This document, approved by the Board of London Square Developments (Holdings) Ltd, sets out the tax strategy and approach undertaken by the Group of companies headed by London Square Developments (Holdings) Ltd (‘London Square’) in relation to how they conduct their tax affairs and deal with tax risks and satisfies the Finance Act 2016 requirement to publish a tax strategy.
This document will be reviewed periodically by the finance team and any amendments will be approved by the Board. It is effective for the year ending 31 March 2019 and will remain effective until any amendments are approved by the Board, but it will be formally reviewed and approved on at least an annual basis.
London Square is committed to conducting its tax affairs in a manner to achieve the following objectives:
- Comply with all relevant laws, rules, regulations and reporting and disclosure requirements.
- Ensure the tax strategy is consistent with the Group’s overall strategy and risk.
- Maximise legitimate tax reliefs in line with a manner intended by the legislation.
- Engage with HMRC and maintain open communications.
London Square’s strategic aims from a tax perspective are to:
- Submit all UK tax returns on a timely basis, including sufficient detail to enable HMRC to form an accurate view of the affairs of the company filing the return with an adequate supporting audit trail and sign‐off process;
- Maintain tax accounting arrangements which are robust and accurate and comply with the Senior Accounting Officer (SAO) provisions; and
- Pay the appropriate amount of tax on time;
- Ensure those involved in the tax processes are appropriately resourced and supported.
- External advice will be sought from professional consultants if there are any uncertainties in relation to the tax treatment of a potential transaction
London Square aims to maintain a conservative approach to tax and will not engage in artificial transactions where the sole purpose is to reduce the amount of tax payable.
The Group will, however, consider undertaking a transaction which gives rise to tax efficiencies providing this is aligned with its commercial activities and complies with the associated tax legislation.
London Square will not engage in tax efficiencies if the underlying commercial objectives do not support the position, or if the arrangements could potentially affect its reputation, brand, corporate and social responsibilities, or future working relationships with HMRC.
Managing tax risks
The London Square Board sets out the overall strategy of the Group in relation to Taxation, with overall responsibility for oversight of the tax affairs of the Group delegated to the Chief Financial Officer. The Chief Financial Officer is also the Senior Accounting Officer for all Group entities.
The Chief Financial Officer meets with the finance team and other senior managers throughout the year to review the tax risk and controls processes within the Group, as well as to discuss all other aspects of taxation. Furthermore, the Audit Committee receives an annual update on the tax position of the Group, including a summary of all HMRC activity in relation to the Group, and will discuss taxation at other meetings periodically throughout the year.
Working with HMRC
London Square deals with HMRC in an open, honest and transparent manner. The Group responds to all communications from HMRC promptly and aims to avoid unnecessary disputes with HMRC and this will be achieved by seeking pre‐transaction clearances from HMRC where appropriate.
Date published: 14th March 2019