Overview of the group
Neon operates in the specialist Lloyd’s market but ceased underwriting new business on 6 January 2020. It underwrote a diverse range of property, specialty, casualty and marine risks on a direct and reinsurance basis, as well as through delegated authorities.
On 1 January 2021, the Neon Group, including its Lloyd’s Managing Agency and Lloyd’s Corporate Members (GAI Indemnity Ltd, Lavenham Underwriting Ltd. and Sampford Underwriting Ltd.) formally became part of RiverStone Holdings Ltd. (RiverStone) following an agreement signed on 26 September 2020 between RiverStone and Neon’s previous shareholder and capital provider, American Financial Group Inc.
The Finance Act 2016 introduced a requirement for Groups to publish certain information about their tax strategy relating to UK taxes. Neon Capital Limited qualifies as the head of a UK sub-group under paragraph 19(2), Schedule 19, Finance Act 2016 and must publish the information contained in paragraph 20 of that Act.
Neon considers that the publication of this tax strategy fulfils its duty under paragraph 16(2), Finance Act 2016 in respect of Neon Capital Limited and its subsidiaries for the financial year ended 31 December 2020.
The approach of the group to risk management in relation to UK taxation
Neon is exposed to a variety of risks through the normal course of its business and manages these risks through its risk management framework. Tax risk is managed as part of this framework.
Governance arrangements in relation to UK taxation
The Board has responsibility for managing Neon’s tax affairs, including proper control and management of tax risk and ensuring that the tax charge is appropriately stated in the statutory accounts and tax returns.
Within the risk management framework, the day to day operation of tax controls is managed by the Finance department, reporting to the Chief Financial Officer and under the oversight of the Finance Committee.
The attitude of the group towards tax planning
Neon aims to ensure that it pays the correct amount of tax in each jurisdiction as required by the local tax law. Tax mitigation and planning are not drivers of business activity and Neon will not enter a transaction where the only or main purpose is the avoidance of tax.
The level of risk in relation to UK taxation that the group is prepared to accept
Neon is committed to fully complying with all tax laws, rules and regulations which apply to it in every jurisdiction it operates in. Tax advisers are engaged as part of the risk management framework with the aim of minimising tax risk.
The approach of the group towards its dealings with HMRC
Neon believes that an open, transparent and co-operative relationship with tax authorities is essential and seeks to establish and maintain this at all times.
This tax strategy summarises how the Neon group ensures that it pays the correct amount of tax in all the territories in which it operates. It encompasses all taxes including corporation taxes, employment taxes and indirect taxes such as VAT and IPT.
Responsibility for this strategy rests with the Board of Neon Capital Limited and it is reviewed and approved annually.