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Preparing for Cyberattacks: What Jaguar Land Rover Can Teach Modern Businesses

Posted on: September 9th, 2025 by Natasha Cox

Director Dominic Holden explores how businesses can protect themselves and mitigate the risks of a cyberattack, following the recent incident at Jaguar Land Rover, in Computer Weekly.

Dominic’s article was published in Computer Weekly, 9 September 2025, and can be found here.

A cyber-attack at Jaguar Land Rover has halted production lines and caused wide-spread disruption. How can businesses protect themselves and mitigate the risks of an attack?

A single cyber incident can halt production lines, dent customer confidence and wipe millions off a company’s share price – as Jaguar Land Rover (JLR) discovered after it was forced to shut down operations last week.

There is, though, much a business can do to prepare for a cyber attack to both reduce the prospect of falling victim to an attack and to mitigate the loss they can cause.

Preparation: A non-negotiable first step

Effective cyber resilience begins long before an attack occurs, and preparation can be key in mitigating the financial, technical or reputational damage. As such, many boards are now beginning to treat cyber security as a strategic priority, not a technical afterthought.

Effective preparation can encompass several aspects, and this can differ from business to business.

Often, this includes the creation of a clear, rehearsed incident response plan that identifies who does what in the first 72 hours and beyond, from isolating systems to briefing the regulator. The most effective plans are rehearsed by running crisis exercises and simulations so that staff know their roles, and leadership can practise decision-making under pressure.

Backing up your systems and testing that these systems can be restored quickly if compromised is also critical, with the JLR incident showing just how much damage a full shutdown of operations can cause.

Staff can also be more effectively trained to spot phishing attempts, unusual device activity and other red flags which may indicate an attempted breach of a company’s systems. Staff should also be made aware of the importance of ensuring that they install the updates that are rolled out by their IT team.

Cyber insurance is also key. There are many specialist brokers that can assist in tailoring a policy to the risks faced by the company. The process of obtaining the insurance often highlights issues with the company’s existing security and should provide essential support in the event of an attack.

Without such planning and preparation, a business will become more vulnerable to an attack and struggle to respond effectively when the pressure begins to increase.

The first 72 hours

If, despite your preparations, you fall victim to an attack, the first 72 hours are critical. This is where your planning pays off.

Where personal data may be at risk, the Information Commissioner’s Office (ICO) will need to be informed within 72 hours, and you may also need to notify your customers and suppliers of the risk. A PR team with expertise in crisis communications can be an important ally to avoid lasting reputational damage to the business.

Engaging law enforcement at the earliest opportunity is also advised. Reporting the incident to the police and Action Fraud creates a record that can support recovery and wider investigations. Notifying your insurers as soon as possible so you get support from specialist “breach response” advisers, including lawyers and computer forensic specialists, can avoid a misstep during a chaotic and stressful time.

A computer forensics team can move quickly to quarantine the affected systems and help you recover operations quickly, while also preserving evidence. A breach response lawyer will ensure you comply with your regulatory obligations and assist you in formulating a strategy to minimise the claims from suppliers and customers that can often follow.

The ransom question

One of the hardest decisions for businesses that fall victim to a ransomware attack is whether to pay a ransom – where one is demanded. While the National Crime Agency strongly advises against this, as there is no guarantee of restoration and payment encourages further crime, many organisations faced with operational paralysis may consider it a last resort.

Such ransom payments are often demanded in cryptocurrency, and their payment can be covered by insurance, so it is important for businesses to check their policies to see whether this forms part of their cover. It may also be possible to recover the ransom even after it has been paid. Specialist lawyers in crypto recovery can advise whether this is a possibility.

Lessons from JLR

The lesson from the JLR incident is simple: cyber security is no longer just an IT problem – it is a boardroom issue.

Boards must demand robust planning, allocate resources and ensure rehearsals are carried out. Only then can a business minimise financial and reputational damage when an attack occurs.

Divorced Abroad? A Claim May Still Be Possible in England

Posted on: September 8th, 2025 by Ella Darnell

A recent ruling by the Court of Appeal in Potanina v Potanin has highlighted the possibility of pursuing financial claims in England following a divorce overseas. The case involved Russian billionaire Vladimir Potanin and his ex-wife Natalia Potanina, who had divorced in Russia in 2014. In the initial Russian financial settlement, the wife received only 1% of the total wealth of the couple. The wife was then granted permission by the English courts to pursue a claim for a share of Potanin’s UK-connected assets.

This decision underscores the principle that, where there is a genuine connection to England, such as habitual residence or domicile, a financial claim may be justified even after a foreign divorce.

Implications for International Divorcees

Increasingly, many families live abroad during a marriage or have a residence in multiple locations. Relationships between individuals of different nationalities is common place.

When a marriage fails, a divorce may take pace in a country which takes a very different view of fairness to England and Wales. While the Potanin case involved substantial wealth and high-profile individuals, the legal precedent it sets is relevant to a much broader group. UK nationals who have divorced abroad may still have grounds to seek financial relief in England, particularly if they have returned to live in the UK or hold assets here. This is especially pertinent in cases where the overseas settlement was limited or failed to account for UK-based assets, such as pensions or property.

UK Pensions: A Common Oversight

One of the most frequently overlooked issues in overseas divorces is the treatment of UK pensions. If a foreign court has divided assets, and the settlement is not challenged, a UK pension provider cannot implement a foreign order that delas with a UK pension. That can only be done through the English courts, so even if the terms of a settlement are acceptable it is necessary to deal with UK pensions via an application in the English courts.

Equally, in some countries, pension sharing is not a concept that exists, and so a stand alone claim dealing with pensions can be made.

This is particularly relevant for couples with modest wealth, where pensions may represent a significant portion of the marital assets. Without a UK court order, pensions may remain untouched, potentially leaving one party at a financial disadvantage.

