Capital One (Europe) plc ("Capital One UK") is required to annually publish its Tax
Strategy in accordance with Section 161 and Section 19(2) Schedule 19 Finance Act 2016.
This document sets out Capital One UK's Tax Strategy for the year ending 31 December 2019.
Capital One UK seeks to pay all taxes, including corporation tax, VAT and employment taxes,
on a timely basis, meet all reporting requirements and, adopts an open approach with tax
authorities, principally HM Revenue & Customs.
The UK Business's Tax Strategy is adopted by the UK Board under guidance from Capital One's
Global Tax Department and has full regard to the UK's risk appetite.
In particular, Capital One UK will:
- Comply with all relevant tax laws and disclosure requirements;
- Deal professionally and transparently with all tax authorities;
- Only undertake tax planning based on the economic and commercial activities of the
- Maintain accounting systems and controls as required to support the tax compliance
Approach to tax risk management and governance
Capital One UK is subject to all policies and procedures of the Global Corporation. This is
equally true in the area of taxation. Monthly updates are provided by Global Tax to the UK
CFO who is a board member of the UK business. Procedures require that major changes to
operations or activities are signed off by Global Tax through UK Finance representations.
Attitude to Tax Planning
Tax planning is undertaken having regard to the commercial and economic activity of the
Capital One UK does not seek to structure transactions in ways that give results
inconsistent with the underlying economic reality. Capital One UK undertakes tax planning
that is both within the letter and the spirit of tax law.
Tax matters are handled by Global Tax's UK in-house tax team which is staffed by suitably
qualified and experienced tax professionals. Occasionally and where appropriate, external
technical advice is sought to challenge or to support technical interpretations of
transactions. This enables business decisions to be taken with full knowledge of likely tax
Level of Risk
The Company at all times seeks to limit the tax complexity of the business. Capital One UK
works to maintain its low risk status as assessed by HMRC.
Approach to dealing with HMRC
Capital One UK engages openly with HMRC based on mutual trust and respect. The Company
raises all materially uncertain positions on a real-time basis to limit the uncertainty and
minimize tax risk.