Viewpoint of the Autumn Budget for Businesses

Welcome to our Autumn Budget 2025 'at a glance'. 

Related content:

>> The Autumn Budget 'At a glance' - the highlights from the announcement 

>> Full Budget report - download our report here

>> Our WW Viewpoint - Directors at Ward Williams share their viewpoint on the Budget announcements 

>> Private Client Viewpoint - Hear what we think the Budget means for individuals and their families. 

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Breakdown of the Autumn Budget for Businesses 

Following the Chancellor's Autumn Budget statement on Wednesday 26th November, we are pleased to share our insights on how the announcement impacts Businesses: 

Insights are provided for 

>> Start up and Scale up businesses

>> SME and Owner Managed Businesses 

>> Large and Mid-Market Businesses 

>> Landlords and property businesses 

>> Tech and Innovation businesses 

>> Manufacturing and logistics businesses

>> Professional Services 

You may also be interested in further Budget analysis for you and your family

>> Individuals and Families

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ARTICLE 1  

Our Business opinion article: 

Is Your Business Ready for the New Tax Landscape – Or Are You Planning With Old Rules?

What the latest Budget changes really mean for SMEs, larger businesses and high-growth innovators

Over the last three fiscal events – Autumn Budget 2024, the Spring Statement, and Autumn Budget 2025 – the Government has reshaped the tax environment for UK businesses more than any single year in the last decade.

On the surface, corporate tax rates haven’t shifted dramatically. But beneath the surface, the environment in which businesses operate has fundamentally changed:

• Tax reliefs are becoming more conditional
• Compliance is becoming more digital and more real-time
• Capital investment is being incentivised in some places and discouraged in others
• HMRC is advancing greater scrutiny on agents, reporting and cross-border activity
• And incentives for innovation, scaling and raising funds (EIS, SEIS, VCT, R&D) are widening—but with tighter rules

The question for business owners and leadership teams is this:

Are you planning with the new rulebook or the old one?

Here’s how the new landscape looks through the lens of SMEs, larger corporates, and high-growth innovative businesses, with insights from our directors.

 

SMEs: Cash flow pressure + rising compliance = the new normal

SMEs have been hit hardest by the combination of:

• Rising tax on dividends, savings and property income (affecting business owners directly)
• Frozen tax thresholds that increase the overall tax burden even when profits stay static
• Higher National Insurance costs on salary sacrifice schemes (from 2029)
• The introduction of Making Tax Digital for Income Tax for many unincorporated businesses from 2026
• Stricter HMRC visibility into payments, platforms, crypto assets and cross-border flows

Add to this the new 40% first-year allowance, reduced writing-down allowances, and changes to R&D processing, and SMEs are having to plan much more intentionally than before.

Andy Webb, Business Services Director (SMEs):
“For SMEs, the headline numbers don’t tell the whole story. Cash flow is under more pressure, compliance expectations are higher, and the cost of getting tax planning wrong is rising. The opportunity lies in using the new incentives - capital allowances, R&D assurance, investment reliefs - to fuel growth rather than react to the pressure. Businesses that plan early will stay ahead.”

The new SME planning priorities:

• Cash flow forecasting under the new tax timelines
• Using the 40% first-year allowance strategically
• Getting ahead of MTD ITSA requirements
• Exploring group structures, remuneration strategies and profit extraction under the new dividend and savings rules
• Reviewing whether assets sit best inside or outside the business
• Rethinking pension/salary sacrifice structures before the 2029 rule change
• More robust bookkeeping, audit-readiness and data controls in light of HMRC’s new visibility

 

Larger businesses: a sharper audit environment and a recalibrated capital regime

For mid-market and large businesses, the biggest changes are structural:

• Capital allowances are shifting
• Full expensing remains, but writing-down allowances drop
• The new 40% FYA is valuable but limited
• Transfer pricing and permanent establishment rules are being updated
• The diverted profits tax equivalent is evolving into the unassessed transfer pricing profits charge (UTTP)
• A new 1bn+ capital project tax certainty regime is coming online
• HMRC’s approach to agent regulation, reporting and the economic crime levy is hardening

These aren’t tweaks—they reshape how larger corporates must justify, evidence and defend their tax position.

From an audit perspective, the spotlight on transparency, control and governance has never been brighter.

