Tax Strategy
Pursuant to UK legislation introduced as part of Schedule 19 of the Finance Act 2016, we are required to publish our UK business’s tax strategy. Based on an understanding of the needs of our stakeholders and in line with our values the Board has established the following fundamental principles for the management of taxes, and this strategy applies to St. Modwen Properties Limited and all entities in the Group.
We are committed to conducting our tax affairs in a way that is within the letter, spirit and intention of the law. In structuring our business activities, we consider relevant tax laws and utilise available tax reliefs and incentives to maximise value for our owners and stakeholders. We conduct transactions between group companies on an arm’s-length basis and in accordance with current OECD principles
This tax strategy has been approved by the St. Modwen Limited Board of Directors and covers all UK taxes relevant to the Group. It is published on behalf of all UK companies in the Group.
Compliance
We comply with tax law and practice in the territories in which we operate.
Compliance for us means paying the right amount of tax in the right place at the right time and involves disclosing all relevant facts and circumstances to the tax authorities and claiming the normal tax reliefs and incentives for our lines of business where they are available.
Planning
In structuring our commercial activities we will consider, inter alia, the tax laws within which we operate with a view to maximising value on a sustainable basis for our owners.
Any tax planning undertaken will have commercial and economic substance and will have regard to the potential impact on our reputation and broader goals.
Tax risk management
Given the scale of our business and volume of tax obligations, tax risks will inevitably arise from time to time in relation to the interpretation of tax law and nature of our compliance arrangements.
In line with the Group’s risk management approach, we proactively seek to identify, evaluate, manage and monitor these risks to ensure they remain in line with the Group’s tax policy. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought, and an appropriate provisioning approach is taken.
Tax authority relationships
We engage with tax authorities, including HMRC, with honesty, integrity, respect and fairness and in a spirt of co-operative compliance. We follow a policy of open disclosure to achieve certainty, where appropriate and available we would apply for clearances from HMRC to minimise the risk of uncertainty of disputes.
We are prepared to litigate where we disagree with a ruling or decision of a tax authority but will first seek to resolve any disputed matters through pro-active and transparent discussion and negotiation.
