Why Tax and Business Advisory Has Never Been More Critical
As the Law Society’s recent guidance on climate change and property practice makes clear, the legal sector is pivoting decisively toward environmental risk management. For property professionals, the implications are enormous. However, what often goes under-explored is the link between climate risk, property transactions and strategic tax and business advisory.
This is where we believe the real opportunity lies, not just for compliance but for adding lasting value.
Climate Risk Isn’t Just a Legal Issue. It’s a Business One.
The Law Society’s practice note calls on solicitors to assess climate-related risks such as:
- Physical risks – like flooding and heat damage.
- Transition risks – such as policy changes or shifts in energy standards.
- Liability risks – tied to non-disclosure or misrepresentation.
While the legal sector grapples with new duties and risk frameworks, businesses and investors must consider the broader consequences, especially tax planning, insurance viability, funding access and long-term asset strategy.
How We Can Help
As business advisors and tax experts, we are uniquely placed to support clients in turning these risks into actionable insights:
1. Tax Implications of Property Risk
When climate risks materially affect property value or use, it can alter:
- Capital allowances on property investments
- SDLT calculations based on adjusted valuations
- CGT planning when disposing of affected assets
- VAT recovery on remediation or improvement works
Early involvement can ensure that transactional structuring not only complies with legal duties but optimises post-transaction outcomes.
2. Business Resilience and Advisory Strategy
Climate impact isn’t theoretical anymore as it’s directly affecting insurance cover, tenant demand and lending conditions. We work with businesses to:
- Stress-test portfolios for future climate scenarios
- Identify and model business interruption risks
- Plan sustainable redevelopment that aligns with ESG goals and tax efficiency
3. Transaction Support and Due Diligence
In light of the Law Society’s note, commercial buyers and sellers will need to ask tougher questions and so will lenders and investors. We help clients:
- Integrate climate resilience reviews into financial due diligence
- Collaborate with surveyors and environmental consultants to quantify cost exposure
Our role is not just to advise on tax, but to enable confident decision-making at a business level.
A New Era of Risk-Adjusted Advisory
The message is clear: clients want to futureproof their assets and strategies. As professionals, we must do more than identify risks by being proactive.
Whether you are a property developer, investor or adviser managing portfolios, the integration of climate risk with tax and business strategy is essential.
If you’re navigating a property transaction or want to understand the wider business impacts of climate change on your operations, we can support you. Get in touch today with a member of our team and start looking at future-proofing your assets.
