Group Tax Strategy for the year ended 31 December 2023

Introduction

The Group recently underwent a restructure which involved the demerger of its main operating subsidiary, Portakabin Limited and its subsidiaries.

This document reflects the position with regard to the year ended 31 December 2023 which was before the aforementioned restructure and has been updated where appropriate to reflect the current team and advisory arrangements.

This document outlines the tax strategy for Shepherd Building Group Limited and its subsidiaries (“the Group”) in relation to the taxes that it is required to pay in the UK

The strategy is summarised across the following headings:

• Tax contribution;

• Approach to risk management and governance;

• Attitude towards tax planning;

• Level of acceptable risk; and

• Approach towards dealings with tax authorities.

The publication of this document is regarded as complying with the requirements of the Finance Act 2016, Schedule 19, Paragraph 16(2). The document will undergo continuing review and will be updated and approved by the Group Board when necessary.

Approach to Risk Management and Governance

The Group will strive to comply with all aspects of its tax obligations.

The processes in place to achieve compliance include the identification of the major risks that could result in non-compliance and implementing measures to mitigate these risks. The mitigating measures include:

• The use of robust accounting systems and undertaking regular accounting reconciliations;

• Undertaking periodic reviews of systems and processes;

• Ensuring that employees have the appropriate level of knowledge, experience and training to enable them to carry out their duties; and,

• Seeking external advice when necessary.

The Chief Financial Officer, who is also the Group’s Senior Accounting Officer, is responsible for implementing the tax strategy and managing all tax-related matters. The overall approach to tax risk, including the approval of the Group’s Tax Strategy, is set by the Group Board.

The Group’s tax functions are overseen by the Chief Financial Officer with support from external tax specialists and the Financial Controller and where appropriate the CFO escalates tax risks to the Group Board. The teams consist of appropriately qualified, experienced and professional individuals.

The Group maintains a risk register to capture tax risks and risks that are within the scope of the Corporate Criminal Offence legislation.

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Attitude towards Tax Planning

It is the Group’s intention to adopt an ethical approach to tax planning and to ensure that it is paying the correct amount of tax on the due dates.

When entering into commercial transactions, the Group will consider the tax consequences and will take steps to mitigate any tax risks associated with those transactions.  Where the Group can take advantage of available tax incentives, reliefs and exemptions, it will do so within the spirit of tax legislation and not for any artificial or contrived purpose.

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Level of Acceptable Risk

The Group will take a low-risk approach to tax planning. No tax initiative will be undertaken if there is a risk that it could compromise the Group’s reputation as a good corporate citizen. In areas of uncertainty the Group will take advice from external tax specialists and may request clearance from HMRC or sit behind other taxpayers while they are seeking clarification from the courts.

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Approach towards Dealings with Tax Authorities

The Group wishes to have an open and transparent dialogue with tax authorities, for example the Group will notify HMRC of any significant structural changes in its business.

This strategy document was approved by the Board and originally published on 20 September 2023.  It was reviewed following the demerger of Portakabin Limited and was republished on 5th August 2024.