Reform UK Deputy Leader Faces Serious Tax Allegations
Richard Tice, the multimillionaire deputy leader of Reform UK, has been accused of serious tax law violations involving his property investment company. According to a detailed report published by the Sunday Times, Tice's firm allegedly failed to pay tens of thousands of pounds in required taxes on dividends distributed to him and his offshore trust.
The Specific Allegations
The investigation centers on Quidnet REIT Ltd, the property investment company that Tice founded, owned, and operated as chief executive. The company reportedly did not pay the mandatory 20% withholding tax on dividends before channeling profits to Tice and his trust registered in Jersey. This alleged failure could represent a significant breach of tax regulations.
Dan Neidle of Tax Policy Associates, whose analysis was cited extensively in the report, suggested that further examination indicates the total tax that should have been paid by Tice's company amounts to approximately £120,000. The Sunday Times reported that Tice may have received at least £91,000 in excess payments as a direct result of this alleged tax non-compliance.
Tice's Response and Defense
Richard Tice, who also serves as the MP for Boston and Skegness and as business, trade and energy spokesperson for Nigel Farage's party, vehemently denied any wrongdoing. On social media platform X, Tice stated emphatically that "overall, HMRC received the correct amount of tax due" and characterized the allegations as nothing more than a political "smear" campaign.
Tice suggested the issue amounted to a "technicality" in tax law and emphasized that he personally paid income tax at the highest rate on all dividends received. "I have paid all tax at the highest rate on all dividends received," Tice declared. "HMRC has been paid in full." He further noted that he had received "professional accountancy advice" throughout the process and dismissed the revelations as "hardly a story."
Complex Tax Structure and Legal Requirements
The Sunday Times investigation revealed that Tice owned more than 90% of Quidnet REIT Ltd through various onshore and offshore entities under his control. The company utilized a specialized legal status known as a real estate investment trust (REIT), which provides certain tax advantages but comes with specific compliance requirements.
While REITs are exempt from corporation tax, they are legally obligated to deduct a specified proportion of dividends destined for certain shareholders before making payments. This mandatory deduction, known as withholding tax, is charged at the basic income tax rate of 20%. According to tax expert Dan Neidle, the company's legal obligations remained unaffected by whatever tax Tice or his trust subsequently paid on the dividends received.
Political Reactions and Broader Context
The allegations have sparked strong reactions across the political spectrum. Anna Turley, chair of the Labour party, described the situation as "a major scandal for Richard Tice, Nigel Farage and Reform UK." She stated: "Tice claimed last month that he had done nothing wrong in using complex structures to minimise his business's tax liability. But it is now alleged that his business did not just avoid tax, it broke the law."
Liberal Democrat leader Ed Davey posted on X that the situation was "morally completely indefensible" and called for Farage to "sack Richard Tice immediately." A Reform UK spokesperson responded to the £120,000 figure by stating simply: "Richard has paid all tax due."
This latest accusation follows previous allegations in March that Tice had "avoided nearly £600,000 in corporation tax" through his property company. The accumulating claims have raised serious questions about tax compliance within Reform UK's leadership and have placed additional scrutiny on the party's financial practices.
The controversy comes at a sensitive time for Reform UK as it positions itself as a significant political force. The allegations touch on fundamental questions of financial transparency, legal compliance, and political accountability that are likely to resonate with voters across the political spectrum.
