Nigel Farage engaged in a heated exchange with a journalist, challenging her to provide insights on tax laws after being questioned about Richard Tice’s tax situation during a press briefing. The leader of Reform UK asserted that his deputy, Mr. Tice, had fulfilled his tax obligations, hinting that Mr. Tice may have even slightly overpaid in taxes.
Allegations have surfaced against Mr. Tice, Reform’s spokesperson for business, trade, and energy, regarding his company’s failure to pay over £90,000 in taxes, linked to the firm’s unique status as a real estate investment trust (REIT). When pressed by a Channel 4 News reporter about the exact amount Mr. Tice repaid, Mr. Tice defensively responded by requesting a lecture on REITs and their operations.
Addressing concerns about Mr. Tice’s tax situation, Mr. Farage pointed to remarks from tax expert Dan Neidle, a critic of the Labour Party, who affirmed that Mr. Tice had not engaged in tax evasion or avoidance and had likely paid the full tax amount, possibly even exceeding it.
According to social media posts by Mr. Neidle, the issue revolves around Mr. Tice’s property investment firm, Quidnet REIT Ltd, inadvertently failing to meet tax obligations as required by law and subsequently rectifying the oversight. The Sunday Times quoted Mr. Neidle emphasizing the importance of adhering to tax regulations in the property sector.
Reports indicate that Mr. Tice neglected to pay a mandated levy on dividends before they were transferred to him and his offshore trust, leading to excess payments of at least £91,000 due to the alleged oversight. REITs benefit from a tax exemption period, distributing earnings to shareholders who are then individually taxed.
The law mandates REITs to withhold a portion of dividends as withholding tax before disbursing payments to shareholders, charged at the basic 20% income tax rate. Mr. Tice’s firm purportedly violated this regulation by failing to deduct tax from dividends on multiple occasions between 2020 and 2021, resulting in an estimated tax deficit of £91,200.
Mr. Tice affirmed that he had diligently paid taxes at the highest rate on all dividends received, with HMRC confirming full payment. Labour chair Anna Turley has urged HMRC to investigate Mr. Tice’s tax affairs, criticizing his alleged disregard for tax rules despite previously calling for others to resign over tax discrepancies. Turley accused Mr. Tice of prioritizing personal interests over the welfare of working individuals.
