The Group’s affairs are structured based on sound commercial principles in accordance with relevant tax legislation. Available tax reliefs and allowances are utilised in the manner intended by HMRC and legislation and advice is sought from external advisers where appropriate. Where there are alternative routes to achieve the same commercial result, the most tax efficient approach will be recommended. Although the Group will optimise tax treatment of commercial business transactions, aggressive tax planning is not actively considered and artificial arrangements are not put in place. The Group will only enter into tax planning arrangements where the outcome is more likely than not to achieve the intended results. It is recognised that optimising tax treatment can bring associated tax risk and therefore reputation, brand and corporate and social responsibilities will be taken into account in decision making as well as the legal and fiduciary duties of the directors and employees of theGroup.
The Group assesses tax risks periodically and maintains a tax risk register which sets out the mitigating actions taken to manage tax risk, including implementation of internal processes and use of specialist advice. These tax risks are monitored for business and legislative changes which may impact them and changes to processes or controls are made when required. This is part of the overall internal control framework applicable to the Group’s financial reporting system.
The Chief Financial Officer reports to the Audit Committee on tax-related matters. The Board is responsible for oversight of the Company’s system of internal controls, including adherence to this tax strategy.