Category: Resources

Mansion Tax in UK to Affect 200,000 Homes Starting in 2028

Posted on by Nida Umair

The UK government has introduced the High Value Council Tax Surcharge, also known as the mansion tax, which will impact up to 200,000 properties. This tax targets residential homes valued over £2 million, mainly in London, the South East, and the East of England. The policy aims to raise substantial revenue and tackle housing inequality. In this article, we’ll explain what the mansion tax in UK entails, who it affects, and how property owners can prepare for upcoming changes.

What is Mansion Tax?

The official name of the tax is the High Value Council Tax Surcharge (HVCTS). The UK government will apply the surcharge annually to properties valued over £2 million. It will add to the normal council tax, increasing the total tax bill for homeowners in this price bracket. The mansion tax targets properties in affluent areas, particularly central London.

In its current form, the tax will have the following structure:

  • Properties worth £2.0 million to £2.5 million will pay an additional £2,500 annually.
  • For homes valued between £2.5 million and £3.5 million, the charge will be £3,500.
  • £5,000 will apply to homes valued between £3.5 million and £5 million.
  • The highest charge of £7,500 will apply to homes worth over £5 million.

These charges will start in April 2028. Inflation will annually uprate these taxes to reflect economic changes. For homeowners, the result means higher property taxes on top of standard council tax fees.

For a detailed breakdown of the mansion tax in 2025, including key thresholds and exemptions, explore our full guide to the high-value council tax surcharge.

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Who Will Be Affected?

Around 200,000 properties are expected to be subject to the mansion tax, with the majority of those homes located in London, the South East, and the East of England. The charge will impact high-net-worth individuals (HNWIs) who own properties in areas where values have increased significantly over time.

Although the £2 million threshold is considered high in the property market, many smaller homes, such as apartments or townhouses in sought-after areas, have now surpassed that value. As a result, homeowners who may not consider their homes “mansions” could still be liable.

The surcharge will apply to your property if its value exceeds £2 million. The government’s Valuation Office Agency (VOA) will carry out a detailed review of home values to determine which properties exceed the threshold. The review will start in 2026, and homes close to the threshold could enter the new tax band as their value appreciates.

Read our detailed guide on the impact of mansion tax on UK property values and homeowners, and what the change means for future property prices.

How Will It Be Collected?

The mansion tax will be collected alongside regular council tax. Local authorities will collect the surcharge and send it to the government. This model aligns with the Making Tax Digital (MTD) framework, which the UK is rolling out for other taxes.

Homeowners will receive an updated tax bill in April 2028 and must make payments along with their regular council tax fees. No exemption exists for primary residences, although some properties may qualify for a deferment scheme if owners cannot afford the payment.

Learn more about how the mansion tax is impacting the prime property market in the UK and what it means for property investors.

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Why Is It Being Introduced?

The Labour government has defended this surcharge as part of a broader effort to address wealth inequality and redistribute resources. The mansion tax aims to target the wealthiest homeowners, particularly in the South East where housing costs are disproportionately high. Critics argue that the tax unfairly burdens property owners who may not have significant income but own high-value assets.

According to Jonathan Russell, the CEO of the VOA, the measure will affect around 200,000 homes, especially in areas like central London. The government argues that this new tax will help balance the burden of taxes across the UK and allow local councils to provide better services to the wider population.

How We Help Property Owners Navigate Reeves Mansion Tax in UK

Apex Accountants specialises in helping property owners navigate complex tax systems, like the High Value Council Tax Surcharge. Our services include:

  • Property tax planning and advice
  • Valuation of high-value assets
  • Help with managing property portfolios
  • Tax-efficient strategies for high-net-worth individuals
  • Compliance with new property tax rules

If you own property that may be affected by this new surcharge, reach out to us today, and we will help you prepare.

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Conclusion

The mansion tax, officially called the High Value Council Tax Surcharge, will affect homes worth over £2 million starting in 2028. While the policy targets wealthy property owners, many middle-income individuals with high-value homes will also feel the impact. Homeowners should review their properties now to prepare for the potential increase in tax costs. At Apex Accountants, we provide expert advice to help you navigate this new tax and make informed decisions about your property portfolio.

Let us assist you in managing these changes efficiently. Reach out today to learn more about how this new tax will affect you and how we can support you through it.

Common Questions About the Mansion Tax Updates

1. How will the mansion tax impact me if I own a home worth just above £2 million?

If your home is valued just above £2 million, you will be liable for the surcharge. If your property value is near this threshold, it is important to check its current valuation and plan accordingly.

2. Will this tax apply to second homes or rental properties?

Yes, the mansion tax applies to any residential property worth more than £2 million, regardless of whether it is your primary residence or a second home.

3. Will the tax be adjusted for inflation?

Yes, the surcharge will be uprated with inflation starting in 2029, meaning that the tax will increase annually based on the consumer price index (CPI).

4. Are there any exemptions or reliefs available?

Currently, there are no automatic exemptions. However, the government may offer relief schemes for certain property owners who face financial hardship or have difficulty paying the surcharge.

5. What can property owners do to prepare?

Homeowners should:

  • Check the value of their properties regularly to monitor whether they will fall into the taxable range.
  • Consult a tax advisor to explore ways to minimise the impact of the surcharge.

Review their finances to ensure they are prepared for the additional tax burden starting in 2028.

What’s Behind the Whitbread Share Price Increase in 2026?

Posted on by Farazia Gillani

The UK hospitality sector is under pressure. Inflation, labour shortages, and rising business rates are squeezing margins for hotel and lodging providers. Many operators are struggling to balance cost control with revenue growth. Whitbread’s latest trading update offers a positive sign. The Premier Inn owner has reported strong quarterly sales and a reduced tax burden, which led to a rise in its share price. This Whitbread share price increase reflects improved investor confidence and signals that resilience and smart planning are still possible — even in a challenging climate.

