Corporate law in 2025 and looking forward to 2026

Looking back at 2025

2025 has been a transformative year, with a massive paradigm shift from ‘deregulation’ to ‘transparency and accountability’ at Companies House. The landscape is now dominated by the phased rolling out of reforms under the Economic Crime and Corporate Transparency Act 2023 (more commonly known as ECCTA) as well as the modernised UK Corporate Governance Code.

Under ECCTA, Companies House has transitioned from a passive library of historic/up-to-date company information, to an active regulator, implementing a series of mandatory reforms. It is aimed at preventing the abuse of UK corporate structures and tackling economic crime.

More notably in 2025 (amongst others), is the implementation of mandatory Identity Verifications (IDVs) for all directors, individual LLP members and Persons of Significant Control (PSCs), as well as anti-money laundering supervised firms (such as Clarkslegal**) and sole traders applying to become authorised corporate services providers (ACSPs) which allow them to carry out these mandatory IDV services. Introduction of these reforms, have increased the pressure for corporate entities with the aim of combating fraud and crime whilst promoting transparency.

At Clarkslegal, we believe informational pieces and updates are useful to business owners in the form of updates, news articles, deal announcements and podcasts for ease of reference.

Please see below some of our 2025 releases:

• December Podcast 2025: Autumn Budget 2025 Breakdown: Key takeaways for business buyers and sellers – Clarkslegal LLP
• December 2025: Why is carrying out a legal Due Diligence investigation necessary during an proposed acquisition? – Clarkslegal LLP
• October 2025: Keeping It in the Family: How Family Investment Companies Work – Clarkslegal LLP
• September 2025: The Failure to Prevent Fraud Offence – be prepared to avoid criminal liability – Clarkslegal LLP
• July Podcast 2025: Preparing your professional services firm for sale – Clarkslegal LLP
• July 2025: Articles of Association v. Shareholders Agreement in England and Wales: Which one works best for you and your company? – Clarkslegal LLP
• June 2025: Authorised Corporate Service Providers – what you need to know! – Clarkslegal LLP
• May Podcast 2025: Thinking of exiting your business? Part 1 – Clarkslegal LLP
• March 2025: Are You Sale Ready? – Clarkslegal LLP
• January 2025: Business Asset Disposal Relief: Changes to CGT Relief and the Consequences for Business Owners – Clarkslegal LLP

** Clarkslegal provides IDV services for existing clients of the firm only.

Projections for 2026

As we’ve seen in 2025, 2026 is also pivotal around changes in Capital Gains Tax (CGT), both for individuals and corporations alike, given the Government has been steadily transitioning into higher rates. For individuals, we have already seen rates rise from April 2025, but specific business asset disposal reliefs (BADR) will continue to increase each April, causing some concern for those looking to sell their businesses.  For limited companies, Corporation Tax, will remain the same.

As for ongoing developments under the ECCTA regime, further controls will continue to be implemented in 2026. As ECCTA introduced mandatory IDVs in November 2025, we’re likely to see the further IDV and filing requirements come into effect in 2026, as follows:

• Spring 2026: for anyone filing information at Companies House, they will be required to have their identify verified and third-party agents filing on behalf of a company is required to be registered as an ACSP.
• End of 2026: additional filing requirements will be introduced for limited partnerships.
• End of 2026: the transition period for requiring IDV of directors, members and PSCs end and compliance activity will be taken against those who have failed to complete IDV where required.

It is currently unclear when IDVs will be introduced for officers of RLEs, corporate directors of companies, nominated directors of corporate general partners of limited partnerships and corporate members of LLPs. Watch this space!

Summary

Given the increases tax rates for CGT, Corporation Tax and BADR, it will be daunting for those looking to sell their business before the next rate increase in April 2026. At Clarkslegal, we are specialists in advising business owners on exiting their business, and have a strong network of tax and financial contacts who we work with, to ensure your business sale goes through as smoothly and as efficiently as possible. If you’re looking to purchase or sell your company, feel free to reach out to our corporate team and we would be happy to have an initial chat free of charge, to understand your requirements further. Once signed up with the firm, we are also happy to assist with your IDV ECCTA requirements, as an ACSP.

Disclaimer – this article is provided for general information purposes only and does not constitute as legal or other professional advice, as it is not comprehensive, fitting for each circumstance and may not be up to date. Specific advice should always be sought in relation to any legal issue and Clarkslegal LLP does not accept any responsibility for any loss which may arise from reliance on any of the information contained on this site.