Reform UK’s Tice Makes False Claim About Labour Party Corporation Tax

In a contentious press conference Monday, Reform UK’s Richard Tice alleged that Labour Party Properties Limited, a company linked to the Labour Party, paid no corporation tax over a 25-year period despite earning over £30 million in rental income.

“How much corporation tax do we think Labour Party Properties Limited has paid in 25 years? Any guesses? Zero. A big fat zero,” Tice declared during the event, suggesting the company had manipulated its property costs and administration expenses to deliberately avoid tax liability.

However, a comprehensive review of financial records contradicts Tice’s claim. An analysis of documents filed with Companies House reveals the company paid well in excess of £100,000 in corporation tax during the period in question.

While Labour Party Properties Limited did not pay corporation tax between 2004 and 2018, the company paid approximately £60,000 in combined corporation tax over three consecutive years: £4,000 in 2021, £26,000 in 2020, and £27,000 in 2019, according to official filings.

The Press Association conducted a thorough examination of the company’s accounts covering the past 25 years. Their investigation confirmed that although the business did not incur corporation tax charges in most years during this period, it had significant tax liabilities in several years, particularly before 2004 and after 2018.

In total, financial records indicate Labour Party Properties Limited faced corporation tax charges of approximately £130,000 over the 25-year period from 1999 to 2023. This figure is an approximation as Companies House filings round numbers to the nearest £1,000.

The discrepancy highlights the importance of fact-checking political claims, particularly during periods of heightened partisan rhetoric. Corporation tax in the UK is only levied on profits, not overall income, which explains why the company did not pay tax during years when expenses matched or exceeded revenue.

Labour Party Properties Limited’s most recent publicly available accounts are for the year ending December 31, 2023. These documents, along with previous years’ filings, are accessible through Companies House, the UK’s official registrar of companies.

The false claim by Tice comes at a time when tax policy and corporate accountability remain contentious political issues in Britain. Reform UK, a right-wing political party that emerged from the former Brexit Party, has positioned itself as a challenger to both Conservative and Labour economic policies.

Political analysts note that such accusations about tax avoidance can be particularly potent in the current economic climate, where public sensitivity about corporate tax responsibility has increased following years of austerity measures and growing wealth inequality.

The Labour Party has not yet issued a formal response to Tice’s allegations, though the public record clearly contradicts his central claim. Financial transparency requirements for UK companies mean that tax payment history is a matter of public record, allowing for independent verification of such statements.

This incident underscores the challenges voters face in navigating political rhetoric, particularly claims involving complex financial matters that may not be immediately verifiable without specialist knowledge or research.