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:

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.

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