PUBLICATION OVERVIEW
This document sets out the tax strategy adopted by HG Group (Holdings) Limited, HG Construction (Holdings) Limited, HG Construction Limited and its subsidiary entities (together “the Group”). It has been prepared and published in accordance with paragraph 16(2), Schedule 19 of the Finance Act 2016, which applies to the head of a UK group. This publication covers the financial year ended 31 December 2025.
GROUP STRUCTURE
HG Group (Holdings) Limited is the head of the qualifying UK group for the purposes of paragraph 16(2), Schedule 19 of the Finance Act 2016. The Group operates through a three-tier UK holding structure – HG Group (Holdings) Limited, HG Construction (Holdings) Limited, and HG Construction Limited. This strategy applies to all UK entities and subsidiaries within that structure.
UK TAX RISK MANAGEMENT AND PROCEDURES
The Group is committed to conducting its business responsibly and sustainably. This commitment extends to the administration and payment of the right amount of UK tax, at the right time, and in accordance with both the letter and spirit of UK tax law.
- Board Responsibility: The Board of Directors has overall accountability for the Group’s tax strategy and compliance.
- Senior Accounting Officer (SAO): The Group Finance Director is designated as SAO and oversees the tax control framework, ensuring that it remains robust and effective, and that the finance team has the necessary training and resources.
- Controls & Procedures: The Group maintains documented procedures and internal controls to manage tax risks across its trading entities. These are regularly reviewed and updated to reflect changes in law, HMRC guidance, and best practice.
- Continuous Review: Tax risk is assessed during internal, commercial, or structural changes. External professional advice is sought where appropriate, and relevant training is provided to staff.
ATTITUDE TO TAX PLANNING
The Group conducts its tax affairs in line with genuine commercial activity.
- We do not enter into artificial arrangements with the sole purpose of achieving a tax advantage.
- The Group seeks to utilise reliefs, exemptions, and incentives – including those available for the construction sector – only where they are consistent with the intention of Parliament.
- We aim to pay the right amount of tax, avoiding both underpayment and reputational risk from aggressive tax planning.
- Where legislation is unclear, we proactively seek external professional advice to ensure informed and compliant decision making.
LEVEL OF RISK ACCEPTED FOR UK TAXATION
As a large UK construction business, we acknowledge that tax risk can arise due to complexity and changes in legislation. Areas of particular focus for the Group include:
- Construction Industry Scheme (CIS): ensuring correct verification, deduction and reporting across our subcontractor supply chain.
- VAT, including the domestic reverse charge for construction services, and its correct application across our contracts.
- Availability and correct claiming of reliefs and incentives relevant to the sector, such as capital allowances and, where applicable, R&D relief.
The Group has a low risk appetite for UK taxation matters. We aim to minimise tax risk through clear policies, strong internal controls, and the use of professional advisors. Major transactions are reviewed to ensure compliance with UK tax rules, alignment with our business objectives, and the safeguarding of our stakeholders’ long term interests.
WORKING WITH HM REVENUE & CUSTOMS (“HMRC”)
The Group values a transparent and constructive relationship with HMRC.
- We adopt an open and collaborative approach, providing clear and timely disclosures.
- Where significant uncertainty exists, we may seek pre-transaction clearance to obtain certainty on tax treatment.
- Disputes, should they arise, are handled promptly and fairly with the aim of achieving early resolution.
- Professional advisers act as our agents in a number of cases, ensuring technical accuracy and effective engagement with HMRC.
TOTAL TAX CONTRIBUTION
Beyond corporation tax, the Group makes a broader contribution to the UK Exchequer, including employer’s National Insurance contributions, CIS deductions collected on behalf of subcontractors, VAT, the Apprenticeship Levy, and business rates across its sites. The Group considers this wider contribution an important part of demonstrating its commitment to responsible tax conduct.
PUBLICATION
This strategy applies to all UK entities within the HG Construction Group and is published in compliance with the requirements of Schedule 19 of the Finance Act 2016. It will be reviewed and republished annually, ahead of each financial year end, and updated where necessary to reflect changes in legislation, accounting standards, or business operations.
