July 3rd, 2012

Labour Tell Donors How to Dodge Tax Too

Yesterday it was the Tories advising their top donors on how to avoid tax through a controversial “legacy” scheme. The story had considerable traction and unsurprisingly provoked considerable outrage among Labour MPs:

Guido can now reveal that the Labour Party offers an almost identical scheme to help its supporters dodge inheritance tax as well. Labour’s “Leave a Legacy” programme offers advice on three different methods of leaving money to the party, even going as far as to suggest clever a legalistic wording of donors’ wills in order to minimise tax liability:

Labour have led the way on bashing tax dodgers, with everyone from the shadow cabinet to the backbenches queuing up to stick the boot in. Starting with trigger-happy tweeter Steve McCabe, Guido wonders what they have to say about their own party being directly involved in a tax avoidance scheme. They call that red-handed…


78 Comments

  1. 1
    Ah! Monika says:

    Where’s the Libdum equivalent?

    Like

    • 4

      A piggy bank made from used fair trade coffee tins and rainbow magic.

      Like

      • 13
        Sir Aston Martin says:

        … and raffia, Bill, don’t forget the raffia.

        Like

        • 36
          Cogito Dexter says:

          Again, this isn’t anything bad. If legacies are outside tax then they’re outside tax for everyone, whether the recipient is a person, a political party or a charity. It doesn’t bother me in the slightest that legacies are treated this way.

          Mind you, rank hypocrisy does bother me: and this the Labour Party ARE guilty of and should be called out on it as loudly and and often as possible. Perhaps people will realise what a total shower the lot of them really are.

          Like

          • Norman Stanley Fletcher says:

            The Liebore party runs on weapons-grade hypocrisy, just as cars run on petrol, and household machines run on electricity.

            Like

          • The sky pixie Allah says:

            Methinks you ain’t a lawyer Sir Guido. The wording merely means that full inheritance tax is paid from that part of the estate which is not intended for the spend, spend, spend party.

            No tax avoidance here.

            Of course if the full estate was to go to the spend, spend, spend party then the wording is meaningless and inheritance tax has to be paid before the spend, spend, spend party get their share.

            Like

    • 8
      Sniper says:

      Enshrined in EU Treaties.

      Like

    • 10
      Teddy Balls says:

      So what?

      Like

  2. 2
    Tax Avoiding hypocrites says:

    the scumbags will have no shame they never do….vile party Labour

    Like

    • 17
      Blair Rich Project says:

      I pay full taxes on all the many millions my ‘charities’ earn. It just so happens that Cherie enjoys buying mansions.

      Like

      • 30
        JP Morgan says:

        We need a man to help push through a telecoms contract in the middle east. Meet a few dictators, pose for photos, use that bizarre peace envoy title to open a few other doors, give a speech about modernising, just need a name the oil sheikhs have heard of.

        $50,000 used bank notes up front, another $200,000 if we get the contract plus a special 1hr life, unlimited credit card for Cherie – just turn her loose in Harrods. First class travel, 5* hotel of course. Are you in Tony? Our accountant will help run the money through your ‘charity’ as well.

        Like

    • 24

      Rule 1. It’s not evil if Lefties are doing it.
      Rule 2. If Lefties are doing it, see Rule 1.

      Like

  3. 3
    Sniper says:

    Clearly, this Labour legal financial instrument is a legitimate method of promoting democracy while the eeevil Tory scam is a means of suppressing democracy through crony-ism and attacking the most vulnerable in society.

    The parties could not be further apart surely?

    Like

    • 16
      Sir Aston Martin says:

      Quite right. If a socialist steals your wallet, it’s always in the interests of the equitable redistribution of wealth.

      Like

    • 25
      That post-democratic thingy says:

      The “parties” are identical, the LabLibCon are three wings of one party, with a common aim, common policy and Common Purpose.

      Like

  4. 5
    Owen Jones says:

    But…but…but…

    Oh piss off you troll.

    Like

  5. 6
    Bob Crow top tips says:

    Save money during the housing and banking crisis by living in a council house, while pulling down £150k+ a year.

    Like

  6. 7
    Robert Diamond says:

    Just wait until I tell all about UKIP !

    Like

  7. 9
    Damian "Mister" McBride says:

    What they will say is nothing. They just couldn’t give a monkeys about being hypocritical. Just being right-on.

    Like

  8. 11
    Gordon Brown says:

    The best way to save money is to dispose of all your gold reserves and convert them to Euros

    Like

  9. 12
    EdBallsMutteringIdiot says:

    Labour – the Hypocrisy Party!

    Like

    • 57
      tribal labour voter says:

      not true, tory bad, labour good… always vote labour they good… tory bad. Mungo want more beans

      Like

  10. 14
    Penfold says:

    Ho, ho, ho, hoist with ones own petard.

    But surely, this scheme of arrangement, is used by EVERY charidee in the UK, which seeks to maximise their income rake.

    It’s a standard practice.

    That political parties are using the same scam ( sorry scheme) is just an extension of the application of tax laws/loopholes to gain benefit by taxes management, i.e. reduce the amount of tax payable.

    As for the Limp-Dicks one suspects that they are using the same scheme, if not, then that is more a demonstration of the financial naivety rather than any moralistic/ethical line being taken.

    Like

    • 66
      Anonymous says:

      The LibDumbs don’t have any of these schemes set up as no one will donate them more than a fiver……………

      Like

      • 77
        Madison Bumgarner says:

        I thought that the Limp Dicks lived off the proceeds of fraud – Michael Brown!