The Role of Pre-Nuptial Agreements

Pre-nuptial agreements (PNAs) can play a role in limiting post-divorce claims, particularly when they clearly define jurisdiction and financial expectations. The jurisdictional difficulties of the Potanina v Potanin could possibly have been avoided with a well drafted PNA. While in high-net-worth cases, PNAs may be challenged, especially if one party claims they were disadvantaged in more typical scenarios a well-drafted PNA can offer clarity and protection.

If you would like to learn more about any of these issues, please contact one of the Family team. 

SDLT and Angela Rayner: Why Expert Legal Guidance Is Essential

Posted on: September 4th, 2025 by Alanah Lenten

Angela Rayner, the UK’s Deputy Prime Minister, has felt compelled to resign from her positions after admitting she underpaid Stamp Duty Land Tax (SDLT) on the purchase of a flat in Hove. In addition to leaving her positions, she also faces the prospect of a large tax bill, possible penalties, and significant reputational damage. The issue is said to have stemmed from relying on the wrong advice at the wrong time.

It’s an uncomfortable position for anyone—let alone a senior politician. But it serves as a timely reminder: the quality of advice you receive can shape the outcome, financially and personally.

Why the Angela Rayner SDLT Case Matters

Rayner’s position wasn’t straightforward. A divorce, a trust for her disabled son, and a court order all added layers of legal complexity. Added to that were the intricacies of SDLT and second-home surcharges. What might have seemed a simple property purchase quickly became a tangle of family law, tax, and trust issues.

This highlights a crucial lesson for anyone navigating property transactions or financial planning: joined-up legal advice is essential.  

The Importance of Joined-Up Legal Advice

A case like this demands a cross-disciplinary approach.

  • Family law specialists need to understand arrangements such as “nesting” (where children remain in the home and parents rotate in and out).
  • Private client and trust lawyers must consider how assets are held and managed.
  • Tax experts ensure SDLT and wider liabilities are dealt with correctly.

Missing any one of these angles can result in mistakes that are costly, stressful and time-consuming to fix.

Lessons for Clients Facing Complex Property Transactions

Rayner’s experience highlights the very real cost and risks of misplaced advice, not taking advice from experts in their field and the absence of joined-up guidance across relevant areas. Not taking the right advice at the appropriate time can mean years of stress, avoidable penalties, and lasting reputational damage.

For individuals and families navigating property purchases, divorce, trusts or tax planning, choosing the right advisors, with the right expertise, at the right time, makes all the difference.

How Lawrence Stephens Can Help with SDLT and Beyond

At Lawrence Stephens, we know that complex personal and financial situations demand a coordinated response. Our Family Law, Private Client and Trusts, Property and Tax teams work seamlessly together to provide advice that is practical, protective, and precise. Whether you are navigating divorce, planning your estate, managing wealth, or considering property transactions, our specialists ensure every angle is covered—so you don’t face the kind of pitfalls currently dominating the headlines.

Learn more about Stamp Duty Land Tax and how professional guidance can prevent mistakes by getting in touch with any of the below people.

 

Taylor Swift’s Engagement and Why Pre-nups Matter: From Love Story to Legal Story

Posted on: September 4th, 2025 by Alanah Lenten

Taylor Swift’s engagement has captured headlines around the world. As one of the world’s most successful artists, with a fortune estimated in the billions, it is almost certain that her lawyers will already be advising her on a prenuptial agreement before her marriage to Travis Kelce. But pre-nups are not just for celebrities or the ultra-wealthy. Increasingly, couples in England and Wales are considering a pre-nup before marriage to provide clarity, fairness, and peace of mind when planning their future together.

What is a Prenuptial Agreement?

A prenuptial agreement (often called a “pre-nup”) is a legal contract entered into before a marriage or civil partnership which sets out how assets will be dealt with if the relationship ends.

In England and Wales, pre-nups are not automatically binding. However, since the Supreme Court decision in Radmacher v Granatino [2010], the courts will usually uphold them provided:

  • Both parties entered into the agreement freely.
  • There was full financial disclosure.
  • Each party had independent legal advice.
  • The agreement is fair and does not leave one party in financial hardship.

When those safeguards are met, a pre-nup can be highly persuasive in financial proceedings.

Why Couples Choose a Pre-nup

Whether you’re planning a star-studded wedding like Taylor Swift or a smaller ceremony a Pre-nup can serve several important purposes:

  • Protecting pre-acquired assets – for example, a house one partner already owns and/or business interests.
  • Safeguarding family wealth – such as gifts from parents, inheritances, or stakes in a family business.
  • Providing for children from a previous relationship – ensuring assets are preserved for their future and protecting children’s financial security.
  • Clarity and certainty – reducing conflict, legal costs, and uncertainty if separation occurs.

Far from being unromantic, a pre-nup is not about mistrust. Pre-nups are about planning for marriage responsibly, just as you would plan the wedding day itself. Recognising that marriage has legal and financial consequences empowers you to enter into it with open eyes.

Common Misconceptions About Pre-nups

  • “Pre-nups are only for celebrities like Taylor Swift and the rich.”
    In reality, anyone with property, savings, or family wealth may benefit.
  • “Signing a pre-nup means you expect divorce.”
    In truth, pre-nups are about planning for marriage responsibly, much like making a will is about planning for the future.
  • “Courts ignore them anyway.”
    Properly drafted pre-nups now carry significant weight with judges.

Lessons from Taylor Swift’s Engagement

Taylor Swift’s circumstances are at one end of the extreme: her assets include intellectual property rights, royalties, brand value, and ongoing income from her tours and music empire. But the principle is the same for all couples.

A pre-nup offers protection, transparency, and reassurance. Taylor Swift’s engagement is a timely reminder that love and financial planning can – and should – go hand in hand. Whether you are a 14 Grammy award-winning artist or simply planning your wedding day, it makes sense to protect your future.

