Reform UK’s deputy leader faces mounting pressure to provide an immediate explanation following allegations of circumventing payment of around £600,000 in corporation tax.
Richard Tice is said to have avoided corporation tax for three years through his property company, Quidnet Reit Ltd, by leveraging a unique legal status. Despite these claims, Mr. Tice, who also serves as Reform’s Business, Trade, and Energy spokesman, asserts that he has adhered to all regulations.
According to reports from the Sunday Times, Mr. Tice is accused of sidestepping hundreds of thousands of pounds in corporation tax by listing his company on the Guernsey stock exchange and seeking REIT status. Although his firm did not initially meet the requirements for REIT status, a legal loophole allowed it to secure the status from 2018 to 2021, granting a tax exemption during this period.
Under REIT status, companies distribute a portion of their profits to shareholders, who are then individually taxed. However, Mr. Tice’s firm allegedly diverted some earnings into an offshore trust and inactive businesses through its ownership structure. Quidnet Reit Ltd no longer holds REIT status.
Labour’s chair, Anna Turley, emphasized the need for Mr. Tice to clarify the situation to the public and HMRC, questioning the motives behind his tax avoidance tactics. She raised concerns about the potential impact on working individuals and urged Nigel Farage to consider the values Reform represents.
In response, Mr. Tice defended Quidnet as a UK-based company that complies with local tax laws, highlighting the common practice of property companies seeking REIT status. He emphasized the legitimacy of having a diverse shareholder base that includes directors.
Mr. Tice expressed confidence in his ability to manage a successful business, generating profits for shareholders and contributing to economic growth. He suggested that having experienced business leaders in key roles could have averted the current economic challenges.
The situation involving Mr. Tice continues to draw attention and scrutiny as further details emerge.
