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Policies
We keep our policies clear, current, and aligned with our core values and practices. This reflects our commitment to trust and transparency.
Policy documents
Tax policy statement
Marshalls aims to pay its fair share of tax and to do so within the spirit of the law. Marshalls believes it is fair to mitigate the company’s tax in a fair way using generally available reliefs, but without using aggressive tax avoidance schemes.
The Board of Marshalls has set out that the Marshalls Group;
- Will pay the right amount of tax in accordance with relevant statute and case law.
- Will pay tax and make all returns on a timely basis, across all taxes.
- Aims to have good working relationship with tax authorities, both in the UK and overseas and will liaise with the Group’s CCM (Customer Compliance Manager) when relevant.
- Will seek to declare profits in the place where their economic substance arises.
- Will not use aggressive tax planning or enter into complicated tax avoidance schemes.
- Will not use tax havens for tax avoidance purposes or inappropriately shift profits between tax jurisdictions.
- Will not take advantage of the secrecy that many such jurisdictions provide for transactions recorded within them.
Justin Lockwood, Chief Financial Officer, is responsible for this tax policy.
The Board reviews this policy annually to ensure that it is complied with and concludes that the Marshalls Group is compliant with this policy.
Justin Lockwood, Chief Financial Officer
June 2026
Additional tax information for YE 31 December 2025
| Income tax expense (note 7 to the consolidated financial statements) | 2025 £'m | 2024 £'m |
| Current tax expense | ||
| Current year | 7.8 | 13.7 |
| Adjustment for prior years | (1.2) | 0 |
| UK current tax charge | 6.6 | 13.7 |
| Deferred tax expense | ||
| Origination and reversal of temporary differences: | ||
| Current year | (3.5) | (4.0) |
| Adjustment for prior years | 0.2 | (1.3) |
| UK deferred tax charge | (3.3) | (5.3) |
| Total tax expense | 3.3 | 8.4 |
| Tax reconciliation | 2025 £'m | 2024 £'m |
| Profit before tax | 17.7 | 39.4 |
| Tax using domestic corporation tax rate | 4.4 | 9.9 |
| Reconciling items | ||
| Impact of capital allowances in excess of depreciation | 1.5 | 0.6 |
| Non taxable income | (2.7) | (0.5) |
| Short term timing differences | 0.3 | 0.8 |
| Adjustment to tax charge in prior year | (1.2) | - |
| Expenses not deductible for tax purposes | 4.3 | 2.9 |
| Corporation tax charge for the year | 6.6 | 13.7 |
| Impact of capital allowances in excess of depreciation | (4.3) | (3.4) |
| Short term timing differences | 0.6 | (0.5) |
| Pensions scheme movements | 0.2 | (0.1) |
| Adjustment to tax charge in prior year | 0.2 | (1.3) |
| Impact of the change in the rate of corporation tax on deferred taxation | - | |
| Total tax charge for the year | 3.3 | 8.4 |
| Effective total tax rate for the year | 18.6% | 21.3% |
Notes to accompany the tax reconciliation
The Group’s tax charge differs from the amount that would arise by applying the UK corporation tax rate to accounting profit before tax because tax law and accounting standards do not always treat income and expenditure in the same way or in the same period.
The majority of the Group’s profits are earned in the UK, where the main rate of corporation tax was 25 per cent for the year ended 31 December 2025. The Group also has limited overseas activity in the Netherlands and the United States, as explained further below.
Capital allowances are tax reliefs provided by law for qualifying expenditure on fixed assets. These reliefs may be claimed at rates determined by tax legislation and can accelerate or defer the timing of tax deductions compared with the accounting treatment, where fixed assets are capitalised and depreciated over their expected useful lives or impaired where appropriate. This difference in timing is one reason why taxable profits may differ from accounting profits.
Certain expenses recognised in the Financial Statements are not deductible for tax purposes when calculating taxable profits. Examples include business entertaining costs and some legal or professional expenses. These items increase taxable profits compared with accounting profits and therefore increase the current tax charge.
The net amount of deferred taxation debited to the Consolidated Statement of Comprehensive Income in the year was £0.1 million (2024: credited £3.2 million). This reflects temporary differences between the accounting and tax treatment of certain assets and liabilities, principally where tax relief is received in a different period from the related accounting charge or credit.
Global minimum tax
The Group operates in the United Kingdom and the EU, both of which have enacted legislation to implement the OECD Pillar Two global minimum tax rules. The Group does not expect to be subject to top-up tax in relation to its operations in these jurisdictions because the statutory tax rates and adjusted effective tax rates are expected to remain above the 15 per cent minimum rate.
The legislation was effective from 1 January 2024 and there was no current tax impact for the year ended 31 December 2025. The Group has applied the mandatory temporary exception from recognising or disclosing deferred tax assets and liabilities arising from Pillar Two income taxes and will account for any top-up tax as current tax if and when it arises.
Deferred taxation
Deferred tax liabilities and assets are shown in Note 23 to the Financial Statements. The deferred tax balance at 31 December 2025 has been calculated at 25 per cent, being the rate at which the relevant temporary differences are expected to unwind based on rates enacted at the balance sheet date.
