Tax refunds, Capital Gains Tax, family gifts and key deadlines
Welcome to the August 2026 edition of the Bidwell Accountancy newsletter.
Tax rules rarely stand still, and knowing what has changed is only part of the picture. The real value comes from understanding how the rules affecta you, your family and your business – and taking action at the right time.
At Bidwell Accountancy, we believe good accountancy should be proactive. It is not simply about completing accounts and tax returns after the event. We want to help our clients plan ahead, identify opportunities, avoid unexpected tax bills and make better financial decisions.
This month, we look at:
Whether HMRC could be holding money that belongs to you
What to consider before selling shares or investments
The tax advantages of gifting assets to charity
The tax implications of giving or receiving money within the family
Important HMRC deadlines for August and September 2026
If anything below sounds relevant to you, speak to the Bidwell Accountancy team before taking action. A conversation before a transaction takes place can often be far more valuable than dealing with the tax consequences afterwards.
Could HMRC be holding money that belongs to you?
Nobody wants to pay more tax than they need to – but tax overpayments happen more often than you might think.
You could potentially be due a tax refund from HMRC if you have paid too much tax during the current or a previous tax year.
Overpayments can arise for many reasons, including:
Changes in employment
An incorrect PAYE tax code
Job-related expenses that have not been claimed
Pension income being taxed incorrectly
Overpayments identified through Self Assessment
Redundancy payments
UK income taxed while you were living abroad
Tax deducted from certain savings or investment income
Foreign income
aUK income received before moving overseas
Depending on your circumstances, it may also be possible to claim tax relief for qualifying employment expenses such as professional fees, uniforms, tools or business mileage that has not been fully reimbursed by your employer.
The way a refund is claimed depends on the type of income involved and whether you already complete a Self Assessment tax return.
Don't automatically assume HMRC has got it right
HMRC holds a huge amount of information, but that does not necessarily mean your tax position is always correct.
If your income has changed, you have several sources of income, receive pension income or have employment expenses, it can be worth reviewing your position.
Bidwell Accountancy can help review your tax affairs and identify whether you may have overpaid tax or missed an available tax relief.
Selling shares or investments? Think about the tax before you sell
If you are considering selling shares or other investments, it is important to understand the potential Capital Gains Tax (CGT) consequences before completing the sale.
CGT is generally calculated on the gain you make rather than the total amount you receive.
For example, if you bought shares for £20,000 and later sold them for £30,000, your starting point would normally be a £10,000 gain before considering allowable costs, losses, exemptions and any available tax reliefs.
The Capital Gains Tax annual exemption
For the 2026/27 tax year, the individual annual exempt amount is £3,000.
This means you may have CGT to pay where your overall taxable gains for the year exceed the available exemption.
The rate you pay will depend on your taxable income and the nature of the gain.
For most chargeable assets, the main CGT rates are currently:
18% to the extent that gains fall within the unused basic rate band
24% on gains falling above the basic rate band
This means the timing of a disposal and your wider income position can make a significant difference.
Not every disposal creates a CGT bill
There are important exemptions and reliefs.
For example, transfers between spouses and civil partners who are living together can generally be made on a no gain/no loss basis, meaning there is usually no immediate CGT charge.
Assets held within an ISA are also generally outside CGT, and special rules apply to certain employee share schemes and UK government gilts.
When calculating a gain on shares, you may also be able to deduct certain costs associated with buying and selling them.
Depending on the circumstances, reliefs such as Business Asset Disposal Relief, Gift Hold-Over Relief, Enterprise Investment Scheme (EIS) relief and Seed Enterprise Investment Scheme (SEIS) relief may also be relevant.
There are also specific rules for identifying which shares have been sold when you have bought shares in the same company at different times.
Planning before selling can make a difference
If you are planning a significant disposal, don't wait until your tax return is due before discussing it with us.
There may be legitimate planning opportunities available before the transaction takes place.
Speak to Bidwell Accountancy and we can help you understand the potential tax liability before you commit to the sale.a
Giving to charity? It could reduce your tax bill too
Most people are familiar with Gift Aid when making cash donations to charity.
What is less widely known is that donating certain shares, land or property directly to charity can also provide valuable tax advantages.
Where qualifying land, property or shares are donated to a UK charity, you may potentially benefit from both Income Tax relief and Capital Gains Tax relief.
Income Tax relief
For qualifying gifts, you may be able to deduct the value of the donation from your taxable income.
If you complete a Self Assessment tax return, the relief is normally claimed through the charitable giving section of the return.
If you do not complete a tax return, it may still be possible to claim the relief directly from HMRC.
Different rules apply to Community Amateur Sports Clubs (CASCs), so advice should be taken where appropriate.
a
Qualifying gifts of assets directly to charity can also be exempt from CGT.
