Nigel Farage Clashes with Reporter Over Richard Tice Tax Questions
Reform UK leader Nigel Farage lashed out at a reporter during a press conference, challenging her to deliver a "lecture" on tax law when questioned about his deputy Richard Tice's tax affairs. The tense exchange occurred as Farage insisted Tice had paid the correct tax, suggesting his colleague might have even "slightly overpaid tax."
Tax Allegations Against Reform UK Deputy
Richard Tice, who serves as Reform UK's business, trade and energy spokesman, faces demands to "urgently explain" himself over allegations his company failed to pay more than £90,000 in tax. The controversy centers on his firm's status as a REIT (real estate investment trust), a rare legal classification with specific tax requirements.
At the press conference, a Channel 4 News reporter pressed Farage about why he didn't know the exact amount Tice had repaid. A visibly irritated Farage retorted: "Do give me a lecture on REITs and how they work, would you? I mean, while we're here, give us the benefit of your knowledge on this. I'd be thrilled."
Farage Defends Tice's Tax Position
When the reporter acknowledged she wasn't a tax expert, Farage responded: "Nor am I, thank you." He then defended Tice by referencing tax expert Dan Neidle, stating: "If our biggest critic is Labour activist Dan Neidle – and he is a tax expert, he is, he's good at it – if our biggest critic says that Richard Tice has not evaded or avoided tax, has paid the full amount, and actually, maybe even a little bit more the full amount, then I'm satisfied with that."
Neidle had previously commented on social media that the situation didn't constitute tax evasion or avoidance, but noted Tice's property investment firm Quidnet REIT Ltd had "mistakenly failed to pay the tax required by law" and was now required to settle it. He told the Sunday Times the rules were "fairly simple and understood by everyone in the property world," adding the failure to pay tax appeared "careless."
Details of the Tax Controversy
The allegations stem from reports that Tice failed to pay a required levy on dividends before they were channeled to him and his offshore trust. According to the Sunday Times, he received at least £91,000 in excess payments due to this alleged failure.
REITs operate under specific tax regulations:
- They are exempt from paying corporation tax during a grace period
- Instead, they distribute a portion of earnings to shareholders who are then taxed individually
- The law requires REITs to deduct withholding tax from dividends before payments to shareholders
- This withholding tax is charged at the 20% basic rate of income tax
The Sunday Times reported that Tice's firm allegedly broke this law by failing to withhold tax before paying shareholders on at least three occasions between 2020-2021. The publication claimed Tice didn't deduct tax from dividends worth approximately £456,000, resulting in a tax shortfall of around £91,200.
Political Fallout and Responses
Richard Tice has maintained his position, insisting: "I have paid all tax at the highest rate on all dividends received. HMRC has been paid in full."
Meanwhile, Labour chair Anna Turley has written to HMRC urging an investigation into Tice's tax affairs. She criticized what she called Tice's double standard, stating: "Tice has called for others to resign over tax errors, but now seems to think that the rules don't apply to him. He has no credibility at all: he's not on the side of working people, he's just in it for himself."
The incident highlights growing scrutiny of political figures' financial affairs and the increasing pressure on party leaders to demonstrate transparency regarding their colleagues' tax compliance. Farage's defensive response during the press conference suggests the tax questions have touched a nerve within Reform UK leadership as they navigate this potentially damaging controversy.
