A D Bly Groundworks & Civil Engineering Ltd (appellants) & anr v HM Revenue & Customs (respondent)
Wednesday 5 November 2025
By Appellant’s Notice filed on 19 June 2024 the Appellants (also Appellants below) A D Bly Groundworks and Civil Engineering Ltd and CHR Travel Ltd, appeal the decision of the Upper Tribunal (Tax and Chancery Chamber), judgment being delivered on 22 April 2024 following trial on 6 December 2023.
A D Bly is a provider of civil engineering and groundwork contracting services. At the relevant times, it had seven directors and around 220 employees. CHR is engaged in the wholesale travel agency business. It had two directors and around 20 employees. The Appellants entered into contractual arrangements with directors and other key employees relating to an Unfunded Unapproved Retirement Benefit Scheme under which the Appellants promised to provide those employees with a pension in the future. In the case of each Appellant, the pensions were calculated by reference to the estimated profits for the relevant year. In each case, the aggregate amount of the pensions was set at 80% or 100% of the estimated profits before tax. Each company made a provision in its accounts in respect of its liability to make these future pension payments to employees, and claimed a deduction in calculating its profits for corporation tax purposes to reflect that provision. HMRC disallowed the deductions and issued closure notices.
View hearing: