Richard Tice has strongly defended his tax affairs after reports claimed his property company avoided nearly £600,000 in corporation tax. The Reform UK deputy leader said his firm, Quidnet REIT Ltd, followed all UK tax laws and accused critics of pushing a “new moral code” that pressures people to pay more tax than legally required.“I must thank the Sunday Times and Dan Neidle for confirming that my tax planning was entirely legitimate,” Tice tweeted, calling the headline claims “libellous” and part of an establishment attempt to smear him and his party.
‘No obligation to pay the maximum’
Speaking at a Westminster press conference, Tice argued that expecting citizens to voluntarily pay the highest possible tax would damage the UK economy. “There is no obligation to pay more tax than the law requires,” he said. “How many people do you know who voluntarily choose to pay the absolute maximum tax possible?”
According to Tice, creating a moral expectation to overpay taxes would discourage entrepreneurship and drive successful people away from the UK.
How the tax arrangement worked
Reports in The Sunday Times claimed Quidnet avoided corporation tax between 2018 and 2021 by obtaining Real Estate Investment Trust (REIT) status.Under UK rules, REITs are exempt from corporation tax on property profits if they distribute a large share of earnings to shareholders, who then pay tax individually.The newspaper alleged that dividends were routed through structures including an offshore trust and several dormant companies, reducing Tice’s personal tax exposure.
However, the investigation also noted that the arrangement appeared to comply with existing laws.
Labour calls for HMRC investigation
The controversy escalated after Anna Turley, chair of the Labour Party (UK), formally asked HM Revenue and Customs to investigate Tice’s tax arrangements.Turley described the case as “deeply troubling” and questioned whether the REIT status had been used in a way that went against its intended purpose.She argued that Reform UK cannot claim to represent working people while its senior figures use complex financial structures to reduce tax liabilities.
Tice fires back at Labour
Tice countered by accusing Labour of hypocrisy, pointing to the party’s own property arm, Labour Party Properties Ltd.He claimed the company had generated more than £30 million in rental income over the past 25 years but paid “zero corporation tax” due to costs and expenses offsetting the revenue.“A big, fat zero,” Tice said, suggesting Labour should answer questions about its own finances before criticising others.
Tax avoidance vs tax evasion
The debate highlights a key difference in tax law. Tax evasion: illegally hiding income or falsifying records, is a criminal offence. Tax avoidance, by contrast, involves using legal mechanisms to reduce tax liabilities.Critics argue aggressive tax planning undermines the spirit of the law, while supporters say taxpayers have every right to minimise what they pay.For Tice, the answer is simple: “Yes, of course people should pay the minimum tax legally possible.”
