Tice £91,000 tax row is ‘minor administrative error’, party claims

Tice £91,000 Tax Dispute Labeled ‘Minor Administrative Error’ by Party

Reform UK has defended its deputy leader Richard Tice, stating that the tax discrepancy involving his property company was merely a “minor administrative error.” The Sunday Times reported that Tice’s firm, Quidnet REIT Limited, omitted £91,000 in taxes prior to distributing dividends to him and his Jersey-based trust. Tice described the oversight as a “technicality,” asserting that HMRC ultimately received the correct amount of tax owed.

Labour Condemns the Situation as a “Major Scandal”

Labour criticized the incident as a “major scandal” undermining Tice’s “integrity and credibility.” A Labour representative emphasized the need for Tice to clarify whether his business adhered to legal requirements and fully accounted for its tax obligations. Meanwhile, Liberal Democrats leader Sir Ed Davey demanded Tice’s removal, calling the matter “morally indefensible” and urging Nigel Farage to take action.

HMRC declined to confirm or deny ongoing investigations, stating it could not comment on specific individuals. The company, which focuses on property investments, was alleged by the Sunday Times to have bypassed a 20% levy on dividends before transferring profits to Tice and his offshore trust. Zia Yusuf, Reform UK’s home affairs spokesperson, acknowledged the issue as a “minor administrative error” but dismissed it as a “non story,” explaining that any shortfall would be compensated by Tice through his personal income tax.

“Any tax that would have not been paid or underpaid by the company paying the dividend… would then have been overpaid by Richard himself in the form of income tax,” Yusuf stated.

In a social media post, Tice argued that the Sunday Times’s report revealed HMRC had “received the correct amount of tax due,” framing the issue as a complaint about him “paying too much tax rather than [his] company pay some tax on my behalf.” At a Westminster press conference, he claimed Quidnet Reit Ltd operated “in accordance with UK laws” and highlighted the absence of an “obligation” to pay the maximum possible tax.

“How many friends of yours would voluntarily choose to pay more tax than they are legally obliged to do?” Tice posed to journalists, suggesting that demanding maximum taxation would lead to economic decline.

Labour had previously requested HMRC to probe Tice’s tax affairs after the Sunday Times detailed his company’s potential avoidance of nearly £600,000 in corporation tax. Anna Turley, Labour’s chair, initiated the inquiry following the report, which highlighted the tax discrepancy. Tice maintained his stance that the company fulfilled its obligations, leaving the final judgment to the tax authority.