UK Tax Strategy
UK Tax Strategy of Lightsource bp
This UK Tax Strategy statement is published on behalf of Lightsource BP Renewable Energy Investments Holdings Limited (“Lightsource bp” / “We”) and is approved by its Senior Management and Board of Directors. The publication of this statement is regarded as satisfying the statutory obligation under paragraph 16 (2) of Schedule 19 Finance Act 2016. It applies for the financial year ended 31 December 2025.
Lightsource bp’s approach to tax is underpinned by the following principles:
Governance
The Global Head of Tax and CFO own and implement our approach to tax which is reviewed by the Board of Directors. The Global Head of Tax is also responsible for ensuring policies and procedures that support the approach are in place, maintained and used consistently around the world, and that the inhouse tax team has the skills and experience to implement our approach.
We use external service providers on a selective basis, for example where we require additional resource or expertise.
Tax risk management
Lightsource bp recognises there is some level of tax risk in the UK, as in all countries, due to complexity of taxes, including frequent changes in laws.
We do not prescribe acceptable levels of tax risk. We seek clarity within the law and evaluate the potential tax outcomes of our business transactions, and we escalate tax risks and uncertainties to the relevant level within Lightsource bp to determine the appropriate management response.
To identify and manage tax risks we selectively seek input from external advisers to leverage local or specific tax knowledge.
Tax planning
We adhere to relevant tax law, and we seek to minimize the risk of uncertainty or disputes.
We engage in efficient tax planning that supports our business and reflects commercial and economic activity. We do not engage in artificial tax arrangements.
We establish entities in jurisdictions suitable to hold our overseas investments, giving consideration to our business activities, the prevailing regulatory environment.
We seek to conduct transactions between group companies on an arm’s length basis and in accordance with current OECD principles.
Tax incentives and exemptions are sometimes implemented by governments and fiscal authorities in order to support investment, employment and economic development. Where they exist, we seek to apply them in the manner intended.
Relationships with governments
We seek to build and sustain relationships with HMRC and other tax authorities globally that is constructive and based on mutual respect. We are committed to addressing any tax enquiries or audits promptly and resolving these in an open, transparent and constructive manner.