Reform UK's Richard Tice made a striking claim during a press conference on Monday, asserting that a company linked to the Labour Party had not paid any corporation tax for a quarter of a century. However, a detailed examination of publicly available financial records reveals a different story, with the company having paid well over £100,000 in corporation tax during that period.
The Claim and Its Context
During his address, Mr Tice specifically targeted Labour Party Properties Limited, stating: "In the last 25 years, Labour Party Properties Limited has earnt over £30 million in rental income … how much corporation tax do we think Labour Party Properties Limited has paid in 25 years? Any guesses? Zero. A big fat zero." He suggested that property costs and administration expenses had coincidentally matched or exceeded rental income, implying tax avoidance.
Scrutinising the Financial Records
The Press Association conducted a thorough analysis of the last 25 years of accounts for Labour Party Properties Limited, as filed with Companies House. The most recent publicly available accounts cover the year ending December 31, 2023. This investigation provides a clear picture of the company's corporation tax payments over the specified period.
Key Findings from the Accounts:
- Between 2004 and 2018, the accounts show no corporation tax charges, aligning with part of Mr Tice's claim.
- However, in 2019, the company registered a corporation tax charge of approximately £27,000.
- In 2020, the corporation tax charge was around £26,000.
- For 2021, the accounts indicate a corporation tax charge of about £4,000.
- Prior to 2004, the company had several corporation tax charges in earlier years.
Total Corporation Tax Charges Over 25 Years
When examining the entire 25-year span from 1999 to 2023, the cumulative corporation tax charges for Labour Party Properties Limited amount to approximately £130,000. It is important to note that figures in Companies House filings are rounded to the nearest £1,000, making these numbers approximate but still significant.
Companies are only required to pay corporation tax if they generate a profit, which explains periods without tax charges when expenses matched or exceeded income.
Conclusion of the Fact Check
While it is accurate that Labour Party Properties Limited did not pay corporation tax between 2004 and 2018, the broader claim of zero tax payments over 25 years is false. The company paid corporation tax in multiple years, including substantial amounts in 2019, 2020, and 2021, contributing to a total exceeding £100,000 over the quarter-century period. This fact check underscores the importance of verifying financial assertions with official records before drawing conclusions.
