Tax Strategy UK

This UK Tax Strategy sets out the approach of the Schön Klinik Group to managing its tax affairs in the United Kingdom and internationally.

It is aligned with the Group’s overall governance framework and reflects its commitment to compliance, transparency and responsible tax management.

This document is published in accordance with applicable UK requirements, including Schedule 19 of the Finance Act 2016.

Schoen’s business model aims to create good long-term returns by acquiring and operating profitable businesses with a strong position in their respective market.

This strategy applies to all UK companies in the Schoen Group for the financial year ended 31 December 2024 and provides commentary in respect of our approach to tax management, based on the overall Schoen Group approach to tax.

In respect to tax, Schoen Group’s key objective is to be a responsible taxpayer and the Group is committed to comply with applicable tax laws and rules in all countries in which it operates, i.e. timely submission of tax returns, timely tax payments, proper delegation of tasks and establishment of error-prevention processes.

The Group follows a principle of responsible tax planning. Accordingly, all tax positions are aligned with the intent of applicable laws and regulations. The Group does not engage in artificial arrangements that lack commercial substance. Tax considerations are integrated into business decisions but do not drive them independently

The Group applies a substance-over-form approach consistent with international and UK tax standards.

The Group operates with a low risk tolerance in relation to tax matters. This means:

• Compliance with tax law takes priority over aggressive tax optimization
• Tax positions are based on reasonable interpretations of applicable law
• Significant tax positions are subject to internal review and, where appropriate, external advice

Uncertainty is managed conservatively and transparently.

The key objectives are established in the Group’s policies and governance framework.

We believe in fair business practices and that a long-term successful and sustainable Schoen Group will contribute to both society and to employees, owners, customers, suppliers and other stakeholders. Guided by our core values and sustainability agenda, we ensure that due consideration is given to the Group’s reputation, financial, environmental and social responsibilities in our day-to-day business and when considering tax initiatives.

The UK group is seeking to deliver value to our stakeholders, which includes taking advantage of tax incentives, reliefs and exemptions offered by tax authorities. We apply these reliefs in accordance with the intention of the tax legislation and do not engage in artificial tax planning.

We manage our tax affairs in compliance with local tax laws and regulations and have a cautious approach in respect of tax risk.

The Schoen Group engages qualified external tax advisors where required, particularly in complex transactions, new jurisdictions and areas involving significant uncertainty. External advice supplements internal expertise and supports robust decision-making.  

Schoen Group maintains standardised internal control activities and risk management routines to identify and assess risks, which include the identification of tax risks, which are documented in tax risk registers for each entity covering all UK taxes including customs duty.

The tax internal control processes aim to monitor, manage and mitigate potential tax risks and ensure quality in tax reporting and compliance with laws and regulations.

The Directors of the Schoen UK Group are responsible for the implementation of the tax strategy, while the Schoen UK Finance Director manages the day-to-day implementation and ultimately reports on tax matters to the Group Head of Tax. The Group Head of Tax escalates key tax issues via Group CFO to the Group’s Board of Directors who has overall oversight of and responsibility for our approach to tax.

Schoen Group seeks to maintain a transparent, cooperative and professional relationship with HMRC and other tax authorities. We regularly monitor tax changes through interactions with our external tax advisors and from our own research, which includes HMRC announcements, other tax publications and the provision of training and information to our employees.

Schoen Group ensures it pays the amount of taxes legally due in accordance with UK tax legislation and international accepted principles.

Where there is uncertainty on a tax treatment, we consider discussing the matter with HMRC on a real time basis to provide clarity on our tax reporting.

This UK Tax Strategy is reviewed regularly, valid for 2024 and approved by senior management.

Updates are made where necessary to reflect changes in legislation, business operations or governance requirements.