Nuclear Decommissioning Authority: Tax Strategy
Updated 9 June 2023
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This publication is available at https://www.gov.uk/government/publications/nuclear-decommissioning-authority-tax-strategy/nuclear-decommissioning-authority-tax-strategy
Guiding principles
The NDA Group is committed to ensuring the correct amount of tax is paid in all of the countries in which it operates, striving to comply with all the tax rules and regulations in those countries and that we safeguard our reputation and commitment to be a responsible taxpayer.
This strategy has been published in accordance with schedule 19 of the Finance Act 2016.
Governance
The CFO has overall responsibility for the tax strategy of the NDA Group, upholding our commitment to being a responsible taxpayer, both compliant and transparent on all tax matters and acting fairly, responsibly and with integrity in all dealings with tax authorities.
The NDA Group tax strategy complies with the requirements set out in Managing Public Money which sets out the principles and behaviours expected of a central Government body, recognising that we have a duty to deliver value for money to the taxpayer.
The NDA activities generate a variety of taxes. We pay corporate taxes, royalties, stamp duties, employment and other taxes. In addition we collect and pay employee taxes as well as indirect taxes such as excise duties and VAT.
The approach to managing our tax affairs, as set out in this strategy document is approved by the NDA Board.
Commitment to Tax Compliance
The NDA Group is committed to conducting its tax affairs consistent with the following objectives:
- To comply with all relevant laws, rules, regulations and ensures that the group pays the tax it is legally obliged to pay; and
- To apply due professional diligence and care in the management of risks associated with tax matters, and in doing so ensure that appropriate governance and assurance procedures are implemented to safeguard the group reputation as a responsible tax payer.
Tax principles
The following principles will be adopted to ensure that the NDA Group meets its tax objectives:
Calculation and payment of taxes, tax returns and other tax obligations:
- All taxes should be correctly calculated in accordance with the law and paid when due.
- Statutory tax returns for all taxes should be filed correctly, contain accurate information and filed on a timely basis.
Managing and controlling tax liabilities:
- Ordinary commercial transactions will be structured such that any resultant tax liabilities are understood and can be settled appropriately.
- Artificial structures designed to save tax, with no commercial or economic substance will not be used.
- Tax structuring will not be allowed to disrupt the business or be in conflict with operational goals.
- Tax structuring which might reasonably be expected to have a negative impact on the group’s reputation will not be considered.
Tax risk management
The NDA is proactive in managing all financial risks, including tax risks and utilises a robust governance framework through its business such that any tax risks are highlighted and managed.
In setting the tax objectives and principles, the NDA Group seeks to adopt a zero risk approach to ensure that the group pays all taxes the group is legally obliged to pay and is fully compliant with all tax rules and regulations.
The NDA group will not engage in, or connive at, tax evasion, tax avoidance or tax planning as set out in Managing Public Money.
Our approach to dealing with tax authorities
We work together with the tax authorities in a style that is open, honest and pro-actively informing HMRC of key issues affecting the group through regular contact and dialogues to ensure complete transparency of our tax liabilities and obligations.
List of Entities covered by this tax strategy
- Nuclear Decommissioning Authority
- Sellafield Limited
- Direct Rail Services Limited
- International Nuclear Services Limited
- Pacific Nuclear Transport Limited
- Radioactive Waste Management Limited
- Rutherford Indemnity Limited
- NDA Properties Limited
- NDA Archives Limited
- Magnox Limited
- Research Sites Restoration Limited
- Dounreay Site Restoration Limited
- Low Level Waste Repository Limited
- Nuclear Waste Services Limited