Reform Deputy Leader Faces Scrutiny Over Corporate Tax Payments
Richard Tice, the deputy leader of Reform UK, has declared he is "always happy to put things right" and will settle any outstanding amounts "if numbers need rechecking" after reports emerged alleging he failed to pay almost £100,000 in corporation tax. This development follows a Sunday Times investigation, which claimed that four shell companies linked to Mr Tice did not pay any tax on profits between 2020 and 2022.
Shell Companies and Tax Benefits Under the Microscope
The newspaper's report suggested that these shell companies benefited his investment firm, which subsequently made substantial donations to the Reform party. In a statement addressing the allegations, Mr Tice acknowledged that a lengthy career involving multiple businesses is "bound to feature some errors." He emphasised his willingness to "pay what is owed" if necessary, framing tax efficiency as a fundamental corporate responsibility to shareholders.
This situation arises just after Reform UK characterised an earlier reported failure of Mr Tice's company to pay tens of thousands in tax on dividends as "a minor administrative error." The latest allegations centre on Mr Tice's use of his Quidnet property company's Real Estate Investment Trust (REIT) status to achieve tax savings. REIT companies are typically exempt from UK corporation tax on rental profits and capital gains from property rentals.
Investigation Uncovers Tax Treatment Discrepancies
According to the investigation, conducted with the think tank Tax Policy Associates, Quidnet paid £514,000 in distributions to four companies. While Quidnet itself, due to its REIT status, would have been exempt from corporation tax, the recipient companies were not. The payments were incorrectly classified as tax-exempt ordinary dividends instead of taxable REIT property income distributions, potentially resulting in approximately £98,000 of unpaid corporation tax.
Mr Tice defended his position, stating he has "always paid everything that I was advised to pay" throughout his 40-year career, which spans 12 countries and over 150 companies. He reiterated his commitment to rectifying any errors, noting he would pay any owed sums, whether more or less, upon rechecking the figures.
Hypocrisy Claims Emerge Amid Previous Criticisms
The controversy is compounded by Mr Tice's previous comments regarding Angela Rayner, the then deputy prime minister. Just months ago, he asserted that Ms Rayner should resign if she possessed "any moral decency" after she admitted to underpaying stamp duty on her £800,000 flat in Hove, a mistake she attributed to legal advice received at the time.
Further reports indicate that Mr Tice received at least £91,000 because his property investment company, Quidnet REIT Limited, did not apply the required 20% tax on dividends before issuing them to him and his offshore trust in Jersey. In response, Mr Tice claimed on social media platform X that "overall HMRC received the correct amount of tax due" and attributed any issues to a "complex tax technicality around dividends to certain shareholder classes in REITs."
The Labour Party has previously urged HMRC to investigate Mr Tice's tax affairs following earlier reports that he had "avoided nearly £600,000 in corporation tax" through his property company. Both Mr Tice and Reform UK were approached for comment on these latest allegations, highlighting ongoing political and public interest in the matter.
