Tax matters.

Tax matters.

Tax and investors

We are a leading participant in the development of companies’ tax policy, tax transparency and international tax reform. We continue to discuss with various NGOs their concerns about tax responsibility, our own tax position and our role as a significant investor in other companies. We hosted a seminar with other investors to discuss current tax practices and future expectations. We continue to talk to companies about their tax policy and management as part of our overall environmental, social and governance engagement (ESG).

Tax transparency

We are rated as ‘low risk’ by HMRC. Country by country reporting (CBCR) is already enacted for some sectors. As part of our commitment to transparency the first chart below provides CBCR tax data for our main territories of operation (excluding joint ventures). Taxes in other territories total less than £1 million and have therefore been included in the UK segment. Our recognition by PwC’s Building Public Trust awards for tax reporting in the FTSE 100 for the third year running shows our success in improving our own tax transparency.

Cash tax reconciliation

The second chart below provides a summary reconciliation between the equity holders’ tax charge in the income statement (£238 million: an effective tax rate of 21%) and UK corporate taxes paid (£133 million) in the cash flow statement.


We aim for our tax affairs to be transparent and sustainable in the long term. Our tax strategy is reviewed regularly with responsibility for this and management of tax risks resting with the group chief financial officer and director of group tax.

We will:

  • Meet all legal requirements, make all appropriate returns and payments
  • Always consider the group’s reputation, brand and corporate and social responsibilities
  • Consider tax as part of every major business decision
  • Discuss in real-time our interpretation of the law with HMRC
  • Operate appropriate tax risk governance processes, including Board oversight
  • Contribute to the development of UK tax policy and legislation where appropriate
  • Not undertake transactions whose sole purpose is to create an abusive tax result


Country by country reporting [Profit: before tax included in the consolidated IFRS income statement: UK £934m (100%), US £168m (100%), France £8m (100%), Netherlands £24m (100%)]; [Tax charge: tax charged in the consolidated IFRS income statement: UK £168m (18%), US £61m (36.1%), France £3m (37%), Netherlands £6m (25.3%)]; [Tax borne: taxes borne in each country (profit, property, employment). Taxes collected are excluded: UK £336m (35.9%), US £19m (11.3%), France £9m (111.5%), Netherlands £2m (-8.4%)] (bar chart)

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Reconciliation of tax charge in income statement to UK tax paid per cash flow [Equity holders’ tax in income statement: bottom £0m, top £238m (£238m); Accounting adjustments including deferred tax: bottom £68m, top £238m (£170m); 2013 tax instalments payable in 2014: bottom £27m, top £68m (£41m); 2012 tax instalments paid in 2013: bottom £27m, top £133m (£106m); UK tax paid per consolidated cash flow statement: bottom £0m, top £133m (£133m)] (bar chart)

Read a textual description of the above chart

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