Before a property development even begins, significant costs are often incurred. Planning applications, architects’ drawings, engineering reports, environmental surveys and legal advice can all generate substantial expenditure long before construction starts.

HMRC has launched a consultation examining whether the current tax treatment of these pre-development costs remains appropriate and whether changes could help encourage investment.

What are pre-development costs?

Pre-development costs are expenses incurred before physical work begins on a development project. They may include:

� Architectural and design fees.

� Planning application costs.

� Site investigations and surveys.

� Environmental assessments.

� Legal and professional fees.

� Feasibility studies.

These costs are often unavoidable, yet the tax treatment can sometimes be uncertain depending on the nature of the project and the business involved.

Why is the Government consulting?

The Government wants to understand whether the existing rules discourage development or create unnecessary complexity.

Businesses have argued that uncertainty over whether certain costs qualify for tax relief can make investment decisions more difficult, particularly for larger commercial developments where early professional fees can be significant.

The consultation will consider whether the rules could be simplified while maintaining fairness across the tax system.

What does this mean for businesses?

There is no immediate change. Existing tax rules continue to apply until any future legislation is introduced.

However, developers, landlords and businesses considering new premises should continue to keep detailed records of every cost incurred during the planning stage. Good record keeping makes it much easier to determine the correct tax treatment and support any future claims.

Where projects span several years, accurate documentation becomes even more important.

Looking ahead

Although consultations do not always lead directly to new legislation, they often provide a clear indication of the Government’s thinking.

Businesses planning property developments should monitor future announcements and consider how any changes might affect the cost of future projects.

How we can help

Property taxation is rarely straightforward, particularly where development projects are involved. Our team can advise on the current tax treatment of development costs, help maintain appropriate records and ensure your project remains as tax efficient as possible as the rules continue to evolve.

If you are planning a development or significant property investment, please contact us before major expenditure begins. Early advice can often save both time and tax later

It is important to know if HMRC is holding money that belongs to you. For example, if you have paid too much tax to HMRC, you may be able to claim a tax refund (also known as a tax rebate). Overpayments can happen for a number of reasons, including changes in your employment, paying tax using the wrong startegy or not claiming eligible expenses.

The process for claiming a refund depends on your circumstances, including whether you complete a self-assessment tax return and the type of income or expense involved. HMRC provides an online service to help you find out what you need to do if you have overpaid tax.

You may be able to claim a refund if you have paid too much tax on income from a job, job-related expenses such as working from home, fuel, work clothing or tools, a pension, overpayments revealed by a  self-assessment tax return or a redundancy payment. Refunds may also be available for UK income taxed while living abroad, interest from savings or payment protection insurance (PPI), income from a life or pension annuity, foreign income, or UK income earned before leaving the UK.

HMRC offers an online service at www.gov.uk/claim-tax-refund/y that allows you to check whether you are eligible and, in many cases, submit a claim.

If you have already claimed a tax refund, you can use HMRC’s guidance to check when you should expect a response.

If you are selling shares or other investments, you may incur Capital Gains Tax (CGT) on any profit, or ‘gain’, you make. You will need to work out your gain to determine if you need to pay tax, which depends on whether your total gains exceed your CGT allowance for the tax year. 

You usually pay CGT on total gains above your annual tax-free allowance, which is currently £3,000. If your gains exceed the allowance, you must report and pay CGT. This is usually done through self-assessment, with different reporting deadlines depending on the type of asset disposed of. The rate of tax depends on your income. Basic rate taxpayers pay 18% CGT on gains within the basic rate band and 24% on amounts above it. Higher and additional rate taxpayers generally pay 24% CGT on all gains.

You do not usually pay CGT when you give shares as a gift to your husband, wife, civil partner, or a charity. Additionally, shares including those held within an ISA, those in employer Share Incentive Plans (SIPs) and UK government gilts are exempt. Your gain is typically the difference between what you paid for your shares and the sales proceeds. 

You can deduct costs like stockbrokers’ fees and Stamp Duty Reserve Tax (SDRT) from your gain. Various tax reliefs may also reduce or delay your CGT liability, including Business Asset Disposal Relief, Gift Hold-Over Relief, Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS), and Rollover relief. Special rules apply for working out the cost of shares bought at different times in the same company, or if sold through an investment club.

It is important to calculate your gain, consider any applicable reliefs, and report to HMRC if your total gains exceed the annual allowance.

Most people are aware that cash donations to a charity can qualify for tax relief. However, it is less well known that gifts of land, property and qualifying shares can also provide valuable tax advantages.

If you donate land, property or shares to a UK charity, or sell them to a charity for less than their market value, you may be entitled to both Income Tax and Capital Gains Tax (CGT) relief. However, Income Tax relief is not available for gifts to Community Amateur Sports Clubs (CASCs).

Income Tax relief is claimed by deducting the value of the qualifying donation from your total taxable income for the tax year in which the gift or sale is made. If you complete a self-assessment tax return, the claim is made in the ‘Charitable giving’ section. Those who do not file a tax return can contact HMRC directly to claim the relief, either as a repayment or through an adjustment to their tax code.