Colin Hamilton, Corporate Services Director (Audit & Assurance):
“For large and mid-market businesses, this is a new audit era. The combination of updated transfer-pricing rules, tighter permanent establishment definitions and increased HMRC scrutiny means businesses must have stronger systems, controls and documentation. Audit isn’t just a compliance exercise anymore, it’s a strategic safeguard.”

The new large-business planning priorities:

• Transfer pricing documentation and related-party transactions
• Reviewing supply chain structures in light of new PE rules
• Integrating R&D, capital allowances and investment decisions within a single tax strategy
• Strengthening financial controls and audit readiness
• Preparing for the new Securities Transfer Charge and digital stamp tax regime
• Planning early for the High Value Property Surcharge if relevant to property-rich businesses
• Corporate governance aligned to the new agent registration and compliance rules

 

High-growth & innovation-driven businesses: more opportunity, if you meet the conditions

If your business is in technology, engineering, medical research or innovation, the last three fiscal events include some of the most positive changes in years:

EIS & SEIS expanded

From April 2026:

• EIS annual limit increases from £5m to £10m
• Lifetime limit increases from £12m to £24m
• For knowledge-intensive companies:
• Annual limit rises to £20m
• Lifetime limit rises to £40m

R&D becomes more structured and more accessible

• New advanced assurance pilot for SMEs
• Clarifications on subcontracting, overseas expenditure, group transfers and credits
• More certainty for genuine R&D projects
• Stricter rules for borderline or unsupported claims
• HMRC taking a more selective but more robust approach

Capital allowances and investment tax certainty

• The new 40% first-year allowance (for assets outside full expensing) helps cash flow on key investments
• From 2026, £1bn+ projects can access upfront tax certainty across CT, VAT, PAYE and CIS
• Useful for large-scale manufacturing, medical innovation and technology infrastructure

Katherine Van Eyken, Business & Corporate Services Director (Tech, Innovation & Corporate Tax):
“This is the best environment for innovation funding we’ve seen in years—but only for businesses that are ready. EIS, SEIS and R&D reliefs are expanding, but they come with tighter rules, more scrutiny and higher expectations. The winners will be the companies that document properly, plan early and integrate tax incentives into their growth strategy.”

The new innovation-sector planning priorities:

• Preparing for larger, more sophisticated EIS/SEIS rounds
• Ensuring R&D documentation is audit-ready
• Mapping how R&D interacts with capital allowances and future investment rounds
• Corporate structuring for scale and shareholder protection
• Reviewing IP ownership and group structures proactively
• Planning for international expansion in light of new PE and transfer pricing rules

 

The business owner’s dilemma: personal and business tax are no longer separate worlds

One of the biggest themes of the recent Budgets is the blurring between:

• Business tax
• Personal tax
• Inheritance tax
• Pension and investment choices
• Succession and exit planning

Dividend tax increases, pension IHT, changes to BPR/APR and the new CGT rate environment mean that how owners get money out of a business is now as important as the business’s own tax profile.

Owners now need a joined-up plan that spans:

• Salary, dividends and pension contributions
• Business structuring
• Property ownership
• Exit strategy and succession
• Shareholder protection and investment rounds
• Long-term IHT and pension planning
• Personal wealth preservation

 

So what should businesses do next?

No one needs to become an expert in every Finance Act, but every business does need a plan that reflects the new rules, not the old ones.

For SMEs

• Review cash flow 12–36 months ahead
• Build capital allowances and investment timing into your planning
• Prepare early for MTD ITSA
• Revisit remuneration and dividend strategies

For larger businesses

• Strengthen transfer pricing and PE documentation
• Ensure audit trails for capital, R&D and cross-border arrangements
• Integrate tax strategy more tightly with governance and risk

For innovators and high-growth companies

• Prepare for larger EIS/SEIS opportunities
• Get R&D records and processes in place now
• Look ahead to international expansion under the new tax rules

 

How can Ward Williams support you?