At Apex Accountants, we help hospitality businesses make sense of these shifts. We analyse what Whitbread’s performance means for the wider sector and how property-heavy businesses can protect profits, reduce tax liabilities, and plan ahead.

If your business operates in hospitality, this article will explain the latest trends, policy risks, and financial strategies worth considering in 2026.

Premier Inn Sales Growth Across the UK and Germany

Whitbread’s Q3 FY26 trading update showed group sales rising to £781 million, up 2% year-on-year for the 13 weeks to 27 November 2025. This growth stemmed from positive accommodation sales in Premier Inn UK and Germany, partly offset by expected food and beverage declines under the Accelerating Growth Plan.

  • High occupancy rates across UK Premier Inns, with accommodation sales up 2%, and RevPAR increasing 3%, driven by sustained demand, occupancy gains, and pricing strength — including 7% RevPAR growth in London.
  • Strong pricing strategies that contributed to a 4% RevPAR rise and 4% accommodation sales growth in the UK during the six weeks to 8 January 2026.
  • A strong performance in Germany, with accommodation sales up 12% in local currency (or 16% in GBP), and estate-wide RevPAR growth of 7% during Q3. In the most recent six weeks, Germany continued to perform well, with sales up 11% and RevPAR increasing 5%.

This consistent Premier Inn sales growth demonstrates that midrange accommodations are still in demand, especially among budget-conscious domestic and business travellers.

The figures suggest continued demand for mid-range accommodation—especially among cost-conscious travellers.

For businesses in the hotel and travel sector, this shows the value of flexible pricing and digital booking infrastructure. 

Business Rates: Lower Hit Than Expected

A major factor in the recent share price jump is Whitbread’s revised business rates forecast. The company now expects a £35 million hit from the Autumn Budget reforms, below prior expectations. This reduction gives Whitbread additional financial room to manage inflation and reinvest in operations.​

On the day of the announcement, shares rose up to 5% intraday before settling 4% higher. This signals investor approval and growing attention to how tax changes will affect property-heavy hospitality businesses.

We’re seeing more hotel operators now re-evaluating their exposure. Our team at Apex Accountants works with clients to:

  • Review and challenge rateable values
  • Model the effect of rising rates on net margins
  • Assess eligibility for relief schemes

If you’re seeking reliable tax advice for hotels, our specialists can help you plan effectively and avoid overpaying in 2026.

Sector Concerns Over Long-Term Tax Policy

Despite the short-term improvement, Whitbread’s leadership voiced concern over broader tax policy. In a public statement, CEO Dominic Paul said that current business rate reforms risk damaging future growth, investment, and employment in the hospitality sector.

The industry as a whole shares this sentiment. Despite strong sales, a growing number of businesses are struggling to remain profitable due to rising wage inflation, food costs, and interest rates.

To support hospitality and accommodation businesses during this time, our team offers:

  • Business rates impact assessments
  • Scenario planning under different tax policies
  • Advice on structuring assets for long-term tax efficiency

In particular, our team offers detailed tax advice for hotels navigating mixed supplies (accommodation, catering, and events) and partial VAT recovery.

Strategic Pressures and Investor Focus

In the background, Whitbread is also under pressure from activist investors, who want the group to consider new strategies to raise returns. This includes:

  • Revamping underperforming restaurant sites
  • Reviewing international expansion into Germany and beyond
  • Optimising corporate structure and capital allocation

Though Whitbread has yet to publish a detailed five-year revision plan, analysts believe the group will need to focus on cost control and asset efficiency to maintain momentum.

If you’re a business owner considering expansion, restructuring, or sale, we advise planning ahead. At Apex Accountants, we provide:

  • Forecasting and margin analysis
  • Profit extraction planning
  • Group structure reviews
  • Cross-border tax planning for businesses operating across Europe

How the Whitbread Share Price Increase Affects the Wider Hospitality Sector

The Whitbread update reflects a wider story: while sales may be recovering, operational costs and tax complexity remain a major challenge for UK-based hospitality firms.

If your business owns or leases commercial property, employs seasonal staff, or relies on international bookings, it’s essential to review your tax exposure now—before the next fiscal year.

Apex Accountants works with:

  • Hotel chains and boutique accommodation providers
  • Restaurant and catering businesses
  • Holiday parks and serviced apartments
  • Hospitality groups expanding into Europe

We tailor our advice to your trading model, asset base, and long-term goals.

Why Choose Apex Accountants

We work closely with hospitality businesses across the UK. We understand property-heavy operations, tight margins, and rising tax pressure. Our advice stays practical and sector-focused.

Our team helps you manage corporation taxes efficiently, review business rates, and identify available relief. We support VAT compliance across rooms, food, and mixed supplies. We also advise on capital allowances for refurbishments and FF&E.

Our accounting support gives you clear financial visibility. We deliver accurate bookkeeping, monthly management accounts, and cash flow forecasts. This helps you make informed decisions, even during seasonal swings.

We go beyond compliance. Our advisory team supports growth, restructuring, and exit planning. We focus on margins, cost control, and long-term tax efficiency for owners and investors.

With Apex Accountants, you get clear advice, timely reporting, and support that moves with your business.

Contact us today to discuss how we can support your hospitality business in 2026 and beyond.

What Higher Earners Need To Know About Pension Tax Relief in the UK

Posted on by Nida Umair

Thousands of workers are unknowingly missing out on pension tax relief in the UK, losing hundreds or even thousands of pounds in potential savings. The issue mostly affects those earning over £50,270, where relief above the basic 20% isn’t applied automatically—especially in relief-at-source pension schemes.

Despite HMRC pension tax relief changes introduced through a new online claims portal in 2025, many higher-rate and additional-rate taxpayers remain unaware they must claim the extra relief themselves. This has led to an estimated hundreds of millions going unclaimed each year.

If you’re a higher earner who doesn’t file a self-assessment return, or you’re unsure how your pension scheme applies tax relief, you could be leaving money on the table.

