Taylor Wimpey is a national developer operating from 24 regional businesses across the UK mainland. We also have a small business in Spain. Our mission is to create great places to live and deliver excellent service which inspires and delights our customers, our people and our shareholders.
Our business activities in the UK and Spain incur a variety of business taxes. We pay corporate income taxes, land purchase taxes, employment and many other business taxes. In addition, we collect and pay employee and sub-contractor taxes and indirect taxes such as Value Added Tax (VAT).
Our tax strategy, at its most succinct, is to support the Group to deliver its strategic objectives by organising its tax affairs in a legally compliant, responsible and efficient manner.
As with any large business, from time to time the Group inevitably faces some tax risk and uncertainty. This occurs both in the course of our day to day operations and during and/or following periods of business or regulatory change. The Group’s approach to tax includes the proactive identification and mitigation of these risks.
Taylor Wimpey is committed to all aspects of best practice corporate governance and our core values and cultural principles set out in our annual report and accounts provide the foundations for our approach to taxation.
We operate policies and governance to ensure compliance with tax laws in the territories in which we do business. We are committed to transparent and constructive relationships with all relevant tax authorities.
To fulfil the new legal requirements which require large businesses in the UK to publish their tax strategy, and to support transparency of our approach to taxation, this document sets out the Group’s approach to:
- Governance and tax risk management arrangements
- Tax planning
- The level of tax risk we are prepared to accept
- Dealings with Tax Authorities
Governance and risk management arrangements
The Group takes the governance of its tax affairs seriously. The Group’s tax strategy is agreed by the Board of Taylor Wimpey plc and its implementation is led by the Group’s Head of Tax.
The Head of Tax has responsibility for the design and operation of the tax control framework, the key components of which are robust systems incorporating procedures and controls, effective communication and training strategies and a programme of regular monitoring.
The Head of Tax reports twice yearly to the Audit Committee on the status of the Group’s tax affairs and on a regular basis to the Group Finance Director, who is a member of the Taylor Wimpey plc Board.
The Group’s governance arrangements are well established and contribute towards compliance with the Senior Accounting Officer regime.
As mentioned above, tax risk can arise from unclear laws and regulations as well as differences in interpretation. This can occur both in the course of our day to day operations and during and/or following periods of business or regulatory change. In particular, tax complexity and risk can arise in business partnering arrangements. The Group’s strategy involves proactive identification and mitigation of these risks.
Taylor Wimpey recognises the responsibilities it has to a wide range of stakeholders, in particular to its shareholders, communities, customers and HM Revenue & Customs (HMRC). The Group’s tax strategy seeks to balance the requirements of these stakeholders in a responsible manner whilst at all times remaining fully compliant with the laws and relevant regulations in the jurisdictions where we operate.
Taylor Wimpey will not enter into artificial or abusive arrangements for the purpose of achieving a tax advantage. We access Government sponsored tax incentives where appropriate and where these are in line with our business activities (for example by making claims for Land Remediation Relief, a regime which incentivises developers, through additional tax relief, to develop brownfield sites). Any tax planning undertaken is consistent with this responsible approach.
The level of tax risk we are prepared to accept
As with any large business, from time to time, Taylor Wimpey is exposed to a number of tax risks and uncertainties.
The Group’s tax strategy is to proactively identify and mitigate these risks, through an effective tax control framework, to an acceptable level. Acceptable in this context will include having regard to the specific facts and circumstances of the transaction, the amount of tax involved and the Group’s wider approach to risk management.
Dealings with Tax Authorities
We strive to maintain a professional and constructive working relationship with HMRC, built on integrity and consistency of approach.
To ensure we meet high professional standards, we will always co-operate fully in an open and honest manner with tax authorities. We seek to resolve historic disputes in a timely manner, and will co-operate with tax authorities to mitigate current and future tax risks. Where appropriate the Group will respond to consultation documents regarding proposed legislative changes in order to assist in the development of better legislation and to assist HMRC with a fuller understanding of the impact of proposed changes on our business.
The statements above relate to the year ended 31 December 2017 are intended to satisfy the legal requirements concerning publication of tax strategies, specifically the requirements of paragraph 16(2), Schedule 19 of Finance Act 2016.
Date last published: 19 November 2018