Practical Points to Keep in Mind

  • Start early. Timing matters, so a pre-nup should be signed well before the wedding (ideally at least 28 days), so neither party feels rushed or under pressure.
  • Be transparent. Both partners must be open about their financial circumstances, so full disclosure is key.
  • Get independent legal advice. Each party should have their own solicitor.
  • Review Clauses. Circumstances can change; agreements can provide for review after children are born or after a certain number of years.

Our Advice

If you are engaged, entering into a marriage or civil partnership, it is worth considering whether a prenuptial agreement is right for you. These agreements can prevent uncertainty and protect both partners’ interests allowing you to plan a wedding with confidence and adhering to ‘we are never ever getting… disputes over finances’.

At Lawrence Stephens, we specialise in advising on prenuptial agreements and tailoring them to reflect your circumstances. If you would like to discuss your options, please contact our Family Law team today.

Managing Off-Duty Misconduct: A Guide for Employers

Posted on: September 2nd, 2025 by Natasha Cox

Senior Associate Emma Cocker explores how employers can address employee misconduct that occurs outside working hours, and the legal and reputational implications that may follow, in People Management.

Emma’s piece was published in People Management, on 29 August 2025.

Off the clock, still on the hook? Managing misconduct outside the workplace

As festival season comes to a close, many workers are letting down their hair at the likes of Glastonbury, Reading and Download. For many, attending a festival is the chance to enjoy some music with friends, but for others it can mean excessive drinking, taking drugs and anti-social behaviour.

While some deem their non-workplace conduct irrelevant, for attendees whose transgressions are witnessed by their employers, colleagues or clients, the consequences can be serious. Being seen to be excessively drunk or high is not how most companies want their employees to behave in public. This year, antisemitic chanting put Glastonbury and the BBC front and centre of serious concerns, with Sir Ephraim Mirvis (the Chief Rabbi) attacking the BBC for airing ‘vile Jew hate’ by the punk rap duo Bob Vylan, followed by some extremely disturbing and concerning TV close-ups of some of the audience chanting, “Death, death to the IDF”. 

So, what are the repercussions for the errant few who are caught engaging in such behaviour and how should employers respond?

While not all off-duty behaviour warrants intervention, actions that are criminal, breach company policies, or cause reputational damage, can be grounds for disciplinary measures. Such action will firstly involve a disciplinary investigation to determine whether there is a case to answer. If there is, a disciplinary hearing should take place at which the decisionmaker will consider all relevant evidence before deciding whether and how to discipline an individual.

Factors for employers to consider in relation to off-duty misconduct include whether the employee’s actions affect their ability to do their job, damage the employer’s reputation or create a hostile environment for clients or colleagues. If there is a no apparent connection, employers may struggle to justify disciplinary actions and disciplining an employee for conduct that has no clear effect on the company could lead to legal claims, such as unfair or constructive dismissal.

Possible reputational damage is the consequence most often touted by employers in justification for disciplinary measures. However reputational damage can be difficult to assess, and the potential impact will vary depending on the employee’s role and the particular workplace. Case law has thrown up some surprising results, with employees being held to be unfairly dismissed after carrying out what most would consider to be egregious behaviour.

To avoid claims of unfair dismissal, employers must genuinely believe that the employee has committed an act which either has or may cause reputational damage. They need to be careful in assessing the severity of the misconduct, the actual or potential impact on their business, and the employee’s role. In determining the merits of each case, employers need to navigate the fine line between individuals’ rights to a private life and the workplace, simultaneously maintaining standards and respecting employee rights. Equally, employees need to know where the boundaries are and what their employers expect from them to avoid stepping over the line. As such, employers should develop conduct policies, outlining expected behaviour outside of work, which should be communicated to all employees to ensure they understand their responsibilities. Social media policies should also be developed to draw to employee’s attention the impact of online behaviour on the company’s reputation. Regular training on professional conduct and the potential impact of off-duty behaviour should also be offered. This will help to encourage a culture of respect and professionalism both within and outside the workplace. When problems do arise, employers must monitor behaviour fairly and address misconduct promptly.

To find out more about employer obligations and how we can help, please click here

The Business of Football: Contracts, Transfers, and Legal Strategy

Posted on: September 2nd, 2025 by Natasha Cox

Player contracts and transfers: a sports lawyer’s perspective 

Speaking with The Times, Senior Associate Jake Cohen shares his expert insights on the complex and often surprising clauses negotiated in professional football players’ contracts.

Jake’s interview was published in The Times, 29 August 2025, and can be found here.

Speaking with The Times’ Football Reporter, Gary Jacob, Jake explains the features of a standard player’s contract – including wages, bonuses, contract length and options, wage-reduction clauses for relegation, signing-on fees and loyalty payments, agent payments, release clauses, buy-back options and image rights provisions.

Jake goes on to discuss bonuses offered in contract, with a notable example being goal bonuses multiplied by three if a player scores against the club’s main rivals. He also notes how many players want achievable bonuses rather than big payments linked to winning domestic or international silverware.

Asked about the most bizarre clauses he has seen in contracts, Jake observes that he had recently seen a bonus clause based on a player being awarded a rating of seven or higher in a match on a third-party statistics website – a highly unusual consideration.

Jake also explains the mechanisms involved in release clauses, more favoured by European clubs, and how this can impact transfers.

For Jake, transfer windows – and especially deadline day – can be extremely high-pressured situations. Last summer alone, Jake led work on 12 of 15 deals in a single day, including racing across the country to finalise a contract.

“Every minute is important,” he says – and when millions are on the line, expert advice is everything.

For more information on the work of Sports and Entertainment team, click here

US buyers and the UK’s prime property market – how to avoid tax pitfalls

Posted on: August 12th, 2025 by Ella Darnell

As growing numbers of American investors target the UK’s prime real estate, Directors Alexa Kordowicz and Leigh Sayliss explore what’s fuelling this transatlantic property boom and discuss the key tax considerations US buyers must navigate to protect their investments and ensure long-term financial efficiency.