At Apex Accountants, we break down what’s changed, who’s affected, and how to claim pension tax relief efficiently and accurately—with expert support every step of the way.

Why Are Higher Earners Missing Out on Tax Relief?

If you’re a basic-rate taxpayer (20%), your pension contributions usually receive tax relief automatically. But if you pay tax at 40% or 45%, only part of your relief is automatic. You must claim the rest yourself—and many don’t.

This oversight continues despite HMRC pension tax relief changes that aimed to simplify the process. People in relief-at-source pension schemes often encounter this issue, mistakenly believing they have already received full relief.

What Changed in 2025?

In early 2025, HMRC introduced a new online service to make it easier to claim higher-rate and additional-rate pension tax relief.

The new system allows:

  • Online claims without needing to file a self-assessment return
  • Faster processing of relief claims
  • Backdating claims for up to four previous tax years

This means you can now recover missed relief more easily—even if you’re not registered for self-assessment.

What you need to know about pension tax relief in the UK

Pension tax relief allows you to claim back the income tax you’ve already paid on your contributions.

Here’s how it works for different taxpayers:

Basic-rate taxpayer:

  • Pay in £80
  • HMRC adds £20 (20%)
  • The pension pot receives £100
  • No extra claim needed

Higher-rate taxpayer (40%):

  • Pay in £80
  • HMRC adds £20 automatically
  • You can claim an extra £20 from HMRC
  • Total tax relief = £40

Additional-rate taxpayer (45%):

  • Same £80 payment
  • £20 added automatically
  • Claim an extra £25
  • Total tax relief = £45

Am I Eligible to Claim Extra Pension Tax Relief?

You may be missing relief if:

  • You earn over £50,270
  • Your pension scheme operates under relief at source
  • You do not use salary sacrifice or net pay arrangements
  • You don’t file a self-assessment return
  • You haven’t claimed for the past four years

Even if your employer contributes to your pension, it’s your responsibility to check if full tax relief has been claimed.

How to Claim the Extra Tax Relief

There are three main ways to claim:

1. HMRC Online Service

Launched in 2025, this service allows you to claim tax relief directly without needing a tax return. You need a Government Gateway account to access it.

2. Self-Assessment Tax Return

If you have already completed a self-assessment return, enter your gross pension contributions. HMRC will calculate and apply the additional relief.

3. Through a Tax Adviser

Apex Accountants can review your pension arrangements, check for missed years, and submit claims on your behalf. We can also optimise your pension contributions going forward.

Knowing how to claim pension tax relief correctly is key to avoiding long-term financial loss—especially if you’ve never reviewed your scheme’s treatment of higher-rate contributions.

How Much Could You Be Losing?

Let’s look at a common scenario:

Sam earns £55,000 and contributes £5,000 a year into a relief-at-source pension.

  • £1,000 is added automatically (20%)
  • She can claim another £1,000 (20%)
  • If unclaimed, that’s a loss of £1,000 per year
  • Over four years: £4,000 lost

This issue affects thousands of higher earners across the UK.

How Far Back Can I Claim?

HMRC allows you to backdate claims for up to four previous tax years, in addition to the current one.

In the 2025/26 tax year, you can claim for:

  • 2021/22
  • 2022/23
  • 2023/24
  • 2024/25
  • 2025/26 (current year)

You must act quickly—once a tax year passes the four-year mark, you lose the right to claim.

What Types of Pension Schemes Require a Claim?

You usually need to claim relief if you’re contributing to:

  • Personal pensions or SIPPs
  • Stakeholder pensions
  • Any scheme using relief at source

You don’t usually need to claim if you use:

  • Salary sacrifice
  • Net pay arrangements through your employer

Check your payslip or ask your HR team if you’re unsure.

Why Choose Apex Accountants

At Apex Accountants, we help higher earners across the UK claim missed pension tax relief with ease and accuracy.

We review your pension contributions, identify gaps in relief, and handle backdated claims for up to four years. Whether through HMRC’s new online portal or your self-assessment, we manage the full process on your behalf.

You’ll also receive tailored advice on:

  • Salary sacrifice and employer contributions
  • Tax-efficient contribution planning
  • Relief-at-source vs net pay scheme impact

We provide trusted advice and work seamlessly with clients across the UK. Get in touch today to reclaim your pension tax relief and plan smarter for retirement.

Why R&D Tax Credits Must Be Strengthened to Support UK SMEs

Posted on by Nida Umair

The UK risks falling behind in global innovation if it fails to strengthen support for research and development. Many businesses struggle with reduced claim values, slower HMRC processing, and unclear eligibility rules, despite the annual expenditure of billions on R&D tax credits. Tax experts warn these issues are discouraging genuine innovation, especially among SMEs.

At Apex Accountants, we see first-hand how restrictive R&D incentives are limiting growth. Our clients face delays, rejections, and confusion—even when their projects meet qualifying criteria.

That’s why we join other tax relief specialists in urging the government to introduce clearer guidance, higher credit rates, and faster claim processing. A modern, well-supported tax system would encourage more R&D tax support for UK businesses, helping them invest in the future with confidence.

Why Are People Calling for Stronger R&D Tax Relief?

Many tax professionals and industry groups argue that the UK’s current R&D tax relief framework doesn’t go far enough.

Key concerns include:

  • The credit system lacks clarity for small businesses
  • Recent changes have made it harder to qualify
  • HMRC’s compliance activity is causing delays
  • Other countries offer more generous relief, risking UK competitiveness

The message is clear: without targeted incentives, the UK could lose its innovative edge.

What Is R&D Tax Relief, and Why Does It Matter?

R&D tax relief allows UK companies to claim back a portion of their research and development costs. These incentives aim to reduce the financial risk of innovation, helping businesses to grow, develop new products, and remain competitive.

