We believe that high standards of corporate responsibility make good business sense and have the potential to protect and enhance investment returns. Our tax affairs are managed in line with these standards and in keeping with our core values.
UK tax strategy
- The Eight Roads Holdings Limited group (“ER” or the “Group”) is a global proprietary investment group.
- Our UK tax strategy applies to all UK resident companies (“UK entities”) in the Eight Roads Holdings Limited (“ERHL”) group.
- For this purpose, “UK tax” refers to corporate income tax, indirect tax, payroll and all other UK taxes set out in paragraph 15, Schedule 19, Finance Act 2016.
- Responsibility for ER’s governance framework, Group strategy including tax strategy and the management of tax risk ultimately sits with the Eight Roads Holdings Limited Board. Day-to-day management of each of these areas is delegated to the Head of Tax Eight Roads, who reports to ER’s Group CFO, with executive responsibility for ER tax matters.
- Our UK tax strategy is subject to the approval of the Eight Roads UK Operations Limited Board, the holding company of all UK entities within the group.
- Our UK tax affairs are regularly reviewed by external auditors and by HMRC as part of the normal course of local tax compliance procedures.
Management of tax risk
The Group faces a variety of tax risks, including:
- Tax compliance and reporting risk;
- Transactional risks; and
- Reputational risk.
ER’s tax risk management procedures include:
- The employment of appropriately qualified tax professionals within ER’s tax function;
- Dedicated oversight and management of operational tax risk;
- Where necessary, obtaining external advice from a network of specialist professional advisors in relation to areas of complexity or uncertainty;
- Periodic review of tax risk management procedures by Internal Audit.
Relationship with UK tax authorities
- We seek at all times to comply with our UK tax filing, tax reporting and tax payment obligations in line with statutory timelines.
- An important part of our UK tax strategy is the maintenance of a constructive and transparent relationship with HMRC.
- It is possible that our views on appropriate tax treatment may differ from those of HMRC. If such circumstances arise, we aim to work proactively and constructively with HMRC in order to achieve a swift resolution.
- We may also seek HMRC’s opinion on new legislation, or areas of uncertainty where appropriate.
Our attitude to tax planning and risk appetite
- We ensure that our tax planning is aligned with the commercial objectives of our business and our long-term business model.
- We will consider using tax incentives or tax planning opportunities in this context, taking into account our responsibilities towards our stakeholders, and where they do not carry significant reputational risk.
- We will also act in line with our enterprise-wide approach to managing risk exposures which include formalised risk policy and risk appetite statement approved by the ERHL Board.
- Remuneration packages for employees and directors are structured so that the proper amounts of tax and social security contributions are paid.
The publication of this UK tax strategy statement relates to the year ended 31 December 2023 and is regarded as satisfying the statutory obligation in Para 19(2), Schedule 19, Finance Act 2016. It will be updated on an annual basis.