Alexa and Leigh’s article was published in IFA Magazine, 11 August 2025, and FT Adviser, 18 August 2025.

With more Americans than ever making the move to the UK and buying prime property, advisers need to be aware of the tax pitfalls their clients could face, and how to help them avoid costly mistakes.

US migration to the UK reaches record levels

The Americans are coming. In recent years, a growing number of Americans have been crossing the Atlantic to make the United Kingdom their home. While celebrity immigrants such as Ellen DeGeneres have made the headlines, the UK is now attracting thousands of Americans every year.

Many are here to stay. The Home Office says that over 6,600 Americans applied for UK citizenship in the year ending March 2025 – up 30% on the previous year. The first quarter of 2025 alone saw 1,931 applications, the highest quarterly figure in two decades.

Prime property hotspots are attracting wealthy US buyers

There has been a notable surge in well-heeled American buyers seeking properties in London, particularly in prime central London areas such as Mayfair, Marylebone, Chelsea and Belgravia. Americans are now reported to be the main non-British buyers of prime London real estate. Outside of London, desirable rural areas such as the Cotswolds are in vogue.

Lifestyle, safety and cultural similarities are key draws

This trend appears to be driven by a mix of political disillusionment, lifestyle aspirations and the straightforward, practical advantages of life in the UK, from safer streets to a lower cost of living, cheaper private schools and free healthcare. Another key attraction is that, as a culturally similar English-speaking nation, adjusting to life to the UK tends to be relatively easy for Americans.

Better work-life balance is a major attraction

The UK is an attractive destination for those Americans seeking a better quality of life. The promise of a better work-life balance also appears to be a significant draw. In the UK, workers are entitled to more annual leave, paid maternity leave of up to 39 weeks and lower working hours, for instance. From wealthy celebrities to everyday professionals, the UK’s allure is now reshaping migration patterns, which historically tended to be in the other direction.

Political stability and safer education are influencing moves

In 2025, MAK25 London Limited analysed several key drivers prompting Americans to relocate to London, and found perceived political instability in the US to be a significant factor. The UK’s safer educational environment was found to be a notable factor, which perhaps few Britons consider. The UK has had no school shootings since 1996, compared to 39 in the US in 2024 alone, and six in 2025. This is an understandable anxiety for American parents. Lower crime, along with free maternity care and generous maternity leave certainly makes the UK an attractive destination for young American families. Personal factors, such as family ties or job opportunities, also play a role according to MAK25, which also emphasises the importance of obtaining bespoke visa advice.

Currency strength and property market trends are boosting appeal

The current strength of the US dollar against the pound is increasingly making property purchases attractive for Americans, as is the softening UK property market. Post pandemic lifestyle changes and more flexible working arrangements also mean that it’s possible for Americans to consider a second home abroad, even while continuing to work in the US. London and the UK still have global appeal and cultural cachet, and the UK’s reputation is that of a safe haven for international buyers to invest their wealth.

Engaging advisers early is vital for avoiding tax traps

It is vital for Americans considering a move to the UK to engage US and UK tax qualified legal advisors at the outset – ideally prior to making an offer on any property. It’s essential to consider the possible ownership structures carefully, and to understand all the tax implications. Although thorny tax issues can arise, especially regarding inheritance tax, there are ways to mitigate these if they are considered before buying a property.

Understanding the key UK tax implications

Advisers of Americans moving to the UK will need to understand how the UK’s tax regime may impact them and their families, particularly if they are owners of second homes. Stamp Duty Land Tax (SDLT) surcharges for people buying a second home, and for non-UK residents, may well apply. This means that some canny buyers are looking to invest in areas in the UK with strong growth potential, to help offset the higher initial purchase costs.

Properties for personal use are generally bought in personal names or through trust arrangements, as there are further SDLT implications and the Annual Tax on Enveloped Dwellings (ATED) if the client decides to purchase through a company – unless the property is being bought solely for investment and the owner does not intend to use it personally.

Capital Gains Tax (CGT) rates in the UK may surprise Americans, and this is payable on the gain made upon the eventual property sales. It may be payable in the US and UK, but tax treaties avoid double taxation.

Potential inheritance tax at 40% on UK assets is another issue to be carefully considered. Although this should be offset against taxes paid in US, the UK threshold for paying inheritance tax is significantly lower than that for US Estate Duty. It is also worth remembering that there is no inheritance tax on transfers between spouses or civil partners.

Preparing for a smooth property purchase

American clients going ahead with a purchase should ensure that they have all the necessary documentation in order well in advance to ensure a smooth purchase. This may include proof and source of funds, a mortgage offer in principle, and insurance there will be necessary financing and sufficient tax and financial planning to ensure the purchase will be viable. Their US and UK advisors may need to collaborate closely to ensure the best strategy.

A growing transatlantic migration trend

As the political and social divides deepen in the US, the UK’s blend of cultural heritage, personal safety, and its easy access to continental Europe continues to attract Americans. Though US citizens will have to clear a variety of legal hurdles before making the move, this transatlantic migration shows no signs of slowing down just yet.

If you’re looking to invest in UK real estate, you can get in touch with Alexa here.

Navigating the ECCTA Crackdown: Strategies for Business Survival

Posted on: August 4th, 2025 by Natasha Cox

Associate Lefteris Kallou discusses the continued rollout of the Economic Crime and Corporate Transparency Act 2023, offering guidance for businesses on how to ensure compliance amid the National Crime Agency’s economic crime crackdown, in FT Adviser.

Lefteris’ article was published in FT Adviser, 31 July, and can be found here.

The National Crime Agency (NCA) has revealed that 11,500 UK companies were struck off in the past year – the result of a coordinated, multi-agency clampdown. For company directors, the message is clear: now is the time to act. As the UK’s enforcement net tightens, the risk of becoming collateral damage is growing.

