Reform UK’s deputy leader Richard Tice, a prominent millionaire donor, is facing scrutiny over his companies’ nearly £100,000 in outstanding corporation tax. Tice’s four shell firms reportedly avoided tax payments from 2020 to 2022, benefiting his investment company, which subsequently made substantial contributions to Reform UK.
The tax issue revolves around Tice’s property investment company, Quidnet, for which he sought Real Estate Investment Trust (REIT) status, exempting it from corporation tax. However, this status did not extend to four interconnected ‘Tisun’ companies associated with Quidnet, leading to a potential tax liability on their shareholdings, which seemingly went unpaid.
The four companies – Tisun 1, Tisun 2, Tisun 3, and Tisun 4 – were established solely to receive funds from Quidnet, with the first three entities formed on the same day and the fourth two years later. Notably, Tisun Investments Ltd transferred a significant £1.1 million to Reform UK on the dates of its initial and final dividends, linking Tice’s tax matters directly to the party’s finances for the first time.
Tax expert Dan Neidle criticized the situation as a basic tax error rather than a complex issue, emphasizing the apparent oversight. Neidle highlighted that approximately £98,000 in corporation tax, along with around £27,000 in interest, is outstanding, potentially resulting in penalties from HMRC for negligence.
In a contrasting scenario, Tice previously called for the resignation of Angela Rayner, the former deputy prime minister, over tax discrepancies amounting to less than half of his alleged tax debt. Rayner had acknowledged underpayment of taxes related to her property in Hove due to intricate trust arrangements for her disabled son, leading to her resignation from the Government and Labour deputy leadership.
Responding to the tax scrutiny, Tice defended his tax practices, citing his extensive business experience spanning multiple countries and companies. He emphasized the importance of tax efficiency in business operations and expressed willingness to rectify any errors and settle outstanding amounts. Tice criticized the investigation as a smear campaign and underscored the impact of such scrutiny on business professionals entering politics.
Despite the ongoing tax controversy, Tice affirmed his commitment to serving his constituents and campaigning for local elections, dismissing further engagement with the press on the matter.
