This Week in Law: AML Reforms, AI Precedents, and Planning Overhauls

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Relief on the Horizon: AML Rules to Be Simplified

Good news for law firms battling compliance overload. The Treasury has confirmed plans to introduce a new package of anti-money laundering (AML) reforms by the end of 2025. The aim is to deliver rules that are clearer, more proportionate, and better aligned with the day-to-day realities of legal practice.

The key headlines so far:

• Simplified reporting requirements to cut down on admin time
• A more risk-based approach, drawing from reforms in the banking sector
• Part of a broader government push to make the UK’s professional services more globally competitive

This is a real opportunity for firms to revisit internal policies and streamline processes. Compliance will still matter,  but it should be more manageable.

Read more via Law Gazette here.

 

AI in the Courts: Efficiency Gains, But Judges Stay Human

A new report from international academics has explored how artificial intelligence could reshape the courts. The takeaway? AI has real potential to assist with paperwork, summarise judgments and help move simpler civil claims along faster. But judges, quite rightly, are not going anywhere.

A judicial focus group, which included five Supreme Court justices, stressed that legal reasoning, fact-finding and human judgment must remain at the core of the justice system.

The message is clear for legal tech: there’s a growing market for tools that support, not replace. Firms looking at AI-enhanced litigation prep or automated drafting may find growing interest from courts and clients alike, provided the human element remains firmly in control.

Full article via The Times

 

IHT Receipts on the Rise Again

Inheritance Tax receipts for April and May 2025 hit £1.5 billion:  £98 million higher than the same period in 2024. That’s despite house price growth slowing to 3.5 percent. The main drivers? Frozen nil-rate bands and general inflation.

With thresholds locked until 2030 and upcoming changes including the inclusion of pensions from April 2027, more families are being pulled into the tax net. This is already leading to increased demand for estate planning services.

Private client teams should be preparing for more enquiries about:

• Lifetime gifting strategies
• Use of trusts
• Coordinated IHT and CGT planning

This is a timely moment to update your marketing and client communications to reflect the new reality for middle-income estates.

More on this via Today’s Wills & Probate

 

Planning Appeals: Get It Right the First Time

New planning appeal rules are being phased in by the end of 2025 to simplify and speed up development decisions. Most written representation appeals will now only consider the evidence submitted at the time of the original application.

This expands current expedited procedures, which have mostly been limited to householder and minor commercial appeals. Going forward, developers will have far less room to manoeuvre post-refusal.

What does this mean for legal advisers? There’s a growing need to front-load applications with comprehensive legal and technical arguments from the outset. Firms advising developers should review their current processes and client guidance to reflect the tightened rules.

Details via Today’s Conveyancer

 

AI Compliance: A New Precedent for Law Firms

The SRA’s authorisation of Garfield.law, the first AI-led law firm in the UK, has set a new benchmark for how AI should be regulated within legal practice. While the firm itself specialises in small claims debt recovery, the real story lies in the compliance framework that accompanied the approval.

Conditions included:

• A ban on AI generating or interpreting case law
• Mandatory client sign-off at every stage
• Assurance that human oversight remains in place throughout

The SRA is sending a clear signal: if your firm is using AI, you must be able to demonstrate how it fits within existing rules. This includes technical competence under Rule 3.2, client protection under transparency standards, and updated risk assessments to reflect the presence of AI in your workflows.

Firms already exploring automation or AI-powered document tools should take stock. Now is the time to ensure that governance structures, staff training, and insurance policies are aligned with how the SRA expects AI to be used in practice.

Read the blog on Legal Futures

 

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