Much of this progress stems from the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which has already bolstered the UK’s arsenal against corporate wrongdoing. The Act has not only sharpened the tools available to enforcement agencies, but also ushered in a new era of corporate transparency.

The ECCTA received Royal Assent on 26 October 2023. Building substantially on the foundations laid by the Economic Crime (Transparency and Enforcement) Act 2022, the Act’s wide-ranging reforms aim to significantly enhance the UK’s legal and regulatory framework to address financial crime and improving corporate accountability.

The Act is intended to deter fraud and money laundering, while increasing corporate accountability and strengthening the UK’s integrity as a place to do business. Companies now face new and more stringent compliance requirements, and law enforcement now have better tools to detect and tackle financial crime. The scope and impact of the Act is also increasing as new provisions are coming into force, such as the “failure to prevent fraud” offence, which is due to come into effect on 1 September 2025.

This offence will hold large organisations criminally liable if an “associated person” commits fraud intending to benefit the organisation, unless reasonable fraud prevention measures were in place.

Companies must therefore act swiftly to ensure compliance amid this rapidly evolving legal and regulatory landscape. An analytical, risk-based approach to compliance can help company directors and senior managers to understand the Act and how it applies to their companies. They can then take the necessary steps to ensure that their company is compliant.

Some of the key provisions of the Act include:

  • Enhanced verification powers, mandatory director and PSC identity checks, and improved data-sharing with law enforcement.
  • Greater powers to Companies House to check, query or reject information submitted to them and to request supporting evidence.
  • Companies must confirm that their activities remain lawful each year in their annual confirmation statements and that the future activities of the company remain lawful.
  • A requirement to have a valid registered address and email – with PO boxes prohibited.
  • Stronger powers to seize criminal crypto-assets and tighter anti-money laundering rules for crypto businesses (tying in with the new Crypto-Asset Reporting Framework (CARF) which comes into force on 1 January 2026 requiring UK reporting crypto service providers to collect certain information and share this with HMRC).
  • Mandatory beneficial owner disclosure for overseas entities owning UK property.


Reform of the identification principle

The Act’s reform of corporate criminal liability is significant. With changes to the identification principle, the Act replaces the traditional common law “directing mind and will” test, which required prosecutors to prove that senior individuals with ultimate decision-making authority were involved in criminal activity to hold a company liable.

The original test was widely criticised for being overly restrictive, especially in the context of large organisations with complex governance structures. It essentially made it very difficult – if not impossible – to hold senior managers liable for a company’s criminal actions.

Under the Act, a company can now be held criminally liable for economic crimes committed by a senior manager acting within the scope of their authority. The definition of a “senior manager” is now aligned with the Corporate Manslaughter and Corporate Homicide Act 2007, and it includes individuals who play significant roles in decision-making or managing substantial parts of the organisation’s activities. This broader definition applies to a broad range of economic crimes listed in Schedule 12 of the Act, including fraud, money laundering, bribery, and violations of financial services regulations.

The Act will make it far easier for prosecutors, such as the Serious Fraud Office (SFO), to hold corporations accountable for economic crimes. This tougher enforcement landscape is expected to have a chilling effect on rogue directors and managers who might otherwise turn a blind eye or worse.


Failure to prevent fraud

The second major criminal law reform contained in the Act is a new strict liability offence of failure to prevent fraud, due to come into force on 1 September 2025.

This offence applies to “large organisations”, which are defined as entities meeting at least two of the following criteria in the financial year preceding the offence:

  1. Having over 250 employees
  2. A turnover exceeding £36 million
  3. Total assets above £18 million

It will become possible for such companies to be held liable for fraud committed by employees, agents, subsidiaries, or other “associated persons” intending to benefit the company or its clients unless the company can show that it had reasonable procedures in place to prevent such fraud.

This offence mirrors the “failure to prevent” framework established under the Bribery Act 2010 and the Criminal Finances Act 2017, emphasising a company’s responsibility to implement and maintain robust anti-fraud measures.

The defence of “reasonable procedures” further requires organisations to conduct risk assessments, implement policies and provide adequate staff training to mitigate fraud risks. The Home Office guidance outlines six compliance principles, including risk assessment, monitoring and review, and communication (including training), which again reflect existing guidance for bribery and tax evasion offences.

While its scope is extraterritorial, the forthcoming “failure to prevent fraud” offence hinges on a “relevant event” causing gain or loss in the UK. That means UK-based organisations or those with a UK connection can still face prosecution, even if the fraudulent conduct takes place abroad, as long as the effects are felt on British soil.


Companies House reforms

The Act is just one piece of a broader, multi-agency offensive against economic crime.
Notably, it has recast Companies House – once a passive registrar – as an active gatekeeper in the UK’s corporate enforcement regime.

Among the key reforms are:

Identity verification

From autumn 2025, all directors, members of Limited Liability Partnerships (LLPs), and Persons with Significant Control (PSCs) will be required to verify their identities.

Unless directly verified via Companies House, an Authorised Corporate Service Providers (ACSPs), such as accountants and solicitors registered for Anti-Money Laundering (AML) supervision, will facilitate this process. This measure aims to prevent the use of anonymous or fraudulent identities in corporate structures.

Increased investigative powers

Since March 2024, Companies House has had enhanced powers to query, analyse, and remove incorrect or suspicious information from its registers. It can also share data with enforcement agencies to support investigations into economic crime.

Stricter reporting requirements

Companies and LLPs must provide more detailed and accurate information about their ownership structures, including beneficial owners. Non-compliance can result in significant fines or criminal charges.

Registered email addresses

Companies are now required to maintain a registered email address for communication with Companies House, which will improve the efficiency and security of corporate filings.

These reforms aim to enhance the reliability of the Companies House register, reduce the risk of opaque corporate structures being used for illicit purposes, and align the UK with international transparency standards.