Eligible R&D costs may include:

  • Staff wages involved in R&D
  • Consumables used during development
  • Subcontracted R&D work
  • Software used for R&D
  • Prototypes and testing

This relief is available under two schemes: the SME R&D scheme and the R&D Expenditure Credit (RDEC) for larger companies. From April 2024, both schemes have been partially merged, but uncertainty around the rules still causes confusion.

Is the Government Doing Enough to Support Innovation?

The government invests heavily in R&D tax support for UK businesses, yet structural issues remain. Specialists argue that the current system discourages companies from applying or causes unnecessary delays.

Problems include:

  • Delays in claim processing by HMRC
  • Reduced rates for some businesses following reforms
  • Lack of clear guidance on what qualifies
  • Inconsistent treatment between sectors

In response, industry experts are asking the government to:

  • Increase the credit rate, especially for SMEs
  • Improve communication and training for HMRC staff
  • Introduce faster processing times
  • Offer certainty through clearer legislation

These changes would encourage more businesses to invest in R&D, ultimately boosting the UK economy.

What Can Businesses Do in the Meantime?

While the government reviews its approach to R&D incentives, many businesses are unsure whether they qualify or how to begin the claim process. Others hesitate due to time constraints, unclear records, or concern about triggering an HMRC enquiry.

To avoid missing out, businesses should take the following practical steps:

  • Review past and ongoing projects for signs of technological or scientific uncertainty
  • Document processes, experiments, and trials clearly from the start
  • Track all R&D-related costs based on employee, material, and software use.
  • Understand the difference between routine work and qualifying innovation
  • Keep evidence of problem-solving and attempted breakthroughs

Even small changes or failed experiments may count. Acting early can help improve the quality of your claim and reduce the chance of delay or rejection later.

Seeking expert support at the right time can make all the difference—especially for companies exploring R&D tax relief for businesses for the first time.

If you’re unsure where to start, it’s worth speaking to a specialist who can help assess your position and prepare a claim that meets HMRC standards. Early action can mean a stronger claim, better compliance, and faster processing

How Apex Accountants Helps You Claim R&D Tax Credits

At Apex Accountants, we provide specialist support to help you claim R&D tax relief with clarity and confidence. Our service is designed to remove confusion, save time, and protect your business from costly errors or rejected claims.

When you work with us, you can expect:

  • One-to-one consultation to assess your qualifying R&D activity
  • Full preparation and submission of your R&D claim
  • Clear, HMRC-compliant technical documentation and cost analysis
  • Up-to-date advice on the merged R&D regime and new compliance rules
  • Support during HMRC checks or enquiries
  • Strategic input for future innovation and tax planning

Whether you’re an early-stage tech firm, a manufacturer testing new processes, or a digital agency building proprietary tools, we tailor our support to your industry and goals.

Conclusion

R&D tax relief for businesses plays a vital role in funding innovation across the UK. However, unless the government strengthens the system, many SMEs will continue to miss out. Apex Accountants stands with industry experts calling for clearer rules, faster processing, and fairer outcomes.

In the meantime, businesses need expert guidance to get the relief they’re entitled to. We’re here to help you submit a solid, successful claim.

Get in touch with Apex Accountants today to find out if your business qualifies for R&D tax relief.

FAQs

1. How has the UK’s R&D tax credit scheme changed recently?
 From April 2024, the UK merged parts of the SME and RDEC schemes into a single framework, introducing different credit rates and eligibility rules.

2. Can non-tech businesses qualify for R&D tax relief?
 Yes. R&D occurs in many sectors, including food, fashion, construction, agriculture, and media—not just tech.

3. Does failed R&D still qualify for tax relief?
 Yes. You can claim relief even if your project was unsuccessful, as long as you attempted to overcome scientific or technological uncertainty.

4. Are grants and subsidies deducted from R&D claims?
 Yes. If your R&D was subsidised by a grant, this may affect which scheme you claim under and the value of your credit.

5. Can I amend previous years’ claims?
 Yes. You can submit or amend an R&D tax relief claim up to two years after the end of your accounting period.

Urgent Transfers Triggered by Inheritance Tax Changes for Business Owners

Posted on by Muhammad Asif

Rising tax pressure is prompting business owners across the UK to act sooner than planned. From April 2026, inheritance tax changes for business owners will bring more company value within HMRC’s scope—leading many to review or accelerate succession plans.

A growing number of family business owners now say they intend to pass on their companies within five years. This shift is directly caused by the government’s decision to restrict Business Property Relief and apply inheritance tax to higher-value business assets. What was once a protected transfer is now a potential tax liability.

By removing full reliefs, the policy creates urgency—especially for mid-sized firms whose valuations tip over the new threshold. Owners are accelerating handovers to minimise exposure, even if their successors aren’t fully prepared. Proper inheritance tax planning for business owners is now more essential than ever.

At Apex Accountants, we guide business owners through these decisions with structured tax planning, business continuity advice, and succession strategies tailored to the new rules.

What Exactly Has Changed in UK Inheritance Tax Rules?

From 6 April 2026, inheritance tax applies more widely to business assets.

Key changes include:

  • Full relief applies only up to £2.5 million per individual for qualifying Business Property Relief (BPR) and Agricultural Property Relief (APR) assets.
  • Business value above that level receives only 50% relief, resulting in an effective 20% inheritance tax charge on the excess
  • Business Property Relief no longer shelters unlimited value, including AIM and unlisted shares, which now qualify only for 50% relief
  • Larger family firms and high‑value trading businesses face the greatest exposure

This has altered long-term estate planning. Many owners now act earlier to reduce future tax bills. These inheritance tax relief changesrequire business owners to act with greater care and speed.

Which Business Owners Feel the Most Pressure?

Mid-sized and large private businesses feel the greatest impact.

Patterns show that:

  • Mid- to large estates (with over £2.5m in qualifying assets) show the highest urgency to explore gifting, trust structures, or lifetime transfers before April 2026.
  • Estates below the £2.5m individual or £5m couple threshold remain largely unaffected, with around 85% of BPR/APR claimants falling outside the scope of the upcoming changes.
  • Turnover alone does not determine exposure; HMRC focuses on asset value when assessing inheritance tax, not business revenue.