Our role is strategic, technical and integrated

We support businesses across the whole tax and advisory lifecycle:

• Business Services (SMEs)
• Corporate Services & Audit (mid-market and large corporates)
• Corporate Tax, EIS/SEIS and R&D (innovation and fast-growth businesses)
• Private Client, succession and exit planning for business owners

Your business doesn’t operate in a silo, neither should your tax planning. Contact our Business and Corporate Services teams to help you work through the detail. Call us on 01932830664, email us enquiries@wardwilliams.co.uk or visit www.wardwilliams.co.uk

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ARTICLE 2 

Investment in innovation: How the Budget supports tech and manufacturing growth

At Ward Williams, we work closely with businesses across tech, innovation, manufacturing, and engineering sectors, helping them leverage the right investment opportunities to drive growth. The Autumn Budget 2025 has introduced several key measures aimed at supporting high-potential businesses in these areas, including changes to the EIS (Enterprise Investment Scheme), SEIS (Seed Enterprise Investment Scheme), VCT (Venture Capital Trust), and R&D tax credits. These incentives present both opportunities and challenges for businesses, particularly those in fast-growing industries like tech, clean-tech, and advanced manufacturing.

As businesses seek to grow in a competitive environment, understanding how to strategically access these funds while ensuring compliance with statutory requirements is crucial. The budget provisions offer exciting possibilities for innovation and investment, but they require careful planning to ensure long-term success. Our directors share their thoughts on how businesses can navigate these schemes effectively.

Andy Webb: Empowering Start-Ups with EIS and SEIS:

As Business Services Director, I have seen firsthand how vital it is for start-ups to access funding that drives innovation and allows them to scale. The EIS and SEIS schemes are lifelines for early-stage businesses looking to attract investment, particularly in tech, biotech, and green-tech sectors. With the EIS investment limit increasing from £5 million to £10 million, high-growth companies now have more room to raise capital without hitting restrictive funding thresholds.

The changes introduced in this year’s Budget give start-ups the chance to access larger funding rounds and expand more quickly. However, businesses must remember that securing this funding is just one part of the equation. EIS and SEIS require meticulous planning to ensure funds are allocated properly and compliant with HMRC regulations. The importance of a clear governance structure and financial documentation cannot be overstated.

“EIS and SEIS continue to be powerful tools for start-ups, but businesses must be strategic. These schemes allow start-ups to grow, but they also require the right governance and financial reporting practices to avoid any compliance risks.” Andy Webb, Business Services Director

Colin Hamilton: Navigating EIS and VCT with Statutory Audit Insight:

From an audit and statutory compliance perspective, the increase in funding limits under EIS and VCT will allow businesses in manufacturing and engineering to scale up and attract the capital they need. But this increase comes with added responsibility. As businesses raise larger sums, HMRC will undoubtedly increase its scrutiny on how those funds are used, making it even more crucial to have a solid audit trail.

I believe these schemes should be viewed through a long-term lens. While they offer fantastic opportunities for growth, businesses must ensure that their audit processes are aligned with EIS and VCT requirements, especially around capital allocation and R&D spending. Too often, I see businesses rushing to secure funding but not fully understanding the audit and compliance burden that comes with it.

“The expanded EIS and VCT limits offer great opportunities, but businesses must realise that securing funding is just the beginning. Maintaining a clean audit trail and adhering to HMRC guidelines is just as important. These schemes come with real compliance responsibilities that must not be overlooked.”
Colin Hamilton, Corporate Services & Audit Director

 

Katherine Van Eyken: Driving Innovation in Engineering and Medical Research

As Business/ Corporate Services Director, I’ve seen the incredible impact that EIS and SEIS have had on businesses in engineering and medical research. For companies in green-tech and biotech, these schemes have been essential for attracting early-stage investors and driving innovation. The Budget’s focus on expanding the investment limits is an exciting development, particularly for medical research companies that are looking for capital to fund ground breaking R&D.

However, businesses in these sectors need to be mindful of the audit and compliance requirements that come with securing funding through EIS and VCT schemes. I strongly believe that businesses should not only be focusing on accessing these funds but also ensuring they have the right processes in place to track and report on their spending. The increased scrutiny from HMRC means that businesses must be prepared for audits and ensure that they meet the conditions of these schemes, particularly when dealing with large amounts of funding.