The UK’s wider crackdown on economic crime

The scale and coordination behind the UK’s corporate enforcement crackdown should not be underestimated.

The operation that led to 11,500 companies being struck off involved a formidable coalition of agencies: the National Crime Agency (NCA), Companies House, HM Revenue & Customs, the Insolvency Service, the Financial Conduct Authority, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), the Home Office, and police forces across the UK.

According to the NCA, the crackdown included a two-day blitz with officers from the Metropolitan Police, City of London Police, and South Wales Police, working alongside HMRC’s Economic Crime Supervision unit. The teams targeted high-risk business addresses, company formation agents, and directors suspected of being linked to shell or fraudulent entities.

During the operation, officers visited eleven premises linked to 30 high-risk trust and company service providers. They uncovered that many of these businesses had no genuine commercial activity, and that several company formation agents had breached their legal obligations.

Rachael Herbert, Director of the National Economic Crime Centre, further stated that money laundering fuels serious organised crime, adding that over £100 billion is laundered annually, much of which is facilitated by UK-registered companies.

The impact of the Act across multiple agencies should not be underestimated.

The recent Insolvency Service Annual Plan notably states that, “Tackling financial misconduct is an increasing focus this year. Our collaborative work with Companies House and DBT following the Economic Crime and Corporate Transparency Act will enhance our ability to take robust enforcement action in cases of corporate wrongdoing and increase the integrity of the corporate regime to support economic growth.” The service says that it will publish a new enforcement strategy, setting out enforcement objectives for the next five years, “in the context of growing demands and opportunities in the wake of the Economic Crime Acts.”


Implications for UK companies

The Act imposes significant new compliance obligations on businesses, particularly large organisations subject to the failure to prevent fraud offence. Companies must therefore educate themselves about the new requirements and conduct thorough risk assessments to identify risks associated with employees, agents, and subsidiaries.

It is vital that businesses implement proportionate policies and procedures to mitigate these risks, including financial controls and segregation of duties. Training of both senior managers and staff is vital. Companies should identify individuals who qualify as senior managers under the new identification principle and ensure they are aware of their responsibilities. Failure to comply could result in unlimited fines, reputational damage, and increased scrutiny from regulators.

If embraced proactively, the Act presents opportunities for companies to strengthen their anti-fraud efforts, reducing the risk of fraud reputational damage.  As the Act’s provisions are rolled out, ongoing monitoring, planning and adaptation of policies and practices will be essential. The Act is a landmark piece of legislation, and it has clearly been embraced by a wide range of UK governmental organisations, who are collaborating closely to reduce economic crime, improve transparency, and to enhance the UK’s position as a global leader in ethical business practices.

The true test of the Act lies in its enforcement and its ability to spark a lasting culture of corporate accountability in the UK.

So far, the signs are promising. The past year’s coordinated, multi-agency actions suggest that enforcement won’t just be effective – it will be robust and, at times, uncompromising. As more provisions of the Act come into force and enforcement strategies bed in across agencies, its reach and impact are set to grow even further.

UK company directors would be wise to take note: the crackdown on economic crime is not slowing down – and the risks of non-compliance are rising.

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UK Crypto Regulation Update: HM Treasury’s New Rules Target Scams and Support Fintech

Posted on: July 28th, 2025 by Natasha Cox

In April 2025, HM’s Treasury published a long-awaited overhaul of crypto regulation, via a draft statutory instrument to bring certain cryptoassets into our financial services regime – The Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025.

In theory, this gives the UK an opportunity to now compete with other financial hubs by clarifying the rules on issuing cryptoassets. Other players have already taken the leap, notably in the European Union, Middle East and United States. For the UK, there is plenty of work needed to close this gap.

Head of Blockchain and Digital Assets Matt Green and BCB Group CEO Oliver Tonkin analyse HM Treasury’s overhaul of the UK crypto regime, and discuss whether this is too little too late in driving investment and innovation to the sector.

Matt and Oliver’s article was published in Thomson Reuters Regulatory Intelligence, 24 July 2025, and can be found here.

For more information on our blockchain, digital and cryptoassets services, please click here.

Navigating the Employment Rights Bill

Posted on: July 25th, 2025 by Natasha Cox

The Employment Rights Bill proposes significant changes to employment law and employers and HR professionals will be required to navigate complex changes over the next two years to ensure compliance with it. This will undoubtedly be a daunting time for all, but the businesses that navigate this period with the most success will be those who proactively take steps early on.

This guide explains what you should be doing and when to ensure that you, as an employer and business owner, can navigate the changes likely to be passed into law in the most effective way. 

Mitigating compliance risks

  1. Audit and update contracts and policies

By completing an HR Audit (including a comprehensive review of all employment contracts, staff handbooks and policies) employers can ensure that the definitions and procedures contained within satisfy the new legal requirements. Particular attention should be paid to clauses and policies that affect part-time, agency, and zero-hours workers, as their rights are expected to be significantly strengthened in the Bill.

  1. Train line managers and HR teams

Education is key to compliance, but while there is a lot of information on the Bill out there, some sources are more reliable than others. By providing proper training to managers and HR teams by those who truly understanding the employment law changes contained within the Bill, employers can ensure that their staff receive accurate information (thus increasing the likelihood of compliance). Any training provided should go beyond the strict legal requirements and include practical scenarios, such as handling flexible working requests, conducting fair dismissals, and interactions with trade unions. As the supporting regulations are introduced, training should be reviewed and updated to ensure it reflects current legal requirements.

  1. Implement a compliance calendar

Creating a timeline that maps out the implementation of the Bill and details the changing requirements, necessary training, and communications to staff, will help achieve a smooth transition.

  1. Engage with consultation processes

As the consultation process on the Bill is ongoing, prudent employers will pay close attention to the government debates. Through keeping a keen eye on its progress, employers will be able to take advantage of any opportunity to partake in industry consultations, ensuring the needs of the sector they operate in are fully considered.

