Theresa May’s husband is a client relationship manager at investment firm Capital International Ltd.
The CIL has turned over £467million since 2009 and leaked emails seen by Private Eye suggest that it has reportedly used offshore-registered funds to make investments in a Bermuda-registered company.
The Firm recorded losses of £125million over the same period, making it ineligible to pay UK corporation tax, but despite running a loss-making company for six of those eight years, CIL paid its board of directors a total of £43million in wages and other benefits over the same time frame.
Although CIL made profits of between £4million and £5million over the past two years, it continues to pay no corporation tax due to previous losses.
Prem Sikka, a finance expert said: “It’s very odd a business can pay substantial amounts to directors while not turning a profit.”
Shadow Minister for the Cabinet Office, Jon Trickett, said:
“Philip May has serious questions to answer about his firm’s use of tax havens.”
“whether he had any knowledge of it and if he thinks this is an acceptable way to do business,”
Labour MP John Mann said: “It is fundamentally un-British to avoid tax. The Prime Minister should raise this at the breakfast table immediately.”
Private Eye reported that Capital Group’s Cayman Islands funds, CGPE V LLP and Capital International Private Equity Funds (CIPEF) V LP, invested in El Tejar, a Bermuda-registered South American agriculture company. Both the Cayman Islands and Bermuda are offshore jurisdictions, known for their zero rates of tax.
Mr Trickett said Labour has previously asked Theresa May what her government plans to do to clamp down on the tax havens where money is squirrelled away to avoid paying taxes for public services in this country. He added:
“When it comes to paying tax, there is one rule for the super-rich and another for the rest of us and, in refusing to act, the Prime Minister appears to condone this.”
Downing Street asserted that Mr May has no role in investment decisions at the company claiming that he is not an investor but consults with other Capital associates on retirement products and solutions for clients.
“Neither the prime minister nor Mr May have any direct offshore investments,” PM’s spokesperson said last week.
Professor Sikka, an expert at the University of Sheffield, said: “You might not make a profit every year, but if you’re not making profits over a long period, that should ring alarm bells. HMRC should investigate.”
In recent years, the use of offshore tax havens to register companies and make investments have been put under the spotlight due to numerous leaks.