How the rich hold British property through offshore companies? This report explains

A report on Friday (January 27) has revealed that a string of billionaire businesspersons, the BBC's chair Richard Sharp, seven-time Formula One world champion Lewis Hamilton and over 20 Conservative donors are among those who declared that they own British property through offshore jurisdictions. The report by The Guardian said that these declarations were made on the United Kingdom (UK) government's new register of overseas entities.

The register gives details on how Gulf royals, wealthy businesspersons and countries such as China legally bought billions of pounds of most London property, often via jurisdictions like the British Virgin Islands (BVI) and the Channel Islands, the report said.

As of Friday noon, the Companies House register listed more than 17,000 overseas entities and thousands more are expected to be registered before the deadline which is on January 31.

Richard Sharp, whose appointment as the BBC chair is being questioned following questions about his role in securing a loan for former British Prime Minister Boris Johnson, is the beneficial owner of a £4 million flat in London held through a Jersey-based trust, the report said. However, a spokesperson for Sharp said that the flat in question was his elderly mother's home.“Mr Sharp is a UK citizen, UK domiciled and has always been meticulous about always paying the full amount of tax here," the spokesperson said.

“Like many parents, he has been thinking about how to provide for his children on his death. This arrangement isn’t about a personal tax benefit to him as he pays more UK tax under this arrangement, but about him planning for provision for his children,” the spokesperson added, the Guardian reported.

Formula One driver Lewis Hamilton owns a property worth £16.5 million in Kensington. A spokesperson for Hamilton said that the British racing driver did not gain tax benefits from this arrangement.

The Companies House register showed that royal families of Gulf states owned about £1 billion of British property via tax havens such as the BVI. The register also showed that the Chinese Investment Corporation, an arm of the Chinese government, owned at least £580 million worth of property through offshore entities, including distribution centres that are important for the flow of British goods.

On the other hand, Conservative donors named in the register include two peers Irvine Laidlaw and Stanley Fink. The Guardian report on Friday said that Laidlaw had donated £3.2 million when the Conservative Party was in opposition. He has a portfolio of offices and residential homes held through at least nine Isle of Man-based companies.

Stanley Fink, the former party treasurer, had given about £3.7 million over two decades. He owns a part of the St Pancras Renaissance hotel building through a Guernsey-based vehicle, the report added. Fink said gained no tax benefits from this structure.

Some other Tory donors include the Reuben brothers, property developers with 106 vehicles spanning the BVI to Guernsey, the report added. A spokesperson for the brother said that all the entities were liable to UK taxes, adding any taxes due were paid in compliance with the HMRC (HM Revenue and Customs).

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