In compliance with Schedule 19 of the Finance Act 2016 Vertu Motors plc and its subsidiaries publish the following tax strategy, which is reviewed and updated annually, and which documents its approach in managing its tax affairs.
For the purposes of the Group’s tax strategy, tax is defined as all forms of direct and indirect charges including Corporation Tax, VAT, employment taxes, stamp duty and excise and import duties.
The Group’s strategic aim is to pay, accurately and on a timely basis, those taxes that are fairly levied in the UK, and to maintain a high quality of tax management and compliance while minimising tax risks and preserving the Group’s integrity and reputation.
The Group is fully committed to the prevention of the facilitation of tax evasion and has a zero-tolerance policy with respect to tax fraud.
The Board of Directors holds ultimate responsibility for the Group’s approach to tax governance, strategy, and risk management. It receives regular updates on key tax matters and risks. Day-to-day management of tax responsibilities is delegated to the Chief Financial Officer (CFO), who is supported by the Group Tax Manager and the wider finance team.
The CFO is also the appointed Senior Accounting Officer, responsible for ensuring that appropriate tax accounting arrangements are established, maintained, and compliant with relevant legislation, including the Corporate Criminal Offence legislation.
Tax compliance across direct and indirect taxes is overseen by the Group Tax Manager, who serves as the Group’s UK tax specialist and liaises with HMRC on behalf of the Group. The dealership finance functions, led by Divisional Finance Directors, are responsible for processing transactions in accordance with standardised Group tax accounting procedures.
The Group’s Internal Audit function works alongside the Group Tax Manager to identify key tax risk areas, test controls and processes, and ensure commercial and financial understanding is embedded in tax reporting. Where errors are identified, corrective action is taken and processes updated as necessary to prevent recurrence.
The CFO and Group Tax Manager are aware of significant business transactions on a timely basis, including significant business acquisitions and disposals and changes in corporate structure. External advice is sought where required to ensure that any tax exposures are identified and accounted for correctly.
The Group, under the leadership of the Board, is committed to paying the right amount of tax at the right time and conducting its business in a clear, transparent, and responsible manner. We aim to foster a collaborative and open relationship with all tax authorities.
Strategic and operational decisions are driven by genuine commercial rationale rather than tax considerations. While we will consider tax planning opportunities, these will only be adopted where they align with the commercial substance of the decision being taken.
The Groups tax posture is risk-averse, and we do not undertake activities that are contrary to the intent of tax legislation or structured solely to obtain a tax advantage.
Where uncertainty or complexity arises, the Group seeks appropriate external advice to ensure all tax matters are handled in line with our governance framework, UK tax law, and this strategy.
The Group has an open and honest relationship with HMRC in all tax matters. We have worked collaboratively with HMRC to ensure that enquiries and audits are completed with transparency and integrity and in a timely manner and will continue to do so. We are committed to resolving any issues or uncertainty in the interpretation of the tax laws with HMRC in an open and constructive manner.
Updated 14th April 2025