setting up a Lasting Power of Attorney (LPA).
For business owners, the Property and Financial Affairs LPA is crucial as it ensures your financial and business matters are handled in your absence.
The key benefits of an LPA are:
• Business continuity – An LPA allows your appointed person to step in and manage critical aspects of your business, such as handling finances, signing contracts and making operational decisions.
• Preventing legal and financial complications – Without an LPA, your family or business partners may need to apply for a deputyship through the Court of Protection, this costs nearly three times as much as an LPA and is a time-consuming process which often takes more than 12 months.
• Protection of business value – A business is often tied to its owner. In the event of incapacity, without clear instructions through an LPA, your company’s value and reputation could suffer due to leadership uncertainty. A well-drafted LPA ensures continuity and protects the business’s financial health.
• Minimising stress for loved ones – It provides a clear legal framework for decision-making, reducing confusion and ensuring business decisions are handled by trusted individuals, easing the burden on family and business partners.
solvent company that has ceased to trade to extract the assets and have them distributed to company shareholders.
April will also see the abolition of the Furnished Holiday Lettings (FHL) regime, removing a longstanding tax advantage that treated qualifying holiday lets as trading rather than investment properties.
Holiday let owners will see their properties aligned with standard residential lettings for tax purposes. Profits will be treated as property income rather than trading income, restricting loss relief and changing the calculation of capital gains tax.
Those currently claiming capital allowances will need to review their position, though transitional provisions protect existing allowances. The changes particularly affect owners who planned to claim BADR on an eventual sale, as this 10 per cent rate will no longer be available.
Looking ahead to the Spring Budget, business advisors say company bosses need to be ready to act to mitigate any announcements that might adversely impact on their operations.
Chris Worden, says: “The Spring Budget often sets the tone for the year ahead, impacting everything from business rates to funding support and cost pressures.
“Directors should pay close attention and be ready to adapt quickly to any policy shifts that could affect their bottom line.”
...but we believe the law should be
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LEGAL VIEW
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