UK Tax Strategy Statement for the year ended 31 December 2023

Introduction

This strategy applies to Watling Street Capital Partners LLP (“Watling”), the ultimate parent of the Charterhouse Group, and all affiliated entities that are consolidated for financial reporting within Watling, as well as to all the Charterhouse Group’s UK-resident partnerships and companies (together “Charterhouse”).

Charterhouse is one of the longest established private equity firms operating in Europe. It follows a selective, conviction-led approach to investing in high-quality mid-market European companies. It aims to generate attractive investment returns (over a typical four-to-six-year hold period) by following a patient and disciplined investment approach, leveraging the firm’s truly multinational team, to drive growth and value creation at the asset level.

This document has been approved by Charterhouse’s Managing Partner, General Counsel and Finance Director and it has been published on the Charterhouse website per the requirements of the UK tax rules under Paragraph 16(2) of Schedule 19, Finance Act 2016 for the year ending 31 December 2023. 

Governance and approach to UK tax risk management

Charterhouse is committed to conducting its business and tax affairs in accordance with applicable laws. In structuring its business activities, and those of its funds, Charterhouse considers relevant UK and international tax laws and guidance, alongside available legitimate tax reliefs and incentives, to maximize value for its investors and stakeholders. Charterhouse does not participate in tax avoidance schemes, nor does it engage in artificial tax arrangements. Charterhouse seeks to minimise the risk of uncertainty or disputes and conducts transactions between group entities on an arm’s-length basis and in accordance with international transfer pricing principles.

Charterhouse’s tax risk management procedures include:

• Clearly documented processes and controls relating to UK tax compliance. The Finance Director and the Head of Tax are responsible for implementing Charterhouse’s tax strategy and ensuring that policies and procedures that support the approach are in place, maintained and used consistently across Charterhouse.
• Processes and controls are subject to a periodic review and are updated as needed to reflect business and legislative changes.
• The employment of appropriately qualified staff within the finance and tax functions who have responsibility for the implementation of the tax strategy and the management of tax and related risk.
• Engagement of professional external advisers for UK tax compliance matters as well as prior to the initiation of new activities investments/ structures or in areas of complexity or uncertainty, to ensure that applicable tax rules are identified and followed.
• Clear firm-wide policy that criminal tax evasion, or the deliberate facilitation of such tax evasion, is unacceptable. This applies to any employee or any person acting on Charterhouse’s behalf, regardless of whether the evasion takes place in the UK or anywhere in the world and in relation to both UK and non-UK taxes. Charterhouse has conducted a comprehensive risk assessment and implemented procedures and controls intended to prevent any such evasion or facilitation, including anti-bribery and compliance training for all Charterhouse personnel.

Approach to Management of Tax Affairs

Charterhouse seeks to comply with UK tax filing, tax reporting and tax payment obligations in line with statutory guidelines. It seeks to maintain an open, fully transparent, and collaborative relationship with HM Revenue & Customs (“HMRC”) and it pro-actively engages with HMRC when appropriate. Charterhouse would inform HMRC of any omissions/ errors in its UK tax filings as soon as reasonably practical after discovery and would seek to resolve any tax authority enquiries via open, timely and respectful discussions.