Our approach to tax in the UK In 2016, the UK government introduced We have summarised the way we manage legislation which requires large businesses our UK tax affairs below to publish their UK tax strategy. Our approach Transparent and professional dealings with HMRC to the management of UK taxes is fully in line ■■ As outlined above, we operate in accordance with our tax code with our overall approach to tax as set out in of conduct in relation to all of our tax affairs, including our UK this document. tax affairs. ■■ In the UK, this involves maintaining a professional and constructive relationship with HMRC. We have regular meetings with HMRC to discuss their enquiries and material issues in relation to our tax affairs. This helps focus both our and HMRC’s resources on the most important issues. ■■ As a large group, we make hundreds of filings to HMRC every year, and aim to make all of these on time. We also aim to make these tax filings as clear as possible and include explanations as required to ensure that our returns are easy to understand. ■■ Where we face significant uncertainty in relation to the application of tax law, we may seek to agree with HMRC how the tax law should properly apply. Any agreements have not provided any advantage to us as they have not resulted in any tax treatment that would not be available to other taxpayers. ■■ In the very rare instances that we ultimately need to have recourse to the Courts to resolve tax issues, we would continue to interact with HMRC in a constructive and helpful manner. Responsible approach to tax planning ■■ All our tax planning is undertaken in accordance with our tax principles, tax code of conduct and the UK Code of Practice on Taxation for Banks. Governance and controls over UK taxes ■■ Our global governance procedures are discussed more fully on page 9. The same procedures apply to our UK tax affairs. ■■ We are fully committed to the Code of Practice on Taxation for Banks and are fully transparent with HMRC about our governance procedures and how they comply with the Code’s requirements. ■■ Under the Senior Accounting Officer regime in the UK, we provide an annual attestation confirming that we have appropriate accounting arrangements to allow our tax liabilities to be calculated correctly. ■■ We seek to ensure that our tax filings in the UK reflect full compliance with transfer pricing requirements and the arm’s- length principle. Effective risk management ■■ Given the scale of our UK business, the broad range of our tax obligations and the complexity of the tax laws that we are required to comply with, uncertainty arises in relation to our tax liabilities from time to time. We refer to this uncertainty as tax risk. ■■ Where there is significant uncertainty or complexity in relation to a tax risk, we may seek advice from external experts. This gives us confidence that our tax returns are appropriate. ■■ We proactively seek to identify, evaluate, manage and monitor UK tax risks to ensure our financial exposure is well understood and is 20 16 within a level that we consider acceptable.  BarclaysPLCCountrySnapshot2016 • 10