Reform UK’s wealthy benefactor and vice-chair Richard Tice is under scrutiny for allegedly having companies with nearly £100,000 in outstanding corporation tax payments.
Tice managed four inactive firms that reportedly did not fulfill their tax obligations from 2020 to 2022. These actions were believed to have advantaged his investment company, leading to substantial contributions to Reform UK.
The tax discrepancy is linked to Tice’s real estate investment entity, Quidnet, for which he sought REIT status, exempting it from corporation tax. However, this status did not extend to four associated ‘Tisun’ companies, which should have paid tax on their Quidnet shareholdings.
The quartet of companies, named Tisun 1, Tisun 2, Tisun 3, and Tisun 4, were specifically established to receive funds from Quidnet. Notably, the initial three entities were formed simultaneously, with Tisun 4 created two years later.
Reportedly, Tisun Investments Ltd transferred a substantial £1.1 million to Reform UK coinciding with its dividend payments, as detailed by a report in the Sunday Times. This marks the first direct financial connection between Tice’s tax affairs and the party’s finances.
Tax specialist Dan Neidle criticized the situation as a fundamental tax oversight, emphasizing that it was not a complex technicality. Neidle highlighted that approximately £98,000 in corporation tax is due, along with around £27,000 in interest, potentially leading to HMRC imposing penalties for negligence.
In a previous turn of events, Tice had insisted that Keir Starmer dismiss Angela Rayner for tax discrepancies amounting to less than half of what his companies currently owe. Rayner had resigned as deputy prime minister due to tax underpayment related to her property in Hove, acknowledging errors in tax payments concerning a trust for her disabled son.
Tice’s statement defended his track record of creating businesses globally for over four decades, generating significant value, employment opportunities, and tax revenues. He underscored the importance of tax efficiency and the willingness to rectify any errors, emphasizing that previous tax disputes during the Brexit referendum had led to overpayment conclusions by HMRC.
Tice criticized the scrutiny on his tax affairs as a smear campaign and expressed disappointment over the impact on business professionals entering politics. He highlighted the absence of business acumen in the current Labour Cabinet, attributing it to economic stagnation and declining public services. Tice reaffirmed his commitment to serving constituents and campaigning for local elections, dismissing further engagement with the Sunday Times.
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