The publication of this statement is in accordance with the statutory requirements under Para 19(2) and Para 22(2) Schedule 19 of Finance Act 2016. This statement applies to AJ Bell plc and its subsidiaries (‘AJ Bell’ or ‘Group’) for the financial year ending 30 September 2024. This statement is reviewed annually by the AJ Bell Board.
How AJ Bell manages UK tax risks
AJ Bell is committed to managing UK tax risks through a strong risk culture, robust governance, and clearly defined processes and controls. The Audit Committee has responsibility for the Group’s internal control systems that manage and monitor risks, including those relating to tax.
The Board and Executive Committee member with ultimate responsibility for the Group’s tax affairs and operational tax matters is the Chief Financial Officer.
The Head of Tax is responsible for the day-to-day management and implementation of the Group’s tax affairs and oversees the Group’s Tax department which is staffed with appropriately qualified team members.
AJ Bell operates a tax risk register and maintains appropriate processes and controls to mitigate UK tax risks as far as reasonably practicable. These processes and controls are designed to minimise the risk of errors that could affect the accuracy of the Group’s tax filings. The processes and controls are regularly monitored, reviewed, and tested.
AJ Bell’s attitude to tax planning
AJ Bell will not engage in any planning which involves contrived or artificial transactions designed to avoid, defer, or reduce tax.
The Group will engage in planning involving genuine commercial transactions if this planning is in line with its understanding of the intentions of tax legislation.
Given the scale and diversity of the business, there may be occasions where the intentions of tax legislation are uncertain. In such cases of significant uncertainty or complexity, AJ Bell may seek external advice to ensure compliance with its tax obligations.
The level of UK tax risk AJ Bell is willing to accept
AJ Bell is a diverse collector of taxes, both on behalf of customers in day-to-day operations and in respect of the Group’s own tax obligations. These taxes include corporation tax, VAT, PAYE, NIC and stamp duty. Tax is an inherent part of the Group’s business operations and AJ Bell strives to ensure that both Group companies and AJ Bell’s customers pay the right amount of tax when due.
The AJ Bell appetite for risk relating to tax is averse. This is based on the following factors:
• the Group’s financial control risk appetite which is averse; and
• the Group’s legal and regulatory risk appetite which is averse.
The tax implications of any potential changes to AJ Bell’s operations are considered in advance to ensure the correct tax position is established before any decisions are made.
How AJ Bell works with HMRC
AJ Bell strives to establish and maintain an open professional relationship with HMRC by acting in a transparent and collaborative manner. The Group is committed to regular and open communication with HMRC and responding to information requests quickly and accurately while ensuring access is given to all relevant documents. If any errors were retrospectively identified in tax returns that have been previously submitted, AJ Bell would seek to correct these returns as soon as possible and disclose where appropriate.
While AJ Bell is prepared to challenge rulings or decisions it disagrees with, resolving disputes through proactive and transparent discussion and negotiation is prioritised over litigation.