Tax Strategy

Scope

Renaker Build Limited is a multi-disciplinary construction business delivering new-build residential property in the North-West of England. Clients of the business have a specific focus on the procurement and regeneration of brownfield or neglected sites into sustainable living space. The projects are large scale developments and commonly above £100m contract value and buildings of scale and height above 50 storeys.

The business operates within a wider operating group of companies under the Renaker brand and a number of the contracts that the company undertakes are with related parties under common control, alongside 3rd party external contracts.

This Tax Strategy applies to Renaker Build Limited only, in accordance with Schedule 19 to the Finance Act 2016 (‘the Schedule’). In this strategy, references to ‘Renaker’ is to this entity. The strategy has is being published in accordance with paragraph 16 of the Schedule.

This strategy applies from the date of publication until it is superseded.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.

Aim

Renaker is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The Company’s tax affairs are managed in a way which takes into account the Company’s wider corporate reputation.

Governance in relation to UK taxation

  • Ultimate responsibility for Renaker tax strategy and compliance rests with the company’s Chairman, Chief Executive and Finance Director. All individuals have extensive experience in the property development sector;
  • The tax control processes of Renaker are inherently streamlined due the nature of the group’s business. Day-to-day management of the company’s tax affairs is delegated to the company’s Financial Controller, who reports directly to the Finance Director (both are qualified chartered accountants).
  • The group’s financial position is subject to a monthly review by the Chairman, Chief Executive and Finance Director. The tax figures of the group form an intrinsic part of the results and projections which are compiled for this purpose;
  • All tax calculations and returns, whether prepared internally or by professional advisers, are subject to an independent internal review. Significant differences in these results from the monthly forecasts are investigated;
  • All staff involved in the company’s tax processes are either appropriately qualified or working towards a relevant qualification. Additional internal training is provided to staff in the finance team who manage or process matters which have tax implications;

Risk Management

  • Renaker seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations;
  • The Finance Director carries out periodic reviews of the group’s activities to identify key risks relating to tax which are monitored for relevant, significant legislative changes.
  • To the extent that the group engages in any activities which differ from its usual business model, the Finance Director is responsible for identifying (with the help of external advisors as required) any resulting tax risks. Any identified risks are reviewed by the Chairman and Chief Executive as part of their monthly review of the group’s financial position;
  • Advice is sought from external advisers on any non-routine transactions where appropriate.

Attitude towards tax planning and level of risk

Renaker manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.

When entering into commercial transactions, The Company seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation. The Company does not undertake tax planning unrelated to such commercial transactions, and has a low tolerance for tax risks.

The level of risk which Renaker accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the Company’s tax affairs. At all times Renaker seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, the Chairman is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.

Relationship with HMRC

Renaker seeks to have a transparent and constructive relationship with HMRC. The company does not have an allocated contact at HMRC with whom to engage in ongoing dialogue, however the Company aims to fully cooperate with HMRC if approached for further information or clarification on tax matters.

When submitting tax computations and returns to HMRC, the Company discloses all relevant facts and identifies any transactions or issues where it considers that there is potential for the tax treatment to be uncertain.

Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.

Date of approval

31 Oct 2023