Key Updates: Tax Deadlines, Market Trends, and Workplace Wellbeing

Welcome to our roundup of the latest business news for our clients. Please reach out if you’d like to discuss how these updates might impact your business. We are here to support you!

Base Rate Drops to 4.75%

Last week, as anticipated, the Bank of England reduced the interest base rate to 4.75% due to easing inflationary pressures. Although the Bank expects inflation to slightly increase to around 2.75% in the next year, they forecast it will stabilize near their 2% target afterward.

In their quarterly report, the Bank expressed a cautious stance on further rate cuts. They indicated that while rates are likely to continue to fall gradually, they don’t foresee another cut at the upcoming December 19th meeting unless conditions evolve unexpectedly.

For businesses, this rate cut can have varying impacts depending on financial strategies and market positioning. While a decrease in rates may benefit borrowers, it could also influence investment planning. Importantly, as inflation appears to stabilize, businesses may find more certainty in planning for the upcoming year.

For further details, see: Bank of England Monetary Policy Report, November 2024.

If you’d like to explore how this base rate change might specifically impact your business, please contact us – we’re here to help!

Agricultural and Business Property Relief: Key Budget Changes

The recent Budget introduced significant changes to inheritance tax reliefs, particularly affecting agricultural and business property reliefs, which have raised concerns among farmers and business owners across the UK.

What Are Agricultural and Business Property Relief?

• Agricultural Property Relief (APR): Provides inheritance tax relief when farmland is passed down to the next generation, currently with no limit on the value of the land.
• Business Property Relief (BPR): Offers similar relief on business assets within a person’s estate, also with no financial cap.
• Both reliefs have helped families pass down valuable assets without substantial inheritance tax burdens.

What Changed in the Budget?

The Autumn Budget introduced a new £1 million cap for 100% relief:

• 100% relief will only apply up to £1 million across APR and BPR combined.
• 50% relief will apply to the value exceeding £1 million.
  
  Additionally, certain shares, such as those designated as “not listed” on recognised stock exchanges like AIM, will now only qualify for 50% relief regardless of qualifying status as agricultural or business assets.

When Will the Change Take Effect?

The change is set to take effect from 6 April 2026, providing a window for potential planning or asset transfers before the new limits are enforced.

Will Inheritance Tax Be Due on Agricultural Assets Above £1 Million?

Not necessarily. Inheritance tax is calculated by first applying APR and BPR relief, then deducting any applicable allowances, such as:

• The nil-rate band (£325,000),
• The residence nil-rate band (£175,000).

What Should You Do Now?

If your estate may be impacted, now is a good time to:

1. Evaluate the current value and composition of your estate,
2. Consider estate planning strategies to potentially reduce inheritance tax exposure.

If you need assistance with estate planning or would like to discuss strategies to mitigate these changes, please reach out – we’re here to help!

Self-Assessment Tax Returns: Countdown to 31 January

HM Revenue and Customs (HMRC) is reminding taxpayers of the fast-approaching 31 January 2025 deadline for self-assessment tax returns. With over 3.5 million returns already filed, HMRC expects more than 12 million to be submitted by the deadline.

Benefits of Filing Early

• Avoid Last-Minute Stress: Submitting early reduces the pressure of a last-minute rush.
• Budgeting: Knowing your tax amount in advance gives you time to prepare for payment.

New to Self-Assessment?

If you’re required to complete a self-assessment tax return for the first time, registration is required before you can file. The registration process can take a few days, so it’s wise to start early.

Need Help?

If you’d like assistance with completing your tax return, please contact us, we’re here to help make the process as smooth as possible.

For more information, see HMRC’s guidance.

UK Export Opportunities in the Caribbean

The recent UK-Caribbean Trade and Investment Summit in London highlighted expanding trade opportunities between the UK and Caribbean nations, showcasing a 36% growth in UK exports to CARIFORUM countries, reaching £2.7 billion as of April 2024.

Organised by UK Export Finance (UKEF), the summit brought together officials and investors to promote business partnerships, emphasizing the UK’s commitment to supporting export growth in the Caribbean. UKEF has been instrumental in helping UK businesses by providing billions in financial backing for projects across Caribbean markets, with financing extended to countries such as Jamaica, Guyana, Trinidad & Tobago, Grenada, St Lucia, and St Kitts & Nevis.

Success Stories

• Severfield Steel: Secured a £4.5 million contract to supply materials for a hospital in Georgetown, Guyana.
• Lagan Construction: Completed a $7 million resurfacing project at Norman Manley International Airport in Jamaica and has more work planned in Bermuda.

Why Consider the Caribbean Market?

The Caribbean’s rapidly growing economies offer numerous opportunities, particularly in construction, healthcare, and infrastructure development. With UKEF’s financial support, UK businesses can confidently pursue projects in these vibrant markets.

For more information, visit UK-Caribbean Trade and Investment Summit.

New “Failure to Prevent Fraud” Offence for Large Organisations

Effective from 1 September 2025, the Economic Crime and Corporate Transparency Act introduces a new corporate offence of “failure to prevent fraud.” This legislation targets large organisations that benefit from fraudulent acts committed by their employees, agents, subsidiaries, or associated persons on their behalf.

Definition of a Large Organisation

An organisation falls under this law if it meets two out of three criteria:

• More than 250 employees
• More than £36 million in turnover
• More than £18 million in total assets

These requirements apply to the entire organisation, including subsidiaries, regardless of the organisation’s headquarters or location of subsidiaries.

