Reform UK’s deputy leader, Richard Tice, has stated that citizens should take every step to reduce their tax payments within the law. His comments come in response to renewed scrutiny over his own company’s tax arrangements and broader debates about tax responsibility in the United Kingdom.
The public remarks were delivered at a press conference where Tice faced questions regarding the operations of a real estate investment trust (REIT) linked to his property business, which allegedly resulted in substantial corporation tax savings. These developments have prompted calls from opposition parties for an investigation by HM Revenue and Customs (HMRC).
Richard Tice’s Public Statement on Tax
Richard Tice addressed the issue directly during a press event, defending both his personal and corporate tax conduct.
Responding to questions about recent media reports, he argued there is no obligation for individuals or businesses to pay more tax than legally required.
Tice stated, “Yes, of course, that’s what you should do,” when asked whether all Britons should seek to pay as little tax as legally possible. He further rejected the view that there is a moral need to pay more than the minimum required by law.
Allegations Over Corporation Tax Avoidance
Recent media investigations highlighted the use of a REIT by Tice’s property company, a specialised structure enabling profits to be distributed to shareholders without incurring corporation tax, provided certain criteria are met.
It has been reported that by using REIT status, the company paid no corporation tax between 2018 and 2021, amounting to an alleged tax saving of nearly £600,000.
Tice maintains that the arrangements were fully compliant and legally sound. A journalist cited by Tice confirmed he had paid the tax required under the current rules, though the journalist also described the scheme as complex and uncommon.
The Real Estate Investment Trust Structure
REITs are investment vehicles approved under UK law, aimed at encouraging wider investment in property. There are approximately 200 such entities currently operating in the country.
While REITs benefit from certain tax exemptions, they are tightly regulated by HMRC and must meet detailed conditions, such as distributing most of their income to investors.
Tice denied suggestions that such schemes are exclusive to the wealthy, insisting they are open to all investors. He argued that his company’s use of a REIT did not breach regulations nor exploit legal loopholes.
Political Reactions and Calls for Investigation
The revelation has drawn political attention, with the Labour Party urging HMRC to undertake a thorough investigation. Anna Turley, Labour Party chair, submitted a formal request to examine whether the spirit of tax law was respected in Tice’s arrangements. In a public letter,
Turley described the matter as “deeply troubling” and called for the process to be evaluated as a matter of urgency, highlighting concerns that the REIT framework could be open to misuse.
Tice’s Arguments on Tax Morality
Defending his approach, Tice criticised what he characterised as a growing expectation for taxpayers to go beyond their legal obligations. He questioned whether anyone would willingly pay more tax than they owed, posing rhetorically,
“How many friends and family do you have who voluntarily choose to pay more tax than they are legally obliged to do?”
He further warned that promoting such a “moral code” could lead to a loss of talent and capital from the UK, suggesting that high earners may be discouraged from remaining in the country.
Final Summary
Richard Tice’s public backing for legal tax minimisation has reignited debate over the boundaries of acceptable tax planning in the UK. While acknowledging that his company’s arrangements were legal, critics argue that the use of complex structures raises questions about fairness and intent.
HMRC faces pressure to review the case, demonstrating the continuing political and public sensitivity around tax compliance and corporate governance.
For those interested in monitoring the ongoing developments in UK tax and business policy, Pie offers tools and updates to help make sense of changes and their real-world impacts.