There is also no CGT to pay on qualifying gifts of land, property or shares made to charity. Where an asset is sold to a charity for less than its market value, any gain is calculated using the actual amount paid by the charity rather than the asset’s market value.

To support any claim, it is important to retain records showing that the gift or sale was made and accepted by the charity. If the charity asks you to sell the asset on its behalf before donating the proceeds, keep evidence of both the gift and the charity’s request, as this will help preserve your entitlement to tax relief and avoid any unnecessary tax liability.

Receiving money from a family member can be a welcome source of financial support, but many people are unsure whether they need to pay tax on it. In most cases, the person receiving a gift does not pay Income Tax on money given by family. However, the gift could have Inheritance Tax implications for the person making the gift.

Inheritance Tax may become an issue if the person giving the money dies within seven years of making the gift. Gifts made during this period may be included when calculating the value of their estate, depending on the amount given, who received it and when it was made.

Gifts can include money, property, land, personal possessions and shares. If someone sells an asset to a family member for less than its market value, the difference may also count as a gift.

There are several exemptions and allowances that allow people to give money without it becoming liable for Inheritance Tax. Each tax year, an individual can give away up to £3,000 known as the annual exemption. They can also make unlimited gifts of up to £250 per person, provided another exemption has not been used for the same recipient.

Certain wedding gifts are also exempt, including gifts of up to £5,000 to a child, £2,500 to a grandchild or great-grandchild, and £1,000 to other individuals.

Regular financial support may also be exempt if it is paid from normal income and the person giving the money can still afford their usual living costs. This could include helping with rent, supporting an elderly relative or contributing into a savings account for a child under 18.

Anyone making significant gifts should ensure they keep records showing what was given, to whom, the value and the date of the gift as this may have Inheritance Tax implications in the future.

1 August 2026 – Due date for Corporation Tax due for the year ended 31 October 2025.

19 August 2026 – PAYE and NIC deductions due for the month ended 5 August 2026. (If you pay electronically, the due date is 22 August 2026.)

19 August 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2026.

19 August 2026 – CIS tax deducted for the month ended 5 August 2026 is payable by today.

1 September 2026 – Due date for Corporation Tax due for the year ended 30 November 2025.

19 September 2026 – PAYE and NIC deductions due for the month ended 5 September 2026. (If you pay electronically, the due date is 22 September 2026.)

19 September 2026 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2026.

19 September 2026 – CIS tax deducted for the month ended 5 September 2026 is payable by today.

Many UK businesses now borrow money from overseas lenders or form part of international business groups. Where interest is paid outside the UK, the tax rules can become surprisingly complicated. HMRC has now launched a consultation that could make one aspect of those rules much simpler.

Why are the rules so complicated?

In some circumstances, UK businesses paying interest to an overseas lender must deduct UK Income Tax before making the payment. This is known as withholding tax.

However, many countries have Double Taxation Agreements with the UK that reduce or remove this requirement. The difficulty is that businesses often need to complete a formal clearance process before they can apply the reduced rate, adding time, paperwork and uncertainty to international transactions.

What is HMRC proposing?

The Government is consulting on ways to simplify the system so that businesses can claim treaty relief more easily. Although no final decisions have yet been made, the aim is to reduce unnecessary administration while maintaining appropriate safeguards against abuse.

If implemented, the proposals could make it quicker and easier for businesses to apply the correct withholding tax treatment when making overseas interest payments.

Who could be affected?

The consultation will be of most interest to:

• Companies with overseas parent companies.
• Businesses borrowing from overseas lenders.
• Groups financing their operations internationally.
• Businesses expanding into overseas markets.

Many smaller businesses may assume these rules do not apply to them, but international borrowing arrangements are becoming increasingly common.

What should businesses do now?

There is no immediate change to the law. Existing withholding tax obligations continue to apply until any new legislation is introduced.

However, businesses involved in international financing should ensure they understand their current obligations and keep appropriate documentation supporting any claims under Double Taxation Agreements.

Professional advice can often prevent costly errors, particularly where cross-border tax rules are involved.

How we can help

International tax rules are rarely straightforward, but getting them right can avoid unnecessary tax costs, penalties and delays.

If your business pays interest overseas, is considering overseas borrowing or has questions about withholding tax, we can review your arrangements and ensure you are applying the rules correctly while keeping you informed of any future changes resulting from the consultation.

Research and Development (R&D) tax relief has helped thousands of innovative UK businesses recover some of the costs of developing new products, improving processes and overcoming technical challenges. However, recent reports suggest that many genuine businesses are no longer making claims because they fear becoming caught up in HMRC’s crackdown on abuse of the scheme.

There is no doubt that HMRC was right to tackle fraudulent and exaggerated claims. The tax authority has introduced tougher compliance procedures and new requirements to ensure that relief is available only for genuine innovation. These measures have significantly reduced error and fraud within the system.

