Private Eye on Daily Mail’s Lord Rothermere Purchases Parking Space with Offshore Company

Private Eye in their issue for 20th December 2014-8th January 2015 published an article on how Lord Rothermere’s tax dodging had gone so far that he had actually used an offshore company to buy a parking space in London.

Offshore Ownership
Why Lord Rothermere Is Parking Mad

Daily Mail proprietor Lord Rothermere, also known as Jonathan Harmsworth, appears to go to extraordinary lengths to keep his millions out of the taxman’s clutches. The Eye has discovered that he has even bought a parking space near his Kensington office through an offshore company.

Land Registry data shows that in February 2009 a company called Harmsworth Holdings Ltd bought a 125-year lease on space number 76 at the exclusive underground private car park under York House, just across Kensington High Street from the Mail’s Derry Street offices. The company is registered in St Lucia, 300 miles off the South American coast.

Why Rothermere would need this bizarre arrangement is not clear – he would not comment on the matter to the Eye – but buying assets through offshore companies controlled by family trusts carries big tax advantages for “non-domiciled” taxpayers like Milord Rothermere (see Eyes passim).

The company owning the parking space is considered an overseas asset and remains outside the scope of a “non-dom’s” future inheritance tax bill. And if the parking space was bought out of the ample income received by the Bermudian company and offshore trusts through which Rothermere controls Daily and General Trust plc, there would be no “remittance” to the UK to generate an income tax bill.

The same St. Lucian company also owns land and one further, unidentified property in the Kensington area. Yet another Rothermere company, Harmsworth Trust Co (PTC) Ltd, registered in the British Virgin Islands, owns 10 English properties, most of them near the Rothermeres’ neo-Palladian pile in 200-acre Ferne Park in Wiltshire.

(Most non-doms, incidentally, would lose the inheritance tax break once they lived 17 out of 20 years in the UK. But Rothermere can thank his father for choosing France for his tax exile and thus bequeathing it as his country of domicile, since a longstanding agreement between the UK, and France happily overrides this rule.)

Rothermere isn’t alone in using an offshore company to own 12 square metres of tarmac and a precise 1.9 metres of airspace under York House. Fifteen further spaces – each said to be “large enough to accommodate a Rolls Royce”-have been bought in the same way: five through companies incorporated in the BVI, three in the Isle of Man, two in Liberia, one each in Jersey and Guernsey and a couple of unknown origin.

Rothermere’s purchase was for an unquantified amount, although other spaces bought around the same time went for £100,000, the top price being £149,500. Investors in what is described as “London’s first boutique car park” seem well-pleased. “What a delight,” says one. “Having suffered for many years with the aggravation of trying to find a parking space at night, let alone the frustrated nanny on the school run [sic]. This car park has solved all my problems.”

I’m astonished both at how expensive parking space in the rich areas of London are – £100,000 and over! – and how no purchase seems to be too small or too petty for the Rothermeres and people like them to purchase through offshore trusts. Though if they’re paying up to £150,000 for a parking space, you can see why they’d try a tax dodge. Do they do their weekly shopping at Harrod’s or wherever through offshore accounts? And their bespoke tailored suits – are they owned by them, or similarly the property of a company in the British Virgin Islands or St. Lucia!

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One Response to “Private Eye on Daily Mail’s Lord Rothermere Purchases Parking Space with Offshore Company”

  1. sdbast Says:

    Reblogged this on sdbast.

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