Our approach to tax

At Schroders we are committed to conducting our tax affairs in an open and transparent way. This means that we comply with all of our tax filing, tax reporting and tax payment obligations globally. We also seek to maintain good relationships with the tax authorities in the key jurisdictions in which we operate.

The amount of tax we pay and collect is driven by a number of factors including the locations of our people and clients, and the tax rates and rules in each of the countries in which we operate. Corporate tax rates in particular can vary significantly by country. With this in mind, we apply a consistent global approach to allocating costs and revenues that fairly recognises the economic contribution of each of our businesses. We have a number of minor subsidiaries incorporated in jurisdictions with low or zero tax regimes. These subsidiaries have all been established to undertake genuine business activities relating to the management of investment funds and servicing of clients.

We believe it is important that business behaves responsibly and builds trust within society regarding its role and contribution on tax. With this in mind, we support initiatives to improve international transparency on taxation matters, including OECD measures on country-by-country reporting and automatic exchange of information. We are a signatory to the UK's Code of Practice on Taxation for Banks and are treated as 'low risk' by HMRC.

Our tax strategy sets out our approach to tax matters across the Group more generally. This strategy is reviewed and approved annually by the Audit and Risk Committee.

Taxes borne

We have offices in 37 locations including the major financial centres of Europe, the Americas and Asia Pacific. Taxes borne include corporate income taxes, employer related social security, business rates, irrecoverable value added taxes on our expenses and sales taxes.

On average, we paid corporate income tax at a rate of 17.2% in 2022 (2021: 18.4%).

The total taxes borne by the Group in 2022 was £254.5 million (2021: £308.9 million).

UK taxes borne (57%)Americas taxes borne (9%)Asia Pacific taxes borne (9%)Europe taxes borne (25%)

Title

Value

UK taxes borne (57%)

57

Americas taxes borne (9%)

9

Asia Pacific taxes borne (9%)

9

Europe taxes borne (25%)

25

Taxes collected

Companies also have an important role in collecting and administering taxes on behalf of governments, where the cost of the tax is borne by others.  We collect income taxes, social security, withholding taxes, indirect taxes and other local taxes in the countries in which we have operations.

The total tax collected in 2022 was £320.6 million (2021: £268.8 million).

UK taxes collected (66%)Americas taxes collected (12%)Asia Pacific taxes collected (10%)Europe taxes collected (12%)

Title

Value

UK taxes collected (66%)

66

Americas taxes collected (12%)

12

Asia Pacific taxes collected (10%)

10

Europe taxes collected (12%)

12

 

UK

Americas

Asia Pacific

Europe

Total

 

£m

£m

£m

£m

£m

 

 

 

 

 

 

Corporate income taxes borne

38.2

17.2

14.7

37.9

108.0

Employment taxes borne

72.4

6.1

5.8

15.7

100.0

Indirect taxes borne

22.3

0.4

1.2

8.9

32.8

Property and other taxes borne

12.0

0.6

0.2

0.9

13.7

Total taxes borne

144.9

24.3

21.9

63.4

254.5

 

 

 

 

 

 

Employment taxes collected

206.7

39.2

20.4

28.0

294.3

Indirect taxes collected

4.1

0.0

11.7

8.3

24.1

Withholding and other taxes collected

0.0

0.4

0.2

1.6

2.2

Total taxes collected

210.8

39.6

32.3

37.9

320.6

 

 

 

 

 

 

Total taxes borne and collected

355.7

63.9

54.2

101.3

575.1

 

We are required by law to disclose tax information in our annual report and in respect of certain regulated entities (see below).

Capital Requirements (Country-by-Country Reporting) Regulations 2013

2022 Country-by-Country Report (Greencoat)

2022 Country-by-Country Report

2021 Country-by-Country Report

2020 Country-by-Country Report

2019 Country-by-Country Report

2018 Country-by-Country Report

2017 Country-by-Country Report

2016 Country-by-Country Report

2015 Country-by-Country Report

2014 Country-by-Country Report

2013 Country-by-Country Report

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Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada.

For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.