What This Means

The offence aims to hold large organisations criminally liable if they fail to prevent fraud within their ranks, echoing the “failure to prevent bribery” laws from 2010. If prosecuted, organisations must demonstrate that they had reasonable measures in place to prevent fraud at the time of the offence. Fraud can include:

• Dishonest sales tactics
• Concealing critical information from consumers or investors
• Unethical practices in financial markets

Guidance and Urgent Steps

Guidance for compliance, developed with contributions from the Serious Fraud Office (SFO), Financial Conduct Authority (FCA), HMRC, and Crown Prosecution Service, is now available. Nick Ephgrave of the SFO emphasizes the need for organisations to implement fraud prevention strategies immediately, as failure to comply could result in criminal investigations.

With fraud making up about 40% of crime in England and Wales, these measures are a significant step in protecting businesses and the public.

For further details, visit: Offence of Failure to Prevent Fraud – Guidance.

Financial Markets Respond to Trump’s Presidential Win

Following Donald Trump’s presidential election victory, financial markets showed a positive response. The US dollar appreciated against other currencies, and the FTSE 100 index rose by 1% on Wednesday afternoon.

Market Reaction to Trump’s Economic Plans

The market optimism stems from Trump’s proposals to cut taxes and increase tariffs, both of which are expected to drive up inflation and slow the pace of interest rate cuts. Higher US interest rates tend to offer better returns on savings and dollar-denominated investments, attracting investors to the US market.

Implications for the UK Economy

However, Trump’s trade-related proposals could negatively impact the UK economy, potentially slowing growth. The situation underscores the volatility of financial markets, which react quickly to policy shifts and political events.

Staying Informed About Market Trends

Monitoring financial markets can be valuable, as they affect commodity prices, exchange rates, and interest rates. This awareness can help you make informed decisions around managing cash flow, borrowing timing, and understanding consumer confidence trends. By staying updated on market trends and their underlying causes, businesses can better anticipate and prepare for shifts in consumer behaviour and cost implications.

For more on these developments, visit BBC News.

Funding Granted to Small Businesses for Rural Transport Projects

The UK government has awarded £1.2 million through the Rural Transport Accelerator Fund to support transport innovation in rural areas. Eight small businesses each received £150,000 to develop digital tools and solutions aimed at improving connectivity for rural communities. These projects, set to be trialled in locations from Norfolk to Scotland, will collaborate with local authorities to enhance rural job opportunities, community well-being, and the local economy.

Key Projects and Innovations

• You.Smart.Thing in Warwickshire will trial a demand-responsive tool to help residents without car access find shared or community transport options.
• UrbanTide in Fife will map patient journeys to NHS hospitals, assisting healthcare providers in addressing transportation gaps for those needing medical services.
• Other projects will include predictive tools for rural transport needs and initiatives to create safer cycling routes using recycled car tyres.

Future of Roads Minister Lilian Greenwood highlighted that these projects will address unique rural transport challenges, making it easier for residents to access essential services, from grocery shopping to hospital visits.

For more details, visit the Government News Page.

CMA Provisionally Approves Vodafone and Three Merger

The Competition and Markets Authority (CMA) has given provisional approval to the proposed merger between Vodafone and Three, with certain conditions. After an investigation into potential competition concerns, the CMA has suggested that the merger could proceed if specific commitments are met, which include:

• Network Upgrades: A commitment to enhancing the merged company’s network, including a more extensive 5G rollout across the UK.
• Customer Protections: Short-term safeguards to address concerns of potential price increases and protect mobile virtual network operators (MVNOs) that rely on the larger networks.
  

The merger would consolidate the primary mobile providers from four to three, joining O2 and EE as the largest players. Despite initial worries, the CMA believes that with these measures, the merger could lead to more balanced competition among the three remaining networks in the long term.

The CMA is accepting responses this week and expects to reach a final decision by December 7th.

For more information, visit the BBC News article.

ICO Guidance on Using AI for Recruitment

The Information Commissioner’s Office (ICO) has released guidance to address key data protection concerns related to the use of artificial intelligence (AI) tools in recruitment. While AI can increase hiring efficiency, the ICO warns of risks like potential bias against job seekers and privacy issues. Following an audit, the ICO issued nearly 300 recommendations to AI providers, emphasizing the need for improvements and ongoing compliance monitoring.

The ICO advises organisations to ensure their AI providers follow data protection laws and suggests considering the following questions:

1. Data Protection Impact Assessment (DPIA): Have you completed one to assess risks?
2. Lawful Basis: What legal basis do you have for processing personal information?
3. Documented Responsibilities: Are responsibilities and processing instructions clear and documented?
4. Bias Checks: Has the provider ensured the tool is free from unmitigated bias?
5. Transparency: Is the use of AI transparent to candidates?
6. Processing Limitation: Are you avoiding unnecessary data processing?
   

Organisations are encouraged to review these questions in detail to ensure compliance and fairness when implementing AI in recruitment. For further details, see the full ICO guidance here.

Stress Awareness Week Reminders from HSE

During Stress Awareness Week 2024, the Health and Safety Executive (HSE) reminded employers of their legal responsibilities to prevent work-related stress and promote good mental health in the workplace. According to HSE statistics, 17.1 million working days were lost to stress-related issues in 2022/23. Employees suffering from stress, depression, or anxiety took an average of 19.6 days off work each year, highlighting the significant impact on productivity.

Employers are legally required to:

• Conduct risk assessments for stress and act on the findings.
• Implement measures to prevent work-related stress.
• Document the risk assessment if employing five or more people (though it is recommended for all businesses, regardless of size).

The HSE offers free resources, including online training, a risk assessment template, and a talking toolkit to help guide conversations with staff about mental health.

For more information, visit the HSE’s full guidance here.