Reform UK’s deputy leader is facing mounting pressure to provide an immediate explanation following allegations that he circumvented payment of nearly £600,000 in corporation tax.
Richard Tice is said to have avoided corporation tax payments for his property company, Quidnet Reit Ltd, over a three-year span by securing a unique legal status for his business.
Despite being accused of evading substantial sums in corporation tax, Mr. Tice, who serves as Reform’s Business, Trade, and Energy spokesperson, maintains that he has adhered to all regulations.
The Reform MP allegedly sidestepped hundreds of thousands in corporation tax by listing his company on the Guernsey stock exchange and seeking real estate investment trust (REIT) status, as reported by the Sunday Times.
While Mr. Tice’s company supposedly did not meet the necessary criteria for REIT status, a legal loophole enabled it to attain the status between 2018 and 2021, exempting it from corporation tax during a grace period.
Under this status, companies distribute a portion of earnings to shareholders, who are then individually taxed. However, it is reported that Mr. Tice’s ownership arrangement directed parts of the company’s earnings into an offshore trust and inactive businesses. Quidnet no longer holds REIT status.
Anna Turley, Labour’s chair, has called for Mr. Tice to clarify the situation urgently, both to the public and HMRC, questioning his motives for avoiding tax payments and whether he has settled all outstanding dues.
In response, Mr. Tice defended Quidnet as a UK-based entity operating in compliance with British laws and paying UK taxes, emphasizing that seeking REIT status is a common practice among property firms.
He asserted that having a diverse shareholder base, including directors, is neither complex nor unusual for a UK company. Mr. Tice highlighted the value of having a successful businessman managing a business, trade, and energy department, generating profits and growth for taxpayers.
He expressed that voters should take comfort in having a leader who understands how to create value for shareholders, suggesting that such expertise could have potentially averted the current economic challenges.
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