The difficulty is that some legitimate businesses have also become reluctant to claim. Recent research indicates that many companies have delayed innovation projects, reduced investment or simply decided not to submit claims because they are concerned about the complexity of the process or the possibility of an HMRC enquiry.

If your business is developing new technology, improving manufacturing processes, creating specialist software or solving difficult engineering or scientific problems, it may still qualify for valuable tax relief. Many business owners mistakenly believe that R&D only applies to laboratories or major scientific breakthroughs. In reality, a wide range of commercial activities can qualify where a project seeks to overcome genuine scientific or technological uncertainty.

The key is ensuring that any claim is well prepared and supported by appropriate evidence. HMRC expects businesses to demonstrate why the work involved technological or scientific uncertainty, how those challenges were addressed and what costs were incurred. Good project records, technical documentation and accurate financial information are now more important than ever.

To help businesses gain greater certainty, HMRC has also launched a targeted Advance Assurance pilot. This enables eligible SMEs to obtain an indication on certain aspects of a proposed claim before it is submitted, reducing uncertainty in more complex cases.

The message for innovative businesses is simple. Do not allow concerns about increased scrutiny to prevent you from claiming relief to which you are entitled. Equally, avoid firms that promise large tax repayments without first carrying out a detailed technical review of your activities.

If you think your business may have undertaken qualifying R&D, or if you have dismissed the possibility in the past, now is an excellent time to review your position. A properly prepared claim, supported by robust evidence and professional advice, can still provide valuable tax savings while meeting HMRC’s increasingly rigorous standards.

If you would like to discuss whether your business could qualify for R&D tax relief, please contact us. We will be pleased to review your projects and advise whether a claim is likely to succeed.

What it could mean for households and small businesses

The Government has announced that VAT on domestic electricity bills will be reduced from 5% to 0% from 1 October 2026 as part of its latest package of cost of living measures. The change is intended to reduce household energy costs ahead of the winter months and help ease pressure on family finances. The measure was one of the first announcements made by the new administration and will be introduced through legislation when Parliament returns after the summer recess.

For the average household, the Government estimates that the change could reduce annual electricity costs by around £45, although the actual saving will depend on electricity consumption. Energy suppliers are expected to pass the VAT reduction on to customers, including those on fixed tariffs.

Although the announcement is aimed primarily at households, there are wider implications worth noting.

Some small businesses that qualify for domestic energy VAT relief and are not VAT registered, together with eligible charities and residential care homes, are also expected to benefit from the reduced rate. Businesses that are fully VAT registered and recover their input VAT are unlikely to see any significant financial advantage because the VAT they pay is normally reclaimed through their VAT returns.

It is also important to keep the announcement in perspective. The reduction applies only to the VAT element of electricity bills. Wholesale energy prices, standing charges and future changes to the Ofgem price cap will continue to have a much greater influence on the total amount consumers pay. If energy prices rise significantly during the winter, some or all of the VAT saving could be offset by higher underlying costs.

As with many tax announcements, the detail matters. The legislation has yet to be published and further guidance is expected on the precise operation of the new zero rate, particularly for qualifying organisations and customers in Northern Ireland, where different VAT arrangements currently apply.

If you are unsure whether your household, charity or business will benefit from the change or would like advice on reducing your overall energy costs and improving tax efficiency, please contact us. We will be pleased to explain how the new rules apply to your circumstances and help you identify any other opportunities to reduce your tax burden.

Artificial intelligence is rapidly becoming part of everyday business. From drafting emails and analysing data to producing marketing content and improving customer service, AI offers exciting opportunities for businesses of every size.

However, as recent guidance from the accountancy profession makes clear, adopting AI successfully requires more than simply choosing the latest software. Businesses also need to think carefully about governance, security and responsible use.

One of the greatest benefits of AI is its ability to automate routine administrative tasks. This allows staff to spend more time on work that adds value, such as serving customers, developing new products or improving business performance. For many smaller businesses, AI can deliver significant productivity gains without requiring major investment.

Despite these advantages, AI should not be viewed as a replacement for human judgement. Information generated by AI can occasionally be inaccurate, incomplete or out of date. Important business decisions, financial reports and customer communications should always be reviewed by someone with the appropriate knowledge and experience.

Businesses should also consider how confidential information is handled. Before uploading documents or customer data into any AI platform, it is important to understand how that information will be stored, processed and protected. Staff should receive clear guidance on what information may and may not be entered into AI systems.

Developing a simple AI policy can help reduce risk. The policy should explain which AI tools have been approved for business use, identify situations where human approval is required and remind employees of their responsibilities regarding confidentiality and data protection.

Training is equally important. Employees should understand both the capabilities and the limitations of AI. Used appropriately, AI can become a valuable assistant. Used carelessly, it can create compliance, legal and reputational risks.

As AI technology continues to develop, businesses that embrace it sensibly are likely to gain a competitive advantage. The key is to combine the efficiency of technology with the experience and judgement that only people can provide.

If your business is considering introducing AI into its operations, now is an ideal time to review your existing processes, data security arrangements and internal controls. With the right planning, AI can become a powerful tool that supports growth while helping your business remain secure and compliant.