Tax Strategy
Purpose of Tax Strategy document
This strategy applies to Smith Brothers (Leicester) Ltd and its subsidiaries. The strategy is published in accordance with Schedule 19 to the Finance Act 2016 and was approved by the Board of Smith Brothers (Leicester) Ltd on the 12th June 2025.
This strategy applies from the date of approval by the Board until it is superseded and relates to the financial year ended 30th September 2024 and subsequent financial periods. The purpose of the tax strategy document is to outline the approach and guiding principles adopted by the group with regards to tax obligations and activity within the Smith’s group of companies.
The Group’s tax strategy is to sustainably minimise tax cost whilst complying with the law. The Group aims to meet all legal requirements, filing all appropriate tax returns and making tax payments accurately and on time. The Group’s tax strategy applies to all territories in which it operates.
The objectives of the tax strategy are to:
- Ensure a consistent approach to the way in which tax is managed across the group and its subsidiaries.
- Ensure a consistent understanding of tax obligations.
- Ensure robust governance, and clearly defined processes and controls.
- Provide an overview of the Group’s tax risk approach.
Governance and Tax Risk Management
The Board has overall accountability for the risk management framework which includes tax risks.
The CEO has overall executive responsibility for all tax matters and delegates the day-to-day management of tax affairs to the SAO, subsidiary FD’s and the wider management teams of the business.
We maintain robust processes and controls, designed to minimise the risk of errors arising which could impact the amount of tax that we pay. These processes and controls are regularly monitored, reviewed, and tested; and underpin the submission of returns for the various tax obligations within the Group.
Risk identification and assessment
The Group manages risks, ensuring compliance with legal requirements and payment of the correct amount of tax.
The Group manages its tax affairs in a proactive manner, seeking to maximise shareholder value. We will utilise tax advisors to identify tax efficiencies where they support genuine commercial activity.
The Group does not enter into artificial arrangements without commercial purpose in order to secure a tax advantage. The aim is to ensure full compliance with all statutory obligations and minimise risk wherever possible.
Managing Risk
Our internal business reviews and control framework ensures that any part of our business intending to undertake a transaction or activity which is outside our ‘normal’ business model, must always seek guidance and consider the taxation and insurance implications of said transaction.
Processes relating to different taxes are allocated to appropriate process owners, who carry out a review of activities and processes to identify key risks and mitigating controls. Ultimately these processes and process owners are overseen by the groups SAO.
New and developing tax legislation is monitored and where required professional guidance is sought to identify and assess the impact on the Group.
Active measures are taken to ensure there are adequate processes in place to comply with any change in the regulatory environment.
The tax compliance along with our other financial and operational systems, are subject to an independent review by external audit and tax advisors. Results are reported through the statutory accounts process to the appropriate FD, CEO, Group Chair and the Management Board.
Managing Relationships with Tax Authorities
The Groups approach to its tax affairs is based on an open, honest, and positive working relationship with the tax authorities. Should any dispute or query arise with regard to the interpretation and application of tax law, the Group will address the matter promptly and resolve it in an open and constructive manner.
This statement constitutes the Group’s Tax Strategy for the financial year ending 30th September 2024. It has been approved by the members and signed on their behalf by
Martin Forbes Heatlie
Group Chief Executive Officer