Fact check: Accounts of Labour-linked firm show corporation tax charges in 2020s

Reform UK’s Richard Tice said during a press conference on Monday that a company linked to the Labour Party did not pay corporation tax for 25 years.

Mr Tice said: “In the last 25 years, Labour Party Properties Limited has earnt 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.

“Because their property costs and their administration expenses coincidentally – I’m sure it was just a coincidence – have matched, or exceeded the rental income.”

Evaluation

The last 25 years of financial records published for the business on Companies House show that it likely paid well in excess of £100,000 of corporation tax during that period.

The company did not pay any corporation tax between 2004 and 2018, but it paid around £60,000 in 2019, 2020 and 2021.

The facts

The last set of publicly available accounts for Labour Party Properties Limited were for the year ending December 31 2023.

The Press Association examined the last 25 years’ of accounts before that. They show that the business has not paid corporation tax most years during that period.

However, in 2019, 2020 and 2021, the business likely did pay corporation tax.

Its accounts show that in 2021 it registered a charge of £4,000 in corporation tax, while the year before it registered a £26,000 charge, and in 2019 the corporation tax charge was £27,000.

Between 2004 and 2018 the accounts show no corporation tax charges. The company had corporation tax charges in several years prior to 2004.

In all, in the 25 years from 1999 to 2023, the company had corporation tax charges of around £130,000. Figures in the Companies House filings are rounded to the nearest £1,000, so the numbers are approximate.

Companies only have to pay corporation tax if they make a profit.

Links

YouTube – Press conference

Companies House – Labour Party Properties Limited, accounts (archived)

Labour Party Properties Limited – 2023 accounts

Labour Party Properties Limited – 2021 accounts

Labour Party Properties Limited – 2020 accounts

Labour Party Properties Limited – 2019 accounts

Tide – What is corporation tax in the UK? (archived)