The higher the valuation, the greater the inheritance tax risk. This explains the acceleration in ownership changes.

Why Are Some Owners Considering Leaving the UK?

Inheritance tax rarely acts alone. It adds to wider tax pressure.

Some owners worry about:

  • Rising personal tax exposure
  • Limited relief planning options
  • Uncertainty over future policy changes
  • Reduced incentives to retain UK residency

This has led some to explore relocation. However, exit decisions require careful tax analysis.

Why Rushing a Business Transfer Can Create Problems

Tax pressure should not dictate poor succession decisions.

Early transfers can lead to:

  • Leadership gaps
  • Unprepared successors
  • Loss of strategic direction
  • Reduced business value

A strong business often depends on founder knowledge. Removing that too early can weaken operations.

What Should Business Owners Do Before Making Any Transfers?

Planning must come before action.

Owners should review:

  • Business valuation under current rules
  • Successor readiness and governance
  • Capital gains tax exposure on lifetime transfers
  • Ongoing income needs after transfer
  • Control mechanisms post-transfer

A phased approach often works better than a full handover. Inheritance tax planning for business owners should always account for both financial and operational continuity.

How Apex Accountants Help with Inheritance Tax Changes for Business Owners

Choosing the right advisor matters when your business and family wealth are at risk. Apex Accountants supports business owners with clear inheritance tax and succession planning tailored to their long‑term goals. Our advice focuses on stability, timing, and control rather than rushed tax‑driven decisions.

Each plan begins with a detailed review of inheritance tax exposure under current and upcoming rules. We assess business valuations, ownership structures, and future income needs before recommending any transfer. This approach helps protect leadership continuity while reducing unnecessary tax risk.

Family‑run and owner‑managed businesses require careful planning. Apex Accountants delivers practical guidance that balances tax efficiency with business continuity. These inheritance tax relief changes need the support of skilled advisers who understand the risks to your business and your estate.

Contact Apex Accountants today to discuss a succession strategy that safeguards your business and your legacy.

Post-Brexit Agriculture Subsidies: What Farmers Need to Know in 2026

Posted on by Maliha Javaid

England’s agricultural subsidy system is undergoing its most significant reform since Brexit. The shift away from EU-led funding has reshaped how post-Brexit agriculture subsidies operate across England. When the UK left the European Union, it brought an end to the Common Agricultural Policy (CAP), which had shaped farm payments for decades. In its place, the government is rolling out a new structure that rewards sustainable land use rather than paying purely based on farm size.

The latest reform, announced in early 2026, involves a complete relaunch of the Sustainable Farming Incentive. The updated scheme introduces a simplified structure, clearer payment criteria, and fairer access for smaller farms. These changes respond to widespread concerns that the original post-Brexit system was too complex and often favoured large landowners.

By shifting the focus toward environmental outcomes, the government aims to create a fairer, more transparent system. The updated approach seeks to balance environmental responsibility with the financial needs of working farms, providing support that is easier to access and aligned with long-term sustainability goals.

What Farmers Need to Know About the New Subsidy System

Under the new structure, subsidies are tied to outcomes—not just how much land a farmer owns. This means farmers are paid for actions that improve the environment, boost biodiversity, and contribute to climate goals. These could include soil improvement, creating wildlife habitats, reducing pesticide use, planting cover crops, or restoring hedgerows.

The Sustainable Farming Incentive now includes:

  • Caps on total payments to avoid large estates claiming the bulk of the funding
  • Simpler entry rules so farmers don’t need expert help just to apply
  • Priority access for small and medium-sized farms, which are often the most financially vulnerable
  • Reduced paperwork, with less duplication across overlapping schemes

This revised model replaces the old EU-style direct payments that simply rewarded land ownership. It reflects a wider move towards paying for public goods—things like cleaner water, carbon storage, and landscape preservation. Importantly, existing SFI agreements will still be honoured, granting continuity to those who joined the scheme early.

Policy Rethink Driven by Pressure from the Sector

Many farming organisations had warned that the original post-Brexit subsidy system was unworkable for smaller farms. Funding delays, complex eligibility rules, and budget shortages caused confusion. Some schemes were paused entirely after exhausting their budgets, adding to farmer frustration.

These concerns prompted the government to act. With farming incomes under pressure from rising costs, poor weather, and market volatility, the new farm payment scheme aims to rebuild trust and deliver fairer outcomes. The goal is to get more farmers to adopt environmentally sound practices while still supporting commercial productivity.

Unlike earlier models, which some viewed as favouring the largest and best-resourced farms, this latest version aims to offer genuine accessibility. Smaller holdings—those under 50 hectares—are being prioritised so they can access the relaunched SFI first.

What Actions Qualify for Subsidy Payments?

The updated SFI offers payments for a wide range of actions that promote sustainability. These include:

  • Managing field corners and margins for wildlife
  • Reducing fertiliser and pesticide usage
  • Improving soil structure through low tillage or compost use
  • Restoring ponds, stone walls or hedgerows
  • Creating woodland or buffer strips near watercourses

These payments are designed to reward long-term environmental care, not short-term land management. Importantly, you do not need to make all these changes at once. Many of the payment options are flexible and can be scaled up over time. Agreements typically last for three years and can be adjusted annually.

Impact on Rural Businesses

The new subsidy system affects more than just farmers. Contractors, suppliers, food producers, and rural landlords are also influenced by how support is structured. As funds shift towards environmental outcomes, businesses in the wider food supply chain will need to adapt.

For farmers, the scheme offers an opportunity to redesign their business models. Those who previously relied on flat-rate subsidies now need to assess their land use, record activity, and provide evidence of sustainable action. While this legislation brings additional responsibility, it also opens new revenue streams for farms that were previously under-supported.

