A PROPERTY business run by Labour hasn’t paid a penny in tax for 15 years – despite rental income of nearly £20 million.
Shadow Chancellor John McDonnell faced charges of “barefaced hypocrisy” over the revelations after declaring war on ‘tax dodging’ last week.
John McDonnell faces charges of ‘barefaced hypocrisy’ after it was revealed a Labour-run property business hasn’t paid tax in 15 years[/caption]
New figures at Companies House reveal that ‘Labour Party Properties Limited’ – a venture that owns 19 buildings across the UK – declared zero tax in 2018 despite profits of nearly £630,000.
And it last paid money to the Treasury in 2003.
More than half of the property is rented on the open market while other buildings are leased to local Labour parties.
Rental income in 2018 was £2.6 million but this was offset by deferred losses, property expenses totalling £1.7 million and admin costs of £265,000.
‘DO AS WE SAY, NOT AS WE DO’
The administration costs included a £102,000 interest charge … from the Labour Party.
Experts claimed the administration costs appeared unusually high.
But in the results, the company said: “The directors consider the state of affairs to be satisfactory”
Tory backbencher Maria Caulfield said: “This appears barefaced hypocrisy from Labour and is typical of their ‘do as we say, but not as we do’ approach.
“Perhaps John McDonnell needs to start looking a bit closer to home.”
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Last week Labour’s Shadow Chancellor said he was willing to send advisers to jail over tax avoidance. “The sanctions still aren’t great enough,” he said.
And he added: “People are offended by the scale not just of tax evasion but of avoidance by some of the major companies.”
A Labour Party spokesman yesterday said: “The Labour Party pays all tax that is due.”
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