UK Tax Strategy for BYD (U.K.) CO., LTD.

BYD (U.K.) CO., LTD. is committed to conducting its business with the highest standards of integrity and compliance, including in relation to tax. This statement outlines      BYD (U.K.) CO., LTD’s approach to UK taxation and complies with the requirements of the Finance Act 2016. The purpose of this strategy is to provide clear insight into our approach to tax risk management, tax planning, and our relationship with HM Revenue & Customs (HMRC).

1. Introduction and Scope

This UK Tax Strategy applies to BYD (U.K.) CO., LTD. a company incorporated under the laws of England and Wales. This strategy relates to the financial year ending 31 December 2025 and has been prepared in accordance with the requirements of Schedule 19, paragraph 16(2) of the Finance Act 2016.

2. Tax Risk Management and Governance

The Board of Directors is responsible for overseeing BYD (U.K.) CO., LTD.’s approach to tax and is committed to ensuring full compliance with UK tax legislation and the responsible management of tax risk. The Company recognizes that, given the scale and evolving structure of the business, certain tax risks are inherent, and as the business continues to grow, the need for strong compliance and effective governance becomes increasingly important.

Overall responsibility for tax matters rests with the Board of Directors, which oversee tax governance and compliance at a strategic level. Day-to-day tax compliance and related activities are managed by the Finance Manager and Financial Controller as required, who conduct internal reviews of all tax submissions prior to filing.

To support effective compliance, the Company engages reputable UK-based external accounting and advisory firms. These advisors prepare key tax filings, including Corporation Tax returns, PAYE, and VAT, and provide specialist advice where required. We obtain relevant updates on tax legislation from both internal monitoring and our external advisors, who also assist us in understanding and meeting any new obligations. As the business has expanded, the Company has also worked more closely with these external firms to assess existing tax processes, identify potential gaps, and strengthen internal controls. This collaborative approach has helped enhance the overall tax compliance framework and has informed the development of further governance improvements planned for 2026, ensuring that the Company maintains a robust, forward-looking, and continuously improving approach to managing tax risk.

It is the Company’s policy to maintain a low tax risk approach to taxation by ensuring that adequate resources, strong oversight, and access to professional expertise are in place to achieve deliver timely and accurate tax compliance with all applicable requirements.

3. Approach to Tax Planning

The Company undertakes tax planning strictly within the framework of applicable UK tax legislation and only where it supports genuine commercial objectives. As the business has grown, ensuring that tax positions accurately reflect the Company’s evolving operations has become increasingly important. The Company therefore works closely with external advisors to assess the tax implications of new activities, helping to close any compliance gaps and ensuring that tax planning remains aligned with best practice and strong governance principles.

BYD (U.K.) CO., LTD. does not participate in aggressive or artificial tax avoidance arrangements and adheres to a strict policy of full compliance with UK tax legislation. The Company recognizes its responsibility to contribute appropriately to the UK Exchequer and is committed to paying the correct amount of tax transparently and in accordance with the law. Tax planning decisions are made to reflect commercial reality and maintain compliance, with the appropriate use of available reliefs and incentives in a manner that does not compromise compliance or ethical standards. Engagement with professional advisors continues to help the Company strengthen the quality of its tax analysis and maintain a responsible approach to all tax planning activity.

4. Tax Risk Appetite

The Company maintains a low tax risk appetite and aims to comply fully with both the letter and spirit of UK tax legislation. As the business expands, the potential for tax risks naturally increases, and the Company acknowledges the importance of strengthening its tax control environment to ensure the accurate reporting of its growing commercial activities. Regular consultation with external tax specialists supports this commitment by providing independent insight into emerging risks, potential gaps, and governance expectations.

We are committed to maintaining a high level of transparency in all tax filings and in our interactions with HM Revenue & Customs (HMRC) and professional advisors.

As the ultimate parent, BYD Company Ltd, is a listed company on the Hong Kong Stock Exchange, BYD (U.K.) CO., LTD. operates in line with the group-wide policies and governance framework adopted by BYD Company LTD. BYD (U.K.) CO., LTD. does not have any single stakeholder or group whose influence would the level of tax risk we are prepared to accept.

5. Approach to Dealings with HMRC

BYD (U.K.) CO., LTD. is committed to maintaining a proactive and transparent relationship with HM Revenue & Customs (HMRC). The Company engages constructively with HMRC and ensure timely and accurate compliance with all UK tax obligations.

To support this commitment, BYD (U.K.) CO., LTD. engages professional advisors to assist in meeting statutory and legislative requirements and to provide specialist guidance on complex matters. These advisors also support the Company in identifying and addressing any past, present, or potential tax risks.

Where tax uncertainties or errors are identified, the Company will promptly disclose and address them in an open transparent and constructive manner. It is our policy to deal with HMRC in a manner that is transparent, honest, and constructive.

This UK Tax Strategy has been updated for the financial year ending 31 December 2025 and replaces the version published for 2024. The Company will continue to review the strategy annually to ensure it remains accurate and reflects any relevant changes in legislation, HMRC guidance or the Company’s operations. All updates are reviewed and approved by senior management.

BYD (U.K.) CO., LTD. remains committed to maintaining a proactive, open and transparent relationship with HMRC and to promptly addressing any tax uncertainties or errors identified.