“The expansion of EIS and VCT presents huge opportunities for businesses in engineering and medical research, but these opportunities come with significant compliance requirements. Companies must ensure their financial governance and audit systems are robust enough to handle the scrutiny that comes with these schemes.” Katherine Van Eyken, Business & Corporate Services Director

The bigger picture: EIS, SEIS, and the future of innovation in the UK

The Autumn Budget 2025 has sent a strong signal that the government is committed to driving innovation across high-growth sectors, particularly in tech, manufacturing, and medical research. The changes to the EIS, SEIS, and VCT schemes make it easier for businesses to access the funding they need, but also place an increasing emphasis on the audit and compliance processes required to benefit from these schemes.

For businesses in engineering and manufacturing, these funding opportunities provide the chance to scale up quickly, but they must be mindful of how they report and allocate the funds. At Ward Williams, we work closely with our clients to ensure they understand both the opportunities and the compliance requirements that come with these schemes. With the right strategies in place, businesses can make the most of these funding opportunities while maintaining strong financial governance.

Investing in the future of innovation

The Budget offers significant opportunities for tech, engineering, manufacturing, and medical research businesses to raise capital, innovate, and grow. However, these opportunities come with a need for diligent compliance and financial reporting. At Ward Williams, we are committed to helping our clients and future clients navigate the complexities of EIS, SEIS, and VCT funding, ensuring they are fully aligned with HMRC requirements and statutory audit standards.

By focusing on governance, audit processes, and tax-efficient funding, businesses can maximise these opportunities and position themselves for sustainable, long-term growth.

If you want to explore how these funding schemes can help your business scale or need advice on ensuring compliance with audit requirements, call us on 01932 830664 or email us enquiries@wardwilliams.co.uk

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ARTICLE 3 

Financing the Future:

Why the Autumn 2025 Budget signals a new era for green-tech and sustainable innovation

The Autumn Budget 2025 is more than an economic announcement. For many in the sustainability and green-tech community, it represents a shift in direction, a renewed commitment to innovation, climate resilience, and the technologies that will define the UK’s low-carbon future. While the broader fiscal landscape is tightening, the government has been unequivocal in one area: green innovation remains a national priority.

At Ward Williams, we have long seen the green-tech sector as one of the UK’s most dynamic engines of growth. These businesses from renewable energy pioneers and sustainable manufacturers to cleantech engineers and carbon-reduction specialists are not only creating commercial value but shaping the infrastructure and technologies that will underpin the next generation. The Budget reinforces this trajectory, expanding the funding levers that support early-stage innovation while strengthening expectations around accountability, transparency and delivery.

What emerges from this Budget is a dual message: the opportunity for sustainable businesses has grown, but so has the responsibility to demonstrate clarity, impact and governance.

Early-stage growth and the expanding investment horizon

For start-ups and early-stage green-tech innovators, the enhancement of the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) schemes marks a significant milestone. These businesses often require substantial capital from the earliest stages simply to prove a concept, build prototypes or scale laboratory successes into commercially viable solutions. The increased EIS investment limits provide room for more meaningful funding rounds funding that can accelerate development cycles, attract specialist talent and move ideas from conceptual to commercial more rapidly.

Andy Webb, Business Services Director, sees this as a welcome step in the government’s long-term agenda.
“The increase in EIS funding limits presents a huge opportunity for green-tech companies to secure the investment they need to drive growth and innovation. These businesses often require significant upfront capital to develop cutting-edge solutions. With investors increasingly looking for sustainable, purpose-led opportunities, SEIS and EIS offer a powerful route to scale.”

Yet, with greater opportunity comes increased scrutiny. Investors are no longer looking solely at technical promise; they are now evaluating governance, data integrity, risk frameworks and long-term commercial viability. A compelling idea is no longer enough, it must be supported by robust financial controls and a clear plan for delivery.

Growing Up: Governance as a catalyst for scale

For businesses ready to scale, access to capital is only one piece of the puzzle. The expansion of Venture Capital Trusts (VCT) funding and the continuation of targeted Research & Development (R&D) support provide a valuable runway for companies transitioning from innovation to commercialisation. But with this growth comes greater regulatory expectation, more complex supply chains, and the operational realities of running a business at scale.

As Colin Hamilton, Corporate Services and Audit Director, notes,
“For green-tech businesses, EIS and VCT funding provide vital access to capital. But businesses must ensure their financial governance, audit preparation and reporting are robust. Transparency isn’t just good practice, it is essential for compliance and for maintaining investor confidence.”

