OVERVIEW
This tax strategy is published by and on behalf of all UK subsidiaries, UK sub-groups and UK permanent establishments within the Candle Studios group (“Candle Studios”, or the “Group”). All of the entities covered by this strategy are wholly owned subsidiaries of Candle Media, LLC (“Candle Media”). This strategy has been prepared in accordance with and pursuant to Schedule 19 of Finance Act 2016 for the financial year beginning 1st January 2025. The underlying principles of this tax strategy will guide the decisions relating to the Group’s tax matters.
ABOUT CANDLE STUDIOS
Candle Media consists of multiple operating sub-groups, including Candle Studios, which, to differing extents, have autonomy over their operating processes and policies. The Candle Media is also the owner of Moonbug, which has separately published its own tax strategy (https://www.moonbug.com).
As relevant to the UK, Candle Studios is comprised of: (i) the Hello Sunshine UK entities; and (ii) the Candle True Stories UK entities. The following UK entities sit within Candle Studios and are therefore covered by this Tax Strategy Policy:
Hello Sunshine UK Entities
- Be Sunshine Unscripted UK, Ltd
- Blocks and Marbles, Ltd
- Making Tracks Media, Ltd
- Purple Sector Productions Ltd
Candle True Stories UK Entities
- Candle True Stories Studios UK Ltd
- CTS Should I Marry Productions Limited
- CTS One Glove Productions Limited
- Bladecrest Films Limited
GOVERNANCE AND MANAGEMENT OF TAX RISK
Candle Media is a US headquartered media and entertainment company, with a core Finance and Tax team sitting at head office level, as well as localised accounting, finance, and/or tax teams which sit within the operating sub-groups. The localised accounting, finance, and/or tax teams are closely integrated with the Candle Media teams, who provide their support and expertise, giving an additional layer of review to controls environment and processes.
The Group has a zero-tolerance policy with regard to tax evasion, anti-bribery and money laundering. The Group is committed to complying with all applicable laws and regulations relating to such matters.
In relation to Candle Studios UK tax matters, the Tax Directors for the Group dual report directly into the Candle Media Head of Tax and the Candle Studios Chief Financial Officer, who, together with Senior Management, have implemented a robust control environment.
Tax risks are identified via this control environment, and mitigation of those risks is supported by the Tax Directors and the wider accounting, finance, and/or tax team. The board of directors receive updates on tax matters on a regular basis as is required.
Where there is sufficient complexity or inherent uncertainty in tax positions, Candle Studios reduces the tax risk by seeking the advice of external advisors.
ATTITUDE TOWARDS TAX PLANNING AND APPETITE FOR RISK
Candle Studios is a responsible tax payer. Candle Studios’ expectation is that all tax positions are underpinned by the commercial and economic realities of the Group, with these being the primary factors driving decision making.
Where credits and incentives are available, the Group will seek to benefit from these, in order to lower the cost of doing business, as is the intent of such policies.
This is consistent with Candle Media’s approach to taxes more widely. Candle Studios intends to comply with the spirit, as well as the letter, of the tax legislation in the countries and territories in which it operates. As such, Candle Studio’s risk tolerance is relatively low, with the emphasis being on acting with integrity to protect the reputation of its business.
WORKING WITH TAX AUTHORITIES
Candle Studios’ goal in working with tax authorities is to avoid disputes and to strive for resolution or agreement as early as practical should a dispute arrive. In all dealings with tax authorities, as applicable, Candle Studios works in a collaborative and transparent manner, which includes being proactive in its communication and timely with responses to information requests.
APPROVAL
This statement is made pursuant to Schedule 19 of Finance Act 2016 and has been reviewed and approved by the boards of Be Sunshine Unscripted UK, Ltd and Candle True Stories Studios UK Ltd (in each case, on its behalf and on behalf of its subsidiaries, sub-groups and permanent establishments) for the financial year beginning 1st January 2025.
Corey Shepardson, Chief Financial Officer
December 2025