[2025] UKUT 00278 (TCC)

The reasonable disclosure issue is relevant to Airedale in respect of the tax years 2011/12 (NICs of £142,501), 2012/13 (income tax of £230,294.91 and NICs of £101,140.36) and 2013/14 (income tax of £428,336.97). In respect of each of these, Airedale does not now rely on its company tax returns, but instead relies on disclosures made in the following standard format in the Self-Assessment tax returns of the relevant employee or director who was the beneficiary of the contribution in question, giving an example of the Self-Assessment tax return for Mr C J Chadwick for the tax year ended 5 April 2014:

“On 22 November 2011, the company established the Airedale Chemical Company Limited Employer Financed Retirement Benefit Scheme 2011. The company subsequently created a sub-trust for the benefit of me and various other employees. On 12 July 2013 an agreement was entered into which resulted in me owing a debt of GBP 50,004.00 to this sub-trust. Based on professional advice I have received it is my interpretation of the tax law that the above transaction does not constitute an employment-related loan as detailed in S175 ITEPA 2003, and therefore the terms of this debt do not give rise to a benefit in kind which is chargeable to tax on me in the period covered by this tax return. I acknowledge that my interpretation may be a variance with that of HM Revenue & Customs.”