Tax Strategy

LNT Care Developments Holdings Ltd and its subsidiaries Tax Policy Statement

This policy document applies to LNT Care Developments Holdings Ltd, Company No. 13151875 (“LNT”) and to the group of companies headed by LNT Care Developments Holdings Ltd (“Group”) and has been published in accordance with paragraph 16, Schedule 19 Finance Act 2016.

Tax is a relevant and significant subject for LNT and its stakeholders. LNT is the UK’s leading care home developer-operator, having supplied in excess of 14,500 much needed beds to the UK care sector. The Group is a fully integrated constructor, developer and operator, bringing many disciplines in-house to ensure quality, cost control and efficiency.

LNT understands the importance of fair and accurate tax payments, as they contribute directly to the success of the UK economy.  LNT strives to have a responsible approach to tax and the subject remains an integral part of the agenda of the board of directors of LNT (“Board”). This tax strategy is reviewed and approved annually by the Board, before then being published online. Adherence to the tax strategy is monitored throughout the year by the Board, in conjunction with external tax advisors.

For LNT, a responsible approach to tax is to comply with both the letter and spirit of tax laws, to pay the correct amount of tax according to where value is created within the usual course of business, and to be transparent about method and outcome. In the context of a responsible approach to tax, LNT has adopted tax principles that are common practice and widely accepted by the UK tax authorities. The group does not engage in any aggressive tax regimes, tax avoidance schemes or complex tax planning which the Board considers could be at significant risk of  challenge from HMRC.

LNT’s approach to tax supports the Group’s overall business strategy and objectives. To ensure compliance with laws and regulations, LNT’s finance department supports awareness of, and compliance with these tax policies, and communicates them to the responsible parties regularly. LNT’s approach to tax risk management and governance procedures are designed to include a comprehensive risk assessment before undertaking activities that could result in complex tax arrangements. Internal control policies and matrices in relation to tax affairs are managed and maintained by appropriately qualified personnel in the finance department.

Periodic review of processes are performed to ensure controls remain effective and no material departures from acceptable practice have taken place. As noted above, LNT maintain documented tax policies and procedures in relation to key tax processes that are reviewed annually. Advice is taken from reputable tax advisors.

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 put mitigating controls in place. These key risks are monitored for business and legislative changes which may impact them and changes to processes or controls are made when required. The Finance Director is responsible for tax matters, including day-to-day management of the Group’s tax affairs. The Finance Director is also the designated Senior Accounting Officer. The Board’s aim is to ensure that it achieves and maintains an appropriate risk rating from HMRC should HMRC perform a Business Risk Review of LNT.

In accordance with LNT’s responsible approach to tax, transactions between companies within the Group are conducted on an arm’s length basis. Transfer pricing between operating companies is based on fair market terms and the commercial nature of the transactions. In accordance with legislation, income and profits are allocated to entities in which value is created. Tax incentives and reliefs are used by the business in the manner that we believe they were intended to be used, in line with both the spirit and letter of the law. In relation to any specific issue or transaction, the Board is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken. The approach to tax risk is aligned to the approach taken for broader risks faced by the business, having regard to the materiality of the amounts and obligations in question. LNT’s business decisions are always commercial in nature and are conducted with the aim of meeting the business’ strategic objectives. LNT does not use offshore jurisdictions or so-called tax havens.

In its relationship with tax authorities, LNT seeks to develop transparent and constructive relationships. LNT seeks to develop and maintain open, constructive and mutually respectful relations with tax authorities based on transparency and trust. LNT seeks appropriate third-party advice to confirm the applicable tax treatment based on the full disclosure of the facts. We ensure there is access to relevant information demonstrating the integrity of our tax processes, returns and payments.

LNT will comply with all relevant legal disclosure and legislative requirements, and will commit to presenting this information to HMRC in a clear and concise manner. LNT will transact honestly and openly, as the overall strategic aim is to pay the correct amount of tax, avoid dispute with HMRC, thus minimising tax risks for the Group. Our controls and procedures are subject to regular discussion and review and are firmly embedded in our processes and procedures. This strategy was published on 12 December 2023, which covers the financial year ended 31 March 2023. The Board reviews this policy annually and regards this publication as complying with its duty under Schedule 19 Finance Act 2016.