Strategic objectives for employers

  1. Strengthen employer brand

More than ever, employees are holding their employers accountable for how they treat their staff and any breaches of law that may occur. By publishing the proactive steps taken to ensure compliance with the Bill, employers will demonstrate that they are aware of and respect their legal obligations. Not only will this help to mitigate the risk of legal claims, but it will also help to attract high-quality employees. Employers who highlight their commitment to fairness, transparency, and employee well-being will differentiate themselves in a competitive hiring market.

  1. Drive operational efficiencies

The more efficient a business is, the smoother it runs and the more profit it makes. Taking the time to implement the Bill correctly can also provide an opportunity to revisit existing processes to assess their efficiency and determine whether they can be streamlined. By ensuring that standardised documentation and decision-making protocols are in place, the risk of inconsistent practices and associated complaints is reduced.

  1. Foster a culture of trust

Going beyond the strict legal requirements and involving affected employees in the implementation of all changes required by the Bill will help to foster a culture of trust. Open communication, for example, via surveys and focus groups, will create a positive workplace culture.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Employment Rights Bill: looking to the future

Posted on: July 24th, 2025 by Natasha Cox

Several of the changes in the Employment Rights Bill which are expected to have the most significant impact will not take effect until 2027 at the earliest. As these changes will mark a drastic departure from the current law, sufficient time is needed for meaningful consultation to take place and for the drafting to be finalised. Given the monumental impact they will bring, it is essential for both employees and employers that they are well thought out and communicated, to reduce the risk of misunderstandings and claims resulting from confusion.

Protection from unfair dismissal from the commencement of employment

Currently, employees must have two years of continuous service to be afforded the right not to be unfairly dismissed (except in a limited number of situations known as automatic unfair dismissal). Before this time, employees are not legally entitled to written reasons for their dismissal.

The Bill will provide employees with protection from unfair dismissal from the first day of their employment. However, the protection will not extend to employees who have entered into an employment contract but have not commenced work (subject to some exceptions), including where the dismissal is due to an automatically unfair reason, such as political opinion or affiliation, or a spent conviction.

We expect to see regulations which detail a light-touch dismissal policy during the initial period (the government has expressed a preference for a nine-month period). This is expected to apply:

  • Where the termination date is no later than three months after the end of the initial period, so long as the notice to terminate the employment was provided during the initial period and;
  • The reason for dismissal is capability, conduct, illegality or some other substantial reason.

During this initial period, there will be a different compensation regime for employees who are unfairly dismissed. Where notice is given to terminate the employment after the initial period, employers will be required to provide written reasons for dismissal if requested.

The government has stated its intention to extensively consult on areas of this reform, including the initial period as well as the process required to terminate employment during this time.

Concerns have been raised regarding the time required to implement this change. Last week, the Conservatives brought forward a measure to defeat the proposed day one protection from unfair dismissal. In what appears to be a simpler solution, the House of Lords voted 304 to 160 to support amending the qualifying period to six months. We are yet to see how the Government will respond to this. Day one protection was a key part of the Government’s manifesto and it will have to decide whether a more in-depth review of the system is required, or whether the proposed Conservative amendment will work just as well. There are several factors which could influence its decision-making, including:

  • The Conservatives’ proposal is simpler for employers and employees to understand, which could result in higher levels of compliance. The hope would be that this would, consequently provide clarity, resulting in fewer incorrect cases being brought before the Employment Tribunal and stretching an already overworked resource even further.
  • As there would be fewer changes to implement via the Conservatives’ proposal, less consultation would be required, meaning that it could become law before the end of the year.

Collective consultation

The requirement to adhere to the collective consultation process will be extended to situations where an employer intends to make 20 or more employees redundant at one establishment, or where the threshold test is met. The threshold test has yet to be defined, but we expect it will be based on a percentage of employees being made redundant. It will also not be a requirement for employers to consult with all representatives together, or to reach the same agreement with all representatives.

Gender pay gap and menopause action plan

Whilst it can be introduced voluntarily in 2026, it will be mandatory from 2027 for employers with 250+ employees to report on their plans to reduce the gender and menopause pay gaps in their company. There will be penalties for non-compliance.

From 2027, employers will also have to include contract workers in their gender pay gap reports.

Enhanced protection for pregnant women and new mothers

Currently, women who are at risk of redundancy have the right to be offered any available suitable alternative employment, once they inform their employer they are pregnant, or if their expected date of childbirth was less than 18 months ago.

The Bill intends to introduce regulations which shall cover protection from other dismissals taking place during pregnancy, maternity leave or following a return to work (for a period of six months).

Further harassment protections

Employers are already expected to take all reasonable steps to prevent sexual harassment – what these steps actually look like are expected to be specified in 2027.

Bereavement leave

Unless an employee’s child dies under the age of 18 or is stillborn after 24 weeks of pregnancy, there is currently no statutory right to bereavement leave. The Bill intends to introduce a ‘day one right’ to at least one week of (unpaid) bereavement leave for employees. Regulations will define the relationship between the employee and the deceased. 

Zero hour contracts

Currently, employers are permitted to engage individuals on zero-hour contracts, provided they do not prevent the individuals from working for another employer.

The government had promised to introduce a ban on ‘exploitative’ zero-hour contracts, but the Bill does not actually go that far. Instead, it gives those on zero-hour contracts the right to a guaranteed-hours contract if they work regular hours over a defined period. Once an employee establishes a pattern of regular working over a 12-week period, employers are obliged to offer regular hours. Should an individual wish to remain on a zero-hour contract, they can. 

These amendments would provide individuals with security while allowing them to remain on a zero-hours contract if they prefer, and will also apply to agency workers. The details of this amendment will be contained in secondary legislation and therefore, it is possible that the length of the reference period, exceptions to the rights and conditions for qualifying for this protection may change in the coming months.