If an asset is sold to a charity for less than its market value, special rules can apply when calculating the taxable gain.
This can make charitable giving particularly attractive for someone who wants to support a cause while also managing their personal tax position.
However, getting the structure right is important.
If you are considering making a significant charitable gift, speak to us before transferring or selling the asset so we can help you understand the tax treatment.
Do you pay tax when family gives you money?
Whether it is helping children with a house deposit, supporting grandchildren or passing money to family members, financial gifts are increasingly common.
One question we are regularly asked is:
“If my parents give me money, do I have to pay tax on it?”
In most cases, simply receiving a cash gift from a family member does not create an Income Tax liability for the recipient.
However, that does not mean the gift can be ignored for tax purposes.
The main issue is usually Inheritance Tax (IHT) for the person making the gift.
The seven-year rule
A gift can potentially remain relevant for Inheritance Tax purposes for seven years after it is made.
If the person making the gift survives for seven years, a potentially exempt transfer will normally fall outside their estate for IHT purposes.
If they die within seven years, some or all of the gift may need to be considered when calculating the Inheritance Tax position.
The exact treatment will depend on the circumstances, including the value and type of gift and any available exemptions.
What counts as a gift?
It isn't just cash.
Gifts can include:
Money
Property
Land
Shares and investments
Personal possessions
Selling an asset to a family member for less than its true market value can also result in the difference being treated as a gift.
Useful Inheritance Tax exemptions
There are several exemptions which can allow gifts to be made without using up the donor's nil-rate band.
These include the £3,000 annual exemption.
There is also a small gifts exemption, allowing gifts of up to £250 per person in a tax year, subject to the relevant conditions.
Special exemptions are available for wedding or civil partnership gifts, including up to:
£5,000 to a child
£2,500 to a grandchild or great-grandchild
£1,000 to another person
One particularly useful exemption is for normal expenditure out of income.
Regular gifts can potentially fall outside the donor's estate immediately where the necessary conditions are satisfied, including that the gifts are made from income and do not affect the donor's normal standard of living.
This can be a valuable estate-planning tool, but good records are essential.
Keep records of significant gifts
For larger gifts, make a record of:
What was given
Who received it
The value
The date
Which exemption, if any, is being relied upon
These records can be extremely important if the donor's estate needs to be reviewed many years later.
If you are considering passing significant wealth to children or other family members, talk to us first. With the right planning, it may be possible to make gifts in a more tax-efficient way while ensuring the correct records are maintained.
Tax Diary – August & September 2026
Don't get caught out by an avoidable HMRC penalty or interest charge. Here are some of the main upcoming deadlines.
August 2026
1 August 2026
Corporation Tax payment due for companies with a 31 October 2025 year-end, where the standard nine-month-and-one-day payment deadline applies.
19 August 2026
PAYE and National Insurance contributions for the month ended 5 August 2026 are due where payment is made by post.
22 August 2026
PAYE and National Insurance contributions for the month ended 5 August 2026 are due where payment is made electronically.
19 August 2026
CIS monthly return deadline for the tax month ended 5 August 2026.
19 August 2026
CIS deductions for the month ended 5 August 2026 are due where payment is made by post. Electronic payments are generally due by 22 August.
September 2026
1 September 2026
Corporation Tax payment due for companies with a 30 November 2025 year-end, where the standard payment deadline applies.
19 September 2026
PAYE and National Insurance contributions for the month ended 5 September 2026 are due where payment is made by post.
22 September 2026
PAYE and National Insurance contributions for the month ended 5 September 2026 are due where payment is made electronically.
19 September 2026
CIS monthly return deadline for the tax month ended 5 September 2026.
19 September 2026
CIS deductions for the month ended 5 September 2026 are due where payment is made by post. Electronic payments are generally due by 22 September.
Need help? Speak to Bidwell Accountancy
Good tax planning isn't about looking backwards once the tax year has finished. It's about understanding your position early enough to do something about it.
Whether you're:
Running a limited company
Self-employed
A landlord
Selling shares or investments
Planning to gift money or assets to your family
Looking to reduce an unexpected tax liability
Unsure whether you're claiming all the reliefs available to you
…the team at Bidwell Accountancy can help.
We believe clients should expect more from their accountant than a set of accounts and a tax bill once a year.
Our approach is to work proactively with our clients, explain the numbers in plain English and identify tax-planning opportunities before it's too late to use them.
Already a Bidwell Accountancy client?
If anything in this month's newsletter could affect you, get in touch with the team and we'll be happy to discuss it.
Looking for a new accountant?
If your current accountant isn't talking to you about tax planning, future liabilities and opportunities to improve your financial position, perhaps it's time for a different conversation.
Bidwell Accountancy
Growing your business together.
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