Our tax responsibilities

We aim to provide long-term value to all our stakeholders – whether they’re saving and investing with us, working for us, or living in the communities where we operate.

Our tax responsibilities play an important role in helping us to grow our business sustainably, and in helping us contribute to wider society.

 

A large part of running a responsible business is committing to high ethical, legal and professional standards – and being open, honest and transparent about what we’re doing to meet those standards.

We provide products to a diverse range of clients, from a variety of global locations – so our savings and investment products are set up to follow each location’s tax legislation. In the UK, for example, our pensions and ISAs support government policies that promote a stable environment for long-term savings and investments.

We also follow local and international rules around reporting to tax authorities about our customers’ investments.

By engaging openly with tax authorities, government and representative bodies – such as the Association of British Insurers and the Investment Association – we play our part in helping to develop a sustainable framework for tax policy and legislation.

How we manage our tax activities

We have an in-house team that manages our company’s tax activities. These activities include reporting our company’s tax position, ensuring we understand and comply with our tax obligations in each of the countries we operate in, and that our customers and clients are provided with the information they need to meet their own tax obligations.

Our tax team works within the parameters of our tax risk policy, which our Board approves every year as part of our Enterprise Risk Management framework. The policy follows our tax principles, which are how we refer to our group’s tax strategy. These principles guide our company’s behaviour and decisions when it comes to tax.

We believe it’s important that our approach to tax reflects the interests of our stakeholders in a balanced way. So our tax principles and tax risk policy take account of our clients, shareholders, employees, tax authorities and the wider community.

Being transparent in our approach to tax

We’ve increasingly found that stakeholders ask for more transparency on tax policies, reporting and payments.

We support the objectives of international initiatives that tackle tax avoidance and aggressive tax planning. These include the Organisation for Economic Co-operation and Development’s Base Erosion and Profit Shifting project – which operates on behalf of the G20 countries and others. We’ve actively engaged with this work by taking part in the consultation process.

More broadly, we’re very supportive of the principles behind government initiatives to increase transparency and the wider understanding of tax. One of the ways we support this is by publishing information on our wider tax contribution to society – for example, our total tax contribution in our Annual report and accounts.