Introduction
This document describes the UK Tax Strategy of Karndean Holdings Limited and its UK subsidiaries (UK Group) in accordance with paragraph 16 of Schedule 19, Finance Act 2016. The Tax Strategy forms part of the group’s overall risk management strategy, and ensures that any significant tax matters are reviewed, monitored and approved by the Group Board of Directors.
This tax strategy applies to all UK group companies and all UK taxes. This strategy has been approved by the Karndean Holdings Limited Board of Directors (“the Board”).
This document describes the UK Group’s strategy in respect of the year to 31 December 2025 and will be updated annually.
How Karndean Manages UK Tax Risks
The Group has a central tax management team which reports directly to the Board.
The central tax management team monitors the Group’s tax affairs to ensure compliance with all UK tax regulations, and that any potentially significant tax issues, for example on major or unusual transactions, are identified, evaluated, and any appropriate action taken.
Advice is taken where necessary from appropriate external tax advisers to support the Group’s decision-making processes, for example on the application of new tax rules or where HMRC tax guidance is unclear, and it is felt that the Group does not have the appropriate tax knowledge to assess the tax consequences appropriately
The UK Group´s corporation tax returns are prepared by external advisers for review by the UK Group prior to submission.
Karndean’s attitude to tax planning
The UK group’s tax planning is commercially driven and looks to comply with the spirit and letter of all applicable UK tax laws. The group has a low appetite towards tax risk.
The group looks to claim appropriate incentives and reliefs provided in the UK tax code but will not undertake tax planning which HMRC may view as aggressive, nor structure or enter into arrangements which are artificial or have a main purpose of reducing tax costs.
In circumstances where the tax guidance is unclear and it is felt that the Group does not have the appropriate tax knowledge to assess the tax consequences appropriately, external advice will be sought to support the Groups decision making process
The Group´s central tax management team monitors compliance with these principles and notifies the Board if there are any areas of concern.
The level of risk Karndean is prepared to accept for UK Taxation
The UK Group looks to organise its tax affairs in a way that is consistent with its low tax risk approach described above. In particular, the group does not enter into any arrangements with a main purpose of reducing tax costs, and looks to comply with the letter and spirit of all relevant tax legislation
How Karndean works with HMRC
Karndean looks to deal openly and transparently with HMRC and, where necessary, to work collaboratively with them to resolve matters as quickly as possible.