The businesses emerging strongest in the sector tend to be those who recognise governance not as a constraint but as an enabler, a framework that supports credibility, professionalism and investor trust. Sustainable innovation is no longer the domain of the experimental and the opportunistic; it is an evolving, highly competitive market attracting serious capital. To thrive, businesses must match technical ingenuity with operational discipline.

Innovation with intent: Aligning technology, purpose and policy

One of the most striking elements of the Budget is how clearly it aligns government incentives with green impact. This comes at a time when global markets, investors and regulators are demanding more from businesses in sustainability more evidence, more accountability, more measurable outcomes. For green-tech companies, this creates a unique convergence of financial opportunity and environmental purpose.

Kath Van Eyken, Director of Business & Corporate Services, sees this alignment as transformative.
“The Budget’s focus on green-tech is encouraging, and the enhanced EIS and SEIS limits give early-stage businesses real room to grow, but these opportunities increasingly favour companies that can demonstrate not just innovation, but commercial structuring, validated impact and scalable models. The businesses that align financial discipline with environmental purpose will lead the next decade of change.”

Investors, too, have evolved. They are backing companies whose sustainability claims are grounded in data, whose leadership teams understand their social impact, and whose business models are structurally prepared for climate-driven market demand. This is no longer about being “green-themed”, it is about measurable contribution to a low-carbon economy.

The broader landscape: A sector moving from niche to necessity

The Budget also contributes to a wider transition. Across sectors, sustainability is shifting from a differentiator to a baseline expectation. Supply chains are being reconfigured around carbon reduction. Energy efficiency is becoming integral to cost strategy. Environmental disclosures are moving from voluntary to required. And customers from consumers to major corporates are increasingly aligning with businesses that demonstrate authentic commitment to sustainable practice.

For green-tech businesses, this is an extraordinary moment of alignment. Market demand, regulatory support, investor sentiment and public awareness all point in the same direction. The challenge now is execution: having the structures, governance and financial strategy to convert opportunity into scale.

The future will favour the prepared

The Autumn Budget 2025 offers green-tech businesses the means to grow, but capital alone will not guarantee success. The companies that will define the next chapter of sustainable innovation will be those that combine technical expertise with strategic clarity, operational discipline and a credible long-term plan.

At Ward Williams, we are committed to helping green-tech businesses achieve exactly that. From preparing for EIS, SEIS and VCT investment, to ensuring robust audit and governance frameworks, to shaping commercially viable growth strategies, our team supports clients through every stage of their journey.

If you are a sustainability-driven business preparing to grow, looking to raise investment or seeking clarity on your strategic financial position, we would be delighted to support you.
Call 01932 830664, email enquiries@wardwilliams.co.uk, or visit www.wardwilliams.co.uk.

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ARTICLE 4: 

The changing landscape of APR and BPR:

What the 2026 reforms mean for farms, family businesses and intergenerational wealth

For decades, Agricultural Property Relief (APR) and Business Property Relief (BPR) have provided families, business owners and agricultural estates with an essential layer of protection. They have allowed trading companies and farms to be passed intact to the next generation, without the risk of large inheritance tax bills forcing asset sales or breaking up long-established enterprises.

That protection is now entering a new era.

From April 2026, the government will introduce the most significant reform to APR and BPR in a generation. The changes are technical, but the implications reach into every area of private wealth, rural planning and business succession. Farms, SMEs, landowners and family companies who previously relied on full relief may now find themselves facing unexpected exposure.

This is not a small policy adjustment. It is a structural shift in the mechanics of passing on business and agricultural wealth.

A new cap that reshapes succession

The headline change is simple but transformative: APR and BPR will now be capped. The first £1 million of qualifying agricultural or business property will continue to benefit from 100% relief, with only 50% relief available on any value above that threshold. Couples will see unused allowances transfer between them, creating a potential £2 million combined relief but for many estates, this will only cover a proportion of their holdings.

Rising land values, share valuations and the accumulated worth of trading premises mean that many families will exceed the cap far sooner than expected. Combined with frozen inheritance tax thresholds into the 2030s, the direction of travel is unmistakable: more estates will fall into scope, and more families will be required to factor significant IHT liabilities into their long-term plans.