Farmers will need to register through the Rural Payments Agency when applications reopen. While some may already have agreements in place, others should begin preparing now to ensure they qualify for the next application window. Early planning will improve access to funding under the new farm payment scheme.

How Apex Accountants Helps You Manage Post-Brexit Agriculture Subsidies

Choosing the right financial partner is essential when subsidy rules are shifting and margins are tight. At Apex Accountants, we offer clear, reliable support to help you stay compliant, secure funding, and grow with confidence.

We provide practical financial support tailored to the needs of farming businesses across the UK.

  • Subsidy expertise
     We help you understand the latest SFI rules, plan qualifying actions, and secure payments with confidence.
  • Tax support
     From VAT and capital gains to loss reliefs and inheritance tax, we provide sector-specific guidance.
  • Forecasting
     We create reliable budgets and profit projections, factoring in subsidy income and diversification plans.
  • Compliance
     We manage record-keeping and audit-ready reports that meet HMRC and scheme requirements.
  • Growth planning
     Whether you’re exploring renewables, rewilding or agritourism, we help you assess viability and prepare financially.

We turn policy change into opportunity. Let us support your farm’s financial future—clearly, carefully, and with your goals in mind.

Contact us today to speak to one of our farming and rural business specialists.

Investors are at risk of tax fines due to the HMRC Capital Gains Tax Glitch

Posted on by Malaika Sohail

A government system error could leave thousands of UK investors facing unexpected tax penalties this year. The problem stems from the HMRC Capital Gains Tax glitch, where online self-assessment forms are showing incorrect CGT figures. HMRC failed to correctly update its online tools after introducing rate changes in late 2024. Many investors using the portal have unknowingly submitted returns with inaccurate tax calculations.

This issue has already resulted in tax fines for investors, even when the mistake was caused by HMRC’s systems. Despite the glitch, HMRC continues to hold individuals accountable for any underpayment or omission.

In this article, we elucidate the issues, identify the individuals impacted, and suggest the appropriate course of action. We also outline how Apex Accountants can help you submit an accurate return, avoid penalties, and protect your financial position.

What Is the HMRC Capital Gains Tax Glitch?

The issue began after HMRC made updates following CGT rate changes announced in late 2024. However, technical errors mean some self-assessment forms are showing incorrect CGT calculations.

The main problems include:

  • Incorrect CGT liabilities showing on some tax returns
  • Errors in auto-filled figures within HMRC’s online forms
  • Risk of underpayment or overpayment
  • Potential late filing penalties due to delayed corrections

HMRC has acknowledged the issue, but many forms remain unfixed. The longer it remains unresolved, the higher the risk of HMRC penalties for capital gains submitted in error.

Who Is at Risk?

This issue may impact:

  • Individual investors disposing of property, shares, or crypto
  • Taxpayers using HMRC’s online self-assessment portal
  • Anyone filing for the 2024–25 tax year without a manual review
  • People relying on HMRC’s CGT calculator without professional checks

Even if the return is submitted on time, HMRC may still issue tax fines for investors who underreport gains due to faulty system outputs.

Key Risks to Investors

Here’s how the glitch could affect you:

  • Incorrect CGT bills
  • Interest and penalties on unpaid tax
  • Compliance checks triggered by mismatches
  • Time-consuming amendments and resubmissions
  • Missed reliefs or incorrect loss reporting

Even small errors can result in significant HMRC penalties for capital gains, especially if not corrected before the deadline.

What You Should Do

To protect yourself, follow these steps:

  • Check CGT figures manually using current tax rates
  • Review disposal dates, purchase costs, and reliefs used
  • Use updated software or a professional tax adviser
  • Amend any already submitted return if it contains errors
  • Keep accurate records for all disposals and gains

Submitting a correct return remains your responsibility—even if HMRC tools are faulty.

Why Choose Apex Accountants

At Apex Accountants, we specialise in helping investors file accurate, compliant tax returns—even when HMRC systems fall short. Our team knows what it takes to navigate Capital Gains Tax, and we work with individuals, landlords, and high-net-worth clients across the UK to reduce the risk of fines, penalties, and unwanted HMRC enquiries.

We don’t just process numbers—we help you make sense of them. Whether you’re reporting share disposals, crypto transactions, or second home sales, we provide practical, hands-on support at every stage of your tax journey.

Here’s how we help:

  • Accurate Capital Gains Tax Reviews
     We calculate gains and losses correctly using up-to-date rates and identify all eligible reliefs, including Private Residence Relief and Business Asset Disposal Relief.
  • Self-Assessment Filing with Confidence
     We prepare and submit your return on your behalf, review for HMRC system errors, and keep you informed throughout the process.
  • HMRC Dispute Support
     From investigating miscalculations to appealing unfair penalties, we represent you with full technical support and clear communication.
  • Specialist Advice for Property and Crypto Investors
     We provide tax guidance tailored to those dealing with residential property gains or complex digital asset portfolios.
  • Digital Filing and MTD Compliance
     Our team helps you comply with Making Tax Digital and stay ahead of HMRC’s evolving digital requirements.

With Apex Accountants, you benefit from deep technical expertise, clear communication, and a responsive service built around your needs. Our advice is proactive, our support is ongoing, and our aim is always to protect your financial interests.

Speak to us today to get expert support with your Capital Gains Tax and investment reporting.

FAQs 

What caused the HMRC glitch?
 The glitch occurred after CGT changes were introduced but not properly applied in HMRC’s online forms.

Who is affected by the error?
 Anyone using HMRC’s self-assessment portal to report capital gains for the 2024–25 tax year may be at risk.

Can I fix a return if I’ve already submitted it?
 Yes. You can file an amended return within the correction window or request a review if penalties are charged.

Will HMRC waive fines if it’s their fault?
 Not automatically. You are still responsible for accurate returns. You may need to appeal any fine.

How do I check if my figures are wrong?
 Compare your CGT calculations manually or consult a qualified accountant for review.

