Scope

Aston Martin Lagonda Global Holdings plc is the holding company for Aston Martin Lagonda’s worldwide operations whose principal activities are the sale of high performance sports cars and the sale of parts and servicing under the brand names of Aston Martin and Lagonda.

 

This strategy is applicable to all entities within the group (‘the Group’), which are listed in the attached appendix, in accordance with paragraphs 16 and 19 of Schedule 19 to the Finance Act 2016, and is applicable from the date of publication until it is superseded.

 

References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which Aston Martin has a legal responsibility.

Aim

Aston Martin Lagonda is committed to full compliance with all of its statutory obligations including full disclosure of all relevant facts to the appropriate tax authorities. In managing its tax affairs, Aston Martin Lagonda recognises its responsibilities as a tax payer and the need to protect the corporate reputation inherent in the brand.

Governance

The Board of Aston Martin Lagonda Global Holdings plc (the Board) has ultimate responsibility for the Group’s tax strategy although the day to day management rests with the Executive Committee which comprises the senior operational personnel (12 in total) of the group.

 

The Executive Vice President and Chief Financial Officer (CFO) is the Executive Committee member with ultimate responsibility for tax matters and is the Senior Accounting Officer of the Group. A member of the Board, the CFO attends all Board meetings, and advises the Board in the tax affairs and risks of the group to ensure:

 

  • the proper control and management of tax risk;
  • the tax position is planned in line with the Group’s strategic objectives;
  • the tax charge is correctly stated in the statutory accounts and tax returns; and
  • all tax compliance is completed in a timely manner to HMRC and other tax authorities.  

 

On a day to day basis, the management of the group’s tax affairs is delegated to the Director, Accounting, Treasury and Tax who reports to the CFO. Responsibility for day to day payroll activities and the related taxes is delegated to the Director of HR, who reports to the Vice President and Chief HR Officer, who is also a member of the Executive Committee. The various individuals with responsibility for Tax and Finance receive regular training in accordance with their roles.

 

The Board ensures that Aston Martin’s tax strategy is one of the factors considered in all investments and significant business decisions taken.

Risk Management

The risk management of tax is inherent within the day to day financial controls and financial reporting systems of the group. These controls include review procedures to ensure the integrity of the group’s accounting records.

 

Where it is considered that external assistance is required, the group engages the services of a number of external tax professionals, including HMRC, in order to assist the group in complying with its tax responsibilities.

 

Attendance at external courses and the provision of training is available to staff with responsibility for tax matters to ensure they are up to date with changes and developments to tax legislation.

Attitude to Tax Planning

Whilst the Group would seek to take advantage of all available tax incentives, reliefs and exemptions, this is done in the context of recognising its responsibilities as a tax payer in paying the correct level of tax and protecting its corporate reputation.

 

When entering into commercial transactions, the Group seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation.  Aston Martin Lagonda does not undertake tax planning unrelated to such commercial transactions. 

 

The group adopts a very prudent approach to its tax planning activities with emphasis on its legal obligations as opposed to the minimisation of the associated tax liabilities.

Relationship with HMRC

Aston Martin Lagonda seeks to engage with HMRC through meetings and correspondence with its personnel, in particular its Customer Relationship Manager. By engaging in this way, the group seeks to promote both transparency and an understanding by HMRC of the tax issues facing the group in relation to particular transactions or arrangements.

 

When submitting tax information to HMRC, either directly or on its behalf by third parties, the group attempts to disclose all relevant facts and information which it believes there is potential for the tax treatment to be uncertain or it believes HMRC should be made aware.  In each case Aston Martin Lagonda seeks to respond promptly to any questions arising.

 

Should the group identify any errors in information submitted to HMRC either directly or through third parties, the group seeks to inform HMRC and rectify these errors as soon as it practicably possible.