Deferred tax liabilities represent tax that may become payable in future periods as a result of transactions or balances recognised in the current or previous periods. Deferred tax assets represent amounts that may reduce future tax liabilities, but are only recognised where recovery is considered sufficiently probable.
The Group’s deferred tax liability includes £6.2 million (2024: £6.0 million) in relation to employee benefits. This relates to the defined benefit pension surplus of £24.9 million (2024: £24.1 million), calculated at 25.0 per cent (2024: 25.0 per cent), as disclosed in Note 21.
Deferred tax also arises because the tax treatment of fixed assets, provisions, and other timing differences may differ from the accounting treatment. Deferred tax assets on capital losses and overseas trading losses have not been recognised where there is insufficient certainty over the future use of those losses.
The deferred tax balances on short-term timing differences are expected to reverse within one to three years. Based on the Group’s current investment programme and assuming current rates of capital allowances continue, there is little prospect of any significant part of the Group’s deferred tax liability becoming payable in cash over the next three years. It is not practical to make a reliable projection beyond that period.
Marshalls overseas subsidiaries
The Group’s overseas operations are limited and represent less than 5 per cent of Group totals for turnover, profits, employee numbers, wages and salaries, and net assets.
Marshalls Landscape Products (North America) is incorporated and tax resident in the United States and sells landscape products. The company paid an immaterial amount of tax in 2025, reflecting the scale and profitability of its activities in the year.
Viridian Solar BV is incorporated and tax resident in the Netherlands and sells Viridian Solar products. The company paid an immaterial amount of tax in 2025, reflecting the scale and profitability of its activities in the year.
The Group does not use its overseas subsidiaries to shift profits away from the UK. Profits are taxed in the jurisdictions where the relevant commercial activities are undertaken, in accordance with applicable local tax law and the Group’s tax strategy.
Marshalls PLC Tax Strategy
Date of publication Summer 2026
This tax strategy applies to Marshalls plc (Marshalls) and the UK entities within its group for the year ending 31 December 2026. It has been prepared and published in accordance with paragraph 16 of Schedule 19 to the UK Finance Act of 2016 and has been reviewed and approved by the Board of Marshalls plc. It sets out Marshalls general tax arrangements, as well as the policy and approach to tax risk management, attitude to tax planning and working with HMRC.
Marshalls is committed to conducting its business responsibly and sustainably and being a good corporate citizen. This includes paying the right amount of tax, in the right place, at the right time, and complying with applicable tax legislation, case law and disclosure requirements. The Group recognises that the taxes it pays and collects make an important contribution to local and national government and to the communities in which it operates.
Governance and tax risk management
The Chief Financial Officer has overall responsibility for the management of the tax affairs of the Group and is the appointed Senior Accounting Officer for the relevant entities. The day-to-day management of the Group’s tax affairs is managed by the Director of Group Finance supported by the use of external tax experts with relevant training and qualifications. The Group maintains tax policies, procedures, controls and monitoring activities designed to support accurate and timely compliance across the taxes relevant to the business.
Marshalls actively seeks to identify, evaluate and manage tax risk through its tax risk register, internal review processes, documented controls and escalation procedures.
Marshalls’ Tax Policy is reviewed annually by the Board, additionally the Board are notified of tax compliance and issues on a regular basis. External advisors are engaged where there is uncertainty over the application of tax law.
Attitude to tax planning
Marshalls’ Tax Policy sets out the Group’s commitment to being fully tax compliant. The Group’s approach to tax planning is aligned to the commercial reality of the business and the structure of the Group reflects this. The Group does not undertake artificial or aggressive tax planning and does not use structures or arrangements that are not aligned with the spirit of the relevant tax legislation. The Group may claim available tax reliefs, exemptions and incentives where they are consistent with the law and the underlying commercial activity of the business. Where material judgement is involved, Marshalls will seek appropriate internal review and, where necessary, external professional advice before taking a position.
Level of tax risk accepted
Marshalls has a low tolerance for tax risk and seeks to minimise uncertainty through strong governance, effective controls and timely compliance. The Group accepts that tax legislation can involve areas of complexity and judgement, particularly in relation to commercial transactions, but will only adopt tax positions that it considers to be supportable and consistent with applicable law.
Where uncertainty arises, Marshalls’ approach is to understand the facts, assess the relevant legislation and guidance, document the basis for the position taken, and escalate significant matters through the appropriate governance channels. The Group’s objective is to manage tax risk proportionately and transparently, while supporting the commercial needs of the business.
Working with HMRC
Marshalls seeks to maintain an open, constructive and professional relationship with HMRC based on transparency, cooperation and good compliance. The Group aims to engage with HMRC on a real time basis, particularly in relation to significant transactions, areas of uncertainty or matters where early discussion may reduce tax risk.
Where there are differences of interpretation, Marshalls will engage with HMRC openly and seek to resolve matters in a timely and collaborative manner. The Group is committed to making accurate disclosures, responding promptly to HMRC enquiries and maintaining a relationship consistent with HMRC’s Framework for Co-operative Compliance.
Compliance with publication requirement
This strategy applies to UK taxation and is intended to satisfy the requirements of paragraph 16 of Schedule 19 to the Finance Act 2016 for the year ending 31 December 2026. It will remain publicly available free of charge until superseded by the next published tax strategy.