Is this glitch affecting crypto investors?
 Yes. Reporting capital gains from digital assets through HMRC’s online tools also impacts them.

Can I claim CGT losses during this period?
 Yes, provided the losses are recorded and submitted correctly. These can offset gains and reduce liability.

When is the self-assessment deadline?
 For the 2024–25 tax year, the deadline is 31 January 2026.

Is the problem ongoing?
 HMRC is working on fixes, but as of January 2026, many users still report incorrect calculations.

Should I still use HMRC’s portal?
 Yes, but verify all figures carefully. You may also consider using an agent or external software.

What Businesses Need To Know About UK Sanctions Enforcement Action

Posted on by Maliha Javaid

The UK sanctions enforcement action framework has evolved rapidly since Russia’s invasion of Ukraine. On 6 January 2026, the government updated its sanctions enforcement action hub, adding a link to the Office of Trade Sanctions Implementation (OTSI) review and a blog explaining what makes a good breach report. This article explains how the enforcement landscape has changed, summarises key guidance and answers common questions raised by clients in the UK.

Overview of UK Sanctions Enforcement Action and Enforcement Bodies

Sanctions are restrictive measures used to support foreign-policy and national‑security objectives. The UK may impose financial sanctions (asset freezes and investment bans), director-disqualification sanctions, trade sanctions (including arms embargoes and other trade restrictions), transport sanctions and immigration bans. Enforcement is split across several bodies:

Office of Financial Sanctions Implementation (OFSI)

Part of HM Treasury. It handles civil enforcement of financial sanctions and the Russia Oil Price Cap. OFSI can impose monetary penalties and publishes decisions and “notes on compliance” to help the industry understand its expectations.

National Crime Agency (NCA)

Investigates and prosecutes criminal breaches of financial and transport sanctions. Recent high‑profile operations have included disrupting large money‑laundering networks linked to Russia.

Office of Trade Sanctions Implementation (OTSI) 

A new unit within the Department for Business and Trade. Created in October 2024, OTSI enforces trade sanctions relating to UK services and international trade where goods and services do not cross the UK border. It issues licences, investigates breaches and can impose civil monetary penalties.

HM Revenue & Customs (HMRC)

Responsible for criminal enforcement of trade sanctions and for all trade sanctions involving goods that cross the border. HMRC also enforces export controls and assists the NCA with prosecutions.

The sanctions enforcement action hub launched in November 2025 consolidates information from all four agencies. It lists monetary penalties, prosecution outcomes and disclosure notices, and provides case studies and annual reviews. The update on 6 January 2026 added links to OTSI’s first‑year review and a blog on breach reporting, making it easier for businesses to learn from enforcement cases.

OTSI’s First Year: Statistics and Lessons

OTSI was formally established when the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 (TASSCER) came into force on 10 October 2024. The unit enforces trade sanctions covering:

  • the provision or procurement of sanctioned services;
  • the movement, making available or acquisition of sanctioned goods or technology outside the UK; and
  • ancillary services associated with sanctioned goods or technology.

Licensing and Business Support

OTSI is responsible for licensing the provision of professional and business services prohibited under UK sanctions. In its first year (up to 9 October 2025), OTSI received 60 licence applications, mainly concerning Russia‑related restrictions. Twelve applications were granted in full or in part, three were refused, seven were withdrawn and one was deemed not to require a licence. The average decision time was 82 working days, reflecting the complexity of applications. OTSI plans to publish further guidance to help applicants provide better information and shorten assessment times.

Enforcement and Compliance

Reporting by industry is a key information source for OTSI. During its first year it received 146 reports or referrals relating to potential trade‑sanctions breaches, mostly from the financial services sector; however, 16% came from sectors without mandatory reporting obligations. OTSI has not yet imposed any civil monetary penalties but has several investigations underway and has referred cases to HMRC and other government partners. The unit emphasises prevention: it engages with businesses, publishes guidance and administers licences to help firms comply.

Significantly, OTSI can impose civil fines up to £1 million or 50% of the value of the breach, whichever is higher. A strict‑liability regime applies, meaning that an intention to breach is not required for a penalty. OTSI can also require information and enforce reporting obligations. Serious cases may be referred to HMRC for criminal prosecution.

What Good Sanction Breach Reporting Looks Like

OTSI’s December 2025 blog explains why sanction breach reporting matters and provides a template for useful reports. Providers of financial or legal services and money service businesses are legally obliged to report suspected breaches of trade sanctions. Others can report voluntarily using the government’s online tool. The blog recommends that reports include:

  • Contact details – name and email of the reporter.
  • Details of the suspected breacher – names and addresses of the individuals or businesses involved.
  • Other parties’ details – names and contact information of any other participants.
  • Supporting documents – emails, contracts or other papers that explain the situation.

OTSI emphasises that a good report should:

  • Explain the UK nexus – describe how the activity is linked to the UK.
  • Provide a clear narrative – set out what happened in simple, honest language.
  • Identify potential sanctions prohibitions – mention any rules that might have been breached, if known.
  • Mention contact with other authorities – state if other regulators have been informed.

The blog stresses that OTSI values openness and honesty and would rather receive a concise report than none at all. All reports are handled carefully, and more detail reduces the need for follow‑up questions.

Cross‑Government Review and Consolidated Enforcement Hub

In May 2025 the Foreign, Commonwealth and Development Office (FCDO) led a cross‑government review of sanctions implementation and enforcement, which identified ten actions to improve compliance and deterrence. These actions included creating a consolidated enforcement hub, updating guidance and exploring civil settlement schemes. One headline commitment was delivered on 3 November 2025 when the government launched the sanctions enforcement action page, providing a single landing point for enforcement outputs and case studies. The hub aggregates decisions, press releases, blog posts and annual reviews from OFSI, the NCA, OTSI and HMRC, making it easier for businesses to learn from enforcement outcomes.