 “Families who never considered themselves vulnerable to IHT may suddenly find themselves facing difficult decisions.” Malcolm McKinnell, Founding Partner & Estate Planning Director

Malcolm has guided families through APR and BPR planning for many years.
“For years, many families have relied on 100% business and agricultural property relief as the bedrock of their inheritance plans. The new caps change that. The questions now become: which assets actually qualify, how do we sequence the relief, and what happens to the value above the thresholds? These conversations cannot wait, they demand forward planning.”

Increased scrutiny for agricultural clients

For agricultural clients, the reforms land at a time when farms are more diversified and more scrutinised than ever. Renewable energy installations, holiday accommodation, equestrian facilities, commercial units and conservation areas now sit alongside traditional farming activity. These diversified uses are commercially sensible, but they complicate qualification for APR.

Simon Boxall, Tax Director, highlights this emerging pressure:
“Many farmers have diversified to keep their businesses viable, but diversification brings complexity. HMRC will now look much more closely at what genuinely qualifies as agricultural property and what doesn’t. Even well-run farms may find that parts of their estate fall outside full APR, which makes early, evidence-led planning vital.”

The combination of relief caps and tighter qualification tests means that agricultural estates need a far clearer understanding of how each piece of land and property is used and how it will be viewed under the new regime.

SME owners will feel the impact too

APR and BPR reforms are often discussed in the context of rural estates, but the implications for SME owners are just as significant. Many owner-managed businesses have grown in value well beyond the new thresholds particularly those with trading premises, intellectual property, or retained earnings.

Andy Webb, Business Services Director, sees this as a turning point for SME succession:
“Many SME owners mistakenly believe their shares will pass tax-free under Business Property Relief (BPR)  but that assumption is becoming outdated. With the introduction of a new cap, a successful business can easily exceed the £1 million threshold. Owners now need to think differently about succession, whether that means restructuring, making earlier gifts, or planning how the next generation becomes involved. Delaying these decisions until retirement is no longer a viable option.”

For SMEs that form the backbone of family wealth, the intersection of business valuation, personal estate planning and tax strategy is becoming much more complex.

Qualification will no longer be assumed

The reforms do not stop at value. HMRC has shifted its focus onto what actually qualifies and the bar is rising. Family companies with investment activities, dormant subsidiaries or passive property income may no longer meet the trading requirements for BPR. Farms with mixed commercial uses may find that certain parcels of land or buildings fall outside APR.

This demands a more forensic approach to documentation, record-keeping, valuations and business structure than ever before. The days of assuming automatic relief are gone.

Farming estates face particular urgency

Agricultural estates often combine a mix of land types, residential property, commercial ventures and environmental activities. Under the new regime, the order in which relief applies and what qualifies will determine how much of the estate incurs IHT. A farm that has been in the family for generations may now face a substantial tax bill if planning is not addressed early.

Diversification, while economically essential, adds another layer of complexity. A solar installation, glamping site or long-term letting arrangement may support the business but complicate relief. Clear evidence of agricultural use, business purpose and qualifying occupation becomes critical.

A new era for lifetime planning

Under the old rules, many families were able to rely on APR and BPR without altering structures or making early decisions. Under the new regime, timing and sequence matter enormously. Lifetime gifts, share reorganisation, partnership adjustments and Will revisions may all be required to make best use of available relief.

Without early planning, families may find themselves forced into selling assets to fund IHT, something the reliefs were originally designed to prevent.

Our perspective: This is a moment for reassessment

The upcoming APR and BPR reforms are reshaping the fundamentals of estate planning for business owners, agricultural families and anyone with significant trading assets. They introduce new risks but also an opportunity to rethink structures, strengthen succession strategies and ensure continuity for the next generation.

At Ward Williams, we are already working with clients to:

• analyse exposure under the new cap
• clarify what qualifies and what may not
• reorganise holdings for optimal relief
• plan lifetime transfers
• ensure Wills and trusts align with the new rules
• build continuity into family and business succession

The most effective plans are those created now, well before the changes arrive.

If you would like to understand how the APR and BPR reforms will affect your estate, business or family farm, we would be pleased to support you.

Please contact us on 01932 830664, email enquiries@wardwilliams.co.uk, or visit www.wardwilliams.co.uk.