In addition to being a major employer and provider of energy and related services, ScottishPower makes a significant contribution to the national economy as a responsible taxpayer.
Companies in the ScottishPower group seek to be open, honest and transparent in dealings with the tax authorities and to comply with both the letter and the spirit of tax laws set by Government. The group remits taxes due on a timely basis, and has a relationship with HM Revenue and Customs based on mutual trust and cooperation.
ScottishPower does not enter into artificial arrangements to exploit the tax system by reducing tax payable in ways which were not envisaged by Government. Companies in the group do take advantage, however, of available reliefs and concessions, many of which are designed to encourage activities or practices that the Government believes are beneficial to the national economy. Generation, transmission and distribution of electricity require significant investment in property, plant and equipment and the group benefits from reliefs which allow a greater proportion of the capital costs of these items to be expensed in the calculation of taxable profit in earlier years of operation. This has no effect on the total amount of Corporation tax payable during the life of the asset, but it results in lower tax payments initially.
In the year to 31 December 2012, Scottish Power paid a total of £233 million to the UK Government in respect of Corporation tax, business rates, and employers' National Insurance Contributions.