The review also noted industry feedback that maintaining two separate sanctions lists causes duplication. As a result, from 9 am on 28 January 2026 the UK Sanctions List will become the only authoritative list of UK sanctions designations; the OFSI Consolidated List will be retired. Businesses using the OFSI list must update their screening systems to use the UK Sanctions List and switch from the “OFSI Group ID” to the UKSL Unique ID. This change aims to simplify compliance and reduce the risk of missed designations.

Reporting Obligations and Penalties for Sanction Breaches

Who must report?

Certain firms – including financial service providers, money service businesses and legal services providers – have statutory obligations to report potential trade‑sanctions breaches. The list of mandatory reporters is detailed in guidance issued by OFSI, OTSI and the Department for Transport. However, anyone can report a suspected breach or circumvention attempt using the government’s online tool. Reporting protects the integrity of sanctions and helps law‑enforcement agencies tackle serious crime.

What are the penalties for sanction breaches?

For financial sanctions, the Policing and Crime Act 2017 and the Sanctions and Anti‑Money Laundering Act 2018 give HM Treasury powers to impose monetary penalties. OFSI’s guidance explains that it may impose a penalty when a breach of financial sanctions legislation occurs and sets out how it determines the amount and the rights of review and appeal. The maximum penalty is usually the greater of £1 million or 50% of the value of the breach.

 The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 extended these powers to trade sanctions enforced by OTSI. OTSI will consider mitigating factors such as timely disclosure and effective compliance systems, while aggravating factors like prior breaches or obstructive behaviour may increase penalties.

Criminal penalties can be severe. The NCA and HMRC investigate and prosecute intentional breaches; convictions can result in unlimited fines and imprisonment. HMRC has already issued multi‑million‑pound fines against exporters who contravened export controls. Businesses should therefore treat sanctions compliance as a core component of their risk management.

Whistle‑blower protections

Legislation enacted in 2025 amended the Public Interest Disclosure (Prescribed Persons) Order to cover reports of financial, transport and certain trade sanctions breaches. This change means workers who disclose suspected sanctions breaches to OFSI, OTSI or the Department for Transport qualify for whistle‑blower protections. The cross‑government review emphasised that expanded whistle‑blower legislation would encourage more reporting.

How We Can Help You

At Apex Accountants, we help businesses navigate the complex world of sanctions and export controls. Our team of accountants and compliance specialists offers:

  • Sanctions compliance health‑checks – assessing existing systems against UK requirements and international best practice.
  • Policy and procedure development – drafting tailored sanctions policies, screening workflows and escalation protocols.
  • Licence application support – advising on whether a licence is required and assisting with applications to OTSI or OFSI.
  • Breach reporting assistance – helping clients collate information and prepare concise breach reports that meet OTSI’s expectations.
  • Training and workshops – providing staff training on sanctions awareness, reporting obligations and whistle‑blower protections.
  • Ongoing monitoring – offering regular updates on sanctions developments and reviewing compliance programmes as the landscape evolves.

Conclusion

The UK’s sanctions regime continues to expand and enforcement is becoming more coordinated. The launch of a consolidated sanctions enforcement action hub and the upcoming move to a single sanctions list show the government’s determination to make compliance easier while increasing transparency and deterrence. Businesses should take these developments seriously: OTSI’s first‑year statistics underline that reports are being received and investigations are underway. With civil penalties of up to £1 million or 50% of the breach value and the prospect of criminal prosecution, firms cannot afford complacency. By investing in robust compliance frameworks, leveraging professional advice and embracing a culture of transparency, companies can mitigate sanctions risks and avoid costly enforcement actions.

Frequently Asked Questions

1. What is enforcement action in the UK?

Enforcement action refers to regulatory or legal steps taken by UK authorities to investigate breaches, impose penalties, prosecute offences and secure compliance with laws, including sanctions, tax, customs and financial regulations.

2. Under which act can UK sanctions be enforced?

UK sanctions are enforced under the Sanctions and Anti-Money Laundering Act 2018, alongside regulations made under it, allowing civil penalties, criminal prosecutions and licensing controls.

3. Who is the enforcement agency for sanctions in the UK?

Sanctions enforcement is shared between OFSI for financial sanctions, OTSI for trade and services sanctions, HMRC for customs enforcement, and the NCA for serious criminal investigations.

4. What are the consequences of breaching UK sanctions?

Breaches can lead to civil penalties, criminal prosecution, asset freezes, reputational damage, loss of licences and, in serious cases, unlimited fines or imprisonment for individuals and directors.

5. What is OTSI and how is it different from OFSI?

OTSI enforces trade and services sanctions where goods do not cross UK borders, while OFSI enforces financial sanctions such as asset freezes, investment bans and the Russia oil price cap.

6. How do I report a breach of sanctions?

Anyone can report suspected breaches using the government’s online service. Mandatory reporters must report promptly, providing details of parties involved, UK links, transaction information and supporting evidence.

7. What penalties can be imposed for sanctions breaches?

Authorities may impose civil penalties up to £1 million or 50% of the breach value. Serious cases can lead to criminal prosecution, unlimited fines, director liability and imprisonment.

8. What changes will occur on 28 January 2026?

From 28 January 2026, the UK Sanctions List becomes the sole official list. Businesses must update screening systems and identifiers to avoid relying on outdated or withdrawn sanctions data.

9. How can businesses prepare for stricter enforcement?

Businesses should update sanctions policies, screen customers and suppliers, train staff, maintain audit trails, strengthen due diligence controls and seek professional advice on compliance and risk management.

Dedicated Tax Planning and Financial Support for the Food and Beverage Sector

Posted on by Nida Umair

The food and beverage sector operates under tight margins, strict compliance requirements, and fast-changing consumer trends. Apex Accountants offers specialist tax planning, financial management, and accounting services tailored to the needs of food businesses across the UK. Since 2006, we’ve helped restaurants, food manufacturers, delivery services, and packaging firms stay compliant, improve profitability, and grow sustainably.

Book a Free Consultation