        Like

  11. 15
    Ken Livingstone says:

    Fucking hypocrites

    Like

  12. 18
    Frank Carson says:

    What’s the difference between the Church of Scientology and the Labour Party?

    One is filled with creepy, possibly evil people. The other is Tom Cruise’s religion.

    Like

    • 20
      Jimmy Carr says:

      What’s the difference between the Labour Party and Jurassic Park?

      One’s a high technology adventure playground full of dinosaurs, and the other is a family movie.

      Like

      • 23
        Frank Carson says:

        You can’t be Jimmy Carr. That’s far too funny to be from him.

        Like

      • 32
        annette curton says:

        What is the difference Jimmy between a pretend socialist and multi-millionaire that cynically manipulates the tax system for personal profit?.
        Answer came there NONE.

        Like

      • 59
        Not Jimmy Carr says:

        what’s the difference between a labour minister and a loach? One’s a scum sucking bottom feeder and the other one is a fish

        Like

  13. 21
    Rupe vs Xenu says:

    Like

  14. 26
    Don't mess with Murdoch! says:

    Interesting piece on how Scientologists tried to enlist Murdoch’s son Lachlan. This is personal for Rupe!

    http://www.thedailybeast.com/articles/2012/07/02/rupert-murdoch-attacks-scientology-because-it-once-courted-his-son-lachlan.html

    Like

  15. 27
    annette curton says:

    It is all within the rules, and they make them (up as they go along).

    Like

  16. 29
    Nick says:

    The Milibands know their way around IHT rules for their own benefit, rather than as a contribution to party funds.

    Like

  17. 33
    Robert Diamond says:

    In the interests of transparency I shall post my last 3 years Tax Returns onto the internet.

    One up on David Cameron and Gideon Osborne.

    Like

    • 48
      Ken Livingstone says:

      I did that and it didn’t help as I forgot to publish the URL which was 255 random non alphanumeric charcters

      Like

    • 49
      Owain Glyndwr says:

      also brown,balls,milliand, two planks harman,fatso watson and on and on and on

      Like

  18. 37
    Gordon Brown says:

    Nick says he needs a lobotomy.

    I agree with Nick.

    I need one too!

    Like

  19. 38
    Jimmy says:

    How does that wording minimize tax liability? Why would you specify a sum as being post tax unless tax was being paid? Perhaps you should get a grownup to explain it to you before you make a tit of yourself?

    Like

  20. 40
    Gillian Duffy says:

    Who’s Steve McCabe?

    Like

  21. 43
    Greychatter says:

    Return of the Godfather

    http://www.thecommentator.com/article/1370/return_of_the_godfather_tony_blair_and_romania

    Tony a very dangerous politician for the British now lurking on the sidelines of LABOUR

    Like

  22. 46
    Owain Glyndwr says:

    John Simpson, BBC broadcaster, has admitted he used to be a tax avoider, placing his home with an offshore company until he saw the error of his ways.

    At the last count there appears to be about 400 bbc staff avoiding tax and rising

    Like

  23. 47
    NE Frontiersman says:

    I’m always willing to see skullduggery at work, but where’s the avoidance here? The words merely say that the sum is to come out of the net estate after tax is paid, not the gross. The fact that this may short-change the expectations of other legatees may of course not be clear to people whose shaky financial grasp allows them to claim two sets of allowances on the same dwelling.

    Like

  24. 50
    ? says:

    Like

    • 56
      Roscoe Rules says:

      Diamond him can chillax now an smoke a lickle weed

      Like

    • 58
      I don't need no doctor says:

      When are Brown and Balls going to do the decent thing, eh Umunna?

      Like

      • 73
        steel toe-capped boots says:

        probably never, they are too engrossed in their own self-righteousness to ever fall on their swords. I’d even offer to do the chopping head off thing so that they could save face; jolly decent ogf me don’t you think.

        Like

  25. 54
    I don't need no doctor says:

    Why are none of the media asking Brown and Balls about the libor scandal. No mention from the BBC of yet another scandal that happened under labour.

    Like

  26. 62
    Robert Diamond says:

    This mess started with Thatcher,and I will repeat this allegation again and again.

    Like

    • 74
      no milk today says:

      I remember, she stopped children getting free milk at school… Thatcher, Thatcher the milk snatcher; that is why three terms of unregulated banking under labour is her fault.

      Like

  27. 64

    …even going as far as to suggest clever a legalistic wording…

    Could you say this in English for us, please?

    Like

  28. 67
    Steve Miliband says:

    Are the Unions subject to IHT? Or do some suckers really donate to Labour?

    Like

  29. 68
    manfromupton says:

    FREE ROGER HAYES Arrested, secret trial with no jury, imprisoned all in 9hours yesterday. he is a vocal opponent of the EU, banks and the banking system. Arrested I guess before the rest of us cotton on to getting round to a tax revolt.

    Like

  30. 75
  31. 76
    Alex says:

    Sorry, but you have got this wrong (I dearly would have like you to be right).

    All this wording says is that the gift is to be made free of inheritance tax, i.e. if there is any inheritance tax on the estate, this gift is to be paid out of whatever is left after the tax has been paid.

    Like


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VOTER-RECALL
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Before Miliband spoke, a school choir sang ‘Fix You’ by Coldplay. The first verse of which goes like this:

“When you try your best, but you don’t succeed
When you get what you want, but not what you need
When you feel so tired, but you can’t sleep
Stuck in reverse”



cynic says:

Can anyone help me? I went on holiday a week ago and returned to find someone has pulled out the stake and Gordon Brown is back and acting as Prime Minister. What did I miss? Has there been a snap election?


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