WELCOME TO HARBOUR KEY'S OCTOBER 2026 E-NEWSLETTER
The big talking point is the Budget at the end of the month, which we have discussed in our last couple of newsletters. Now, we wait to see what happens.
The Labour Party conference did not shed much light on what could be announced. The new Chancellor, John Healey, used his conference speech to promise that he would meet the fiscal rules and maintain control of borrowing. His central message was that Labour’s ambitions would be constrained by the state of the public finances.
For many, the biggest announcement came in the Prime Minister’s speech, with the announcement of a National Care Service providing free personal care. This is to be partly funded by changes to the State Pension triple lock from April 2030, although questions remain about the overall cost of the plan – and 2030 is a long way off!
At HK headquarters, Phil and Tina have completed their charity walking challenge, raising £998 for Pancreatic Cancer UK. A big thank you to everyone who sponsored their challenge and well done to them for completing the challenge.
INHERITANCE TAX (IHT)
IHT receipts reached £2.3 billion between April and June 2026, £96 million more than during the same period last year, according to PensionBee, citing HMRC figures. This suggests that the Treasury is already collecting more IHT ahead of pensions becoming part of the IHT regime in April 2027.
From April 2027, most unspent pension pots passed on at death will be brought within the scope of IHT. This can potentially result in IHT at 40%, depending on the individual's circumstances and available allowances.
The rules apply to registered pension schemes, qualifying non-UK pension schemes and certain other types of pension arrangement. Death-in-service benefits are excluded.
You can find more details on the taxation of pensions and IHT in our article HERE!
BUSINESS ACCESS TO FINANCE
In working with our clients over the last month, we have continued to see businesses struggling to access finance. Successfully obtaining a business loan is becoming tougher. However, the difference between success and failure can come down to two things: preparation and shopping around.
This may involve engaging a broker who knows the market and has the time to approach different lenders. The internet can assist with the search, and there are various online tools available. However, an online tool will only provide results based on the information you provide, and sometimes the information you can enter is limited.
We have seen a few clients who needed short-term funding turn to internet searches and ultimately end up with some expensive borrowing. The conversation should always start with your bank, but it shouldn't necessarily end there. Alternative lenders should also be considered.
Most regions have some form of Government-backed lending support. In the South West, for example, there is the South West Investment Fund. These funds can provide early-stage finance for new and growing businesses, supporting areas such as product development, service innovation, new processes and capital equipment.
Loans are generally available from £25,000 to £2 million, alongside possible equity investment. The Midlands has the Midlands Investment Fund, while the North has the Northern Powerhouse Investment Fund. These funds are operated by local providers, generally split between different providers depending on the level of finance they can approve. An online search will help you identify the relevant fund for your region, the lending criteria and the appropriate provider.
The Growth Guarantee Scheme is also still available. This is a Government-backed scheme delivered through accredited lenders, with a range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. Further details can be found on our website in our article on the https://www.harbourkey.com/blogs/articles/growth-guarantee-scheme
- The key is to be clear about what the funding is for and the best way to raise it. Is there a possible grant? Is lending the best option? Or will you need to give away part of your company by bringing in investors?
- Once you have decided on the best route, the next step is preparation. This could mean producing a detailed business plan, completing a lending application and gathering the necessary supporting documents.
Finally, be prepared to put in the legwork. Shopping around can help you secure the funding you need on the best possible terms.
OVERSEAS TRADING – THE TAX CONSIDERATIONS UK BUSINESSES NEED TO KNOW
When a UK-based business expands into a new country, it can trigger complex domestic and international tax rules. For many of our early-stage start-ups, international growth is an exciting and defining stage in their development. Breaking into a new market can bring new customers, increased sales and greater profits.
Business owners naturally focus on winning sales, delivering those sales and getting paid. However, in the excitement of expansion, the less exciting considerations – such as local regulations and tax – can easily be forgotten.
Managing these obligations from the outset can help protect profit margins and prevent costly penalties.
See our Overseas Trading blog here
DATES
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Key Tax dates for the 2026/2027 calendar year;
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31 January 2027 - Self Assessment deadline!
Should you wish to speak with us about a specific matter, or just to be a sounding board or for a chat, please do not hesitate to give us a call on 01452 713277