However, on 2 July 2025, during a debate in the House of Lords, the majority voted in favour of altering this requirement from a duty to offer guaranteed hours to a right for workers to request guaranteed hours, with an obligation on employers to grant such a request.

The Bill also proposes that workers on these contracts will be entitled to ‘reasonable’ notice of any shift changes, as well as compensation if a shift is cancelled or cut short. However, the House of Lords again voted for this to be altered to ‘short notice’, requiring that if a shift is cancelled on less than 48 hours’ notice, compensation would be paid.

Access to flexible working

Employees are entitled to make flexible working requests from the first day of their employment and there is no limit to the number of requests which can be made. Under the Bill, should an employer refuse an application, it will now have to explain the reason for the refusal and why it considers its decision reasonable. There is no change to the penalty for breaching the requirements of how to deal with a request, which remains 8 weeks’ pay. It may be that the second draft, or draft regulations, includes guidance on what steps an employer should take before refusing a request.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team

Employment Rights Bill 2025: strengthened protection for workers

Posted on: July 23rd, 2025 by Natasha Cox

The Bill will introduce several significant changes in October 2026. While a number of these changes are still subject to consultation, the aim is clear: to strengthen protection for workers. These changes will drastically alter employers’ obligations towards their staff, increasing the risk of non-compliance if employers fail to educate themselves, which in turn brings financial and reputational risks.

Reforms to ‘fire and rehire’

While there have always been reputational and industrial relations risks associated with the practice of fire and rehire, it is a lawful practice.

The Government had previously indicated that the Bill would abolish fire and rehire. This quickly became so that it would significantly restrict its use.

It is expected that the Bill will make dismissing an employee for refusing to agree to a contract variation about key contractual terms automatically unfair. The key contractual terms are expected to include pay, working hours, pension, time-off rights, and others. It is expected that the regulations which shall accompany the Bill will define ‘key contractual terms’

However, the restrictions will not be all-encompassing. Where there is a genuine need to avoid serious financial issues that may threaten a business, employers may still be permitted, after a detailed and thorough consultation, to exercise the practice of fire and rehire.

The government intends to review the code of practice in the autumn, following an exercise to collect views on the proposed amendments. Following this, the changes are expected to take effect in October 2026.

Fair Pay Agreement – adult social care

The adult social care industry is notoriously a low-paid sector. The Bill aims to enhance the market by introducing the Adult Social Care Negotiating Body (the ‘Negotiating Body’), which will be responsible for negotiating pay and terms and conditions for care workers. The Negotiating Body will comprise trade union representatives and employees working in the sector. The hope is that the introduction of the Fair Pay Agreement will address current recruitment and retention challenges in the industry. However, this change shall come with increased costs for employers who should expect to pay higher salaries and provide better working conditions.

Allocation of tips

From October 2021, over two million workers have seen an increase in the amount of money they take home each month. This was after the introduction of the Employment (Allocation of Tips) Act 2023, which requires employers to ensure that all qualifying tips, gratuities, and service charges are passed on to their workers without deductions (excluding statutory deductions).

The Bill will require employers to consult with trade union or elected representatives (or the workers directly) before publishing the first version of a written policy on the allocation of tips. The policy will need to be reviewed every three years, and employers will need to conduct anonymous surveys on how tips are allocated to ensure that workers feel free to speak up about any issues they consider unfair.

Prevention of sexual harassment

From 26 October 2024, employers have been under a duty to take ‘reasonable steps’ to prevent sexual harassment in the workplace. Reasonable steps include creating a policy on the standards of behaviour expected and what employees can do if this standard is breached, providing training, and undertaking risk assessments. The Bill extends the steps that must be taken to ‘all reasonable steps’ and gives the government the power to define ‘all reasonable steps’ in regulations. We await further information on these regulations.

Third-party harassment

Currently, employers are not explicitly/directly liable for harassment their employees are subjected to by customers/clients/other third parties. The Bill will change this position, making employers liable for third-party harassment, including sexual harassment, unless they took all reasonable steps to prevent it.

Trade union measures

Presently, trade unions do not have the right to access the workplace to recruit or organise members unless an employer agrees to provide access or it is ordered to do so by the Central Arbitration Committee.

The Bill is expected to provide trade union officials with greater access and improve trade unions’ ability to support and advocate for their members by:

  • repealing the requirement of minimum turnouts in strike ballots and minimum service levels during industrial action (which was only recently introduced by the previous conservative government);
  • requiring employers to remind workers in their terms of employment (section 1 statement) that they have the legal right to join a trade union. Employers will also be required to remind workers of this right regularly;
  • providing trade unions with a right to access workplaces in a regulated and responsible manner to meet, represent, recruit, and organise members;
  • reforming various aspects of existing trade union law to:
    • eliminate restrictions on trade union activities;
    • make ballots simpler and more flexible (including electronic votes);
    • stop the replacement of strikers with agency workers; and
    • reduce the threshold of support required for trade union recognition and simplify the statutory recognition process;
  • creating provision for improved resources, time for trade union reps to perform their duties; and
  • introducing new protections for trade union equality reps and against trade union-related intimidation and dismissal.

Extending tribunal time limits

The majority of employment tribunal claims must be brought within three months, minus one day, of the date the act complained of occurred. This has been viewed, for some time, as a relatively short period compared to disputes in civil courts, and potentially prejudicial to the pursuit of justice.

The Bill will extend the time limit to bring claims to six months. It was anticipated that this would apply to all claims. However, breach of contract claims have been omitted from the proposal. This may be a typo and inadvertent omissions, but only time will tell.

The extension of the deadline is expected to result in more employees bringing action against their employers. Therefore, employers must stay up to date with changes in employment law to mitigate the risk of litigation.

If you would like more advice on the changes brought by this Bill and your obligations as an employer, please contact our Employment team